PUBLIC LAW 102-408—OCT. 13, 1992 106 STAT. 2085 graphs (A), (B), and (C) of subsection (a)(1) for the consolidation of eligible student loans. "(B) APPLICABILITY RULE.— Unless otherwise provided in this subsection, the agreements entered into under subparagraph (A) and the loans made under such agreements for the consolidation of eligible student loans under this subsection shall have the same terms, conditions, and benefits as all other agreements and loans made under this section. "(C) DEFINITION.— For the purpose of this subsection, the term 'eligible student loans' means loans— "(i) of the type described in subparagraphs (A), (B), and (C) of subsection (a)(4); and
- (ii) made under subpart I of part A of title VII
of the Public Health Service Act. "(2) INTEREST RATE RULE. — "(A) IN GENERAL. — The portion of each consolidated loan that is attributable to an eligible student loan described in paragraph (IXCXii) shall bear interest at a rate not to exceed the rate determined under subparagraph (B). "(B) DETERMINATION OF THE MAXIMUM INTEREST RATE.—For the 12-month period beginning after July 1, 1992, and for each 12-month period thereafter, beginning on July 1 and ending on June 30, the interest rate applicable under subparagraph (A) shall be equal to the average of the bond equivalent rates of the 91-day Treasury bills auctioned for the quarter prior to July 1, for each 12-month period for which the determination is made, plus 3 percent. "(C) PUBLICATION OF MAXIMUM INTEREST RATE. —The Federal Secretary shall determine the applicable rate of interest ^uii^[-on under subparagraph (B) after consultation with the Sec- ^" retary of the Treasury and shall publish such rate in the Federal Register as soon as practicable after the date of such determination. "(3) SPECIAL RULES. — "(A) No SPECIAL ALLOWANCE RULE.— NO special allowance under section 438 shall be paid with respect to the portion of any consolidated loan under this subsection that IS attributable to any loan described in paragraph (IXCXii). " (B) No INTEREST SUBSIDY RULE.— No interest subsidy under section 428(a) shall be paid on behalf of any eligible borrower for any portion of a consolidated loan under this subsection that is attributable to any loan described in paragraph (IXCXii). " (C) ADDITIONAL RESERVE RULE. —Notwithstanding any other provision of this Act, additional reserves shall not be required for any guaranty agency with respect to a loan made under this subsection. "(D) INSURANCE RULE.—Any insurance premium paid by the borrower under subpart I of part A of title VII of the Public Health Service Act with respect to a loan made under that subpart and consolidated under this subsection shall be retained by the student loan insurance fund established under section 710 of the Public Health Service Act.
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