112 STAT. 1682 PUBLIC LAW 105-244—OCT. 7, 1998 (2) CONSOLIDATION LOANS.—Section 428C(c)(l) (20 U.S.C. 1078-3(c)(l)) is amended by striking everything preceding subparagraph (B) and inserting the following: "(1) INTEREST RATE. —(A) Notwithstanding subparagraphs (B) and (C), with respect to any loan made under this section for which the application is received by an eligible lender on or after October 1, 1998, and before July 1, 2003, the applicable interest rate shall be determined under section 427A(k)(4).". (3) CONFORMING AMENDMENT.— Section 438(b)(2) (20 U.S.C. 1087-l(b)(2)(C)(ii)) is amended— (A) in subparagraph (A), by striking "(F), and (G)" and inserting "(F), (G), and (H)"; (B) in subparagraph (B)(iv), by striking "(F), or (G)" and inserting "(F), (G), or (H)"; and (C) in subparagraph (C)(ii), by striking "subparagraph (G)" and inserting "subparagraphs (G) and (H)". Applicability. (c) EFFECTIVE DATE. —The amendments made by this section 20 USC 1077a shall apply with respect to any loan made, insured, or guaranteed "° ^- under part B of title IV of the Higher Education Act of 1965 for which the first disbursement is made on or after October 1, 1998, and before July 1, 2003, except that such amendments shall apply with respect to any loan made under section 428C of such Act for which the application is received by an eligible lender on or after October 1, 1998, and before July 1, 2003. SEC. 417. FEDERAL PAYMENTS TO REDUCE STUDENT INTEREST COSTS. (a) FEDERAL INTEREST SUBSIDIES.— (1) REQUIREMENTS TO RECEIVE SUBSIDY. — Section 428(a)(2) (20 U.S.C. 1078(a)(2)) is amended— (A) in subparagraph (A)(i), by striking subclauses (I), (II), and (III) and inserting the following: "(I) sets forth the loan amount for which the student shows financial need; and "(II) sets forth a schedule for disbursement of the proceeds of the loan in installments, consistent with the requirements of section 428G; and"; and (B) by amending subparagraph (B) to read as follows: "(B) For the purpose of clause (ii) of subparagraph (A), a student shall qualify for a portion of an interest payment under paragraph (1) if the eligible institution has determined and documented the student's amount of need for a loan based on the student's estimated cost of attendance, estimated financial assistance, and, for the purpose of an interest payment pursuant to this section, expected family contribution (as determined under part F), subject to the provisions of subparagraph (D)."; (C) by amending subparagraph (C) to read as follows: "(C) For the purpose of subparagraph (B) and this paragraph— "(i) a student's cost of attendance shall be determined under section 472; "(ii) a student's estimated financial assistance means, for the period for which the loan is sought— "(I) the amount of assistance such student will receive under subpart 1 of part A (as determined in accordance with section 484(b)), subpart 3 of part A, and parts C and E;
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