PUBLIC LAW 105-244—OCT. 7, 1998 112 STAT. 1723 "(1) AWARD YEARS PRIOR TO 2000.— For award years prior to award year 2000, the applicable maximum cohort default rate is 30 percent. "(2) AWARD YEAR 2000 AND SUCCEEDING AWARD YEARS.— For award year 2000 and subsequent years, the applicable maximum cohort default rate is 25 percent.". (d) COHORT DEFAULT RATE DEFINITION. —Section 462(g) (as redesignated by subsection (a)(2)(G)) is amended— 20 USC I087bb. (1) by striking the subsection heading and paragraphs (1) and (2) and inserting the following: "(g) DEFINITION OF COHORT DEFAULT RATE.— "; (2) by striking "(3)(A) For award year 1994 and any succeeding award year, the term" and inserting the following: "(I)(A) The term"; (3) in paragraph (1) (as redesignated by paragraph (2))— (A) by striking subparagraphs (B) and (E); and (B) by redesignating subparagraphs (C), (D), (F), and (G) as subparagraphs (B), (C), (D), and (F), respectively; (C) by inserting after subparagraph (D) (as redesignated by subparagraph (B)) the following: "(E) In determining the number of students who default before the end of such award year, the institution, in calculating the cohort default rate, shall exclude— "(i) any loan on which the borrower has, after the time periods specified in paragraph (2)— "(I) voluntarily made 6 consecutive payments; "(II) voluntarily made all payments currently due; "(III) repaid in full the amount due on the loan; or "(IV) received a deferment or forbearance, based on a condition that began prior to such time periods; "(ii) any loan which has, after the time periods specified in paragraph (2), been rehabilitated or canceled; and "(iii) any other loan that the Secretary determines should be excluded from such determination."; and (4) by striking paragraph (4) and inserting the following: "(2) For purposes of calculating the cohort default rate under this subsection, a loan shall be considered to be in default— "(A) 240 days (in the case of a loan repayable monthly), or "(B) 270 days (in the case of a loan repayable quarterly), after the borrower fails to make an installment payment when due or to comply with other terms of the promissory note.". (e) CONFORMING AMENDMENTS.— Section 462 (20 U.S.C. 1087bb) is amended— (1) in the matter following paragraphs (I)(B) and (2)(D)(ii) of subsection (a), by inserting "cohort" before "default" each place the term appears; (2) in the matter following paragraphs (2)(B) and (3)(C) of subsection (b) (as redesignated by subsection (a)(2)(G)), by inserting "cohort" before "default" each place the term appears; (3) in subsection (d)(2) (as redesignated by subsection (a)(2)(G)), by inserting "cohort" before "default"; and (4) in subsection (g)(l)(F) (as redesignated by subsections (a)(2)(G) and (d)(3)(B)), by inserting "cohort" before "default".
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