PUBLIC LAW 105-244 —OCT. 7, 1998 112 STAT. 1725 reporting the information described in paragraph (2) before a loan is paid in full,"; and (4) by inserting sifter paragraph (4) the following: "(5) Each institution of higher education shall notify the appro- Notification, priate credit bureau organizations whenever a borrower of a loan that is made and held by the institution and that is in default makes 6 consecutive monthly payments on such loan, for the purpose of encouraging such organizations to update the status of information maintained with respect to that borrower.". (c) CONFORMING AMENDMENT.— Section 463(d) is amended by striking "subsection (a)(10)" and inserting "subsection 20 USC l087cc. (a)(9)". SEC. 464. TERMS OF LOANS. (a) TERMS AND CONDITIONS; ANNUAL LIMITS. — Paragraph (2) of section 464(a) (20 U.S.C. 1087dd(a)) is amended to read as follows: "(2)(A) Except as provided in paragraph (4), the total of loans made to a student in any academic year or its equivalent by an institution of higher education from a loan fund established pursuant to an agreement under this part shall not exceed— "(i) $4,000, in the case of a student who has not successfully completed a program of undergraduate education; or "(ii) $6,000, in the case of a graduate or professional student Regulations, (as defined in regulations issued by the Secretary). "(B) Except as provided in paragraph (4), the aggregate unpaid principal amount for all loans made to a student by institutions of higher education from loan funds established pursuant to agreements under this part may not exceed— "(i) $40,000, in the case of any graduate or professional student (as defined by regulations issued by the Secretary, and including any loans from such funds made to such person before such person became a graduate or professional student); "(ii) $20,000, in the case of a student who has successfully Regulations, completed 2 years of a program of education leading to a bachelor's degree but who has not completed the work necessary for such a degree (determined under regulations issued by the Secretary), and including any loans from such funds made to such person before such person became such a student; and "(iii) $8,000, in the case of any other student.". (b) NEED AND ELIGIBILITY. —Section 464(b) is amended— (1) in paragraph (1), by adding at the end the following: "A student who is in default on a loan under this part shall not be eligible for an additional loan under this part unless such loan meets one of the conditions for exclusion under section 462(g)(1)(E). "; and (2) by amending paragraph (2) to read as follows: "(2) If the institution's capital contribution under section 462 is directly or indirectly based in part on the financial need demonstrated by students who are (A) attending the institution less than full time, or (B) independent students, then a reasonable portion of the loans made from the institution's student loan fund containing the contribution shall be made available to such students.". (c) CONTENTS OF LOAN AGREEMENT. — Section 464(c) is amended—
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