12 2 STA T .3 2 56PUBLIC LA W 11 0– 315 — AU G .1 4, 200 8(d)SCHO O LASLEND E RP RO G RA MAU D IT.— S ection435 (d) ( 20U .S. C . 1 0 8 5(d)) i sfur t h er am ended by addin g at the end the fo l- lo w ing
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‘(8) SCHOOL AS LENDER P ROGRAM AUDIT.— E ach institution ser v ing as an eligible lender under p aragraph (1)(E) , and each eligible lender serving as a trustee for an institution of higher education or an organi z ation affiliated with an institution of higher education, shall annually complete and submit to the Secretary a compliance audit to determine whether— ‘‘(A) the institution or lender is using all proceeds from special allowance payments and interest payments from borrowers, interest subsidies received from the D epartment, and any proceeds from the sale or other dis- position of loans, for need-based grant programs, in accord- ance with paragraph (2)(A)(viii)
‘‘( B ) the institution or lender is using not more than a reasonable portion of the proceeds described in paragraph (2)(A)(viii) for direct administrative e x penses; and ‘‘(C) the institution or lender is ensuring that the pro- ceeds described in paragraph (2)(A)(viii) are being used to supplement, and not to supplant, F ederal and non-Fed- eral funds that would otherwise be used for need-based grant programs. ’ ’. (e) COHORT DE F AULT R ATES.— (1) AMENDMENTS.—Section 435(m) (20 U.S.C. 1085(m)) is amended— (A) in paragraph (1)— (i) in the first sentence of subparagraph (A), by stri k ing ‘‘end of the following fiscal year’’ and inserting ‘‘end of the second fiscal year following the fiscal year in which the students entered repayment’’; (ii) in subparagraph (B), by striking ‘‘such fiscal year’’ and inserting ‘‘such second fiscal year’’; (iii) in subparagraph (C), by striking ‘‘end of the fiscal year immediately following the year in which they entered repayment’’ and inserting ‘‘end of the second fiscal year following the year in which they entered repayment’’; (B) in paragraph (2)(C)— (i) by striking ‘‘end of such following fiscal year is not considered as in default for the purposes of this subsection’’ and inserting ‘‘end of the second fiscal year following the year in which the loan entered repayment is not considered as in default for purposes of this subsection’’; and (ii) by striking ‘‘such following fiscal year’’ and inserting ‘‘such second fiscal year’’; and (C) in paragraph (4)— (i) by amending the paragraph heading to read as follows: ‘‘COLLECTION AND REPORTING OF COHORT DEFAULT RATES AND LIFE OF COHORT DEFAULT RATES.— ’’; and (ii) by amending subparagraph (A) to read as fol- lows: ‘‘(A) T he Secretary shall publish not less often than once every fiscal year a report showing cohort default data and life of cohort default rates for each category of institution, Publicat i ons.De a d line. R e p o r ts. Deadline.
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