12 2 STA T .74 2 PUBLIC LA W 11 0– 227 —M A Y 7 , 200 8enrol l m en ti n a n u n d er g raduate degree or c erti f icate p rogram .‘ ‘ (B)AG G RE G AT E LIM IT S . —Th ema x imum aggregate amount of loan s under this section a student descri b ed in subparagraph (A) ma y borro w shall be $57, 5 0 0. ‘‘(5) C A P ITALI Z E D I N TEREST.— I nterest capitali z ed shall not be deemed to exceed a maximum aggregate amount determined under subparagraph (B) of paragraph ( 2 ),( 3 ),or( 4 ). ’ ’. (b) S T U DENT E LIGI B ILIT Y .— L oan limit increases authorized by the amendments made by this section shall be a v ailable only to students who meet the re q uirements of section 4 8 4(a) of the H igher Education Act of 196 5 (20 U .S.C. 1091(a)). (c) E F FE C TI V E D ATE.—The amendments made by this section shall be effective for loans first disbursed on or after J uly 1, 2008. SEC.3 . GRA CE P ER IODF OR PARE NT P LU S LOANS. (a) AMENDMENT.—Section 428B(d) of the Higher Education Act of 1965 (20 U.S.C. 1078 – 2(d)) is amended by amending paragraphs (1) and (2) to read as follows
‘‘(1) C O MMENCEMENT OF REPAYMENT.— R epayment of prin - cipal on loans made under this section shall— ‘‘(A) commence not later than— ‘‘(i) 60 days after the date such loan is disbursed by the lender, except as provided in clause (ii)
and ‘‘(ii) if agreed upon by a parent borrower, the day after 6 months after the date the student for whom the loan is borrowed ceases to carry at least one- half the normal full-time academic wor k load (as deter- mined by the institution); and ‘‘(B) be sub j ect to deferral during any period during which the graduate or professional student or the parent meets the conditions required for a deferral under section 427(a)(2)(C) or 428(b)(1)( M ). ‘‘(2) CAPITALIZATION OF INTEREST.— ‘‘(A) IN GENERAL.—Interest on loans made under this section— ‘‘(i) which accrues prior to the beginning of repay- ment under paragraph (1)(A)(i), shall be added to the principal amount of the loan; and ‘‘(ii) which accrues prior to the beginning of repay- ment under paragraph (1)(A)(ii) or during a period in which payments of principal are deferred pursuant to paragraph (1)(B) shall, if agreed upon by the bor- rower and the lender— ‘‘(I) be paid monthly or quarterly; or ‘‘(II) be added to the principal amount of the loan not more frequently than quarterly by the lender. ‘‘(B) INSURABLE LIMITS.—Capitalization of interest under this paragraph shall not be deemed to exceed the annual insurable limit on account of the borrower.’’. (b) CONFORMING AMENDMENT.—Section 428(b)(7)(C) of such Act (20 U.S.C. 1078(b)(7)(C)) is amended by striking ‘‘, 428B,’’. (c) EFFECTIVE DATE.—The amendments made by this section shall be effective for loans first disbursed on or after July 1, 2008. 20USC1 0 78note. 20 USC 1078 – 8 note. 20 USC 1078–8 note.
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