Page:United States Statutes at Large Volume 82.djvu/677

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[82 STAT. 635]
[82 STAT. 635]
PUBLIC LAW 90-000—MMMM. DD, 1968

82

STAT.]

PUBLIC

LAW 90-460-AUG. 3, 1968

635

1041. (2) Section 9(a)(4) of such Act is amended by striking out "June 79 Stat. 988. 20 USC 30, 1968" and all that follows down through the period and inserting in lieu thereof "October 31, 1968." (3) Section 10(b) of such Act is amended by adding at the end 20 USC 939. thereof the following new sentence: "No loan may be made under this section after October 31, 1968." I N C R E A S E OF MAXIMUM I N T E R E S T RATE U N D E R S T U D E N T INSURANCE P R O G R A M S; ADMINISTRATIVE COSTS

LOAN

SEC. 2. (a)(1) Section 42r(b) of the Higher Education Act of 1965 is amended by striking out "6 per centum" and all that follows and inserting in lieu thereof "7 per centum per annum on the unpaid principal balance of the loan." (2) Section 428(b)(1)(E) of the Higher Education Act of 1965 is amended by striking out "6 per centum" and inserting in lieu thereof "7 per centum". (b)(1) Paragraph (2) of section 428(a) of the Higher Education Act of 1965 is amended by inserting " (A) " after " (2) " and by adding at the end of that subparagraph the following new subparagraph: " (B) When, due to State laws which do nor permit an interest rate of 7 per centum per annum, and when the Commissioner determines that such statutory limitations threaten to impede the carrying out of the purposes of this part, he may authorize an administrative cost allowance, not to exceed 1 per centum per annum of the unpaid principal balance, for the term of any loan insured by the Commissioner under this part or under a State or private nonprofit student loan insurance program covered by an agreement under subnotion (b). Such an administrative cost allowance may be paid on loans made during the period beginning on the date of enactment of this subparagraph and ending on October 31, 1968." (2)(A) Section 428(a)(1) of such Act is amended by inserting after the first sentence the following new sentence: "In addition, the Commissioner shall pay an administrative cost allowance in the amount established by paragraph (2)(B) of this subsection with respect to loans to any such student but without regard to the student's adjusted family income." (B) Section 4 2 8 (a)(2)(A) (as so designated by this section) is amended by inserting after the first sentence the following: "For purposes of the preceding sentence, the term 'interest' includes any administrative cost allowance paid pursuant to subparagraph (B). " (C) The second sentence of section 428(a)(2)(A) of such Act is amended by inserting "and the administrative cost allowance payable under this subsection" after "determined". (D) Section 428(a)(3) of such Act is amended by inserting "or of administrative cost allowances" after "interest". (3) Section 421(b)(2) of such Act is amended by inserting "and administrative cost allowances" after "interest". (c)(1) Section 8(b) of the National Vocational Student T^oan Insurance Act of 1965 is amended by striking out "6 per centum" and all that follows and inserting in lieu thereof "7 per centum per annum on the unpaid principal balance of the loan." (2) Section 9(b)(1)(E) of the National Vocational Student Loan Insurance Act of 1965 is amended by striking out "6 per centum" and inserting in lieu thereof "7 per centum". (d)(1) Paragraph (2) of section 9(a) of the National Vocational Student Loan Insurance Act of 1965 is amended by inserting " (A) " after " (2) " and by adding at the end of that subparagraph the following new subparagraph:

79 Stat. 1240. 20 USC 1077.

20 USC 1078.

P°«'. P- 1022

79 Stat. 1236 22us^c98°7°

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