86 STAT.]
PUBLIC LAW 9 2 - 3 1 8 - J U N E 23, 1972
" (E) iiiiy othei- earnings of the funds; "(o) provide that such student loan fund shall be used only for— •"(A) loans to students, in accordance with the provisions of this part, " (B) administrative expenses, as provided in subsection ^^)' ... " (C) capital distributions, as provided m section 466, and •'(D) costs of litigation, and other collection costs agreed to by the Commissioner in connection with the collection of a loan from the fund (and interest thereon) or a charge assessed pursuant to regulations under section 461(c)(1)(G); "(4) provide that where a note or written agreement evidencing a loan has been in default for at least 2 years despite due diligence on the part of the institution in making collection thereon, the institution may assign its rights under such note or agreement to the United States, without recompense, and that in that event any sums collected on such a loan shall be deposited in the general fund of the Treasury; and "(5) include such other provisions as may be necessary to protect the financial interest of the United States and promote the purposes of this part as are agreed to by the Commissioner and the institution. "(b) An institution which has entered into an agreement under subsection (a) shall be entitled, for each fiscal year during which it makes student loans from a student loan fund established under such agreement, to a payment in lieu of reimbursement for its expenses in administering its student loan program under this part during such year. Such payment shall be made in accordance with section 498. "TERMS
OF LOAXS
464. (a)(1) Loans from any student loan fund established pursuant to an agreement under section 468 to any student by any institution shall, subject to such conditions, limitations, and requirements as the Commissioner shall prescribe by regulation, be made on such terms and conditions as the institution may determine. "(2) The aggregate of the loans for all years made by institutions of higher education from loan funds established pursuant to agreements under this part may not exceed— " (A) $10,000 in the case of any graduate or professional student (as defined by regulations of the Commissioner, and including any loans from such funds made to such person before he became a graduate or professional student); " (B) $5,000 in the case of a student who has successfully completed two 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 of the Commissioner, and including any loans from such funds made to such person before he became such a student); and " (C) $2,500 in the case of any other student. "(3) Regulations of the Commissioner under paragraph (1) shall be designed to prevent the impairment of the capital of student loan funds to the maximum extent practicable and with a view toward the objective of enabling the student to complete his course of study. " (b) A loan from a student loan fund assisted under this part may be made only to a student who— "(1) is in need of the amount of the loan to pursue a course of study at such institution: "SP:C.
/;
275
• Post,
p. 278.
Ante, p. 272.
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