94 STAT. 1422
PUBLIC LAW 96-374—OCT. 3, 1980 ADMINISTRATIVE IMPROVEMENTS
20 USC 1078.
Definition.
SEC. 417. (a) Section 428(b)(1)(H) of the Act is amended by inserting before the semicolon a comma and the following: "and insures that the proceeds of the premium will not be used for incentive payments to lenders". (b)(1) Section 428(c)(6)(A)(ii) of the Act is amended— (A) by striking out "and" the first time it appears and inserting in lieu thereof a comma; and (B) by inserting after "prevention" a comma and the following: "and the administrative costs of monitoring the enrollment and repayment status of students". (2) Section 428(c)(6)(B) is amended— (A) by striking out "and" at the end of clause (i) and inserting in lieu thereof a comma; (B) by inserting "and" at the end of clause (ii); and (C) by adding after clause (ii) the following: "(iji) 'administrative costs of monitoring the enrollment and repayment status of students' means any administrative costs by a guaranty agency which are directly related to ascertaining the student's enrollment status, prompt notification to the lender of such status, an audit of the note agreement to determine if the provisions of that agreement are consistent with the records of the guaranty agency as to the principal amount of the loan guaranteed, and an examination of the note to assure that the repayment provisions are consistent with the provisions of this part,". (3) Section 428(f)(1)(A) of the Act is amended— (A) by striking out "or" at the end of clause (iii); (B) by redesignating clause (iv) as clause (v); and (C) by inserting after clause (iii) the following new clause: "(iv) the administrative costs of monitoring the enrollment and repayment status of students; or". (4)(A) Section 428(f)(1) of the Act is amended by striking out "(f)(1)(A)" and inserting in lieu thereof "(f)(1)" and by striking out subparagraphs (B) and (C). (B) Such section is further amended by redesignating clauses (i) through (v) as clauses (A) through (E), respectively. (5) Section 428(f)(2) of the Act is amended— (A) by striking out "or" at the end of clause (iii); (B) by redesignating clause (iv) as clause (v); and (C) by inserting after clause (iii) the following new clause: "(iv) the administrative costs of monitoring the enrollment and repayment status of students; or". (6) Section 428(f)(3) of the Act is amended— (A) by striking out "and" at the end of clause (B); (B) by striking out the period at the end of clause (C) and inserting in lieu thereof a comma and the word "and"; and (C) by adding after clause (C) the following new clause: "(D) 'administrative costs of monitoring the enrollment and repayment status of students' means any administrative costs by a guaranty agency which are directly related to ascertaining the student's enrollment status, prompt notification to the lender of such status, an audit of the note agreement to determine if the provisions of that agreement are consistent with the records of the guaranty agency as to the principal amount of the loan guaranteed, and an examination of the note to assure that the
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