100 STAT. 356 20 USC 1078.
PUBLIC LAW 99-272—APR. 7, 1986 "(B) for collection of the amount due the Secretary from a borrower pursuant to section 428(c)(2)(D) of this title until six years following the date on which the loan is assigned to the Secretary under part B of this title; and "(C) for collection of the amount due from a borrower on a loan made under this part until six years following the date on which the loan is assigned, transferred, or referred to the Secretary under part E of this title. "(b) Notwithstanding any provision of State law to the contrary— "(1) a borrower who has defaulted on a loan made under this title shall be required to pay, in addition to other charges specified in this title, reasonable collection costs; and "(2) in collecting any obligation arising from a loan made under part B of this title, a guaranty agency or the Secretary shall not be subject to a defense raised by any borrower based on a claim of infancy.".
SEC. 16034. PROGRAM PARTICIPATION AGREEMENTS. (a) U S E OF INTEREST ON FUNDS RECEIVED.—Section 487(a)(1) of the
20 USC 1094.
Act is amended to read as follows: "(1) The institution will use funds received by it for any program under this title and any interest or other earnings thereon solely for the purposes specified in, and in accordance with the provision of, that program.". (b) A U D I T AND RECOVERY OF F U N D S. — S e c t i o n 487(b)(1) of the Act is
31 USC 7501 et seq-
amended by striking o u t subparagraph (A) and inserting in lieu thereof the following: "(A)(i) except a s provided in clause (ii), a financial and complia n c e a u d i t of a n eligible institution, w i t h r e g a r d to any funds obtained by it under t h i s title or obtained from a s t u d e n t or a p a r e n t w h o has a loan insured or g u a r a n t e e d by the Secretary under t h i s title, a t least once every t w o year s and covering the period since the most r e c e n t audit, conducted by a qualified, i n d e p e n d e n t organization o r person i n accordance w i t h standard s established by the Comptroller G e n e r a l for the a u d i t of government a l organization, program s, and functions, and a s prescribed in regulations of the Secretary, the r e s u l t s of which shall be s u b m i t t e d to the Secretary; or "(ii) w i t h r e g a r d to a n eligible institution which is audited under chapter 75 of title 31, United States Code, d e e m i n g such a u d i t to satisfy the requirements of clause (i) for the period covered by such audit;".
Subtitle D—Effective Dates 20 USC 1072
SEC. 16041. EFFECTIVE DATES. (a) GENERAL RULE.—Except as otherwise provided in this section,
the amendments made by this subtitle shall take effect on the date of enactment of this Act. (b) PROSPECTIVE PROVISIONS; LOANS.—(1) The amendments made by sections 16012, 16027, and 16028 shall apply to loans to cover the cost of attendance for any period of enrollment beginning on or after January 1, 1986. (2) The amendments made by section 16013 shall apply to loans made on or after July 1, 1986.
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