PUBLIC LAW 99-498—OCT. 17, 1986
100 STAT. 1375
"(3) RESTRICTIONS ON INDUCEMENTS, MAILINGS, AND ADVERTIS-
ING.—A guaranty agency shall not— "(A) offer, directly or indirectly, premiums, payments, or other inducements to any educational institution or its employees in order to secure applicants for loans under this part; "(B) conduct unsolicited mailings to students enrolled in secondary school of student loan application forms; or "(C) conduct fraudulent or misleading advertising concerning loan availability. "(4) TARGETED TEACHER DEFERMENT RULE.—(A) The deferment State and local for service as a teacher in a public or nonprofit private ele- governments, mentary or secondary school shall be for service as such a teacher in shortage areas prescribed by the Secretary, in consultation with the chief State school officer or, in the case of nonprofit private elementary or secondary schools, with appropriate officials of the nonprofit private schools in each State in accordance with this subparagraph. "(B) For the purpose of this paragraph, the term 'shortage areas' means (i) geographic areas of the State in which there is a shortage of elementary and secondary school teachers, and (ii) an area of shortage of elementary and secondary school teachers in specific grade levels and in specific academic, instructional, subject matter, and discipline classifications. In carrying out the provisions of this subparagraph, the Secretary shall give special consideration to areas in which emergency certification of individuals in a State is being used to correct teacher shortages; and to States which have retirement laws permitting early retirement. "(5) SPECIAL RULE.—For the purpose of paragraph (1)(M) of this subsection, the Secretary shall approve any course of study at a foreign university that is accepted for the completion of a recognized international fellowship program by the administrator of such a program. "(6) GUARANTY AGENCY INFORMATION TRANSFERS.—(A) Prior to the implementation of section 485B, any guaranty agency may request information regarding loans made after January 1, 1987, to students who are residents of the State for which the agency is the designated guarantor, from any other guaranty agency insuring loans to such students. "(B) Upon a request pursuant to subparagraph (A), a guaranty agency shall provide— "(i) the name and the social security number of the borrower; and "(ii) the amount borrowed, the cumulative amount borrowed, the income reported on the loan application, and the purposes and the cost of attendance of the borrower. "(C) Any costs associated with fulfilling the request of a guaranty agency for information on students shall be paid by the guaranty agency requesting the information. '(c) GUARANTY AGREEMENTS FOR REIMBURSING LOSSES.— "(1) AUTHORITY TO ENTER INTO AGREEMENTS.—(A)
The Secretary may enter into a guaranty agreement with any guaranty agency, whereby the Secretary shall undertake to reimburse it, under such terms and conditions as the Secretary may establish, with respect to losses (resulting from the default of the student borrower) on the unpaid balance of the principal and
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