PUBLIC LAW 105-244 —OCT. 7, 1998 112 STAT. 1679 "(3) EXCEPTION. — Notwithstanding paragraphs (1) and (2), during any period in which funds are owed to the Federal Fund as a result of transfer under section 422A(f)— "(A) moneys in the Operating Fund may only be used for expenses related to the student loan programs authorized under this part; and "(B) the Secretary may regulate the uses or expenditure of moneys in the Operating Fund.". SEC. 414. SCOPE AND DURATION OF FEDERAL LOAN INSURANCE PRO- GRAM. Section 424(a) (20 U.S.C. 1074(a)) is amended— (1) by striking "October 1, 2002" and inserting "October 1, 2004"; and (2) by striking "September 30, 2006" and inserting "September 30, 2008". SEC. 415. LIMITATIONS ON INDIVIDUAL FEDERALLY INSURED LOANS AND FEDERAL LOAN INSURANCE. Section 425(a)(1)(A) (20 U.S.C. 1075(a)(l)(A)) is amended— (l)in clause (i)— (A) by inserting "and" after the semicolon at the end of subclause (I); and (B) by striking subclauses (II) and (III) and inserting the following: "(II) if such student is enrolled in a program of undergraduate education which is less than one academic year, the maximum annual loan amount that such student may receive may not exceed the amount that bears the same ratio to the amount specified in subclause (I) as the length of such program measured in semester, trimester, quarter, or clock hours bears to one academic year;"; and (2) by inserting "and" after the semicolon at the end of clause (iii). SEC. 416. APPLICABLE INTEREST RATES. (a) APPLICABLE INTEREST RATES.— (1) AMENDMENT.— Section 427A (20 U.S.C. 1077a) is amended— (A) by redesignating subsections (k) and (1) as subsections (1) and (m), respectively; and (B) by inserting after subsection (j) the following: "(k) INTEREST RATES FOR NEW LOANS ON OR AFTER OCTOBER 1, 1998, AND BEFORE JULY 1, 2003. — "(1) IN GENERAL.— Notwithstanding subsection (h) and subject to paragraph (2) of this subsection, with respect to any loan made, insured, or guaranteed under this part (other than a loan made pursuant to section 428B or 428C) for which the first disbursement is made on or after October 1, 1998, and before July 1, 2003, the applicable rate of interest shall, during any 12-month period beginning on July 1 and ending on June 30, be determined on the preceding June 1 and be equal to— "(A) the bond equivsdent rate of 91-day Treasury bills auctioned at the final auction held prior to such June 1; plus "(B) 2.3 percent,
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