112 STAT. 1710 PUBLIC LAW 105-244—OCT. 7, 1998 SEC. 432. DEBT MANAGEMENT OPTIONS. Section 437A (20 U.S.C. 1087-0) is repealed. SEC. 433. SPECIAL ALLOWANCES. (a) DEDUCTION FROM INTEREST AND SPECIAL ALLOWANCE SUBSIDIES. — Paragraph (1) of section 438(c) (20 U.S.C. 1087-1) is amended to read as follows: "(1) DEDUCTION FROM INTEREST AND SPECIAL ALLOWANCE SUBSIDIES. —(A) Notwithstanding subsection (b), the Secretary shall collect the amount the lender is authorized to charge as an origination fee in accordance with paragraph (2) of this subsection— "(i) by reducing the total amount of interest and special allow£ince payable under section 428(a)(3)(A) and subsection (b) of this section, respectively, to any holder; or "(ii) directly from the holder of the loan, if the lender fails or is not required to bill the Secretary for interest and special allowance or withdraws from the program with unpaid loan origination fees. "(B) If the Secretary collects the origination fee under this subsection through the reduction of interest and special allowance, and the total amount of interest and special allowance payable under section 428(a)(3)(A) and subsection (b) of this section, respectively, is less than the amount the lender was authorized to charge borrowers for origination fees in that quarter, the Secretary shall deduct the excess amount from the subsequent quarters' pa3anents until the total amount has been deducted.". (b) ORIGINATION FEES. — Section 438(c) is amended— (1) in paragraph (2)— (A) by striking "(other than" and inserting "(including loans made under section 428H, but excluding"; and (B) by adding at the end the following new sentence: "Except as provided in paragraph (8), a lender that charges an origination fee under this paragraph shall assess the same fee to all student borrowers."; and (2) by adding at the end the following new paragraph: " (8) EXCEPTION.— Notwithstanding paragraph (2), a lender may assess a lesser origination fee for a borrower demonstrating greater financial need as determined by such borrower's adjusted gross family income.". (c) COLLECTION OF FEES. —Paragraph (1) of section 438(d) is amended to read as follows: "(1) DEDUCTION FROM INTEREST AND SPECIAL ALLOWANCE SUBSIDIES.— "(A) IN GENERAL.— Notwithstanding subsection (b), the Secretary shall collect a loan fee in an amount determined in accordance with paragraph (2)— "(i) by reducing the total amount of interest and special allowance payable under section 428(a)(3)(A) and subsection (b), respectively, to any holder of a loan; or "(ii) directly from the holder of the loan, if the lender— "(I) fails or is not required to bill the Secretary for interest and special allowance payments; or
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