PUBLIC LAW 105-244—OCT. 7, 1998 112 STAT. 1715 higher education, repayment of student loans, continued community service, kind and quality of service performed, and career choice and community service selected after graduation."; and (2) in subsection (f), by striking "1993" and inserting
- 1999".
PART D—WILLIAM D. FORD FEDERAL DIRECT LOAN PROGRAM SEC. 451. SELECTION OF INSTITUTIONS. (a) GENERAL AUTHORITY.— Section 453(a) (20 U.S.C. 1087c(a)) is amended— (1) by striking "PHASE-IN" and everything that follows through "GENERAL AUTHORITY. —" and inserting "GENERAL AUTHORITY. —"; and (2) by striking paragraphs (2), (3), and (4). (b) SELECTION CRITERIA.—Section 453(b)(2) is amended by striking "prescribe," and ever3^hing that follows through the end of subparagraph (B) and inserting "prescribe.". (c) ORIGINATION.— Section 453(c) is amended— (1) in paragraph (2)— (A) in the heading, by striking "TRANSITION SELECTION CRITERIA" and inserting "SELECTION CRITERIA"; (B) by striking "For academic year 1994-1995, the Secretary" and inserting "The Secretary"; (C) by striking subparagraph (A); (D) by striking subparagraph (E); and (E) by redesignating subparagraphs (B), (C), (D), (F), (G), and (H) as subparagraphs (A) through (F), respectively; and (2) in paragraph (3)— (A) in the paragraph heading, by striking "AFTER TRANSITION"; and (B) by striking "For academic year 1995-1996 and subsequent academic years, the" and inserting "The". SEC. 452. TERMS AND CONDITIONS. (a) DIRECT LOAN INTEREST RATES. — (1) AMENDMENT. —Section 455(b) (20 U.S.C. 1087e(b)) is amended by adding at the end the following: " (6) INTEREST RATE PROVISION FOR NEW LOANS ON OR AFTER OCTOBER 1, 1998, AND BEFORE JULY 1, 2003. — " (A) RATES FOR FDSL AND FDUSL. —Notwithstanding the preceding paragraphs of this subsection, for Federal Direct Stafford Loans and Federal Direct Unsubsidized Stafford Loans 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— "(i) the bond equivalent rate of 91-day Treasury bills auctioned at the final auction held prior to such June 1; plus "(ii) 2.3 percent, except that such rate shall not exceed 8.25 percent.
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