12 2 STA T .3 231 PUBLIC LA W 11 0– 31 5— AU G .1 4, 200 8Servic e m em b er sC ivi lR elie fA c t(50U. S.C. A p p.5 27), t h e a pplicable i n terest rate t o bes u btracte d in calculatin g the special allo w ance for such loan under this section shall be the interest rate determined under that Act for such loan. ’ ’. ( 3 ) EF F ECTIV E DA TE S . —T he amendment made b y paragraph ( 1 ) shall ta k e effect on the date of enactment of this Act, and the amendment made by paragraph (2) shall take effect for loans for which the first disbursement is made on or after J uly 1, 200 8 . (h) RE P EA LO F DU PLICATIVE N OTICE RE Q UI R E M E N T.—Subsection (e) of section 4 28 (20 U.S.C. 1078(e)) is repealed. (i) I NFORMATION ON DEFAULTS.—Section 428(k) (20 U.S.C. 1078(k)) is amended by adding at the end the following
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‘(4) P ROVISION OF INFORMATION TO B ORRO W ERS IN DEFAULT.—Each guaranty agency that has received a default claim from a lender regarding a borrower, shall provide the borrower in default, on not less than two separate occasions, with a notice, in simple and understandable terms, of not less than the following information: ‘‘(A) The options available to the borrower to remove the borrower’s loan from default. ‘‘( B ) The relevant fees and conditions associated with each option.’’. ( j ) AUT H ORIT Y TO REQUIRE INCOME - BASED REPAYMENT.—Sec- tion 428(m) (20 U.S.C. 1078(m)) is amended— (1) in the subsection heading, by inserting ‘‘AND INCOME- BASED’’ after ‘‘INCOME CONTIN G ENT’’
(2) in paragraph (1)— (A) by inserting ‘‘or income-based repayment plan’’ before ‘‘, the terms and conditions’’; and (B) by inserting ‘‘or an income-based repayment plan under section 4 9 3C, as the case may be’’ before the period at the end; and (3) in the paragraph heading of paragraph (2), by inserting ‘‘OR INCOME-BASED’’ after ‘‘INCOME CONTINGENT’’. SEC.423 . VOLUNTARYF LE XIB LEA G REE M ENTS. Section 428A(a) (20 U.S.C. 1078 – 1(a)) is amended by adding at the end the following: ‘‘(3) REPORT REQUIRED.— ‘‘(A) IN GENERAL.—The Secretary, in consultation with the guaranty agencies operating under voluntary fle x ible agreements, shall report on an annual basis to the author- i z ing committees regarding the program outcomes that the voluntary flexible agreements have had with respect to— ‘‘(i) program integrity and program and cost effi- ciencies, delin q uency prevention, and default aversion, including a comparison of such outcomes to such out- comes for each guaranty agency operating under an agreement under subsection (b) or (c) of section 428; ‘‘(ii) consumer education programs described in sec- tion 433A; and ‘‘(iii) the availability and delivery of student finan- cial aid. ‘‘(B) CONTENTS.—Each report described in subpara- graph (A) shall include— 20USC1 0 78note.
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