Page:United States Statutes at Large Volume 100 Part 2.djvu/348

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PUBLIC LAW 99-000—MMMM. DD, 1986

100 STAT. 1450

Armed Forces.

22 USC 2501 note. 42 USC 4951

26 USC 501.

PUBLIC LAW 99-498—OCT. 17, 1986

accrue (I) prior to the beginning date of repayment determined under subparagraph (A)(i), or (II) during any period in which repayment is suspended by reason of paragraph (2); "(E) unless the borrower is a minor and the note or other evidence of obligation executed by him would not, under applicable law, create a binding obligation, shall provide that the loan shall be made without security and without endorsement; "(F) shall provide that the liability to repay the loan shall be canceled upon the death of the borrower, or if he becomes permanently and totally disabled as determined in accordance with regulations of the Secretary; "(G) shall provide that no note or evidence of obligation may be assigned by the lender, except upon the transfer of the borrower to another institution participating under this part (or, if not so participating, is eligible to do so and is approved by the Secretary for such purpose), to such institution, and except as necessary to carry out section 463(a)(6); "(H) pursuant to regulations of the Secretary, shall provide for an assessment of a charge with respect to the loan for failure of the borrower to pay all or part of an installment when due, which shall include the expenses reasonably incurred in attempting collection of the loan, to the extent permitted by the Secretary, except that no charge imposed under this subparagraph shall exceed 20 percent of the amount of the monthly payment of the borrower; and (I) shall contain a notice of the system of disclosure of information concerning default on such loan to credit bureau organizations under section 463(c). "(2)(A) No repayment of principal of, or interest on, any loan from a student loan fund assisted under this part shall be required during any period in which the borrower— "(i) is carrying at least one-half the normal full-time academic workload at an institution of higher education or at a comparable institution outside the United States which is approved for this purpose by the Secretary; "(ii) is a member of the Armed Forces of the United States, is an active duty member of the National Oceanic and Atmospheric Administration Corps, or is an officer in the Commissioned Corps of the Public Health Service; "(iii) is in service as a volunteer under the Peace Corps Act; "(iv) is in service as a volunteer under the Domestic VolunteerAct ofl973; "(v) is in service, comparable to the service referred to in clauses (iii) and (iv), as a full-time volunteer for an organization which is exempt from taxation under section 501(c)(3) of the Internal Revenue Code of 1954; "(vi) is serving an internship, the successful completion of which is required in order to receive professional recognition required to begin professional practice or service; "(vii) is temporarily totally disabled (as defined in section 435(g)), as established by sworn affidavit of a qualified physician, or during which the borrower is unable to secure employ-j ment by reason of the care required by a dependent who is so disabled; "(viii) is on parental leave, as defined in section 435(h); or "(ix) is a mother with preschool age children who is just entering or reentering the workforce and who is compensated at