PUBLIC LAW 102-325—JULY 23, 1992 106 STAT. 531 academic workload, as determined by the institution, except that interest shall begin to accrue, and shall be paid in accordance with paragraph (2), notwithstanding such delay in the commencement of repayment. The lender shall also notify the borrower of the borrower's option to commence repayment earlier than the beginning of such repayment period and the difference in total cost to the borrower.". (d) CAPITALIZATION OF INTEREST. — Section 428A(c)(2) of the Act 20 USC i078-i. is amended to read as follows: "(2) CAPITALIZATION OF INTEREST.— (A) Interest on loans made under this section— "(i) which are disbiirsed in installments, "(ii) for which payments of principal are deferred under sections 427(a)(2)(C)(i) and 428(b)(l)(M)(i), or "(iii) for which the commencement of the repa3maent period is delayed in accordance with paragraph (1) to coincide with the commencement of the repayment period of a loan made under section 427 or 428, shall, if agreed upon by the borrower and the lender— "(I) be p£dd monthly or quarterly, or "(II) be added to the principal amount of the loan not more frequently than quarterly by the lender. "(B) Such capitalization of interest shall not be deemed to exceed the annual insurable limit on account of the student.". (e) CONFORMING AMENDMENT. —Section 428A(c) of the Act is further amended by adding at the end the following new paragraph: "(6) REPAYMENT PERIOD. — For piirposes of calculating me 10- year repa3rment period under section 428(b)(1)(D), such period shall commence at the time the first payment of principal is due from the borrower.". SEC. 418. PLUS LOANS. (a) NAME OF THE PROGRAM.— Section 428B of the Act (20 U.S.C. 1078-2) is amended by striking the heading of such section and inserting the following: "FEDERAL PLUSLOANS". (b) CHECKS COPAYABLE.— Section 428B of the Act is amended— (1) in subsection (a)— (A) by striking "subsections (c) and (d)" and inserting "subsections (c), (d), and (e)"; and (B) by inserting after "Parents of a dependent student" the following: ", who do not have an adverse credit history as determined pursuant to regulations of the Secretary,"; and (2) in subsection (b)— (A) by striking the subsection designation and heading and paragraphs (1) and (2); and (B) by redesignating paragraph (3) as subsection (b); (3) by redesignating subsections (c) and (d) as subsections (d) and (e), respectively; and (4) by inserting after subsection (b) the following new subsection: "(c) PLUS LOAN DISBURSEMENT. —A ll loans made under this section shall be disbursed by— "(1) an electronic transfer of funds from the lender to the eligible institution; or
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