PUBLIC LAW 109–171—FEB. 8, 2006
120 STAT. 171
(1) in paragraph (1)(B), by striking ‘‘unless the Secretary’’ and all that follows through ‘‘designated guarantor’’; (2) by striking paragraph (2); (3) by redesignating paragraph (3) as paragraph (2); and (4) by striking paragraph (4). (g) FRAUD; REPAYMENT REQUIRED.—Section 428B(a)(1) (20 U.S.C. 1078–2(a)(1)) is further amended— (1) by striking ‘‘and’’ at the end of subparagraph (A); (2) by redesignating subparagraph (B) as subparagraph (C); and (3) by inserting after subparagraph (A) the following new subparagraph: ‘‘(B) in the case of a graduate or professional student or parent who has been convicted of, or has pled nolo contendere or guilty to, a crime involving fraud in obtaining funds under this title, such graduate or professional student or parent has completed the repayment of such funds to the Secretary, or to the holder in the case of a loan under this title obtained by fraud; and’’. (h) DEFAULT REDUCTION PROGRAM.—Section 428F(a)(1) (20 U.S.C. 1078–6(a)(1)) is amended— (1) in subparagraph (A), by striking ‘‘consecutive payments for 12 months’’ and inserting ‘‘9 payments made within 20 days of the due date during 10 consecutive months’’; (2) by redesignating subparagraph (C) as subparagraph (D); and (3) by inserting after subparagraph (B) the following new subparagraph: ‘‘(C) A guaranty agency may charge the borrower and retain collection costs in an amount not to exceed 18.5 percent of the outstanding principal and interest at the time of sale of a loan rehabilitated under subparagraph (A).’’. (i) EXCEPTIONAL PERFORMANCE INSURANCE RATE.—Section 428I(b)(1) (20 U.S.C. 1078–9(b)(1)) is amended— (1) in the heading, by striking ‘‘100 PERCENT’’ and inserting ‘‘99 PERCENT’’; and (2) by striking ‘‘100 percent of the unpaid’’ and inserting ‘‘99 percent of the unpaid’’. (j) UNIFORM ADMINISTRATIVE AND CLAIMS PROCEDURE.—Section 432(l)(1)(H) (20 U.S.C. 1082(l)(1)(H)) is amended by inserting ‘‘and anticipated graduation date’’ after ‘‘status change’’. (1) Section 428(a)(3)(A)(v) (20 U.S.C. 1078(a)(3)(A)(v)) is amended— (A) by striking ‘‘or’’ at the end of subclause (I); (B) by striking the period at the end of subclause (II) and inserting ‘‘; or’’; and (C) by adding after subclause (II) the following new subclause: ‘‘(III) in the case of a loan disbursed through an escrow agent, 3 days before the first disbursement of the loan.’’. (2) Section 428(c)(1)(A) (20 U.S.C. 1078(c)(1)(A)) is amended by striking ‘‘45 days’’ in the last sentence and inserting ‘‘30 days’’. (3) Section 428(i)(1) (20 U.S.C. 1078(i)(1)) is amended by striking ‘‘21 days’’ in the third sentence and inserting ‘‘10 days’’.
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