123STA T . 1 94 1 PUBLIC LA W 111 – 39 —J UL Y 1 , 2 0 09 Op p ortuni t yAc t (P u bl ic Law1 1 0–3 1 5), i s a me n d ed by stri k in g‘ ‘section 49 3 C’ ’ and inserting ‘‘section 493C,’’ . ( 2 ) EF F ECTIV E DA TE. —Th e amendment made by paragraph (1) shall be e f fecti v e as if enacted as part of the amendments in section 425(d)(1) of the H igher Education Opportunity Act (Public Law 110–315), and shall take effect on J uly 1, 2009. (d) R E H A B I L ITATI ON OF S T U DENT LOAN S .— (1) Section 42 8F (20 U .S.C. 10 7 8– 6 ) is amended— (A) in subsection (a)— (i) by amending paragraph (1) to read as follows
‘‘(1) SALE O R ASSI G N M ENT OF LOAN.— ‘‘(A) I N GENERAL.—Each guaranty agency, upon securing 9 payments made within 20 days of the due date during 10 consecutive months of amounts owed on a loan for which the Secretary has made a payment under para - graph (1) of section 428(c), shall— ‘‘(i) if practicable, sell the loan to an eligible lender
or ‘‘(ii) on or before September 30, 2011, assign the loan to the Secretary if— ‘‘(I) the Secretary has determined that market conditions unduly limit a guaranty agency’s ability to sell loans under clause (i); and ‘‘(II) the guaranty agency has been unable to sell loans under clause (i). ‘‘( B ) M ONTHL YP AYMENTS.— N either the guaranty agency nor the Secretary shall demand from a borrower as monthly payment amounts described in subparagraph (A) more than is reasonable and affordable based on the borrower’s total financial circumstances. ‘‘(C) CONSUMER REPORTING AGENCIES.—Upon the sale or assignment of the loan, the Secretary, guaranty agency or other holder of the loan shall re q uest any consumer reporting agency to which the Secretary, guaranty agency or holder, as applicable, reported the default of the loan, to remove the record of the default from the borrower’s credit history. ‘‘( D ) DUTIES UPON SALE.— W ith respect to a loan sold under subparagraph (A)(i)— ‘‘(i) the guaranty agency— ‘‘(I) shall repay the Secretary 81.5 percent of the amount of the principal balance outstanding at the time of such sale, multiplied by the reinsur- ance percentage in effect when payment under the guaranty agreement was made with respect to the loan; and ‘‘(II) may, in order to defray collection costs— ‘‘(aa) charge to the borrower an amount nottoe x ceed 18.5 percent of the outstanding principal and interest at the time of the loan sale; and ‘‘(bb) retain such amount from the pro- ceeds of the loan sale; and ‘‘(ii) the Secretary shall reinstate the Secretary’s obligation to— ‘‘(I) reimburse the guaranty agency for the amount that the agency may, in the future, expend Deadlin e .20USC1 0 78–3 n ot e.
