Page:United States Statutes at Large Volume 94 Part 2.djvu/165

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PUBLIC LAW 96-000—MMMM. DD, 1980

PUBLIC LAW 96-374—OCT. 3, 1980

94 STAT. 1443

(b) Part E of title IV of the Act is amended by adding after section 463 the following new section: "STUDENT LOAN INFORMATION BY INSTITUTIONS

"SEC. 463A. Each institution of higher education, in order to carry 20 USC I087cc-i. out the provisions of section 463(a)(7), shall, at the time such institu- Ante, p. 1442. tion makes a loan to a student borrower which is made under this part, provide thorough and adequate loan information on loans made under this part to the student borrower. The loan information required by this section shall include— "(1) the yearly and cumulative maximum amounts that may be borrowed by a student; "(2) the terms on which repayment will begin; "(3) the maximum number of years in which the loan must be repaid; "(4) the interest rate that will be repaid and the minimum amount of required monthly payment; "(5) any special options the borrower may have for deferral, cancellation, prepayment, consolidation, or other refinancing of the loan; "(6) a definition of default and the consequences to the borrower if the borrower should default, including a description of any arrangements made with credit bureau organizations; and "(7) to the extent practicable, the effect of accepting the loan on the eligibility of the borrower for other forms of student assistance.". MISCELLANEOUS AMENDMENTS

SEC. 448. (a) Section 462 of the Act is amended by striking out subsection (d). (b) Section 463(b) of the Act is amended by striking out "section 493" and inserting in lieu thereof "section 485". (c)(1) Section 464(b) of the Act is amended to read as follows: "(b) A loan from a student loan fund assisted under this part may be made only to a student who demonstrates financial need in accordance with section 482 and who meets the requirements of section 484.". (2) Section 464(e) of the Act is repealed. (d) Section 465(a)(2) of the Act is amended by striking out the last sentence and inserting in lieu thereof the following: "For purposes of this paragraph, the term 'handicapped children' has the meaning set forth in section 602(1) of the Education of the Handicapped Act.". (e) Section 465(a) of the Act is amended by adding at the end thereof the following new paragraph: "(5) The amount of a loan, and interest on a loan, which is canceled under this section shall not be considered income for purposes of the Internal Revenue Code of 1954.". PART E—GENERAL PROVISIONS STUDENT ASSISTANCE GENERAL PROVISIONS

SEC. 451. (a) Part F of title IV of the Act is amended to read as follows:

20 USC I087bb. 20 USC I087cc. 20 USC 1087dd.

Post, p. 1445. Post, p. 1448.

20 USC I087ee.

26 USC i.