Laws & Guidance HIGHER EDUCATION
1998 Amendments to the Higher Education Act of 1965
P.L. 105-244

TITLE IV--STUDENT ASSISTANCE

PART E--FEDERAL PERKINS LOANS

SEC. 463. AGREEMENTS WITH INSTITUTIONS OF HIGHER EDUCATION

(a) CONTENTS OF AGREEMENTS- Section 463(a) (20 U.S.C. 1087cc(a)) is amended--

(1) by amending subparagraph (B) of paragraph (2) to read as follows:

`(B) a capital contribution by an institution in an amount equal to one-third of the Federal capital contributions described in subparagraph (A);';

(2) by striking paragraph (4); and

(3) by redesignating paragraphs (5) through (10) as paragraphs (4) through (9);

(b) AGREEMENTS WITH CREDIT BUREAUS- Section 463(c) is amended--

(1) in paragraph (1)--

(A) by striking `the Secretary shall' and inserting `the Secretary and each institution of higher education participating in the program under this part shall'; and

(B) by inserting `and regarding loans held by the Secretary or an institution' after `section 467';

(2) in paragraph (2)--

(A) in the matter preceding subparagraph (A), by striking `by the Secretary' and all that follows through `of--' and inserting `by the Secretary or an institution, as the case may be, to such organizations, with respect to any loan held by the Secretary or the institution, respectively, of--';

(B) by amending subparagraph (A) to read as follows:

`(A) the date of disbursement and the amount of such loans made to any borrower under this part at the time of disbursement of the loan;';

(C) in subparagraph (B)--

(i) by inserting `the repayment and' after `concerning'; and

(ii) by striking `any defaulted' and inserting `such'; and

(D) in subparagraph (C), by inserting `, or upon cancellation or discharge of the borrower's obligation on the loan for any reason' before the period;

(3) in paragraph (3)--

(A) in the matter preceding subparagraph (A)--

(i) by inserting `or an institution' after `from the Secretary'; and

(ii) by striking `until--' and inserting `until the loan is paid in full.'; and

(B) by striking subparagraphs (A) and (B);

(4) by amending paragraph (4) to read as follows:

`(4)(A) Except as provided in subparagraph (B), an institution of higher education, after consultation with the Secretary and pursuant to the agreements entered into under paragraph (1), shall disclose at least annually to any credit bureau organization with which the Secretary has such an agreement the information set forth in paragraph (2), and shall disclose promptly to such credit bureau organization any changes to the information previously disclosed.

`(B) The Secretary may promulgate regulations establishing criteria under which an institution of higher education may cease reporting the information described in paragraph (2) before a loan is paid in full.'; and

(4) by inserting after paragraph (4) the following:

`(5) Each institution of higher education shall notify the appropriate credit bureau organizations whenever a borrower of a loan that is made and held by the institution and that is in default makes 6 consecutive monthly payments on such loan, for the purpose of encouraging such organizations to update the status of information maintained with respect to that borrower.'.

(c) CONFORMING AMENDMENT- Section 463(d) is amended by striking `subsection (a)(10)' and inserting `subsection (a)(9)'.

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Last Modified: 09/24/2003