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Code · BILL · 113th Congress · H.R. 4236 (Introduced in House) — To amend the Higher Education Act of 1965 and the Truth in Lending Act to clarify the application of prepayment amoun... · Sec. 3

Sec. 3. Application of prepayment amounts for Perkins Loans

181 words·~1 min read·/bill/113/hr/4236/ih/section-3

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Section 464(c)(1)(C) of the Higher Education Act of 1965 ( 20 U.S.C. 1087dd(c)(1)(C) ) is amended— by striking and at the end of clause (i); by adding at the end the following: shall provide that the institution shall, in the case of a borrower with no outstanding balance of fees (including collection costs and authorized late charges) due on the loans held by the institution and who repays more than the amount due for a repayment period, use the excess to prepay (within the meaning of section 674.31(b)(4)(iv) of title 34, Code of Federal Regulations, or a successor regulation) the principal due on the loan with the highest applicable rate of interest among such loans, unless otherwise requested by the borrower in writing; and shall provide that the institution shall, in the case of a borrower with an outstanding balance of fees (such as collection costs and authorized late charges) due on the loans held by the institution and who repays more than the amount due for a repayment period, first apply such excess toward such outstanding balance of fees; .
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Sec. 3
Application of prepayment amounts for Perkins Loans
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