Sec. 461. Wind-down of Federal Perkins Loan Program

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Except as otherwise provided in this section and notwithstanding section 462, the provisions of part E of title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1087aa et seq.), as in effect on the day before the date of enactment of this Act, are deemed to be incorporated in this subsection as though set forth fully in this subsection, and shall have the same force and effect as on such day. In the case of an institution of higher education that desires to have a final audit of its participation under the program under part E of title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1087aa et seq.), as in effect pursuant to subsection (a), at the same time as its annual financial and compliance audit under section 487(c) of such Act ( 20 U.S.C. 1094(c) ), such institution shall submit to the Secretary a request, in writing, for such an arrangement not later than 60 days after the institution terminates its participation under such program.

For purposes of this subsection, an institution shall be considered to have terminated its participation under the program described in paragraph (1), if the institution— has made a determination not to service and collect student loans made available from funds under part E of title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1087aa et seq.), as in effect pursuant to subsection (a); or has completed the servicing and collection of such student loans; and has completed the asset distribution required under section 466(b) of the Higher Education Act of 1965 ( 20 U.S.C. 1087ff(b) ), as in effect pursuant to subsection (a).

In the case of an institution of higher education that, on or after October 1, 2006, loaned an amount to its student loan fund established under part E of title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1087aa et seq.), as in effect pursuant to subsection (a), for the purpose of making student loans from such fund, and that, before the date of enactment of this Act, has repaid to itself the amount loaned to such student loan fund, the institution shall collect any interest earned on such student loans.

Notwithstanding the requirements of section 463(a)(5) of the Higher Education Act of 1965 ( 20 U.S.C. 1087cc(a)(5) ), as in effect pursuant to subsection (a), if an institution of higher education determines not to service and collect student loans made available from funds under part E of such Act ( 20 U.S.C. 1087aa et seq.), as so in effect— the institution shall assign, during the repayment period, any notes or evidence of obligations of student loans made from such funds to the Secretary; and the Secretary shall deposit any sums collected on such notes or obligations (less an amount not to exceed 30 percent of any such sums collected to cover that Secretary’s collection costs) into the Treasury of the United States.

The amendments made by section 427 to section 437(c) of the Higher Education Act of 1965 ( 20 U.S.C. 1087 ), relating to closed school discharge, shall apply with respect to any loans discharged on or after the date of enactment of this Act under section 464(g) of such Act ( 20 U.S.C. 10877dd(g) ), as in effect pursuant to subsection (a)).

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20 USC 10877dd(g)

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Sec. 461

Wind-down of Federal Perkins Loan Program

Cite20 USC 10877dd(g)

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