Sec. 4404. Agreements with institutions of higher education for purposes of the Perkins loan program
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Section 463 of the Higher Education Act ( 20 U.S.C. 1087cc ) is amended— in subsection (a)— in the heading, by inserting after for Loans Made Before July 1, 2021 ; Agreements in paragraph (3)(A), by inserting before July 1, 2021 after students ; in paragraph (4), by striking thereon— and all that follows and inserting thereon, if the institution has failed to maintain an acceptable collection record with respect to such loan, as determined by the Secretary in accordance with criteria established by regulation, the Secretary may require the institution to assign such note or agreement to the Secretary, without recompense; ; and in paragraph (5), by striking and the Secretary shall apportion and all that follows through in accordance with section 462 and inserting and the Secretary shall return a portion of funds from loan repayments to the institution as specified in section 466(b) ; by amending subsection
(b)to read as follows: An institution that has entered into an agreement under subsection
(a)shall be entitled, for each fiscal year during which it services student loans from a student loan fund established under such agreement, to a payment in lieu of reimbursement for its expenses in servicing student loans made before July 1, 2021. Such payment shall be equal to 0.50 percent of the outstanding principal and interest balance of such loans being serviced by the institution as of September 30 of each fiscal year. ; and by adding at the end the following: An agreement with any institution of higher education that elects to participate in the Federal Direct Perkins Loan program under section 455A shall provide— for the establishment and maintenance of a Direct Perkins Loan program at the institution under which the institution shall use loan authority allocated under section 462A to make loans to eligible students attending the institution; that the institution, unless otherwise specified in this subsection, shall operate the program consistent with the requirements of agreements established under section 454; and that if the institution ceases to be eligible to receive Federal loans under this title based on loss of eligibility under section 435(a), as amended, due to a high adjusted cohort default rate, the Secretary shall suspend or terminate the institution’s eligibility to make Federal Direct Perkins Loans under section 455A unless and until the institution would qualify for a resumption of eligible institution status under such section. . The amendments made by paragraph
(2)of subsection
(a)shall take effect on October 1, 2021.
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Sec. 4404
Agreements with institutions of higher education for purposes of the Perkins loan program
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