Sec. 2. EXTENSION OF FEDERAL PERKINS LOAN PROGRAM
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## SEC. 2 EXTENSION OF FEDERAL PERKINS LOAN PROGRAM ###
(a)Authority to Make Loans ####
(1)In general Section 461 of the Higher Education Act of 1965 (20 U.S.C. 1087aa) is amended— #####
(A)in subsection (a), by striking “of stimulating and assisting in the establishment and maintenance of funds at institutions of higher education for the making of low-interest loans to students in need thereof” and inserting “assisting in the maintenance of funds at institutions of higher education for the making of loans to undergraduate students in need”; #####
(B)by striking subsection
(b)and inserting the following: > > ### “(b) Authority to Make Loans > > > #### “(1) In general > > > ##### “(A) Loans for new undergraduate federal perkins loan borrowers > > Through September 30, 2017, an institution of higher education may make a loan under this part to an eligible undergraduate student who, on the date of disbursement of a loan made under this part, has no outstanding balance of principal or interest on a loan made under this part from the student loan fund established under this part by the institution, but only if the institution has awarded all Federal Direct Loans, as referenced under subparagraphs
(A)and
(D)of section 455(a)(2), for which such undergraduate student is eligible. > > > ##### “(B) Loans for current undergraduate federal perkins loan borrowers > > Through September 30, 2017, an institution of higher education may make a loan under this part to an eligible undergraduate student who, on the date of disbursement of a loan made under this part, has an outstanding balance of principal or interest on a loan made under this part from the student loan fund established under this part by the institution, but only if the institution has awarded all Federal Direct Stafford Loans as referenced under section 455(a)(2)(A) for which such undergraduate student is eligible. > > > ##### “(C) Loans for certain graduate borrowers > > Through September 30, 2016, with respect to an eligible graduate student who has received a loan made under this part prior to October 1, 2015, an institution of higher education that has most recently made such a loan to the student for an academic program at such institution may continue making loans under this part from the student loan fund established under this part by the institution to enable the student to continue or complete such academic program. > > > #### “(2) No additional loans > > An institution of higher education shall not make loans under this part after September 30, 2017. > > > #### “(3) Prohibition on additional appropriations > > No funds are authorized to be appropriated under this Act or any other Act to carry out the functions described in paragraph
(1)for any fiscal year following fiscal year 2015.” > ; and #####
(C)by striking subsection (c). ####
(2)Rule of construction **[**[20 U.S.C. 1087aa note](/us/usc/t20/s1087aa)**]** Notwithstanding the amendments made under paragraph
(1)of this subsection, an eligible graduate borrower who received a disbursement of a loan under part E of title IV of the Higher Education Act of 1965 (20 U.S.C. 1087aa et seq.) after June 30, 2016 and before October 1, 2016, for the 2016-2017 award year, may receive a subsequent disbursement of such loan by June 30, 2017, for which the borrower received an initial disbursement after June 30, 2016 and before October 1, 2016. ###
(b)Distribution of Assets From Student Loan Funds Section 466 of the Higher Education Act of 1965 (20 U.S.C. 1087ff) is amended— ####
(1)in subsection (a)— #####
(A)in the matter preceding paragraph (1), by striking “After September 30, 2003, and not later than March 31, 2004” and inserting “Beginning October 1, 2017”; and #####
(B)in paragraph (1), by striking “September 30, 2003” and inserting “September 30, 2017”; ####
(2)in subsection (b)— #####
(A)by striking “After October 1, 2012” and inserting “Beginning October 1, 2017”; and #####
(B)by striking “September 30, 2003” and inserting “September 30, 2017”; and ####
(3)in subsection (c)(1), by striking “October 1, 2004” and inserting “October 1, 2017”. ###
(c)Additional Extensions Not Permitted **[**[20 U.S.C. 1226a note](/us/usc/t20/s1226a)**]** Section 422 of the General Education Provisions Act (20 U.S.C. 1226a) shall not apply to further extend the duration of the authority under paragraph
(1)of section 461(b) of the Higher Education Act of 1965 (20 U.S.C. 1087aa(b)), as amended by subsection (a)(1) of this section, beyond September 30, 2017, on the basis of the extension under such subsection.
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