Sec. 503. TERMINATION OF DIRECT LOAN REPAYMENT INCENTIVES
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## SEC. 503 TERMINATION OF DIRECT LOAN REPAYMENT INCENTIVES Section 455(b)(8) of the Higher Education Act of 1965 (20 U.S.C. 1087e(b)(8)) is amended— ####
(1)in subparagraph (A)— #####
(A)by amending the header to read as follows: “(A) Incentives for loans disbursed before july 1, 2012”; and #####
(B)by inserting “with respect to loans for which the first disbursement of principal is made before July 1, 2012,” after “of this part”; ####
(2)in subparagraph (B), by inserting “with respect to loans for which the first disbursement of principal is made before July 1, 2012” after “repayment incentives”; and ####
(3)by adding at the end the following new subparagraph: > > ##### “(C) No repayment incentives for new loans disbursed on or after july 1, 2012 > > Notwithstanding any other provision of this part, the Secretary is prohibited from authorizing or providing any repayment incentive not otherwise authorized under this part to encourage on-time repayment of a loan under this part for which the first disbursement of principal is made on or after July 1, 2012, including any reduction in the interest or origination fee rate paid by a borrower of such a loan, except that the Secretary may provide for an interest rate reduction for a borrower who agrees to have payments on such a loan automatically electronically debited from a bank account.” > .
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Sec. 503
TERMINATION OF DIRECT LOAN REPAYMENT INCENTIVES
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