SUPPLEMENTAL PRECLAIMS ASSISTANCE PAYMENTS.

SEC. 3002. SUPPLEMENTAL PRECLAIMS ASSISTANCE PAYMENTS. (a) Elimination of Supplemental Preclaims Assistance Reimbursements.—Section 428(c) of the Higher Education Act of 1965 (20 U.S.C. 1078(c)) is amended— (1) in the first sentence of paragraph (1)(A), by striking “, including the administrative costs of supplemental preclaim assistance for default prevention as defined in paragraph (6)(C)” (2) in paragraph (6)(C)(i), by striking “this paragraph” and inserting “subsection (1)”; (3) in paragraph (6)(C)(i)(D, by striking “required or permitted under paragraph (2)(A) of this subsection and subsection (f)” and inserting “generally comparable in intensiveness to the level of 104 STAT. 1388–26preclaims assistance performed, prior to the 120th day of delinquency, by the guaranty agency as of October 16, 1990”; (4) in paragraph (6)(C)(ii)— (A) by striking “reimbursement” and inserting “payment under subsection (1)”; and (B) by striking “which the guaranty agency is required or permitted to provide pursuant to paragraph (2)(A) of this subsection and subsection (f)” and inserting “described in division (i)(I) of this subparagraph”; and (5) by striking the first sentence of paragraph (6)(C)(iv). (b) Fixed Payments for Preclaims Assistance.—Section 428 of such Act is further amended by adding at the end thereof the following new subsection: “(l) Preclaims Assistance and Supplemental Preclaims Assistance.— “(1) Assistance required.—Upon receipt of a proper request from the lender, a guaranty agency having an agreement with the Secretary under subsection (c) of this section shall engage in preclaims assistance activities (as described in subsection (c)(6)(C)(i)(D) and supplemental preclaims assistance activities (as described in subsection (c)(6)(O) with respect to each loan covered by such agreement. “(2) Payments for supplemental preclaims assistance.—The Secretary shall make payments in accordance with the provisions of this paragraph to any guaranty agency that engages in supplemental preclaims assistance (as defined in subsection (c)(b)(O) on a loan guaranteed under this part. Such payments shall be equal to $50.00 for each loan on which such assistance is performed and for which a default claim is not presented to the guaranty agency by the lender on or before the 150th day after the loan becomes 120 days delinquent,”.