INITIAL DISBURSEMENT AND ENDORSEMENT REQUIREMENTS.

SEC. 3003. INITIAL DISBURSEMENT AND ENDORSEMENT REQUIREMENTS. (a) Amendment.—Section 428G(b)(D of the Higher Education Act of 1965 (20 U.S.C. 1078–7(b)(D) is amended to read as follows: “(1) First year students.—The first installment of the proceeds of any loan made, insured, or guaranteed under this part that is made to a student borrower who is entering the first year of a program of undergraduate education, and who has not previously obtained a loan under this part, shall not (regardless of the amount of such loan or the duration of the period of enrollment) be presented by the institution to the student for endorsement until 30 days after the borrower begins a course of study, but may be delivered to the eligible institution prior to the end of that 30-day period.”. (b) Effective Date.—The amendment made by this section shall be effective for loans made on or after the date of enactment of this Act to cover the cost of instruction for periods of enrollment beginning on or after January 1, 1991.