CALCULATION OF DEFAULT RATES.

SEC. 301. CALCULATION OF DEFAULT RATES.Section 435 of the Act (20 U.S.C. 1085) is amended— 104 STAT. 2388 (1) in subsection (l), by striking out “The term” and inserting in lieu thereof “Except as provided in subsection (m), the term”; and (2) in subsection (m), by inserting immediately after the first sentence the following: “In determining the number of students who default before the end of such fiscal year, the Secretary shall include only loans for which the Secretary or a guaranty agency has paid claims for insurance, and, in calculating the cohort default rate, exclude any loans which, due to improper servicing or collection, would result in an inaccurate or incomplete calculation of the cohort default rate.”.