Pub. L. 85-864, tit. II, sec. 208
payments to cover reductions in amounts of loans
payments to cover reductions in amounts of loans Sec. 208. In addition to the payments otherwise authorized to be made pursuant to this title, the Commissioner shall pay to the appropriate institution, at such time or times as he determines, an amount which bears the same ratio to the interest which has been prevented from accruing and the portion of the principal which has been canceled on student loans pursuant to paragraph (3) of section 205 (b) (and not previously paid pursuant to this subsection) as the total amount of the institution’s capital contributions to such fund under this title bears to the sum of such institution’s capital contributions and the Federal capital contributions to such fund.