charges

charges Sec. 466. (a) Section 205 of the National Defense Education Act of 1958 is further amended by redesignating subsection (c) as subsection (d) and by inserting after subsection (b) the following new subsection: 79 Stat. 1254 “(c) Pursuant to regulations of the Commissioner, an institution may assess a charge with respect to a loan from the loan fund established by the institution pursuant to this title for failure of the borrower to pay all or any part of an installment when it is due and, in the case, of a borrower who is entitled to deferment benefits under section 205(b) (2) or cancellation benefits under section 205(b) (3), for any failure to file timely and satisfactory’ evidence of such entitlement. The amount of any such charge may not exceed— “(1) in the case of a loan which is repayable in monthly installments, $1 for the first month or part of a month by which such installment or evidence is late and $2 for each such month or part of a month thereafter; and “(2) in the case of a loan which has a bimonthly or quarterly repayment interval, $3 and $6. respectively, for each such interval or part thereof by which such installment or evidence is late. The institution may elect to add the amount of any such charge to the principal amount of the loan as of the first day after the day on which such installment or evidence was due, or to make the amount of the charge payable to the institution not later than the due date of the next installment after receipt by the borrower of notice of the assessment of the charge.” (b) Clause (2) of section 204 of such Act is amended by striking out “and (D)” and inserting in lieu thereof “(D) charges collected pursuant to section 205(c), and (E)”. (c) The amendment made by subsection (a) shall be applicable only with respect to loans made after the date of enactment of this Act.