repayment by commissioner of loans of deceased or disabled borrowers

repayment by commissioner of loans of deceased or disabled borrowers Sec. 113. (a) Part B of title IV of such Act is amended by inserting at the end thereof the following new section: “repayment by commissioner of loans of deceased or disabled borrowers “Sec. 437. If a student borrower who has received a loan with respect to which a portion of the interest (1) is payable by the Commissioner under section 428(a), or (2) would be payable but for the adjusted family income of the borrower, dies or becomes permanently and totally disabled (as determined in accordance with regulations of the Commissioner), then the Commissioner shall discharge the borrower’s liability on the Loan by repaying the amount owed on the loan.” 82 Stat. 1021 (b) (1) Section 421(b) (2) of the Higher Education Act of 1965 is amended by inserting after “on student loans” the following: “and for payments under section 437”. (2) Section 427(a)(2)(E) of such Act is amended by inserting after the comma at the end thereof the fallowing: “and that the lender will enter into such agreements with the Commissioner as may be necessary for the purpose of section 437,”. (3) Section 428(b)(2)(B) of such Act is amended by inserting after “of this part” the following: “, including such provisions as may be necessary for the purpose of section 437,”. (4) Section 428(c) of such Act is amended by striking out in paragraph (1) “, death, or permanent and total disability”, by striking the last sentence of paragraph (3), and by amending paragraph (4) to read as follows: “(4) For purposes of this subsection, the terms ‘insurance beneficiary’ and ‘default’ shall have the meanings assigned to them by section 430(e).” (5) Section 430 of such Act is amended— (A) by striking out in the section heading, “death, or disability”; (B) by striking out in the first sentence of subsection (a) “or upon the death of the student borrower or a finding by the insurance beneficiary that the borrower has become totally and permanently disabled (as determined in accordance with regulations established by the Commissioner) before the loan has been repaid in full,”; and (C) by striking out in subsection (c) all that follows “payment on that insurance” and inserting in lieu thereof a period. (c) The amendments made by this section shall apply only with respect to loans made on or after the sixtieth day following the date of enactment of this Act.