coordination between non-federal and federal programs with respect to maximum amounts of individual loans insured, issuance of installment obligations, and minimum amounts of repayment installments on such loans

coordination between non-federal and federal programs with respect to maximum amounts of individual loans insured, issuance of installment obligations, and minimum amounts of repayment installments on such loans Sec. 120. (a) (1) Section 428(b)(1)(A) of the Higher Education Act of 1965 is amended by inserting the following before the semicolon at the end of such subparagraph; “, which limit shall not be deemed exceeded by a line of credit under which actual payments by the lender to the borrower will not be made in any such year in excess of such annual limit; and provides that the aggregate insured unpaid principal amount of all such insured loans made to any student shall not at any time exceed $7,500”. (2) Section 425(a) of the Higher Education Act of 1965 is amended (A) by striking out “in the case of a graduate or professional student (as defined in regulations of the Commissioner), or $1,000 in the case of any other student” in the first sentence, and (B) by striking out “in the case of any graduate or professional student (as defined in regulations of the Commissioner, and including any such insured loans made to such person before he became a graduate or professional student), or $5,000 in the case of any other student” in the second sentence. (b) Section 428(b) (1) (D) of such Act is amended (1) by striking out “subparagraph (C)” and inserting in lieu thereof “subparagraphs (C) and (K)”, and (2) by striking out “, where the total of the insured loans to any student which are held by any one person exceeds $2,000, repayment of such”, and inserting in lieu thereof “repayment of”. (c) (1) Section 428(b) (1) of the Higher Education Act of 1965 is amended (A) by striking out “and” at the end of subparagraph (I), (B) by striking out the period at the end of subparagraph (J) and inserting “; and” in lieu thereof, and (C) by adding after subparagraph (J) the following: “(K) provides that the total of the payments by a borrower during any year of any repayment period with respect to the aggregate amount of all loans to that borrower which are (i) insured under this part, or (ii) made by a State or the Commissioner under section 428(a) (1) (B) or 433, respectively, shall not be less than $360 or the balance of all such loans (together with interest thereon) , whichever amount is less.” (2) Section 427 (e) of such Act is amended by striking out “by the Commissioner”, and by inserting the following after “this part”: “, or which are made by a State or the Commissioner under section 428(a) (1)(B) or 433, respectively,”. (3) The caption of section 427 of such Act is amended by inserting “FEDERALLY INSURED” before “STUDENT LOANS”. (d) (1) Subject to paragraph (2) of this subsection, (A) the amendments made by this section shall apply to loans made on or after the sixtieth day after the date of enactment of this Act, and (B) in computing the maximum amounts which may be borrowed by a student who obtains an insured loan on or after such sixtieth day, and the minimum amounts of repayment allowable with respect to sums borrowed by such a student, there shall be included all Loans, whenever made, (i) insured by the Commissioner, or a State, institution, or organization with which the Commissioner has an agreement under section 428(b) of part B of title IV of the Higher Education Act of 1965 or 82 Stat. 1028section 9(b) of the National Vocational Student Loan Insurance Act of 1965, or (ii) made by a State under section 428(a) (2) (B) of such part or section 9(a)(2)(B) of such Act, or by the Commissioner under section 433 of such part. (2) This section (and the amendments made thereby) shall not apply so as to require violation of any commitment for insurance made to an eligible lender, or of any line of credit granted to a student, prior to such sixtieth day or, except with the consent of the State or non-profit private agency concerned, impair the obligation of any agreement made pursuant to section 428(b) of the Higher Education Act of 1965. The Commissioner of Education shall undertake to obtain necessary modifications of agreements entered into by him pursuant to section 428(b) (1) of the Higher Education Act of 1965 and in force upon the date of enactment of this Act so as to conform the provisions of such agreements to the requirements of such section 428(b)(1) as amended by this section. If, however, such modifications cannot be obtained because a party to such an agreement, is subject to a statute of a State that prevents such party from complying with the terms of such modification, the Commissioner shall not, before 120 days after the adjournment of such State’s first regular legislative session which adjourns after January 1, 1969, exercise his authority to terminate, or to refuse to extend, such agreement.