LIMITATIONS ON FEDERAL LOAN INSURANCE.

SEC. 413. LIMITATIONS ON FEDERAL LOAN INSURANCE. Section 425 of the Act (20 U.S.C. 1075) is amended— (1) in subsection (a)(I)(A) by striking clauses (i), (ii), and (iii) and inserting the following: “(i) in the case of a student at an eligible institution who has not successfully completed the first year of a program of undergraduate education— “(I) $2,625, if such student is enrolled in a program whose length is at least one academic year in length (as determined under section 481); “(II) $1,750, if such student is enrolled in a program whose length is less than one academic year, but at least % of such an academic year; and “(III) $875, if such student is enrolled in a program whose length is less than 2/3, but at least 1/3, of such an academic year; “(ii) in the case of a student who has successfully completed such first year but has not successfully completed the remainder of a program of undergraduate study— “(I) $3,500, if such student is enrolled in a program whose length is at least one academic year in length (as determined under section 481); “(II) $2,325, if such student is enrolled in a program whose length is less than one academic year, but at least % of such an academic year; and “(III) $1,175, if such student is enrolled in a program whose length is less than 2/3, but at least 1/3, of such an academic year; “(iii) in the case of a student at an eligible institution who has successfully completed such first and second year but has not successfully completed the remainder of a program of undergraduate study— “(I) $5,500, if such student is enrolled in a program whose length is at least one academic year in length (as determined under section 481); “(II) $3,675, if such student is enrolled in a program whose length is less than one academic year, but at least 2/3 of such an academic year; and 106 STAT. 513 “(III) $1,825, if such student is enrolled in a program whose length is less than 2/3, but at least of such an academic year; and “(iv) in the case of a graduate or professional student (as defined in regulations of the Secretary) at an eligible institution, $8,500;”. (2) in subsection (a)(2)(A), by striking clauses (i) and (ii) and inserting the following: “(i) $23,000, in the case of any student who has not successfully completed a program of undergraduate education, excluding loans made under section 428A or 428B; and “(ii) $65,500, in the case of any graduate or professional student (as defined by regulations of the Secretary) and (I) including any loans which are insured by the Secretary under this section, or by a guaranty agency, made to such student before the student became a graduate or professional student), but (II) excluding loans made under section 428A or 428B, except that the Secretary may increase the limit applicable to students who are pursuing programs which the Secretary determines are exceptionally expensive”.