REDESIGNATION OF AND AMENDMENTS TO PART H.

SEC. 708. REDESIGNATION OF AND AMENDMENTS TO PART H. (a) Redesignation.— Part H of title VII of the Act (20 U.S.C. 1132i et seq.) is redesignated as part E. (b) Recovery of Payments.— Section 781 of the Act (20 U.S.C. 1132i) is amended by striking “part A or B of this title” each place such term appears and inserting “part A of this title, or part B of this title as such part was in effect prior to the enactment of the Higher Education Amendments of 1992,”. (c) Elimination of Unnecessary Definitions.— Section 782 of the Act (20 U.S.C. 1089) is amended— (1) by striking paragraphs (5) and (7); and (2) by redesignating paragraphs (6), (8), and (9) as paragraph (5), (6), and (7), respectively. (d) Forgiveness of Certain Loans.— Section 783 of the Act (20 U.S.C. 1132i–2) is amended to read as follows: “forgiveness of certain loans “Sec. 783. (a) Forgiveness Authorized.— The Secretary may forgive the entire balance due, or any portion thereof, on any loan made under part C or part F of this title (as in effect on the day before the date of enactment of the Higher Education Amendments of 1992), or under the College Housing and Academic Facilities Loan program, or any other federally subsidized, insured, 106 STAT. 755or authorized loan program designed to assist institutions of higher education to construct academic or dormitory facilities, whenever the Secretary determines that— “(1) the institution of higher education is current in its payments to the Department or has entered into a moratorium agreement with the Secretary with respect to such payments; and “(2) the outstanding indebtedness equals at least one-quarter of the annual budget for the most recent fiscal year of the institution of higher education seeking forgiveness of its housing loan indebtedness, exclusive of funds provided under titles III and IV of this Act, and in the judgment of the Secretary the survival of the institution of higher education is threatened. “(b) Definition.— For the purpose of this section the term ‘institution of higher education’ includes a postsecondary educational institution. “(c) Application.— Each institution of higher education requesting forgiveness of any loan under this section shall submit an application to the Secretary at such time, in such manner and containing or accompanied by such information, as the Secretary may reasonably require.”.