direct loan program

direct loan program Sec. 130. (a) Section 461(b) of the Act is amended by striking out “July 1, 1975” and inserting in lieu thereof “October 1, 1979”. (b) Section 461(b)(2) of the Act is amended by striking out “June 30, 1976” and inserting in lieu thereof “September 30, 1979”, and by striking out “July 1, 1975” and inserting in lieu thereof “October 1, 1979”. (c) Section 163(a) of the Act is amended by redesignating clauses (4) and (5) as clauses (5) and (6), respectively, and inserting immediately after paragraph (3) the following new clause: “(4) provide that where a note or written agreement evidencing a note has been in default for (A) one hundred and twenty days, 90 STAT. 2147in the case of a loan which is repayable in monthly installments, or (B) one hundred and eighty days, in the case of a loan which is repayable in less frequent installments, notice of such default shall be given to the Commissioner in a report, describing the total number of loans from such fund which are in such default, and made to the Commissioner at least semiannually;”. (d) Section 464(b) of the Act is amended by striking “, upon notice to the Commissioner,”. (e) Section 464(c)(1)(A) of the Act is amended by inserting immediately before the semicolon at the end thereof the following: “, except that such period may begin earlier than nine months after such date upon the request of the borrower”. (f) Section 464(c) (1) (C) of the Act is amended to read as follows: “(C) may provide, at the option of the institution in accordance with regulations of the Commissioner, that during the repayment period of the loan, payments of principal and interest by the borrower with respect to all outstanding loans made to him from a student loan fund assisted under this part shall be at a rate equal to not less than $30 per month, except that the institution may, subject to such regulations, permit a borrower to pay less than $30 per month for a period of not more than one year where necessary to avoid hardship to the borrower, but without extending the ten-year maximum repayment period provided for in clause (A) of this paragraph;” (g) (1) Section 464(c) (1) of the Act is amended by redesignating clauses (F) and (G) as (G) and (H), respectively, and by inserting after clause (E) the following new clause: “(F) shall provide that the liability to repay the loan shall be canceled upon the death of the borrower, or if he becomes permanently and totally disabled as determined in accordance with regulations of the Commissioner;”. (2) The amendments made by this subsection shall take effect on June 23, 1972. (h) (1) Section 466 of the Act is amended by striking out “June 30, 1980” wherever it appeal’s and inserting in lieu thereof “September 30, 1984”. (2) Section 466 of the Act is further amended by striking out “December 31, 1980” wherever it appears and inserting in lieu thereof “March 31, 1985”. (3) Section 466(b) of the Act is amended by striking out “June 30, 1974” and inserting in lieu thereof “September 30, 1978”. (4) Section 466(c) of the Act is amended by striking out “July 1, 1980” and inserting in lieu thereof “October 1, 1984”.