Sec. 502. (a) Section 1798 of title 38, United States Code, is amended— (1) by striking out in subsection (b)(3) “$270” and “$600” and inserting in lieu thereof “$292” and “$1,500”, respectively; and (2) by amending clause (3) of subsection (d) to read as follows: (3) shall provide that the loan shall bear interest, on the unpaid balance of the loan, at a rate prescribed by the Administrator, at the time the loan is contracted for which rate shall be comparable to the rate of interest charged students at such time on loans insured by the Commissioner of Education, Department of Health, Education, and Welfare, under part B of title IV of the Higher Education Act of 1965, but in no event shall the rate so prescribed by the Administrator exceed the rate charged students on such insured loans, and shall provide that no interest shall accrue prior to the beginning date of repayment; and”. (b) The amendments made by subsection (a) shall be effective with respect to loans made under section 1798 of title 38, United States Code, on and after October 1, 1976.