DEFERMENT ELIGIBILITY.

SEC. 359. DEFERMENT ELIGIBILITY. Subsection (f) of section 455 of the Higher Education Act of 1965 (20 U.S.C. 1087e(f)) is amended by adding at the end the following new paragraphs: (3) Definition of borrower.— For the purpose of this subsection, the term “borrower” means an individual who is108 STAT. 3969 a new borrower on the date such individual applies for a loan under this part for which the first disbursement is made on or after July 1, 1993. “(4) Deferments for previous part b loan borrowers.— A borrower of a loan made under this part, who at the time such individual applies for such loan, has an outstanding balance of principal or interest owing on any loan made, insured, or guaranteed under part B of title IV prior to July 1, 1993, shall be eligible for a deferment under section 427(a)(2)(C) or section 428(b)(l)(M) as such sections were in effect on July 22, 1992”.