REDUCTION IN INTEREST RATE FOR CONSOLIDATION LOANS; REBATE FEE.

SEC. 4106. REDUCTION IN INTEREST RATE FOR CONSOLIDATION LOANS; REBATE FEE. (a) Amendment.— Section 428C of the Act (20 U.S.C. 1078–3) is amended by adding at the end the following new subsection: “(f) Interest Payment Rebate Fee.— “(1) In general.— For any month beginning on or after October 1, 1993, each holder of a consolidation loan under this section for which the first disbursement was made on or after October 1, 1993, shall pay to the Secretary, on a monthly basis and in such manner as the Secretary shall prescribe, a rebate fee calculated on an annual basis equal to 1.05 percent of the principal plus accrued unpaid interest on such loan. “(2) Deposit.— The Secretary shall deposit all fees collected pursuant to subsection (a) into the insurance fund established in section 431.”. (b) Enforcement.— Subsection (d) of section 435 of the Act (20 U.S.C. 1085(d)) is amended— (1) in the matter preceding subparagraph (A) of paragraph (1), by striking “(5)” and inserting “(6)”; and (2) by adding at the end the following new paragraph: “(6) Rebate fee requirement.— To be an eligible lender under this part, an eligible lender shall pay rebate fees in accordance with section 428C(f).”.