FUNDS FOR ADMINISTRATIVE EXPENSES.

SEC. 6103. FUNDS FOR ADMINISTRATIVE EXPENSES. Subsection (a) of section 458 of the Higher Education Act of 1965 (20 U.S.C. 1087h(a)) is amended to read as follows: “(a) Administrative Expenses.— “(1) In general.—Each fiscal year, there shall be available to the Secretary from funds not otherwise appropriated, funds to be obligated for— “(A) administrative costs under this part and part B, including the costs of the direct student loan programs under this part, and “(B) administrative cost allowances payable to guaranty agencies under part B and calculated in accordance with paragraph (2), not to exceed (from such funds not otherwise appropriated) $532,000,000 in fiscal year 1998, $610,000,000 in fiscal year 1999, $705,000,000 in fiscal year 2000, $750,000,000 in fiscal year 2001, and $750,000,000 in fiscal year 2002. Administrative cost allowances under subparagraph (B) of this paragraph shall be paid quarterly and used in accordance with section 428(f). The Secretary may carry over funds available under this section to a subsequent fiscal year. “(2) Calculation basis.—Administrative cost allowances Sable to guaranty agencies under paragraph (1)(B) shall be calculated on the basis of 0.85 percent of the total principal amount of loans upon which insurance was issued in excess of $8,200,000,000 in fiscal year 1997 and upon which insurance is issued on or after October 1, 1997, except that such allowances shall not exceed— “(A) $170,000,000 for each of the fiscal years 1998 and 1999; or “(B) $150,000,000 for each of the fiscal years 2000, 2001, and 2002”.