ADDITIONAL LOAN TERMS AND CONDITIONS.

SEC. 8008. ADDITIONAL LOAN TERMS AND CONDITIONS.(a) Disbursement.—Section 428(b)(1)(N) (20 U.S.C. 1078(b)(1)(N)) is amended—(1) by striking “or” at the end of clause (i); and (2) by striking clause (ii) and inserting the following:“(ii) in the case of a student who is studying outside the United States in a program of study abroad that is approved for credit by the home institution at which such student is enrolled, and only after verification of the student’s enrollment by the lender or guaranty agency, are, at the request of the student, disbursed directly to the student by the means described in clause (i), unless such student requests that the check be endorsed, or the funds transfer be authorized, pursuant to an authorized power-of-attorney; or“(iii) in the case of a student who is studying outside the United States in a program of study at an eligible foreign institution, are, at the request of the foreign institution, disbursed directly to the student, only after verification of the student’s enrollment by the lender or guaranty agency by the means described in clause (i).”.(b) Repayment Plans: Direct Loans.—Section 455(d)(1) (20 U.S.C. 1087e(d)(1)) is amended by striking subparagraphs (A), (B), and (C) and inserting the following:“(A) a standard repayment plan, consistent with subsection (a)(1) of this section and with section 428(b)(9)(A)(i);“(B) a graduated repayment plan, consistent with section 428(b)(9)(A)(ii);“(C) an extended repayment plan, consistent with section 428(b)(9)(A)(v), except that the borrower shall annually repay a minimum amount determined by the Secretary in accordance with section 428(b)(1)(L); and”.(c) Origination Fees.—(1) FFEL program.—Paragraph (2) of section 438(c) (20 U.S.C. 1087–1(c)) is amended—(A) by striking the designation and heading of such paragraph and inserting the following:“(2) Amount of origination fees.—“(A) In general.—”; and(B) by adding at the end the following new subparagraph:“(B) Subsequent reductions.—Subparagraph (A) shall be applied to loans made under this part (other than loans made under sections 428C and 439(o))—“(i) by substituting ‘2.0 percent’ for ‘3.0 percent’ with respect to loans for which the first disbursement of principal is made on or after July 1, 2006, and before July 1, 2007;“(ii) by substituting ‘1.5 percent’ for ‘3.0 percent’ with respect to loans for which the first disbursement of principal is made on or after July 1, 2007, and before July 1, 2008;“(iii) by substituting ‘1.0 percent’ for ‘3.0 percent’ with respect to loans for which the first disbursement 120 STAT. 163 of principal is made on or after July 1, 2008, and before July 1, 2009;“(iv) by substituting ‘0.5 percent’ for ‘3.0 percent’ with respect to loans for which the first disbursement of principal is made on or after July 1, 2009, and before July 1, 2010; and“(v) by substituting ‘0.0 percent’ for ‘3.0 percent’ with respect to loans for which the first disbursement of principal is made on or after July 1, 2010.”.(2) Direct loan program.—Subsection (c) of section 455 (20 U.S.C. 1087e(c)) is amended—(A) by striking “(c) Loan Fee.—” and inserting the following:“(c) Loan Fee.—“(1) In general.—”; and(B) by adding at the end the following:“(2) Subsequent reduction.—Paragraph (1) shall be applied to loans made under this part, other than Federal Direct Consolidation loans and Federal Direct PLUS loans—“(A) by substituting ‘3.0 percent’ for ‘4.0 percent’ with respect to loans for which the first disbursement of principal is made on or after the date of enactment of the Higher Education Reconciliation Act of 2005, and before July 1, 2007;“(B) by substituting ‘2.5 percent’ for ‘4.0 percent’ with respect to loans for which the first disbursement of principal is made on or after July 1, 2007, and before July 1, 2008;“(C) by substituting ‘2.0 percent’ for ‘4.0 percent’ with respect to loans for which the first disbursement of principal is made on or after July 1, 2008, and before July 1, 2009;“(D) by substituting ‘1.5 percent’ for ‘4.0 percent’ with respect to loans for which the first disbursement of principal is made on or after July 1, 2009, and before July 1, 2010; and“(E) by substituting ‘1.0 percent’ for ‘4.0 percent’ with respect to loans for which the first disbursement of principal is made on or after July 1, 2010.”.(3) Conforming amendment.—Section 455(b)(8)(A) (20 U.S.C. 1087e(b)(8)(A)) is amended by inserting “or origination fee” after “reductions in the interest rate”.