REQUIREMENTS FOR DISBURSEMENT OF STUDENT LOANS.

SEC. 427. REQUIREMENTS FOR DISBURSEMENT OF STUDENT LOANS.(a) Special Rule.—Section 428G(a) (20 U.S.C. 1078–7(a)) is amended by adding at the end the following:“(4) Amendment to special rule.—Beginning on October 1, 2011, the special rule under paragraph (3) shall be applied by substituting ‘15 percent’ for ‘10 percent’.”.(b) Requirements for Disbursements to First Year Students.—Section 428G(b) (20 U.S.C. 1078–7(b)) is amended by adding at the end the following:“(3) Amendment to cohort default rate exemption.—Beginning on October 1, 2011, the exemption to the requirements of paragraph (1) in the second sentence of such paragraph shall be applied by substituting ‘15 percent’ for ‘10 percent’.”.