PERKINS LOAN TERMS AND CONDITIONS.

SEC. 464. PERKINS LOAN TERMS AND CONDITIONS.(a) Loan Limits.—Section 464(a) (20 U.S.C. 1087dd(a)) is amended—(1) in paragraph (2)(A)—(A) by striking “$4,000” in clause (i) and inserting “$5,500”; and(B) by striking “$6,000” in clause (ii) and inserting “$8,000”; and(2) in paragraph (2)(B)—(A) by striking “$40,000” in clause (i) and inserting “$60,000”;(B) by striking “$20,000” in clause (ii) and inserting “$27,500”; and(C) by striking “$8,000” in clause (iii) and inserting “$11,000”.(b) Discharge and Cancellation Rights in Cases of Disability.—(1) Amendment.—Section 464 (20 U.S.C. 1087dd(c)) is further amended—(A) in subsection (c)(1)(F), by striking “canceled upon the death” and all that follows through the semicolon and inserting “cancelled—“(i) upon the death of the borrower;“(ii) if the borrower becomes permanently and totally disabled as determined in accordance with regulations of the Secretary;“(iii) if the borrower is unable to engage in any substantial gainful activity by reason of any medically 122 STAT. 3267 determinable physical or mental impairment that can be expected to result in death, has lasted for a continuous period of not less than 60 months, or can be expected to last for a continuous period of not less than 60 months; or“(iv) if the borrower is determined by the Secretary of Veterans Affairs to be unemployable due to a service-connected disability;”; and(B) by adding at the end the following:“(k) The Secretary may develop such additional safeguards as the Secretary determines necessary to prevent fraud and abuse in the cancellation of liability under subsection (c)(1)(F). Notwithstanding subsection (c)(1)(F), the Secretary may promulgate regulations to resume collection on loans cancelled under subsection (c)(1)(F) in any case in which—“(1) a borrower received a cancellation of liability under subsection (c)(1)(F) and after the cancellation the borrower—“(A) receives a loan made, insured, or guaranteed under this title; or“(B) has earned income in excess of the poverty line; or“(2) the Secretary determines necessary.”.(2) Effective date.—The amendments made by paragraph (1) shall take effect on July 1, 2008.(c) Forbearance.—Section 464 (20 U.S.C. 1087dd) is further amended—(1) in subsection (e)—(A) in the matter preceding paragraph (1), by striking “, upon written request,” and inserting “, as documented in accordance with paragraph (2),”;(B) by redesignating paragraphs (1) through (3) as subparagraphs (A) through (C), respectively;(C) by inserting “(1)” after “Forbearance.—”; and(D) by adding at the end the following:“(2) For the purpose of paragraph (1), the terms of forbearance agreed to by the parties shall be documented by—“(A) confirming the agreement of the borrower by notice to the borrower from the institution of higher education; and“(B) recording the terms in the borrower’s file.”;(2) in subsection (h)(1)(A), by striking “12 ontime” and inserting “9 on-time”; and(3) in subsection (j)(2), by striking “(e)(3)” and inserting “(e)(1)(C)”.