GUARANTY AGENCY COLLECTION RETENTION.

SEC. 301. GUARANTY AGENCY COLLECTION RETENTION. Clause (ii) of section 428(c)(6)(A) (20 U.S.C. 1078(c)(6)(A)(ii)) is amended to read as follows:“(ii) an amount equal to 24 percent of such payments for use in accordance with section 422B, except that—“(I) beginning October 1, 2003 and ending September 30, 2007, this clause shall be applied by substituting ‘23 percent’ for ‘24 percent’; and“(II) beginning October 1, 2007, this clause shall be applied by substituting ‘16 percent’ for ‘24 percent’.”.