REDUCTION OF LENDER INSURANCE PERCENTAGE.

SEC. 303. REDUCTION OF LENDER INSURANCE PERCENTAGE.(a) Amendment.—Subparagraph (G) of section 428(b)(1) (20 U.S.C. 1078(b)(1)(G)) is amended to read as follows:“(G) insures 95 percent of the unpaid principal of loans insured under the program, except that—“(i) such program shall insure 100 percent of the unpaid principal of loans made with funds advanced pursuant to section 428(j) or 439(q); and“(ii) notwithstanding the preceding provisions of this subparagraph, such program shall insure 100 percent of the unpaid principal amount of exempt claims as defined in subsection (c)(1)(G);”.(b) Effective Date.—The amendment made by subsection (a) shall be effective on October 1, 2012, and shall apply with respect to loans made on or after such date.