INCOME CONTINGENT LOAN DISTRIBUTION OF FUNDS.

SEC. 452. [20 U.S.C. 1087a note] INCOME CONTINGENT LOAN DISTRIBUTION OF FUNDS. (a) In General.—After September 30, 1992, and not later than March 31, 1992, the capital balance of the student loan fund established under part D of title IV of the Higher Education Act of 1965 (as such Act was in effect on the date of enactment of this Act) shall be distributed by allowing institutions to transfer any remaining funds, including future collections and all other funds at the institution's discretion, to such institution's part E account, part C fund, or subpart 3 of part A fund under the terms and conditions of the appropriate program. (b) Conversion of Existing Loans.—Institutions may, after July 1, 1992, convert all outstanding loans made under part D of title IV of the Higher Education Act of 1965 (as such Act was in effect on such date) to part E loans, provided that such institution— (1) notify the borrower of such conversion; (2) obtain a signed part E promissory note from the borrower for the remaining amount outstanding; and (3) provide the borrower in writing with a description of all terms and conditions of the new loan.