Page 31

107 STAT. 342 PUBLIC LAW 103-66—AUG. 10, 1993 20 u s e 1087c. Contracts. "(A) shall be paid by the Secretary based on all the loans made under this part to a particular borrower in the same academic year; "(B) shall be subject to a sliding scale that decreases the per borrower amount of such fees as the number of borrowers increases; and "(CXi) for academic year 1994-1995, shall not exceed a program-wide average of $10 per borrower for all the loans made under this part to such borrower in the same academic year; and "(ii) for succeeding academic years, shall not exceed such average fee as the Secretary shall establish pursuant to relations. "(2) FEES FOR ALTERNATIVE ORIGINATORS.—The Secretaiy shall pay fees for loan origination services to alternative origi- nators of loans made under this part in an amount established by the Secretary in accordance with the terms of the contract described in section 456(b) between the Secretary and each such alternative originator. "(c) No ENTITLEMENT TO PARTICIPATE OR ORIGINATE.—NO institution of higher education shall have a right to participate in the programs authorized by this part, to originate loans, or to perform any program function under this part. Nothing in this subsection shall be construed so as to limit the entitlement of an eligible student attending a participating institution (or the eligible parent of such student) to borrow under this part. "(d) DELIVERY OF LOAN FUNDS.—Loan funds shall be paid and delivered to an institution by the Secretary prior to the beginning of the pajntnent period established by the l^cretai^ in a manner that is consistent with payment and aelivery of basic grants under subpart 1 of part A of this title. "SEC. 453. SELECTION OF INSTITUTIONS FOR PARTICIPATION AND ORIGINATION. "(a) PHASE-IN OF PROGRAM.— "(1) GENERAL AUTHORITY.—The Secretary shall enter into agreements pursuant to section 454(a) with institutions of higher education to participate in the direct student loan pro- gram imder this part, and agreements pursuant to section 454(b) with institutions of mgher education, or consortia thereof, to originate loans in such program, for academic years beginning on or after July 1, 1994. Alternative origination services, through which an entity other than the participating institution at which the student is in attendance origmates the loan, shall be provided by the Secretary, through 1 or more contracts under section 456(b) or such other means as the Secretary may provide, for students attending participating institutions that do not originate direct student loans under this part. Such agreements for the academic year 1994-1995 shall, to the extent feasible, be entered into not later than January 1,1994. "(2) TRANSITION PROVISIONS.—^In order to ensure an expedi- tious but orderly transition from the loan programs under part B of this title to the direct student loan program under this part, the Secretary shall, in the exercise of the Secretary's discretion, determine the number of institutions with which the Secretary shall enter into agreements under subsections