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107 STAT. 344 PUBLIC LAW 103-66—AUG. 10, 1993 "(B) desires to originate loans under this part; and "(C) meets the criteria described in paragraph (2). "(2) TRANSITION SELECTION CMTERIA.—For academic year 1994-1995, the Secretary may approve an institution to origi- nate loans only if such institution— "(A) made loans imder part E of this title in academic year 1993-1994 and did not exceed the applicable maxi- mum default rate under section 462(g) for the most recent fiscal year for which data are available; "(B) is not on the reimbursement system of pa3niient for any of the programs under subpart 1 or 3 of part A, part C, or part E of this title; "(C) is not overdue on program or financial reports or audits required under this title; "(D) is not subject to an emergency action, or a limita- tion, suspension, or termination luider section 428(bXlXT), 432(h), or 487(c); "(E) in the opinion of the Secretary, has not had signifi- cant deficiencies identified by a State postsecondary review entity imder subpart 1 of part H of this title; "(F) in the opinion of the Secretary, has not had severe performance deficiencies for any of the programs under this title, including such deficiencies demonstrated by audits or program reviews submitted or conducted during the 5 calendar years immediately preceding the date of application; "(G) provides an assurance that such institution has no delinquent outstanding debts to the Federal Grovem- ment, unless such debts are being repaid under or in accordance with a repayment arrangement satisfactory to the Federal Government, or the Secretary in the Secretar3r's discretion determines that the existence or amount of such debts has not been finally determined by the cognizant Federal agency; and "(H) meets such other criteria as the Secretary may establish to protect the financial interest of the United States and to promote the purposes of this part. Federal «(3) REGULATIONS GOVERNING APPROVAL AFTER TRANSI- ^bliStion TION.—For academic year 1995-1996 and subsequent academic years, the Secretary shall promulgate and publish in the Fed- eral Register regulations governing the approval of institutions to originate loans imder this part in accordance with section 457(aX2). "(d) ELIGIBLE INSTITUTIONS.—The Secretary may not select an institution of higher education for participation under this section unless such institution is an eligible institution under section 435(a). "(e) CONSORTIA.—Subject to such requirements as the Secretary may prescribe, eligible institutions of higher education (as deter- mined under subsection (d)) with agreements under section 454(a) may apply to the Secretary as consortia to originate loans under this part for students in attendance at such institutions. Each such institution shall be required to meet the requirements of subsection (c) with respect to loan origination.