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PUBLIC LAW 103-66—AUG. 10, 1993 107 STAT. 351 "(C) not in excess of 3 years during which the Secretary determines, in accordance with regulations prescribed under section 435(o), that the borrower has experienced or will experience an economic hardship. "(g) FEDERAL DIRECT CONSOUDATION LOANS.—A borrower of a loan made under this part may consolidate such loan with the loans described in section 428C(aX4) only under such terms and conditions as the Secretary shall establish pursuant to section 457(aXl) or regulations promulgated imder this part. Loans made under this subsection shall be known £is 'Federal Direct Consolida- tion Loans'. "(h) BORROWER DEFENSES.—^Notwithstanding any other provi- Regulations. sion of State or Federal law, the Secretary shall specify in regula- tions (except as authorized under section 457(aXl)) which acts or omissions of an institution of higher education a borrower may assert as a defense to repayment of a loan made under this part, except that in no event may a borrower recover from the Secretary, in any action arising from or relating to a loan made under this part, an amount in excess of the amount such borrower has repaid on such loan. "(i) LOAN APPUCATION AND PROMISSORY NOTE.—The common financial reporting form required in section 483(aXl) shall con- stitute the appUcation for loans made under this part (other than a Federal Direct PLUS loan). The Secretary shall develop, print, and distribute to participating institutions a standard promissory note and loan disclosure form. "(j) LOAN DISBURSEMENT.— "(1) IN GENERAL.—^Proceeds of loans to students under this part shall be applied to the student's account for tuition and fees, and, in the case of institutionally owned housing, to room and board. Loan proceeds that remain after the application of the previous sentence shall be delivered to the borrower by check or other means that is payable to and requires the endorsement or other certification by such borrower. "(2) PAYMENT PERIODS.—The Secretary shall establish peri- ods for the payments described in paragraph (1) in a manner consistent with payment of basic grants under subpart 1 of part A of this title, "(k) FISCAL CONTROL AND FUND ACCOUNTABILITY.— "(1) IN GENERAL.—(A) An institution shall maintain finan- cial records in a manner consistent with records maintained for other programs under this title. "(B) Except as otherwise required by regulations of the Secretary, or in a notice under section 457(aXl)> an institution may maintain loan fimds under this part in the same accoimt as other Federal student financial assistance. "(2) PAYMENTS AND REFUNDS.—Payments and refunds shall be reconciled in a manner consistent with the manner set forth for the submission of a payment summary report required of institutions participating in the program under subpart 1 of part A, except that nothmg in this paragraph shall prevent such reconciliations on a monuily basis. "(3) TRANSACTION HISTORIES.—All transaction histories under this part shall be maintained using the same system designated by the Secretary for the provision of basic grants under subpart 1 of part A of this title.