Student Loan Amendments

Student Loan Amendments - Increases the maximum rate of interest to be charged on a loan secured under the Emergency Insured Student Loan Act of 1969 from 3 to 4 percent.

Extends to July 1, 1976, the time within which an eligible loan may be made which is insured under such Act.

Requires, under the Higher Education Act of 1965, that to be eligible for interest payment to be made in behalf of a student who is receiving a loan under such Act, the student must have been enrolled as a regular student at an institution of higher education prior to April 1, 1973.

Provides for reimbursement of 80 percent of the losses incurred by default of the borrower to public or private institutions operating a student loan insurance program.

Authorizes the Commissioner of Education to increase the basic grant payment, the amount of such increase to be determined by and limited to, an estimation of the amount of interest which will accrue on the outstanding and anticipated loans of a student which were necessary for him to attend an institution of higher learning during previous years or which are necessary to enable such student to continue to attend such an institution during such year.

Permits the compounding of interest on loans made pursuant to the Higher Education Act of 1965.

Increases the loan limitations for undergraduate students to $2500 in one year and for graduate or professional students to $5000 in one year. Increases the total amount any student may borrow to $25,000.

Extends the maximum allowable repayment period for federally insured loans from 10 to 15 years, this period to begin nine months after graduation. Extends the maximum allowable period of the loan from 15 to 20 years.

Provides for the determination of need and the granting of a loan based on such determination to eligible students outside of the United States.

Eliminates the defense of infancy with respect to written agreements executed by a student relating to federally insured student loans.