544                             LAWS OF MARYLAND                      [CH. 272

(2) [t] To guarantee the loan of money, upon such terms and con-
ditions as the board may prescribe, within the limitations contained in
this article, to persons who are residents of this State and [who are
attending or plan to attend] who have been accepted for enrollment
or who are in good standing at eligible colleges in this State or else-
where, to assist them in meeting their expenses of higher education;
providing, however, that no loan to such a person shall be guaran-
teed to an amount [in excess] of more than one thousand five hun-
dred dollars for any [school] academic year and that [the total loan
to such a person shall not be guaranteed in an amount of more than
five thousand dollars] such loan or loans shall not be guaranteed for
more than six academic years or their equivalent.

(3) Students who [are attending or plan to attend] have been ac-
cepted for enrollment or who are in good standing at eligible colleges
on a part-time basis [may] shall be eligible for loans hereunder pro-
vided that they carry at least one-half the normal full-time academic
workload as determined by the college. The board may, by rule, es-
tablish other minimum qualifications for a person to be deemed a
part-time student for the purposes hereof.

(4)  The board shall have the power to procure a policy or policies of
group life insurance to insure the repayment of loans made or guar-
anteed by the corporation in the event of the death of an individual
to whom a loan is made or guaranteed hereunder.

(5)   No collateral security or endorsements shall be required on
any loan made or guaranteed by the corporation unless by specific
authority of the board.

(c) Contracts [to facilitate loan program].—To enter into con-
tracts with (A) institutions of higher education upon such terms as
[to the board may seem reasonable] may be agreed upon between the
corporation and any such institution, to provide for the [creation or]
administration by such institutions of any loan, or [the] guarantee
of [any] a loan, made [or undertaken] by the corporation, including
applications therefor and repayment thereof [or otherwise facilitat-
ing the loan program established under this article]; and (B) the
United States government, or any department, agency or office
thereof, or any private agency approved by the board, for the pur-
pose of receiving funds or services therefrom.

(e) Rules and regulations.—To adopt rules and regulations, not in-
consistent with law, governing the application for and the granting,
administration and repayment of loans, or the guarantee of loans,
made by the corporation, the eligibility of students, colleges, and
lending institutions to participate in the program, and governing
any other matters relating to the activities of the corporation. The
board may adopt such rules and regulations as may be necessary to
conform its loan and guarantee policies and requirements to the re-
quirements of the United States Commissioner of Education. The
board shall require all persons borrowing from the corporation, or
borrowing funds guaranteed by the corporation, to pay interest on
the amount borrowed during the term of the loan in such amount
not exceeding six per centum per annum and at such intervals as the
board may fix; provided, however, that any part of such interest
which may be paid or payable by the United States government, or
any department, agency, or office thereof, shall not be collected from
such persons.