1134                                      LAWS OF MARYLAND                                Ch. 509

equivalent: and]. ANY SUCH PERSON SHALL BE ELIGIBLE TO BORROW
FOR AT LEAST SIX ACADEMIC YEARS OR THEIR EQUIVALENT.
MAXIMUM LOAN AMOUNTS SHALL BE ESTABLISHED BY THE
BOARD WITHIN LIMITS ESTABLISHED BY FEDERAL LAW AND
REGULATIONS PRESCRIBED BY THE COMMISSIONER, AND

(2)  To guarantee the loan of money, upon such terms and conditions as the
board may prescribe, within the limitations contained in this article, to persons
who are residents of this State and who have been accepted for enrollment or who
are in good standing at eligible colleges or vocational schools in this State or
elsewhere, to assist them in meeting their expenses of education [; provided,
however, that no loan to such a person shall be guaranteed to an amount of more
than one thousand five hundred dollars for any academic year and that such loan
or loans shall not be guaranteed for more than six academic years or their
equivalent]. ANY SUCH PERSON SHALL BE ELIGIBLE TO BORROW
FOR AT LEAST SIX ACADEMIC YEARS OR THEIR EQUIVALENT.
MAXIMUM LOAN AMOUNTS SHALL BE ESTABLISHED BY THE
BOARD WITHIN LIMITS ESTABLISHED BY FEDERAL LAW AND
REGULATIONS PRESCRIBED BY THE COMMISSIONER, AND

(3)   Students who have been accepted for enrollment or who are in good
standing at eligible colleges or vocational schools on a part-time basis shall be
eligible for loans hereunder provided that they carry at least one-half the normal
full-time academic work load as determined by the college or vocational school.
The board may, by rule, establish 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 guaranteed 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.

(6)  To pay a service fee of twenty-five dollars ($25.00) to any lending institution
upon the processing, approval and granting of a loan or conversion to a "pay-out"
program for an existing loan on behalf of any student who receives a loan for
higher education as provided in this article.

[[7.

(a) The terms and conditions of any loan made or guaranteed by the corporation
shall not require the borrower thereof to commence the repayment of his loan
earlier than nine months or later than one year after he ceases to pursue a full-time
or part-time course of study at an eligible college or vocational school; provided,
however, that [[[]] the board may, by rule, provide that such repayment shall not
commenced[[]]] [[PERIODIC INSTALLMENTS OF PRINCIPAL NEED
NOT BE PAID, BUT INTEREST SHALL ACCRUE AND BE PAID,]] during
any period (1) during which the borrower is pursuing a full-time course of study at
an institution of higher education or vocational education or at a comparable
institution approved by the United States Commissioner of Education; (2) not in
excess of three years during which the borrower is a member of the armed forces
of the United States; or (3) not in excess of three years during which the borrower
is in service as a volunteer under the Peace Corps Act or (4) not in excess of three
years during which the borrower is in service as a full-time volunteer under title
VIII of the Economic Opportunity Act of 1964. The board may, by rule,
determine whether any such period shall be included in determining the ten-year