HBCU capital financing loan disbursement and forgiveness

(a) In general Each time an institution of higher education receives a disbursement of a loan amount under a covered closed loan agreement, the Secretary shall repay— (1) the outstanding balance of principal, interest, fees, and costs on such loan amount (as of the date of such disbursement) under the covered closed loan agreement; and (2) any reimbursement (including reimbursements of escrow and return of fees and deposits) relating to the covered closed loan agreement that are usual and customary when the loan is paid off by the institution. (b) Covered closed loan agreement In this section, the term covered closed loan agreement means a closed loan agreement— (1) executed before the date of enactment of the Consolidated Appropriations Act, 2021 (Public Law 116–260); (2) made under part D of title III of the Higher Education Act of 1965 (20 U.S.C. 1066 et seq.); and (3) that provides for loan amounts that have not been disbursed as of the date of enactment of the Consolidated Appropriations Act, 2021 (Public Law 116–260).