; and (2) by amending subsection (b) to read as follows: (b) Reimbursement for cancellations (1) Assigned loans In the case of loans made under this part before July 1, 2019, and that are assigned to the Secretary, the Secretary shall, from amounts repaid each quarter on assigned Perkins Loans made before July 1, 2019, pay to each institution for each quarter an amount equal to— (A) the aggregate of the amounts of loans from its student loan fund that are canceled pursuant to this section for such quarter, minus (B) an amount equal to the aggregate of the amounts of any such loans so canceled that were made from Federal capital contributions to its student loan fund. (2) Retained loans In the case of loans made under this part before July 1, 2019, and that are retained by the institution for servicing, the institution shall deduct from loan repayments owed to the Secretary under section 466, an amount equal to— (A) the aggregate of the amounts of loans from its student loan fund that are canceled pursuant to this section for such quarter, minus (B) an amount equal to the aggregate of the amounts of any such loans so canceled that were made from Federal capital contributions to its student loan fund. . 4078. Distribution of assets from student loan funds for purposes of the Perkins loan program Section 466 of the Higher Education Act of 1965 ( 20 U.S.C. 1087ff ) is amended to read as follows: 466. Distribution of assets from student loan funds (a) Capital distribution Beginning July 1, 2019, there shall be a capital distribution of the balance of the student loan fund established under this part by each institution of higher education as follows: (1) For the quarter beginning July 1, 2019, the Secretary shall first be paid, no later than September 30, 2019, an amount that bears the same ratio to the cash balance in such fund at the close of June 30, 2019, as the total amount of the Federal capital contributions to such fund by the Secretary under this part bears to— (A) the sum of such Federal contributions and