; and (B) the borrower uses funds that were not derived from Federal loans or loan guarantees to pay the fees or premiums on the loan or loan guarantee under this section. (11) The Secretary— (A) shall prescribe explicit standards for use in periodically assessing the credit risk of new and existing direct loans and guaranteed loans; and (B) shall not make a loan or loan guarantee under this section unless the Secretary finds that there is a reasonable assurance of repayment. (d) Limitation on refinancing The authority vested by subsection (a)(2)— (1) authorizes making loans and loan guarantees only for refinancing loans that were entered into on or before the date that is 24 months before the date of enactment of the Mental Health and Substance Abuse Treatment Accessibility Act of 2017 ; and (2) terminates on the date that is 24 months after such date of enactment. (e) Payment of losses (1) Default on guaranteed loans If, as a result of a default by a borrower under a loan guaranteed under this section, after the holder thereof has made such further collection efforts and instituted such enforcement proceedings as the Secretary may require, the Secretary determines that the holder has suffered a loss— (A) the Secretary shall pay to such holder 75 percent of such loss, as specified in the guarantee contract; (B) upon making any such payment, the Secretary shall be subrogated to all the rights of the recipient of the payment