; maximum number (1) The Secretary shall make monthly payments under this section in such amounts as an individual who is entitled to educational assistance for tuition or fees under this subchapter may elect for the repayment of a Federal student loan to that individual. No such amount may exceed one-twelfth of the maximum annual amount calculated under subsection (b)(1). (2) The total number of months of payments for the repayment of a Federal student loan to an individual under this section may not exceed 36 months. (d) Benefit non-Transferable Notwithstanding section 3319 of this title, an individual who is entitled to educational assistance under this section may not transfer such assistance to another individual. (e) Eligible payees The Secretary shall make payments of educational assistance under this section directly to the lender of the Federal student loan of the individual who is entitled to educational assistance under this section. (f) Arrangements To make payments; regulations The Secretary shall enter into such arrangements, and shall prescribe such regulations, that the Secretary determines necessary to carry out this section. (g) Federal student loan defined In this section, the term Federal student loan means any loan made, insured, or guaranteed under title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1070 et seq. ). . (b) Clerical amendment The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 3320 the following new item: 3320A. Use of educational assistance benefits for the repayment of Federal student loans. . (c) Effective date The amendments made by this section shall apply to educational assistance paid for months beginning on or after the date of the enactment of this Act.