Student Default Initiative Act of 1988

[AI summary unavailable — showing source text] Student Default Initiative Act of 1988 - Amends the Higher Education Act of 1965 (the Act) to lower the maximum amount of a Pell Grant for academic years 1989-1990, 1990-1991, and 1991-1992. Eliminates provisions authorizing adjustments in Pell Grant payments when appropriations are insufficient. Authorizes the Secretary of Education (the Secretary), when appropriations are insufficient, to draw funds from subsequent year appropriations for Pell Grants. Revises provisions relating to the period of eligibility for Pell Grants to limit such period to the full-time equivalent of: (1) the number of academic years that the undergraduate degree normally requires, plus one academic year; or (2) six academic years in the case of a degree or certificate program normally requiring more than four academic years. Requires that insurance program agreements to qualify loans for Guaranteed Student Loan (GSL) interest subsidies provide that the lender must promptly notify the borrower (and the last institution the student attended before the beginning of repayment) of: (1) any sale or other transfer of the loan to another holder; and (2) such holder's address and phone number. Requires such agreem…