Browse Arkansas Code titles and sections
20 U.S.C. § 1087h — Funds for administrative expenses
Federal law — U.S. Code and appendices · legal_authorities
**(a) Administrative expenses**
(1) **Additional mandatory funds for servicing** — There shall be available to the Secretary (in addition to any other amounts appropriated under any appropriations Act for administrative costs under this part and part B and out of any money in the Treasury not otherwise appropriated) $1,000,000,000 to be obligated for administrative costs under this part and part B, including the costs of servicing the direct student loan programs under this part, which shall remain available until expended.
(2) **Repealed. Pub. L. 113–67, div. A, title V, § 502(2), Dec. 26, 2013, 127 Stat. 1187**
(3) **Authorization for administrative costs beginning in fiscal years 2007 through 2014** — For each of the fiscal years 2007 through 2014, there are authorized to be appropriated such sums as may be necessary for administrative costs under this part and part B, including the costs of the direct student loan programs under this part.
(4) **Continuing mandatory funds for account maintenance fees** — For each of the fiscal years 2007 through 2021,11 See Funds for Account Maintenance Fees note below. there shall be available to the Secretary, from funds not otherwise appropriated, funds to be obligated for account maintenance fees payable to guaranty agencies under part B and calculated in accordance with subsection (b).
(5) **Account maintenance fees** — Account maintenance fees under paragraph (3) 22 See References in Text note below. shall be paid quarterly and deposited in the Agency Operating Fund established under [section 1072b of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title20-section1072b&num=0&edition=prelim).
(6) **Technical assistance to institutions of higher education**
(A) *Provision of assistance* — The Se
Source: Supplied U.S. Code snapshot — release unconfirmed · 20 U.S.C. § 1087h
Stored review status: release_metadata_unconfirmed. A text match is a research starting point; applicability is not established.
Original supplied file — preserved unchanged
Download original Markdown file
File SHA-256: 1267c8c53c5d0615558320ef43dd8df8028a81fe8e6912172e2c10a50603b346. The original may include catalog metadata, neighboring provisions, or embedded records outside this collection's scope. Search shows only the selected federal record. Historical editions and unverified snapshots are not a statement of current law.
Authority boundary: historical or unconfirmed source not current law verified.
Open the recorded source website ↗
Record provenance
Stable record: federal_law:legal_authorities:record_usc_bc9eb9f0dcb0ff7d0b35ca2a
Source file: Laws/federal/codes/united-states-code/title-20/section-1087h-funds-for-administrative-expenses--19b48e8abd.md
Pages: Not recorded – Not recorded
Passage SHA-256: 87919fc77d14356d6da00912e644863f8b8278e3e2ddbee071f1efb3d0c3893b
Source location: Title 20, Chapter 28, § 1087h; chapter-028-higher-education-resources-and-student-assistance.md
Stored source content
**(a) Administrative expenses**
(1) **Additional mandatory funds for servicing** — There shall be available to the Secretary (in addition to any other amounts appropriated under any appropriations Act for administrative costs under this part and part B and out of any money in the Treasury not otherwise appropriated) $1,000,000,000 to be obligated for administrative costs under this part and part B, including the costs of servicing the direct student loan programs under this part, which shall remain available until expended.
(2) **Repealed. Pub. L. 113–67, div. A, title V, § 502(2), Dec. 26, 2013, 127 Stat. 1187**
(3) **Authorization for administrative costs beginning in fiscal years 2007 through 2014** — For each of the fiscal years 2007 through 2014, there are authorized to be appropriated such sums as may be necessary for administrative costs under this part and part B, including the costs of the direct student loan programs under this part.
(4) **Continuing mandatory funds for account maintenance fees** — For each of the fiscal years 2007 through 2021,11 See Funds for Account Maintenance Fees note below. there shall be available to the Secretary, from funds not otherwise appropriated, funds to be obligated for account maintenance fees payable to guaranty agencies under part B and calculated in accordance with subsection (b).
(5) **Account maintenance fees** — Account maintenance fees under paragraph (3) 22 See References in Text note below. shall be paid quarterly and deposited in the Agency Operating Fund established under [section 1072b of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title20-section1072b&num=0&edition=prelim).
(6) **Technical assistance to institutions of higher education**
(A) *Provision of assistance* — The Secretary shall provide institutions of higher education participating, or seeking to participate, in the loan programs under this part with technical assistance in establishing and administering such programs.
(B) *Funds* — There are authorized to be appropriated, and there are appropriated, to carry out this paragraph (in addition to any other amounts appropriated to carry out this paragraph and out of any money in the Treasury not otherwise appropriated), $50,000,000 for fiscal year 2010.
(C) *Definition* — In this paragraph, the term “assistance” means the provision of technical support, training, materials, technical assistance, and financial assistance.
(7) **Additional payments**
(A) *Provision of assistance* — The Secretary shall provide payments to loan servicers for retaining jobs at locations in the United States where such servicers were operating under part B on January 1, 2010.
(B) *Funds* — There are authorized to be appropriated, and there are appropriated, to carry out this paragraph (in addition to any other amounts appropriated to carry out this paragraph and out of any money in the Treasury not otherwise appropriated), $25,000,000 for each of the fiscal years 2010 and 2011.
(8) **Carryover** — The Secretary may carry over funds made available under this section to a subsequent fiscal year.
**(b) Calculation basis** Account maintenance fees payable to guaranty agencies under subsection (a)(4) shall be calculated on the basis of 0.06 percent of the original principal amount of outstanding loans on which insurance was issued under part B.
**(c) Budget justification** No funds may be expended under this section unless the Secretary includes in the Department of Education’s annual budget justification to Congress a detailed description of the specific activities for which the funds made available by this section have been used in the prior and current years (if applicable), the activities and costs planned for the budget year, and the projection of activities and costs for each remaining year for which administrative expenses under this section are made available.
Cross-references
Connections may be documented source relationships, shared citations or nearby passages. Each explains its basis; a connection alone does not establish applicability to your situation.
Federal law — U.S. Code and appendices · legal_authorities
**(a) Purpose** It is the purpose of this part, to assist in making available the benefits of postsecondary education to eligible students (defined in accordance with [section 1091 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title20-section1091&num=0&edition=prelim)) in institutions of higher education by—
(1) providing Federal Pell Grants to all eligible students;
(2) providing supplemental educational opportunity grants to those students who demonstrate financial need;
(3) providing for payments to the States to assist them in making financial aid available to such students;
(4) providing for special programs and projects designed (A) to identify and encourage qualified youths with financial or cultural need with a potential for postsecondary education, (B) to prepare students from low-income families for postsecondary education, and (C) to provide remedial (including remedial language study) and other services to students; and
(5) providing assistance to institutions of higher education.
**(b) Secretary required to carry out purposes** The Secretary shall, in accordance with subparts 1 through 9 of this part, carry out programs to achieve the purposes of this part.
Source: Supplied U.S. Code snapshot — release unconfirmed · 20 U.S.C. § 1070a
Stored review status: release_metadata_unconfirmed. Explicit cross-reference supplied in source Markdown; currentness and applicability require review.
Federal law — U.S. Code and appendices · legal_authorities
**(a) Contracts for supplies and services**
(1) **In general** — The Secretary shall, to the extent practicable, award contracts for origination, servicing, and collection described in subsection (b). In awarding such contracts, the Secretary shall ensure that such services and supplies are provided at competitive prices.
(2) **Entities** — The entities with which the Secretary may enter into contracts shall include only entities which the Secretary determines are qualified to provide such services and supplies and will comply with the procedures applicable to the award of such contracts. In the case of awarding contracts for the origination, servicing, and collection of loans under this part, the Secretary shall enter into contracts only with entities that have extensive and relevant experience and demonstrated effectiveness. The entities with which the Secretary may enter into such contracts shall include, where practicable, agencies with agreements with the Secretary under sections 1078(b) and (c) of this title, if such agencies meet the qualifications as determined by the Secretary under this subsection and if those agencies have such experience and demonstrated effectiveness. In awarding contracts to such State agencies, the Secretary shall, to the extent practicable and consistent with the purposes of this part, give special consideration to State agencies with a history of high quality performance to perform services for institutions of higher education within their State.
(3) **Rule of construction** — Nothing in this section shall be construed as a limitation of the authority of any State agency to enter into an agreement for the purposes of this section as a member of a consortium of State agencies.
**(b) Contracts for origination, servicing, and data syst
Source: Supplied U.S. Code snapshot — release unconfirmed · 20 U.S.C. § 1087f
Stored review status: release_metadata_unconfirmed. Explicit cross-reference supplied in source Markdown; currentness and applicability require review.
Federal law — U.S. Code and appendices · legal_authorities
**(a) Institution of higher education** For purposes of this chapter, other than subchapter IV, the term “institution of higher education” means an educational institution in any State that—
(1) admits as regular students only persons having a certificate of graduation from a school providing secondary education, or the recognized equivalent of such a certificate, or persons who meet the requirements of [section 1091(d) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title20-section1091/d&num=0&edition=prelim);
(2) is legally authorized within such State to provide a program of education beyond secondary education;
(3) provides an educational program for which the institution awards a bachelor’s degree or provides not less than a 2-year program that is acceptable for full credit toward such a degree, or awards a degree that is acceptable for admission to a graduate or professional degree program, subject to review and approval by the Secretary;
(4) is a public or other nonprofit institution; and
(5) is accredited by a nationally recognized accrediting agency or association, or if not so accredited, is an institution that has been granted preaccreditation status by such an agency or association that has been recognized by the Secretary for the granting of preaccreditation status, and the Secretary has determined that there is satisfactory assurance that the institution will meet the accreditation standards of such an agency or association within a reasonable time.
**(b) Additional institutions included** For purposes of this chapter, other than subchapter IV, the term “institution of higher education” also includes—
(1) any school that provides not less than a 1-year program of training to prepare students for gainful employment in a re
Source: Supplied U.S. Code snapshot — release unconfirmed · 20 U.S.C. § 1001
Stored review status: release_metadata_unconfirmed. Explicit cross-reference supplied in source Markdown; currentness and applicability require review.
Federal law — U.S. Code and appendices · legal_authorities
**(a) Definition of institution of higher education for purposes of student assistance programs**
(1) **Inclusion of additional institutions** — Subject to paragraphs (2) through (4) of this subsection, the term “institution of higher education” for purposes of subchapter IV includes, in addition to the institutions covered by the definition in [section 1001 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title20-section1001&num=0&edition=prelim)—
(A) a proprietary institution of higher education (as defined in subsection (b) of this section);
(B) a postsecondary vocational institution (as defined in subsection (c) of this section); and
(C) only for the purposes of part D of subchapter IV, an institution outside the United States that is comparable to an institution of higher education as defined in [section 1001 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title20-section1001&num=0&edition=prelim) and that has been approved by the Secretary for the purpose of part D of subchapter IV, consistent with the requirements of [section 1087b(d) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title20-section1087b/d&num=0&edition=prelim).
(2) **Institutions outside the United States**
(A) *In general* — For the purpose of qualifying as an institution under paragraph (1)(C), the Secretary shall establish criteria by regulation for the approval of institutions outside the United States and for the determination that such institutions are comparable to an institution of higher education as defined in [section 1001 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title20-section1001&num=0&edition=prelim) (except that a graduate medical school, nursing schoo
Source: Supplied U.S. Code snapshot — release unconfirmed · 20 U.S.C. § 1002
Stored review status: release_metadata_unconfirmed. Explicit cross-reference supplied in source Markdown; currentness and applicability require review.
Federal law — U.S. Code and appendices · legal_authorities
**(a) Establishment** Each guaranty agency shall, not later than 60 days after October 7, 1998, establish a fund designated as the Operating Fund.
**(b) Investment of funds** Funds deposited into the Operating Fund shall be invested at the discretion of the guaranty agency in accordance with prudent investor standards.
**(c) Additional deposits** After the establishment of the Operating Fund, the guaranty agency shall deposit into the Operating Fund—
(1) the loan processing and issuance fee paid by the Secretary pursuant to [section 1078(f) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title20-section1078/f&num=0&edition=prelim);
(2) 30 percent of amounts received after October 7, 1998, from the Secretary as payment for administrative cost allowances for loans upon which insurance was issued prior to October 7, 1998;
(3) the account maintenance fee paid by the Secretary in accordance with [section 1087h of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title20-section1087h&num=0&edition=prelim);
(4) the default aversion fee paid in accordance with section 1078(l) of this title;
(5) amounts remaining pursuant to section 1078(c)(6)(B) 11 See References in Text note below. of this title from collection on defaulted loans held by the agency, after payment of the Secretary’s equitable share, excluding amounts deposited in the Federal Fund pursuant to [section 1072a(c)(2) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title20-section1072a/c/2&num=0&edition=prelim); and
(6) other receipts as specified in regulations of the Secretary.
**(d) Uses of funds**
(1) **In general** — Funds in the Operating Fund shall be used for application processing, loan disbursement, enrollment and repay
Source: Supplied U.S. Code snapshot — release unconfirmed · 20 U.S.C. § 1072b
Stored review status: release_metadata_unconfirmed. Explicit cross-reference supplied in source Markdown; currentness and applicability require review.
Federal law — U.S. Code and appendices · legal_authorities
**(a) Establishment and purpose**
(1) **Establishment** — There is established in the Department a Performance-Based Organization (hereafter referred to as the “PBO”) which shall be a discrete management unit responsible for managing the administrative and oversight functions supporting the programs authorized under subchapter IV of this chapter, as specified in subsection (b).
(2) **Purposes** — The purposes of the PBO are—
(A) to improve service to students and other participants in the student financial assistance programs authorized under subchapter IV, including making those programs more understandable to students and their parents;
(B) to reduce the costs of administering those programs;
(C) to increase the accountability of the officials responsible for administering the operational aspects of these programs;
(D) to provide greater flexibility in the management and administration of the Federal student financial assistance programs;
(E) to integrate the information systems supporting the Federal student financial assistance programs;
(F) to implement an open, common, integrated system for the delivery of student financial assistance under subchapter IV; and
(G) to develop and maintain a student financial assistance system that contains complete, accurate, and timely data to ensure program integrity.
**(b) General authority**
(1) **Authority of Secretary** — Notwithstanding any other provision of this part, the Secretary shall maintain responsibility for the development and promulgation of policy and regulations relating to the programs of student financial assistance under subchapter IV. In the exercise of its functions, the PBO shall be subject to the direction of the Secretary. The Secretary shall—
(A) request the advice of, and wor
Source: Supplied U.S. Code snapshot — release unconfirmed · 20 U.S.C. § 1018
Stored review status: release_metadata_unconfirmed. Incoming connection: Explicit cross-reference supplied in source Markdown; currentness and applicability require review.
Federal law — U.S. Code and appendices · legal_authorities
**(a) Purpose of and authority for advances to reserve funds**
(1) **Purpose; eligible recipients** — From sums appropriated pursuant to paragraphs (3) and (4)(A) of [section 1071(b) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title20-section1071/b&num=0&edition=prelim), the Secretary is authorized to make advances to any State with which the Secretary has made an agreement pursuant to [section 1078(b) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title20-section1078/b&num=0&edition=prelim) for the purpose of helping to establish or strengthen the reserve fund of the student loan insurance program covered by that agreement. If for any fiscal year a State does not have a student loan insurance program covered by an agreement made pursuant to [section 1078(b) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title20-section1078/b&num=0&edition=prelim), and the Secretary determines after consultation with the chief executive officer of that State that there is no reasonable likelihood that the State will have such a student loan insurance program for such year, the Secretary may make advances for such year for the same purpose to one or more nonprofit private institutions or organizations with which the Secretary has made an agreement pursuant to [section 1078(b) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title20-section1078/b&num=0&edition=prelim) in order to enable students in the State to participate in a program of student loan insurance covered by such an agreement. The Secretary may make advances under this subsection both to a State program (with which he has such an agreement) and to one or more nonprofit private institutions or organizations (w
Source: Supplied U.S. Code snapshot — release unconfirmed · 20 U.S.C. § 1072
Stored review status: release_metadata_unconfirmed. Incoming connection: Explicit cross-reference supplied in source Markdown; currentness and applicability require review.
Federal law — U.S. Code and appendices · legal_authorities
**(a) Federal interest subsidies**
(1) **Types of loans that qualify** — Each student who has received a loan for study at an eligible institution for which the first disbursement is made before July 1, 2010, and—
(A) which is insured by the Secretary under this part; or
(B) which is insured under a program of a State or of a nonprofit private institution or organization which was contracted for, and paid to the student, within the period specified in paragraph (5), and which—
(i) in the case of a loan insured prior to July 1, 1967, was made by an eligible lender and is insured under a program which meets the requirements of subparagraph (E) of subsection (b)(1) and provides that repayment of such loan shall be in installments beginning not earlier than 60 days after the student ceases to pursue a course of study (as described in subparagraph (D) of subsection (b)(1)) at an eligible institution, or
(ii) in the case of a loan insured after June 30, 1967, was made by an eligible lender and is insured under a program covered by an agreement made pursuant to subsection (b),
shall be entitled to have paid on his or her behalf and for his or her account to the holder of the loan a portion of the interest on such loan under circumstances described in paragraph (2).
(2) **Additional requirements to receive subsidy**
(A) Each student qualifying for a portion of an interest payment under paragraph (1) shall—
(i) have provided to the lender a statement from the eligible institution, at which the student has been accepted for enrollment, or at which the student is in attendance, which—
(I) sets forth the loan amount for which the student shows financial need; and
(II) sets forth a schedule for disbursement of the proceeds of the loan in ins
Source: Supplied U.S. Code snapshot — release unconfirmed · 20 U.S.C. § 1078
Stored review status: release_metadata_unconfirmed. Incoming connection: Explicit cross-reference supplied in source Markdown; currentness and applicability require review.
Federal law — U.S. Code and appendices · legal_authorities
**(a) In general**
(1) **Parallel terms, conditions, benefits, and amounts** — Unless otherwise specified in this part, loans made to borrowers under this part shall have the same terms, conditions, and benefits, and be available in the same amounts, as loans made to borrowers, and first disbursed on June 30, 2010, under sections 1078, 1078–2, 1078–3, and 1078–8 of this title.
(2) **Designation of loans** — Loans made to borrowers under this part that, except as otherwise specified in this part, have the same terms, conditions, and benefits as loans made to borrowers under—
(A) [section 1078 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title20-section1078&num=0&edition=prelim) shall be known as “Federal Direct Stafford Loans”;
(B) [section 1078–2 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title20-section1078-2&num=0&edition=prelim) shall be known as “Federal Direct PLUS Loans”;
(C) [section 1078–3 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title20-section1078-3&num=0&edition=prelim) shall be known as “Federal Direct Consolidation Loans”; and
(D) [section 1078–8 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title20-section1078-8&num=0&edition=prelim) shall be known as “Federal Direct Unsubsidized Stafford Loans”.
(3) **Termination of authority to make interest subsidized loans and Federal Direct PLUS loans to graduate and professional students**
(A) *Termination of authority to make interest subsidized loans to graduate and professional students* — Subject to subparagraph (B), and notwithstanding any provision of this part or part B—
(i) for any period of instruction beginning on or after July 1, 2012, a graduate or profess
Source: Supplied U.S. Code snapshot — release unconfirmed · 20 U.S.C. § 1087e
Stored review status: release_metadata_unconfirmed. Incoming connection: Explicit cross-reference supplied in source Markdown; currentness and applicability require review.
Federal law — U.S. Code and appendices · legal_authorities
Page 572
TITLE 20—EDUCATION
§ 1087g
1 See Funds for Account Maintenance Fees note below.
2 See References in Text note below.
sition from the loan programs under part B of this sub-
chapter to the direct student loan program under this
part; and’’.
1993—Pub. L. 103–66 amended section generally, sub-
stituting provisions relating to contracts for former
provisions relating to terms and conditions.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE OF 1998 AMENDMENT
Amendment by Pub. L. 105–244 effective Oct. 1, 1998,
except as otherwise provided in Pub. L. 105–244, see sec-
tion 3 of Pub. L. 105–244, set out as a note under section
1001 of this title.
EFFECTIVE DATE
Section effective Oct. 1, 1992, see section 2 of Pub. L.
102–325, set out as an Effective Date of 1992 Amendment
note under section 1001 of this title.
SELECTION OF STUDENT LOAN SERVICER
Pub. L. 117–328, div. H, title III, Dec. 29, 2022, 136 Stat.
4893, provided in part: ‘‘That for student loan contracts
awarded prior to October 1, 2017, the Secretary [of Edu-
cation] shall allow student loan borrowers who are con-
solidating Federal student loans to select from any stu-
dent loan servicer to service their new consolidated
student loan’’.
Similar provisions were contained in the following
prior appropriation acts:
Pub. L. 117–103, div. H, title III, Mar. 15, 2022, 136 Stat.
480.
Pub. L. 116–260, div. H, title III, Dec. 27, 2020, 134 Stat.
1603.
Pub. L. 116–94, div. A, title III, Dec. 20, 2019, 133 Stat.
2592.
Pub. L. 115–245, div. B, title III, Sept. 28, 2018, 132
Stat. 3102.
Pub. L. 115–141, div. H, title III, Mar. 23, 2018, 132 Stat.
746.
Pub. L. 115–31, div. H, title III, May 5, 2017, 131 Stat.
549.
§ 1087g. Repealed. Pub. L. 111–39, title IV,
§ 404(b)(3), July 1, 20
Source: Supplied 2024 U.S. Code historical extraction · 20 U.S.C. § 1087h
Stored review status: historical_2024_not_currentness_verified. Same stored citation; legal effect and authority still require review.