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20 U.S.C. § 1079 — Certificate of Federal loan insurance—effective date of insurance
Federal law — U.S. Code and appendices · legal_authorities
**(a) Loan-by-loan insurance**
(1) **Authority to issue certificates on application** — If, upon application by an eligible lender, made upon such form, containing such information, and supported by such evidence as the Secretary may require, and otherwise in conformity with this section, the Secretary finds that the applicant has made a loan to an eligible student which is insurable under the provisions of this part, he may issue to the applicant a certificate of insurance covering the loan and setting forth the amount and terms of the insurance.
(2) **Effectiveness of certificate** — Insurance evidenced by a certificate of insurance pursuant to subsection (a)(1) shall become effective upon the date of issuance of the certificate, except that the Secretary is authorized, in accordance with regulations, to issue commitments with respect to proposed loans, or with respect to lines (or proposed lines) of credit, submitted by eligible lenders, and in that event, upon compliance with subsection (a)(1) by the lender, the certificate of insurance may be issued effective as of the date when any loan, or any payment by the lender pursuant to a line of credit, to be covered by such insurance was made. Such insurance shall cease to be effective upon 60 days’ default by the lender in the payment of any installment of the premiums payable pursuant to subsection (c).
(3) **Contents of applications** — An application submitted pursuant to subsection (a)(1) shall contain (A) an agreement by the applicant to pay, in accordance with regulations, the premiums fixed by the Secretary pursuant to subsection (c), and (B) an agreement by the applicant that if the loan is covered by insurance the applicant will submit such supplementary reports and statement during the effective period of t
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Source file: Laws/federal/codes/united-states-code/title-20/section-1079-certificate-of-federal-loan-insuranceeffective-date-of-insurance--a683fa1ae8.md
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Source location: Title 20, Chapter 28, § 1079; chapter-028-higher-education-resources-and-student-assistance.md
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**(a) Loan-by-loan insurance**
(1) **Authority to issue certificates on application** — If, upon application by an eligible lender, made upon such form, containing such information, and supported by such evidence as the Secretary may require, and otherwise in conformity with this section, the Secretary finds that the applicant has made a loan to an eligible student which is insurable under the provisions of this part, he may issue to the applicant a certificate of insurance covering the loan and setting forth the amount and terms of the insurance.
(2) **Effectiveness of certificate** — Insurance evidenced by a certificate of insurance pursuant to subsection (a)(1) shall become effective upon the date of issuance of the certificate, except that the Secretary is authorized, in accordance with regulations, to issue commitments with respect to proposed loans, or with respect to lines (or proposed lines) of credit, submitted by eligible lenders, and in that event, upon compliance with subsection (a)(1) by the lender, the certificate of insurance may be issued effective as of the date when any loan, or any payment by the lender pursuant to a line of credit, to be covered by such insurance was made. Such insurance shall cease to be effective upon 60 days’ default by the lender in the payment of any installment of the premiums payable pursuant to subsection (c).
(3) **Contents of applications** — An application submitted pursuant to subsection (a)(1) shall contain (A) an agreement by the applicant to pay, in accordance with regulations, the premiums fixed by the Secretary pursuant to subsection (c), and (B) an agreement by the applicant that if the loan is covered by insurance the applicant will submit such supplementary reports and statement during the effective period of the loan agreement, upon such forms, at such times, and containing such information as the Secretary may prescribe by or pursuant to regulation.
**(b) Comprehensive insurance coverage certificate**
(1) **Establishment of system by regulation** — In lieu of requiring a separate insurance application and issuing a separate certificate of insurance for each student loan made by an eligible lender as provided in subsection (a), the Secretary may, in accordance with regulations consistent with [section 1074 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title20-section1074&num=0&edition=prelim), issue to any eligible lender applying therefor a certificate of comprehensive insurance coverage which shall, without further action by the Secretary, insure all insurable loans made by that lender, on or after the date of the certificate and before a specified cutoff date, within the limits of an aggregate maximum amount stated in the certificate. Such regulations may provide for conditioning such insurance, with respect to any loan, upon compliance by the lender with such requirements (to be stated or incorporated by reference in the certificate) as in the Secretary’s judgment will best achieve the purpose of this subsection while protecting the United States from the risk of unreasonable loss and promoting the objectives of this part, including (but not limited to) provisions as to the reporting of such loans and information relevant thereto to the Secretary and as to the payment of initial and other premiums and the effect of default therein, and including provision for confirmation by the Secretary from time to time (through endorsement of the certificate) of the coverage of specific new loans by such certificate, which confirmation shall be incontestable by the Secretary in the absence of fraud or misrepresentation of fact or patent error.
(2) **Uncovered loans** — If the holder of a certificate of comprehensive insurance coverage issued under this subsection grants to a student a line of credit extending beyond the cutoff date specified in that certificate, loans or payments thereon made by the holder after that date pursuant to the line of credit shall not be deemed to be included in the coverage of that certificate except as may be specifically provided therein; but, subject to the limitations of [section 1074 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title20-section1074&num=0&edition=prelim), the Secretary may, in accordance with regulations, make commitments to insure such future loans or payments, and such commitments may be honored either as provided in subsection (a) or by inclusion of such insurance on comprehensive coverage under the subsection for the period or periods in which such future loans or payments are made.
**(c) Charges for Federal insurance** The Secretary shall, pursuant to regulations, charge for insurance on each loan under this part a premium in an amount not to exceed one-fourth of 1 percent per year of the unpaid principal amount of such loan (excluding interest added to principal), payable in advance, at such times and in such manner as may be prescribed by the Secretary. Such regulations may provide that such premium shall not be payable, or if paid shall be refundable, with respect to any period after default in the payment of principal or interest or after the borrower has died or becomes totally and permanently disabled, if (1) notice of such default or other event has been duly given, and (2) requests for payment of the loss insured against has been made or the Secretary has made such payment on his own motion pursuant to [section 1080(a) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title20-section1080/a&num=0&edition=prelim).
**(d) Assignability of insurance** The rights of an eligible lender arising under insurance evidenced by a certificate of insurance issued to it under this section may be assigned as security by such lender only to another eligible lender, and subject to regulation by the Secretary.
**(e) Consolidation not to affect insurance** The consolidation of the obligations of two or more federally insured loans obtained by a student borrower in any fiscal year into a single obligation evidenced by a single instrument of indebtedness shall not affect the insurance by the United States. If the loans thus consolidated are covered by separate certificates of insurance issued under subsection (a), the Secretary may upon surrender of the original certificates issue a new certificate of insurance in accordance with that subsection upon the consolidated obligation; if they are covered by a single comprehensive certificate issued under subsection (b), the Secretary may amend that certificate accordingly.
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Limitations on amounts of loans covered by Federal insurance** The total principal amount of new loans made and installments paid pursuant to lines of credit (as defined in [section 1085 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title20-section1085&num=0&edition=prelim)) to students covered by Federal loan insurance under this part shall not exceed $2,000,000,000 for the period from July 1, 1976, to September 30, 1976, for each of the succeeding fiscal years ending prior to October 1, 2009, and for the period from October 1, 2009, to June 30, 2010, for loans first disbursed on or before June 30, 2010.
**(b) Apportionment of amounts** The Secretary may, if he or she finds it necessary to do so in order to assure an equitable distribution of the benefits of this part, assign, within the maximum amounts specified in subsection (a), Federal loan insurance quotas applicable to eligible lenders, or to States or areas, and may from time to time reassign unused portions of these quotas.
Source: Supplied U.S. Code snapshot — release unconfirmed · 20 U.S.C. § 1074
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Federal insurance barred to lenders with access to State or private insurance** Except as provided in subsection (b), the Secretary shall not issue certificates of insurance under [section 1079 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title20-section1079&num=0&edition=prelim) to lenders in a State if the Secretary determines that every eligible institution has reasonable access in that State to a State or private nonprofit student loan insurance program which is covered by an agreement under [section 1078(b) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title20-section1078/b&num=0&edition=prelim).
**(b) Exceptions** The Secretary may issue certificates of insurance under [section 1079 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title20-section1079&num=0&edition=prelim) to a lender in a State—
(1) for insurance of a loan made to a student borrower who does not, by reason of the borrower’s residence, have access to loan insurance under the loan insurance program of such State (or under any private nonprofit loan insurance program which has received an advance under [section 1072 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title20-section1072&num=0&edition=prelim) for the benefit of students in such State);
(2) for insurance of all the loans made to student borrowers by a lender who satisfies the Secretary that, by reason of the residence of such borrowers, such lender will not have access to any single State or nonprofit private loan insurance program which will insure substantially all of the loans such lender intends to make to such student borrowers; or
(3) under such circumstances as may be approved by the guaranty agency in such S
Source: Supplied U.S. Code snapshot — release unconfirmed · 20 U.S.C. § 1073
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Federal law — U.S. Code and appendices · legal_authorities
**(a) General powers** In the performance of, and with respect to, the functions, powers, and duties, vested in him by this part, the Secretary may—
(1) prescribe such regulations as may be necessary to carry out the purposes of this part, including regulations applicable to third party servicers (including regulations concerning financial responsibility standards for, and the assessment of liabilities for program violations against, such servicers) to establish minimum standards with respect to sound management and accountability of programs under this part, except that in no case shall damages be assessed against the United States for the actions or inactions of such servicers;
(2) sue and be sued in any court of record of a State having general jurisdiction or in any district court of the United States, and such district courts shall have jurisdiction of civil actions arising under this part without regard to the amount in controversy, and action instituted under this subsection by or against the Secretary shall survive notwithstanding any change in the person occupying the office of Secretary or any vacancy in that office; but no attachment, injunction, garnishment, or other similar process, mesne or final, shall be issued against the Secretary or property under the Secretary’s control and nothing herein shall be construed to except litigation arising out of activities under this part from the application of sections 509, 517, 547, and 2679 of title 28;
(3) include in any contract for Federal loan insurance such terms, conditions, and covenants relating to repayment of principal and payment of interest, relating to the Secretary’s obligations and rights to those of eligible lenders, and borrowers in case of default, and relating to such other matters as the Secre
Source: Supplied U.S. Code snapshot — release unconfirmed · 20 U.S.C. § 1082
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Purpose** The Congress hereby declares that it is the purpose of this section (1) to establish a private corporation which will be financed by private capital and which will serve as a secondary market and warehousing facility for student loans, including loans which are insured by the Secretary under this part or by a guaranty agency, and which will provide liquidity for student loan investments; (2) in order to facilitate secured transactions involving student loans, to provide for perfection of security interests in student loans either through the taking of possession or by notice filing; and (3) to assure nationwide the establishment of adequate loan insurance programs for students, to provide for an additional program of loan insurance to be covered by agreements with the Secretary.
**(b) Establishment**
(1) **In general** — There is hereby created a body corporate to be known as the Student Loan Marketing Association (hereinafter referred to as the “Association”). The Association shall have succession until dissolved. It shall maintain its principal office in the District of Columbia and shall be deemed, for purposes of venue and jurisdiction in civil actions, to be a resident and citizen thereof. Offices may be established by the Association in such other place or places as it may deem necessary or appropriate for the conduct of its business.
(2) **Exemption from State and local taxes** — The Association, including its franchise, capital, reserves, surplus, mortgages, or other security holdings, and income shall be exempt from all taxation now or hereafter imposed by any State, territory, possession, Commonwealth, or dependency of the United States, or by the District of Columbia, or by any county, municipality, or local taxing authority, except that an
Source: Supplied U.S. Code snapshot — release unconfirmed · 20 U.S.C. § 1087–2
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Federal law — U.S. Code and appendices · legal_authorities
Page 478
TITLE 20—EDUCATION
§ 1079
(3) Limitations
(A) Student loan payment amount
Student loan repayments made by the Sec-
retary under this section shall be made sub-
ject to such terms, limitations, or condi-
tions as may be mutually agreed upon by the
borrower and the Secretary in an agreement
under paragraph (1), except that the amount
paid by the Secretary under this section
shall not exceed—
(i) $6,000 for any borrower in any cal-
endar year; or
(ii) an aggregate total of $40,000 in the
case of any borrower.
(B) Beginning of payments
Nothing in this section shall authorize the
Secretary to pay any amount to reimburse a
borrower for any repayments made by such
borrower prior to the date on which the Sec-
retary entered into an agreement with the
borrower under this subsection.
(e) Additional agreements
(1) In general
On completion of the required period of serv-
ice under an agreement under subsection (d),
the borrower and the Secretary may, subject
to paragraph (2), enter into an additional
agreement in accordance with subsection (d).
(2) Term
An agreement entered into under paragraph
(1) may require the borrower to remain em-
ployed as a civil legal assistance attorney for
less than three years.
(f) Award basis; priority
(1) Award basis
Subject to paragraph (2), the Secretary shall
provide repayment benefits under this section
on a first-come, first-served basis, and subject
to the availability of appropriations.
(2) Priority
The Secretary shall give priority in pro-
viding repayment benefits under this section
in any fiscal year to a borrower who—
(A) has practiced law for five years or less
and, for not less than 90 percent of the time
in such practice, has served as a civil legal
assistance attorney;
(B) received repayment
Source: Supplied 2024 U.S. Code historical extraction · 20 U.S.C. § 1079
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