20 U.S.C. § 1091a — Statute of limitations, and State court

Page 660 TITLE 20—EDUCATION § 1091a XIX of the Social Security Act [subchapters I, IV, X, XIV, XVI, or XIX of chapter 7 of Title 42, The Public Health and Welfare], no grant or loan to any under- graduate student for educational purposes made or in- sured under any program administered by the Sec- retary of Education shall be considered to be income or resources.’’ § 1091a. Statute of limitations, and State court judgments (a) In general (1) It is the purpose of this subsection to en- sure that obligations to repay loans and grant overpayments are enforced without regard to any Federal or State statutory, regulatory, or administrative limitation on the period within which debts may be enforced. (2) Notwithstanding any other provision of statute, regulation, or administrative limita- tion, no limitation shall terminate the period within which suit may be filed, a judgment may be enforced, or an offset, garnishment, or other action initiated or taken by— (A) an institution that receives funds under this subchapter that is seeking to collect a re- fund due from a student on a grant made, or work assistance awarded, under this sub- chapter; (B) a guaranty agency that has an agree- ment with the Secretary under section 1078(c) of this title that is seeking the repayment of the amount due from a borrower on a loan made under part B of this subchapter after such guaranty agency reimburses the previous holder of the loan for its loss on account of the default of the borrower; (C) an institution that has an agreement with the Secretary pursuant to section 1087c or 1087cc(a) of this title that is seeking the re- payment of the amount due from a borrower on a loan made under part D or E of this sub- chapter after the default of the borrower on such loan; or (D) the Secretary, the Attorney General, or the administrative head of another Federal agency, as the case may be, for payment of a refund due from a student on a grant made under this subchapter, or for the repayment of the amount due from a borrower on a loan made under this subchapter that has been as- signed to the Secretary under this subchapter. (b) Assessment of costs and other charges Notwithstanding any provision of State law to the contrary— (1) a borrower who has defaulted on a loan made under this subchapter shall be required to pay, in addition to other charges specified in this subchapter reasonable collection costs; (2) in collecting any obligation arising from a loan made under part B of this subchapter, a guaranty agency or the Secretary shall not be subject to a defense raised by any borrower based on a claim of infancy; and (3) in collecting any obligation arising from a loan made under part E, an institution of higher education that has an agreement with the Secretary pursuant to section 1087cc(a) of this title shall not be subject to a defense raised by any borrower based on a claim of in- fancy. (c) State court judgments A judgment of a State court for the recovery of money provided as grant, loan, or work assist- ance under this subchapter that has been as- signed or transferred to the Secretary under this subchapter may be registered in any district court of the United States by filing a certified copy of the judgment and a copy of the assign- ment or transfer. A judgment so registered shall have the same force and effect, and may be en- forced in the same manner, as a judgment of the district court of the district in which the judg- ment is registered. (d) Special rule This section shall not apply in the case of a student who is deceased, or to a deceased stu- dent’s estate or the estate of such student’s fam- ily. If a student is deceased, then the student’s estate or the estate of the student’s family shall not be required to repay any financial assistance under this subchapter, including interest paid on the student’s behalf, collection costs, or other charges specified in this subchapter. (Pub. L. 89–329, title IV, § 484A, as added Pub. L. 99–498, title IV, § 407(a), Oct. 17, 1986, 100 Stat. 1482; amended Pub. L. 102–26, § 3(a), Apr. 9, 1991, 105 Stat. 124; Pub. L. 105–244, title IV, § 484, Oct. 7, 1998, 112 Stat. 1737; Pub. L. 110–315, title IV, § 486, Aug. 14, 2008, 122 Stat. 3290.) Editorial Notes PRIOR PROVISIONS A prior section 1091a, Pub. L. 89–329, title IV, § 484A, as added Pub. L. 99–272, title XVI, § 16033, Apr. 7, 1986, 100 Stat. 355, related to statute of limitations, collec- tion costs, and defense of infancy, prior to the general revision of this part by Pub. L. 99–498. Another prior section 1091a, Pub. L. 89–329, title V, § 502, as added Pub. L. 90–35, § 2(c), June 29, 1967, 81 Stat. 82; amended Pub. L. 91–230, title IV, § 401(h)(4), title VIII, § 802, Apr. 13, 1970, 84 Stat. 174, 190; Pub. L. 92–318, title I, § 141(c)(1)(A), June 23, 1972, 86 Stat. 285, estab- lished the National Advisory Council on Education Pro- fessions Development and set forth functions, composi- tion, etc., of the Council, prior to repeal by Pub. L. 94–482, title I, § 151(a)(2), (b), Oct. 12, 1976, 90 Stat. 2151, effective Sept. 30, 1976. AMENDMENTS 2008—Subsec. (b)(3). Pub. L. 110–315, § 486(1), added par. (3). Subsec. (d). Pub. L. 110–315, § 486(2), added subsec. (d). 1998—Pub. L. 105–244, § 484(1), inserted ‘‘, and State court judgments’’ after ‘‘limitations’’ in section catch- line. Subsec. (c). Pub. L. 105–244, § 484(2), added subsec. (c). 1991—Subsec. (a). Pub. L. 102–26 amended subsec. (a) generally, substituting provisions eliminating statute of limitations for student loan collections for provi- sions establishing six year limitations period for collec- tion of such loans. 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 OF 1991 AMENDMENT Pub. L. 102–26, § 3(c), Apr. 9, 1991, 105 Stat. 125, as amended by Pub. L. 102–325, title XV, § 1551, July 23, Page 661 TITLE 20—EDUCATION § 1091b 1992, 105 Stat. 838, provided that: ‘‘The amendments made by this section [amending this section] shall be effective as if enacted by the Consolidated Omnibus Budget Reconciliation Act of 1985 (Public Law 99–272), and shall apply to any actions pending on or after the date of enactment of the Higher Education Technical Amendments of 1991 [Apr. 9, 1991].’’ § 1091b. Institutional refunds (a) Return of subchapter IV funds (1) In general If a recipient of assistance under this sub- chapter withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the amount of grant or loan assistance (other than assistance received under part C) to be re- turned to the subchapter IV programs is cal- culated according to paragraph (3) and re- turned in accordance with subsection (b). (2) Leave of absence (A) Leave not treated as withdrawal In the case of a student who takes 1 or more leaves of absence from an institution for not more than a total of 180 days in any 12-month period, the institution may con- sider the student as not having withdrawn from the institution during the leave of ab- sence, and not calculate the amount of grant and loan assistance provided under this sub- chapter that is to be returned in accordance with this section if— (i) the institution has a formal policy re- garding leaves of absence; (ii) the student followed the institution’s policy in requesting a leave of absence; and (iii) the institution approved the stu- dent’s request in accordance with the in- stitution’s policy. (B) Consequences of failure to return If a student does not return to the institu- tion at the expiration of an approved leave of absence that meets the requirements of subparagraph (A), the institution shall cal- culate the amount of grant and loan assist- ance provided under this subchapter that is to be returned in accordance with this sec- tion based on the day the student withdrew (as determined under subsection (c)). (3) Calculation of amount of subchapter IV as- sistance earned (A) In general The amount of grant or loan assistance under this subchapter that is earned by the recipient for purposes of this section is cal- culated by— (i) determining the percentage of grant and loan assistance under this subchapter that has been earned by the student, as de- scribed in subparagraph (B); and (ii) applying such percentage to the total amount of such grant and loan assistance that was disbursed (and that could have been disbursed) to the student, or on the student’s behalf, for the payment period or period of enrollment for which the assist- ance was awarded, as of the day the stu- dent withdrew. (B) Percentage earned For purposes of subparagraph (A)(i), the percentage of grant or loan assistance under this subchapter that has been earned by the student is— (i) equal to the percentage of the pay- ment period or period of enrollment for which assistance was awarded that was completed (as determined in accordance with subsection (d)) as of the day the stu- dent withdrew, provided that such date oc- curs on or before the completion of 60 per- cent of the payment period or period of en- rollment; or (ii) 100 percent, if the day the student withdrew occurs after the student has completed (as determined in accordance with subsection (d)) 60 percent of the pay- ment period or period of enrollment. (C) Percentage and amount not earned For purposes of subsection (b), the amount of grant and loan assistance awarded under this subchapter that has not been earned by the student shall be calculated by— (i) determining the complement of the percentage of grant assistance under sub- parts 1 and 3 of part A, or loan assistance under parts B, D, and E, that has been earned by the student described in sub- paragraph (B); and (ii) applying the percentage determined under clause (i) to the total amount of such grant and loan assistance that was disbursed (and that could have been dis- bursed) to the student, or on the student’s behalf, for the payment period or period of enrollment, as of the day the student with- drew. (4) Differences between amounts earned and amounts received (A) In general After determining the eligibility of the student for a late disbursement or post-with- drawal disbursement (as required in regula- tions prescribed by the Secretary), the insti- tution of higher education shall contact the borrower and obtain confirmation that the loan funds are still required by the borrower. In making such contact, the institution shall explain to the borrower the borrower’s obligation to repay the funds following any such disbursement. The institution shall document in the borrower’s file the result of such contact and the final determination made concerning such disbursement. (B) Return If the student has received more grant or loan assistance than the amount earned as calculated under paragraph (3)(A), the un- earned funds shall be returned by the insti- tution or the student, or both, as may be re- quired under paragraphs (1) and (2) of sub- section (b), to the programs under this sub- chapter in the order specified in subsection (b)(3). (b) Return of subchapter IV program funds (1) Responsibility of the institution The institution shall return not later than 45 days from the determination of withdrawal,