20 U.S.C. § 1087f — Contracts

Page 571 TITLE 20—EDUCATION § 1087f more quickly eliminate their loans in the long run. During this time, borrowers have been able to deter- mine the best path forward for themselves. The original announcement of this policy specified that it would continue for at least 60 days. In the in- terim, the Coronavirus Aid, Relief, and Economic Secu- rity Act [Pub. L. 116–136] provided this same student loan payment relief, but that program is scheduled to expire on September 30, 2020. Currently, many Ameri- cans remain unemployed due to the COVID–19 pan- demic, and many more have accepted lower wages and reduced hours while States and localities continue to impose social distancing measures. It is therefore ap- propriate to extend this policy until such time that the economy has stabilized, schools have re-opened, and the crisis brought on by the COVID–19 pandemic has sub- sided. SEC. 2. Extension of Student Loan Payment Relief. (a) In light of the national emergency declared on March 13, 2020, the Secretary of Education shall take action pur- suant to applicable law to effectuate appropriate waiv- ers of and modifications to the requirements and condi- tions of economic hardship deferments described in sec- tion 455(f)(2)(D) of the Higher Education Act of 1965, as amended, 20 U.S.C. 1087e(f)(2)(D), and provide such deferments to borrowers as necessary to continue the temporary cessation of payments and the waiver of all interest on student loans held by the Department of Education until December 31, 2020. (b) All persons who wish to continue making student loan payments shall be allowed to do so, notwith- standing the deferments provided pursuant to sub- section (a) of this section. SEC. 3. General Provisions. (a) Nothing in this memo- randum shall be construed to impair or otherwise af- fect: (i) the authority granted by law to an executive de- partment or agency, or the head thereof; or (ii) the functions of the Director of the Office of Man- agement and Budget relating to budgetary, administra- tive, or legislative proposals. (b) This memorandum shall be implemented con- sistent with applicable law and subject to the avail- ability of appropriations. (c) This memorandum is not intended to, and does not, create any right or benefit, substantive or proce- dural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person. (d) You are authorized and directed to publish this memorandum in the Federal Register. DONALD J. TRUMP. § 1087f. Contracts (a) Contracts for supplies and services (1) In general The Secretary shall, to the extent prac- ticable, award contracts for origination, serv- icing, 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 award- ing 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 expe- rience and demonstrated effectiveness. The en- tities with which the Secretary may enter into such contracts shall include, where prac- ticable, 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 sub- section and if those agencies have such experi- ence 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 per- form services for institutions of higher edu- cation 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 pur- poses of this section as a member of a consor- tium of State agencies. (b) Contracts for origination, servicing, and data systems The Secretary may enter into contracts for— (1) the alternative origination of loans to students attending institutions of higher edu- cation with agreements to participate in the program under this part (or their parents), if such institutions do not have agreements with the Secretary under section 1087d(b) of this title; (2) the servicing and collection of loans made or purchased under this part; (3) the establishment and operation of 1 or more data systems for the maintenance of records on all loans made or purchased under this part; and (4) such other aspects of the direct student loan program as the Secretary determines are necessary to ensure the successful operation of the program. (Pub. L. 89–329, title IV, § 456, as added Pub. L. 102–325, title IV, § 451, July 23, 1992, 106 Stat. 572; amended Pub. L. 103–66, title IV, § 4021, Aug. 10, 1993, 107 Stat. 352; Pub. L. 105–244, title IV, § 453, Oct. 7, 1998, 112 Stat. 1717; Pub. L. 110–227, § 7(c), May 7, 2008, 122 Stat. 747; Pub. L. 111–152, title II, § 2212(a), Mar. 30, 2010, 124 Stat. 1078; Pub. L. 113–67, div. A, title V, § 502(1), Dec. 26, 2013, 127 Stat. 1187.) Editorial Notes AMENDMENTS 2013—Subsec. (a)(4). Pub. L. 113–67, § 502(1)(A), struck out par. (4) which related to servicing by eligible not- for-profit servicers. Subsec. (c). Pub. L. 113–67, § 502(1)(B), struck out sub- sec. (c) which defined eligible not-for-profit servicer for purposes of this section. 2010—Subsec. (a)(4). Pub. L. 111–152, § 2212(a)(1)(A), added par. (4). Subsec. (c). Pub. L. 111–152, § 2212(a)(2), added subsec. (c). 2008—Subsec. (b)(2), (3). Pub. L. 110–227 inserted ‘‘or purchased’’ after ‘‘loans made’’. 1998—Subsec. (b)(3). Pub. L. 105–244, § 453(1), inserted ‘‘and’’ after semicolon. Subsec. (b)(4), (5). Pub. L. 105–244, § 453(2), (3), redesig- nated par. (5) as (4) and struck out former par. (4) which read as follows: ‘‘services to assist in the orderly tran- 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, 2009, 123 Stat. 1946 Section, Pub. L. 89–329, title IV, § 457, as added Pub. L. 102–325, title IV, § 451, July 23, 1992, 106 Stat. 572; amended Pub. L. 103–66, title IV, § 4021, Aug. 10, 1993, 107 Stat. 352, related to regulatory activities associated with implementation of the first year of the direct stu- dent loan program authorized by part D, including es- tablishment of closing date for applications not later than Oct. 1, 1993, and publication of list of selected in- stitutions not later than Jan. 1, 1994. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF REPEAL Repeal effective as if enacted on the date of enact- ment of Pub. L. 110–315 (Aug. 14, 2008), see section 3 of Pub. L. 111–39, set out as an Effective Date of 2009 Amendment note under section 1001 of this title. § 1087h. Funds for administrative expenses (a) Administrative expenses (1) Mandatory funds for fiscal year 2006 For fiscal year 2006, there shall be available to the Secretary, from funds not otherwise ap- propriated, funds to be obligated for— (A) administrative costs under this part and part B, including the costs of the direct student loan programs under this part; and (B) account maintenance fees payable to guaranty agencies under part B and cal- culated in accordance with subsections (b) and (c), not to exceed (from such funds not otherwise appropriated) $820,000,000 in fiscal year 2006. (2) Repealed. Pub. L. 113–67, div. A, title V, § 502(2), Dec. 26, 2013, 127 Stat. 1187 (3) Authorization for administrative costs be- ginning 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 administra- tive costs under this part and part B, includ- ing the costs of the direct student loan pro- grams under this part. (4) Continuing mandatory funds for account maintenance fees For each of the fiscal years 2007 through 2021,1 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) 2 shall be paid quarterly and deposited in the Agency Operating Fund established under section 1072b of this title. (6) Technical assistance to institutions of high- er 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 estab- lishing 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 other- wise 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 other- wise appropriated), $25,000,000 for each of the fiscal years 2010 and 2011.