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10 U.S.C. § 2174 — Interest payment program: members on
Federal law — U.S. Code and appendices · legal_authorities
Page 1721
TITLE 10—ARMED FORCES
§ 2174
Armed Forces Health Professions Scholarship
and Financial Assistance program; and
(B) reasonable living expenses, not to exceed
expenses comparable to the stipend paid under
section 2121(d) of this title for participants in
the Armed Forces Health Professions Scholar-
ship and Financial Assistance program.
(2) For each year of obligated service that a
person agrees to serve in an agreement described
in subsection (b)(3), the Secretary of the mili-
tary department concerned may pay not more
than $60,000 on behalf of the person. This max-
imum amount shall be increased annually by
the Secretary of Defense effective October 1 of
each year by the percentage equal to the percent
increase in the average annual cost of edu-
cational expenses and stipend costs of a single
scholarship under the Armed Forces Health Pro-
fessions Scholarship and Financial Assistance
program.
(f) ACTIVE DUTY SERVICE OBLIGATION.—(1) A
person entering into an agreement described in
subsection (b)(3) incurs an active duty service
obligation. The length of this obligation shall be
determined under regulations prescribed by the
Secretary of Defense, but those regulations may
not provide for a period of obligation of less
than one year for each maximum annual
amount, or portion thereof, paid on behalf of the
person for qualified loans.
(2) For persons on active duty before entering
into the agreement, the active duty service obli-
gation shall be served consecutively to any
other obligation incurred under the agreement.
(g) EFFECT OF FAILURE TO COMPLETE OBLIGA-
TION.—(1) A commissioned officer who is relieved
of the officer’s active duty obligation under this
section before the completion of that obligation
may be given, with or without
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Page 1721
TITLE 10—ARMED FORCES
§ 2174
Armed Forces Health Professions Scholarship
and Financial Assistance program; and
(B) reasonable living expenses, not to exceed
expenses comparable to the stipend paid under
section 2121(d) of this title for participants in
the Armed Forces Health Professions Scholar-
ship and Financial Assistance program.
(2) For each year of obligated service that a
person agrees to serve in an agreement described
in subsection (b)(3), the Secretary of the mili-
tary department concerned may pay not more
than $60,000 on behalf of the person. This max-
imum amount shall be increased annually by
the Secretary of Defense effective October 1 of
each year by the percentage equal to the percent
increase in the average annual cost of edu-
cational expenses and stipend costs of a single
scholarship under the Armed Forces Health Pro-
fessions Scholarship and Financial Assistance
program.
(f) ACTIVE DUTY SERVICE OBLIGATION.—(1) A
person entering into an agreement described in
subsection (b)(3) incurs an active duty service
obligation. The length of this obligation shall be
determined under regulations prescribed by the
Secretary of Defense, but those regulations may
not provide for a period of obligation of less
than one year for each maximum annual
amount, or portion thereof, paid on behalf of the
person for qualified loans.
(2) For persons on active duty before entering
into the agreement, the active duty service obli-
gation shall be served consecutively to any
other obligation incurred under the agreement.
(g) EFFECT OF FAILURE TO COMPLETE OBLIGA-
TION.—(1) A commissioned officer who is relieved
of the officer’s active duty obligation under this
section before the completion of that obligation
may be given, with or without the consent of the
officer, any alternative obligation comparable
to any of the alternative obligations authorized
by section 2123(e) of this title for participants in
the Armed Forces Health Professions Scholar-
ship and Financial Assistance program.
(2) An officer who does not complete the pe-
riod of active duty specified in the agreement
entered into under subsection (b)(3), or the al-
ternative obligation imposed under paragraph
(1), shall be subject to the repayment provisions
of section 303a(e) or 373 of title 37.
(h) REGULATIONS.—The Secretary of Defense
shall prescribe regulations to carry out this sec-
tion, including standards for qualified loans and
authorized payees and other terms and condi-
tions for the making of loan repayments.
(Added Pub. L. 105–85, div. A, title VI, § 651(a),
Nov. 18, 1997, 111 Stat. 1802; amended Pub. L.
107–314, div. A, title V, § 573, Dec. 2, 2002, 116 Stat.
2558; Pub. L. 109–163, div. A, title VI, § 687(c)(7),
Jan. 6, 2006, 119 Stat. 3334; Pub. L. 109–364, div. A,
title V, § 537(a), Oct. 17, 2006, 120 Stat. 2209; Pub.
L. 111–383, div. A, title V, § 553, Jan. 7, 2011, 124
Stat. 4220; Pub. L. 115–91, div. A, title VI,
§ 618(a)(1)(I), Dec. 12, 2017, 131 Stat. 1426.)
Editorial Notes
AMENDMENTS
2017—Subsec. (g)(2). Pub. L. 115–91 inserted ‘‘or 373’’
before ‘‘of title 37’’.
2011—Subsec. (c)(4). Pub. L. 111–383 added par. (4).
2006—Subsec. (e)(2). Pub. L. 109–364 substituted
‘‘$60,000’’ for ‘‘$22,000’’.
Subsec. (g). Pub. L. 109–163 designated existing provi-
sions as par. (1) and added par. (2).
2002—Subsec. (d). Pub. L. 107–314, § 573(a), substituted
‘‘Students’’ for ‘‘Participants of the Armed Forces
Health Professions Scholarship and Financial Assist-
ance program under subchapter I of chapter 105 of this
title and students’’.
Subsec. (e)(2). Pub. L. 107–314, § 573(b), struck out at
end ‘‘The total amount that may be repaid on behalf of
any person may not exceed an amount determined on
the basis of a four-year active duty service obligation.’’
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE OF 2006 AMENDMENT
Pub. L. 109–364, div. A, title V, § 537(b), Oct. 17, 2006,
120 Stat. 2209, provided that:
‘‘(1) IN
GENERAL.—The amendment made by sub-
section (a) [amending this section] shall take effect on
October 1, 2006, and shall apply to agreements entered
into or revised under section 2173 of title 10, United
States Code, on or after that date.
‘‘(2) PROHIBITION ON ADJUSTMENT.—The adjustment re-
quired by the second sentence of section 2173(e)(2) of
title 10, United States Code, to be made on October 1,
2006, shall not be made.’’
SAVINGS PROVISION
For savings provision relating to payment or repay-
ment of any bonus, incentive pay, special pay, or simi-
lar pay obligated to be paid before Apr. 1, 2006, under a
provision of this section amended by section 687(c) of
Pub. L. 109–163, see section 687(f) of Pub. L. 109–163, set
out as a note under section 510 of this title.
§ 2174. Interest payment program: members on
active duty
(a) AUTHORITY.—(1) The Secretary concerned
may pay in accordance with this section the in-
terest and any special allowances that accrue on
one or more student loans of an eligible member
of the armed forces.
(2) The Secretary of a military department
may exercise the authority under paragraph (1)
only if approved by the Secretary of Defense and
subject to such requirements, conditions, and
restrictions as the Secretary of Defense may
prescribe.
(b) ELIGIBLE
MEMBERS.—A member of the
armed forces is eligible for the benefit under
subsection (a) while the member—
(1) is serving on active duty in fulfillment of
the member’s first enlistment in the armed
forces or, in the case of an officer, is serving
on active duty and has not completed more
than three years of service on active duty;
(2) is the debtor on one or more unpaid loans
described in subsection (c); and
(3) is not in default on any such loan.
(c) STUDENT LOANS.—The authority to make
payments under subsection (a) may be exercised
with respect to the following loans:
(1) A loan made, insured, or guaranteed
under part B of title IV of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1071 et seq.).
(2) A loan made under part D of such title (20
U.S.C. 1087a et seq.).
(3) A loan made under part E of such title (20
U.S.C. 1087aa et seq.).
(d) MAXIMUM BENEFIT.—The months for which
interest and any special allowance may be paid
Page 1722
TITLE 10—ARMED FORCES
§ 2181
on behalf of a member of the armed forces under
this section are any 36 consecutive months dur-
ing which the member is eligible under sub-
section (b).
(e)
FUNDS
FOR
PAYMENTS.—Appropriations
available for the pay and allowances of military
personnel shall be available for payments under
this section.
(f) COORDINATION.—(1) The Secretary of De-
fense and, with respect to the Coast Guard when
it is not operating as a service in the Navy, the
Secretary of the Department in which the Coast
Guard is operating shall consult with the Sec-
retary of Education regarding the administra-
tion of the authority under this section.
(2) The Secretary concerned shall transfer to
the Secretary of Education the funds nec-
essary—
(A) to pay interest and special allowances on
student loans under this section (in accord-
ance with sections 428(o), 455(l), and 464(j) of
the Higher Education Act of 1965 (20 U.S.C.
1078(o), 1087e(l), and 1087dd(j)); and
(B) to reimburse the Secretary of Education
for any reasonable administrative costs in-
curred by the Secretary in coordinating the
program under this section with the adminis-
tration of the student loan programs under
parts B, D, and E of title IV of the Higher Edu-
cation Act of 1965.
(g) SPECIAL ALLOWANCE DEFINED.—In this sec-
tion, the term ‘‘special allowance’’ means a spe-
cial allowance that is payable under section 438
of the Higher Education Act of 1965 (20 U.S.C.
1087–1).
(Added Pub. L. 107–314, div. A, title VI, § 651(a)(1),
Dec. 2, 2002, 116 Stat. 2578.)
Editorial Notes
REFERENCES IN TEXT
The Higher Education Act of 1965, referred to in sub-
secs. (c) and (f)(2)(B), is Pub. L. 89–329, Nov. 8, 1965, 79
Stat. 1219. Parts B, D, and E of title IV of the Act are
classified to parts B (§ 1071 et seq.), D (§ 1087a et seq.),
and E (§ 1087aa et seq.), respectively, of subchapter IV of
chapter 28 of Title 20, Education. For complete classi-
fication of this Act to the Code, see Short Title note
set out under section 1001 of Title 20 and Tables.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE
Pub. L. 107–314, div. A, title VI, § 651(e), Dec. 2, 2002,
116 Stat. 2581, provided that: ‘‘The amendments made
by this section [enacting this section and amending
sections 1078, 1087e, and 1087dd of Title 20, Education]
shall apply with respect to interest, and any special al-
lowance under section 438 of the Higher Education Act
of 1965 [20 U.S.C. 1087–1], that accrue for months begin-
ning on or after October 1, 2003, on student loans de-
scribed in subsection (c) of section 2174 of title 10,
United States Code (as added by subsection (a)), that
were made before, on, or after such date to members of
the Armed Forces who are on active duty (as defined in
section 101(d) of title 10, United States Code) on or after
that date.’’
TRANSFER OF FUNCTIONS
For transfer of authorities, functions, personnel, and
assets of the Coast Guard, including the authorities
and functions of the Secretary of Transportation relat-
ing thereto, to the Department of Homeland Security,
and for treatment of related references, see sections
468(b), 551(d), 552(d), and 557 of Title 6, Domestic Secu-
rity, and the Department of Homeland Security Reor-
ganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.
CHAPTER
110—EDUCATIONAL
ASSISTANCE
FOR MEMBERS HELD AS CAPTIVES AND
THEIR DEPENDENTS
Sec.
2181.
Definitions.
2182.
Educational assistance: dependents of cap-
tives.
2183.
Educational assistance: former captives.
2184.
Termination of assistance.
2185.
Programs to be consistent with programs ad-
ministered by the Department of Veterans
Affairs.
Editorial Notes
AMENDMENTS
1990—Pub. L. 101–510, div. A, title XIV, § 1484(i)(5),
Nov. 5, 1990, 104 Stat. 1718, inserted ‘‘administered by’’
after ‘‘programs’’ in item 2185.
1989—Pub. L. 101–189, div. A, title XVI, § 1621(a)(7)(B),
Nov. 29, 1989, 103 Stat. 1603, substituted ‘‘programs the
Department of Veterans Affairs’’ for ‘‘programs admin-
istered by the Veterans’ Administration’’ in item 2185.
§ 2181. Definitions
In this chapter:
(1) The terms ‘‘captive status’’ and ‘‘former
captive’’ have the meanings given those terms
in section 559 of title 37.
(2) The term ‘‘dependent’’ has the meaning
given that term in section 551 of that title.
(Added Pub. L. 99–399, title VIII, § 806(d)(1), Aug.
27, 1986, 100 Stat. 887, and Pub. L. 100–26, § 7(k)(6),
Apr. 21, 1987, 101 Stat. 284.)
Editorial Notes
AMENDMENTS
1987—Pub. L. 100–26, substituted ‘‘The terms ‘cap-
tive’ ’’ for ‘‘ ‘Captive’ ’’ in par. (1) and ‘‘The term ‘de-
pendent’ ’’ for ‘‘ ‘Dependent’ ’’ in par. (2).
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE
Pub. L. 99–399, title VIII, § 806(d)(3), Aug. 27, 1986, 100
Stat. 888, provided that: ‘‘Chapter 110 of title 10, United
States Code, as added by paragraph (1), shall apply with
respect to persons whose captive status begins after
January 21, 1981.’’
§ 2182. Educational assistance: dependents of
captives
(a) Under regulations prescribed by the Presi-
dent, the Secretary concerned shall pay (by ad-
vancement or reimbursement) a dependent of a
person who is in a captive status for expenses in-
curred, while attending an educational or train-
ing institution, for—
(1) subsistence;
(2) tuition;
(3) fees;
(4) supplies;
(5) books;
(6) equipment; and
(7) other educational expenses.
(b) Except as provided in section 2184 of this
title, payments shall be available under this sec-
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Authority.—**
(1) The Secretary concerned may pay in accordance with this section the interest and any special allowances that accrue on one or more student loans of an eligible member of the armed forces.
(2) The Secretary of a military department may exercise the authority under paragraph (1) only if approved by the Secretary of Defense and subject to such requirements, conditions, and restrictions as the Secretary of Defense may prescribe.
**(b) Eligible Members.—** A member of the armed forces is eligible for the benefit under subsection (a) while the member—
(1) is serving on active duty in fulfillment of the member’s first enlistment in the armed forces or, in the case of an officer, is serving on active duty and has not completed more than three years of service on active duty;
(2) is the debtor on one or more unpaid loans described in subsection (c); and
(3) is not in default on any such loan.
**(c) Student Loans.—** The authority to make payments under subsection (a) may be exercised with respect to the following loans:
(1) A loan made, insured, or guaranteed under part B of title IV of the Higher Education Act of 1965 ([20 U.S.C. 1071](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title20-section1071&num=0&edition=prelim) et seq.).
(2) A loan made under part D of such title ([20 U.S.C. 1087a](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title20-section1087a&num=0&edition=prelim) et seq.).
(3) A loan made under part E of such title ([20 U.S.C. 1087aa](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title20-section1087aa&num=0&edition=prelim) et seq.).
**(d) Maximum Benefit.—** The months for which interest and any special allowance may be paid on behalf of a member of the armed forces under this secti
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Purpose; discrimination prohibited**
(1) **Purpose** — The purpose of this part is to enable the Secretary—
(A) to encourage States and nonprofit private institutions and organizations to establish adequate loan insurance programs for students in eligible institutions (as defined in [section 1085 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title20-section1085&num=0&edition=prelim)),
(B) to provide a Federal program of student loan insurance for students or lenders who do not have reasonable access to a State or private nonprofit program of student loan insurance 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),
(C) to pay a portion of the interest on loans to qualified students which are insured under this part, and
(D) to guarantee a portion of each loan insured under a program of a State or of a nonprofit private institution or organization which meets the requirements of [section 1078(a)(1)(B) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title20-section1078/a/1/B&num=0&edition=prelim).
(2) **Discrimination by creditors prohibited** — No agency, organization, institution, bank, credit union, corporation, or other lender who regularly extends, renews, or continues credit or provides insurance under this part shall exclude from receipt or deny the benefits of, or discriminate against any borrower or applicant in obtaining, such credit or insurance on the basis of race, national origin, religion, sex, marital status, age, or handicapped status.
**(b) Authorization of appropriations** For the purpose of carrying out this part—
(1) there are authorized to be appropriated to
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Federal law — U.S. Code and appendices · legal_authorities
Page 392
TITLE 20—EDUCATION
§ 1070g–3
2010 (20 U.S.C. 9903), and section 9 of the National
Science Foundation Authorization Act of 2002 (42
U.S.C. 1862n), to ‘highly qualified’, as defined in sec-
tion 9101 of the Elementary and Secondary Education
Act of 1965 [now section 8101, 20 U.S.C. 7801], with re-
spect to a teacher, means that the teacher meets ap-
plicable State certification and licensure require-
ments, including any requirements for certification
obtained through alternative routes to certification.’’
§ 1070g–3. Program period and funding
Beginning on July 1, 2008, there shall be avail-
able to the Secretary to carry out this subpart,
from funds not otherwise appropriated, such
sums as may be necessary to provide TEACH
Grants in accordance with this subpart to each
eligible applicant.
(Pub. L. 89–329, title IV, § 420O, as added Pub. L.
110–84, title I, § 104, Sept. 27, 2007, 121 Stat. 790.)
§ 1070g–4. Program report
Not later than two years after August 14, 2008,
and every two years thereafter, the Secretary
shall prepare and submit to the authorizing
committees a report on TEACH grants with re-
spect to the schools and students served by re-
cipients of such grants. Such report shall take
into consideration information related to—
(1) the number of TEACH grant recipients;
(2) the degrees obtained by such recipients;
(3) the location, including the school, local
educational agency, and State, where the re-
cipients completed the service agreed to under
section 1070g–2(b) of this title and the subject
taught;
(4) the duration of such service; and
(5) any other data necessary to conduct such
evaluation.
(Pub. L. 89–329, title IV, § 420P, as added Pub. L.
110–315, title IV, § 412(a)(2), Aug. 14, 2008, 122 Stat.
3227.)
SUBPART 10—SCHO
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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
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Federal law — U.S. Code and appendices · legal_authorities
Page 417
TITLE 20—EDUCATION
§ 1078
‘‘(i) the average of the bond equivalent rates of 91-
day Treasury bills auctioned during the 12 months
ending on November 30 preceding such calendar year;
plus
‘‘(ii) 3.75 percent.’’
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE OF 2007 AMENDMENT
Amendment by Pub. L. 110–84 effective Oct. 1, 2007,
see section 1(c) of Pub. L. 110–84, set out as a note under
section 1070a of this title.
EFFECTIVE DATE OF 2006 AMENDMENT
Amendment by Pub. L. 109–171 effective July 1, 2006,
except as otherwise provided, see section 8001(c) of Pub.
L. 109–171, set out as a note under section 1002 of this
title.
EFFECTIVE DATE OF 1998 AMENDMENT
Pub. L. 105–244, title IV, § 416(c), Oct. 7, 1998, 112 Stat.
1682, provided that: ‘‘The amendments made by this
section [amending this section and sections 1078–2,
1078–3, and 1087–1 of this title] shall apply with respect
to any loan made, insured, or guaranteed under part B
of title IV of the Higher Education Act of 1965 [20 U.S.C.
1071 et seq.] for which the first disbursement is made on
or after October 1, 1998, and before July 1, 2003, except
that such amendments shall apply with respect to any
loan made under section 428C of such Act [20 U.S.C.
1078–3] for which the application is received by an eligi-
ble lender on or after October 1, 1998, and before July
1, 2003.’’
EFFECTIVE DATE OF 1993 AMENDMENT
Amendment by section 2(c)(5) of Pub. L. 103–208 effec-
tive on and after Dec. 20, 1993, and amendment by sec-
tion 2(c)(6)–(10) of Pub. L. 103–208 effective, except as
otherwise provided, as if included in the Higher Edu-
cation Amendments of 1992, Pub. L. 102–325, see section
5(a), (b)(2) of Pub. L. 103–208, set out as a note under
section 1051 of this title.
EFFECTIVE DATE O
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Repayment in full for death and disability**
(1) **In general** — If a student borrower who has received a loan described in subparagraph (A) or (B) of [section 1078(a)(1) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title20-section1078/a/1&num=0&edition=prelim) dies or becomes permanently and totally disabled (as determined in accordance with regulations of the Secretary), or if a student borrower who has received such a loan is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death, has lasted for a continuous period of not less than 60 months, or can be expected to last for a continuous period of not less than 60 months then the Secretary shall discharge the borrower’s liability on the loan by repaying the amount owed on the loan. The Secretary may develop such safeguards as the Secretary determines necessary to prevent fraud and abuse in the discharge of liability under this subsection. Notwithstanding any other provision of this subsection, the Secretary may promulgate regulations to reinstate the obligation of, and resume collection on, loans discharged under this subsection in any case in which—
(A) a borrower received a discharge of liability under this subsection and after the discharge the borrower—
(i) receives a loan made, insured, or guaranteed under this subchapter; or
(ii) has earned income in excess of the poverty line; or
(B) the Secretary determines the reinstatement and resumption to be necessary.
(2) **Disability determinations** — A borrower who has been determined by the Secretary of Veterans Affairs to be unemployable due to a service-connected condition and who provides documentation of
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Federal law — U.S. Code and appendices · legal_authorities
Page 509
TITLE 20—EDUCATION
§ 1087
1 See References in Text note below.
tion 3 of Pub. L. 105–244, set out as a note under section
1001 of this title.
§ 1087. Repayment by Secretary of loans of bank-
rupt, deceased, or disabled borrowers; treat-
ment of borrowers attending schools that fail
to provide a refund, attending closed schools,
or falsely certified as eligible to borrow
(a) Repayment in full for death and disability
(1) In general
If a student borrower who has received a
loan described in subparagraph (A) or (B) of
section 1078(a)(1) of this title dies or becomes
permanently and totally disabled (as deter-
mined in accordance with regulations of the
Secretary), or if a student borrower who has
received such a loan is unable to engage in any
substantial gainful activity by reason of any
medically determinable physical or mental
impairment that can be expected to result in
death, has lasted for a continuous period of
not less than 60 months, or can be expected to
last for a continuous period of not less than 60
months then the Secretary shall discharge the
borrower’s liability on the loan by repaying
the amount owed on the loan. The Secretary
may develop such safeguards as the Secretary
determines necessary to prevent fraud and
abuse in the discharge of liability under this
subsection. Notwithstanding any other provi-
sion of this subsection, the Secretary may pro-
mulgate regulations to reinstate the obliga-
tion of, and resume collection on, loans dis-
charged under this subsection in any case in
which—
(A) a borrower received a discharge of li-
ability under this subsection and after the
discharge the borrower—
(i) receives a loan made, insured, or
guaranteed under this subchapter; or
(ii) has earned income in excess of the
pover
Source: Supplied 2024 U.S. Code historical extraction · 20 U.S.C. § 1087
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Federal law — U.S. Code and appendices · legal_authorities
**(a) In general** There are hereby made available, in accordance with the provisions of this part, such sums as may be necessary (1) to make loans to all eligible students (and the eligible parents of such students) in attendance at participating institutions of higher education selected by the Secretary, to enable such students to pursue their courses of study at such institutions during the period beginning July 1, 1994; and (2) for purchasing loans under [section 1087i–1 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title20-section1087i-1&num=0&edition=prelim). Loans made under this part shall be made by participating institutions, or consortia thereof, that have agreements with the Secretary to originate loans, or by alternative originators designated by the Secretary to make loans for students in attendance at participating institutions (and their parents).
**(b) Designation**
(1) **Program** — The program established under this part shall be referred to as the “William D. Ford Federal Direct Loan Program”.
(2) **Direct loans** — Notwithstanding any other provision of this part, 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 [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/Ford Loans”.
**(c) Maximum aid** The maximum dollar amount of financial assistance provided under this part to a student shall not exceed the cost of attendance for such student.
Source: Supplied U.S. Code snapshot — release unconfirmed · 20 U.S.C. § 1087a
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Federal law — U.S. Code and appendices · legal_authorities
Page 554
TITLE 20—EDUCATION
§ 1087a
PART D—WILLIAM D. FORD FEDERAL DIRECT
LOAN PROGRAM
Editorial Notes
CODIFICATION
Parts A to J of title IV of the Higher Education Act
of 1965, Pub. L. 89–329 (‘‘the HEA’’), would typically
have been classified to parts A to J of this subchapter.
However, part C of title IV of the HEA could not be
classified to part C of this subchapter when it was en-
acted because it amended and related to various provi-
sions of the Economic Opportunity Act of 1964, Pub. L.
88–452, which were classified to Title 42, The Public
Health and Welfare. As a result, parts D to J of title IV
of the HEA were editorially designated as parts C to I
of this subchapter to fill the gap left in the Code by the
absence of a part C. That original part C of title IV of
the HEA was subsequently repealed, and part C of title
I of the Economic Opportunity Act of 1964 was redesig-
nated to become a new part C of title IV of the HEA.
In order to merge the pieces of the HEA together after
the redesignation and logically realign the part struc-
ture of the HEA with that of the Code, part C of title
IV of the HEA was editorially transferred from its
original location in part C (§ 2751 et seq.) of subchapter
I of chapter 34 of Title 42 to part C (§ 1087–51 et seq.) of
this subchapter, and subsequent parts D to I of title IV
of the HEA were redesignated as parts D to I of this
subchapter. Part J of title IV of the HEA was omitted
instead of redesignated as part J of this subchapter be-
cause it had already been transferred to another part of
the HEA.
PRIOR PROVISIONS
A prior part D, consisting of part E of title IV of Pub.
L. 89–329, was redesignated part E of this subchapter.
§ 1087a. Program authority
(a) In general
There are hereby made availab
Source: Supplied 2024 U.S. Code historical extraction · 20 U.S.C. § 1087a
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Program authority** The Secretary shall carry out a program assisting in the maintenance of funds at institutions of higher education for the making of loans to undergraduate students in need to pursue their courses of study in such institutions or while engaged in programs of study abroad approved for credit by such institutions. Loans made under this part shall be known as “Federal Perkins Loans”.
**(b) Authority to make loans**
(1) **In general**
(A) *Loans for new undergraduate Federal Perkins Loan borrowers* — Through September 30, 2017, an institution of higher education may make a loan under this part to an eligible undergraduate student who, on the date of disbursement of a loan made under this part, has no outstanding balance of principal or interest on a loan made under this part from the student loan fund established under this part by the institution, but only if the institution has awarded all Federal Direct Loans, as referenced under subparagraphs (A) and (D) of [section 1087e(a)(2) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title20-section1087e/a/2&num=0&edition=prelim), for which such undergraduate student is eligible.
(B) *Loans for current undergraduate Federal Perkins Loan borrowers* — Through September 30, 2017, an institution of higher education may make a loan under this part to an eligible undergraduate student who, on the date of disbursement of a loan made under this part, has an outstanding balance of principal or interest on a loan made under this part from the student loan fund established under this part by the institution, but only if the institution has awarded all Federal Direct Stafford Loans as referenced under [section 1087e(a)(2)(A) of this title](https://uscode.house.gov/view.xhtml?req=g
Source: Supplied U.S. Code snapshot — release unconfirmed · 20 U.S.C. § 1087aa
Stored review status: release_metadata_unconfirmed. The source passage cites 20 U.S.C. § 1087aa. This identifies an authority to review, not proof of applicability.