20 U.S.C. § 1087ff — Distribution of assets from student loan

Page 600 TITLE 20—EDUCATION § 1087ff Subsec. (a)(6). Pub. L. 103–208, § 2(f)(14), realigned mar- gin. See Codification note above. Pub. L. 103–82 added par. (6). 1992—Subsec. (a)(2)(A). Pub. L. 102–325, § 465(a)(1), as amended by Pub. L. 103–208, § 2(k)(7), struck out before semicolon at end ‘‘and such determination shall not be made with respect to more than 50 percent of the total number of schools in the State receiving assistance under such chapter 1’’. Subsec. (a)(2)(C). Pub. L. 102–325, § 465(a)(2), amended subpar. (C) generally. Prior to amendment, subpar. (C) read as follows: ‘‘as a full-time teacher of children with disabilities in a public or other nonprofit elementary or secondary school system;’’. Subsec. (a)(2)(G) to (I). Pub. L. 102–325, § 465(a)(3)–(5), added subpars. (G) to (I). Subsec. (a)(3)(A)(i). Pub. L. 102–325, § 465(b), sub- stituted ‘‘(A), (C), (F), (G), (H), or (I)’’ for ‘‘(A), (C), or (F)’’. Subsec. (c). Pub. L. 102–325, § 465(c), added subsec. (c). 1991—Subsec. (a)(2). Pub. L. 102–119 substituted ‘‘1401(a)(1)’’ for ‘‘1401(1)’’ in last sentence. The ref- erences to section 1401 include the substitution of ‘‘In- dividuals with Disabilities Education Act’’ for ‘‘Edu- cation of the Handicapped Act’’ in the original. 1990—Subsec. (a)(2). Pub. L. 101–476, § 901(e), sub- stituted ‘‘children with disabilities’’ for ‘‘handicapped children’’ in two places. Subsec. (a)(2)(F). Pub. L. 101–647, § 2101(a), which di- rected amendment of subsec. (a)(2) by adding at the end a new subpar. (F), was executed by adding subpar. (F) after subpar. (E) and before last sentence to reflect the probable intent of Congress. Subsec. (a)(3)(A)(i). Pub. L. 101–647, § 2101(b), which di- rected amendment of subsec. (a)(3)(i) by substituting ‘‘(A), (C), or (F)’’ for ‘‘(A) or (C)’’, was executed by mak- ing the substitution in subsec. (a)(3)(A)(i) to reflect the probable intent of Congress. 1988—Subsec. (a)(5). Pub. L. 100–369 substituted ‘‘In- ternal Revenue Code of 1986’’ for ‘‘Internal Revenue Code of 1954’’, which for purposes of codification was translated as ‘‘title 26’’ thus requiring no change in text. 1987—Subsec. (a)(2)(A). Pub. L. 100–50, § 13(j)(1), (2), substituted ‘‘chapter 1 of the Education Consolidation and Improvement Act of 1981’’ for ‘‘title I of the Ele- mentary and Secondary Education Act of 1965’’ and ‘‘such chapter 1’’ for ‘‘such title I’’. Subsec. (a)(2)(B). Pub. L. 100–50, § 13(j)(3), substituted ‘‘the Head Start Act’’ for ‘‘section 2809(a)(1) of title 42’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2009 AMENDMENT Amendment by Pub. L. 111–39 effective as if enacted on the date of enactment of Pub. L. 110–315 (Aug. 14, 2008), see section 3 of Pub. L. 111–39, set out as a note under section 1001 of this title. 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 1993 AMENDMENTS Amendment by Pub. L. 103–208 effective as if included in the Higher Education Amendments of 1992, Pub. L. 102–325, except as otherwise provided, see section 5(a) of Pub. L. 103–208, set out as a note under section 1051 of this title. Amendment by Pub. L. 103–82 effective Oct. 1, 1993, see section 123 of Pub. L. 103–82, set out as a note under section 1701 of Title 16, Conservation. EFFECTIVE DATE OF 1990 AMENDMENTS Pub. L. 101–647, title XXI, § 2101(c), Nov. 29, 1990, 104 Stat. 4856, provided that: ‘‘The amendments made by this section [amending this section] shall apply only to loans made on or after the date of enactment of this Act [Nov. 29, 1990] under part E of title IV of the Higher Education Act of 1965 [this part].’’ Pub. L. 101–476, title X, § 1001, Oct. 30, 1990, 104 Stat. 1151, provided that: ‘‘The amendments made by this Act [see Short Title of 1990 Amendment note set out under section 1400 of this title] shall take effect October 1, 1990.’’ EFFECTIVE DATE OF 1987 AMENDMENT Amendment by Pub. L. 100–50 effective as if enacted as part of the Higher Education Amendments of 1986, Pub. L. 99–498, see section 27 of Pub. L. 100–50, set out as a note under section 1001 of this title. EFFECTIVE DATE Section effective Oct. 17, 1986, except as otherwise provided, see section 2 of Pub. L. 99–498, set out as a note under section 1001 of this title. Subsection (a)(2)(E) of this section applicable only to loans made to cover the costs of instruction for periods of enrollment beginning on or after July 1, 1987, to indi- viduals who are new borrowers on that date, see section 405(b) of Pub. L. 99–498, set out as a note under section 1087dd of this title. § 1087ff. Distribution of assets from student loan funds (a) In general Beginning October 1, 2017, there shall be a cap- ital distribution of the balance of the student loan fund established under this part by each in- stitution of higher education as follows: (1) The Secretary shall first be paid an amount which bears the same ratio to the bal- ance in such fund at the close of September 30, 2017, as the total amount of the Federal cap- ital contributions to such fund by the Sec- retary under this part bears to the sum of such Federal contributions and the institution’s capital contributions to such fund. (2) The remainder of such balance shall be paid to the institution. (b) Distribution of late collections Beginning October 1, 2017, each institution with which the Secretary has made an agree- ment under this part, shall pay to the Secretary the same proportionate share of amounts re- ceived by this institution after September 30, 2017, in payment of principal and interest on stu- dent loans made from the student loan fund es- tablished pursuant to such agreement (which amount shall be determined after deduction of any costs of litigation incurred in collection of the principal or interest on loans from the fund and not already reimbursed from the fund or from such payments of principal or interest), as was determined for the Secretary under sub- section (a). (c) Distribution of excess capital (1) Upon a finding by the institution or the Secretary prior to October 1, 2017, that the liq- uid assets of a student loan fund established pur- suant to an agreement under this part exceed the amount required for loans or otherwise in the foreseeable future, and upon notice to such institution or to the Secretary, as the case may be, there shall be, subject to such limitations as may be included in regulations of the Secretary or in such agreement, a capital distribution from such fund. Such capital distribution shall be made as follows: Page 601 TITLE 20—EDUCATION § 1087gg (A) The Secretary shall first be paid an amount which bears the same ratio to the total to be distributed as the Federal capital contributions by the Secretary to the student loan fund prior to such distribution bear to the sum of such Federal capital contributions and the capital contributions to the fund made by the institution. (B) The remainder of the capital distribution shall be paid to the institution. (2) No finding that the liquid assets of a stu- dent loan fund established under this part ex- ceed the amount required under paragraph (1) may be made prior to a date which is 2 years after the date on which the institution of higher education received the funds from such institu- tion’s allocation under section 1087bb of this title. (Pub. L. 89–329, title IV, § 466, as added Pub. L. 99–498, title IV, § 405(a), Oct. 17, 1986, 100 Stat. 1453; amended Pub. L. 102–325, title IV, § 466, July 23, 1992, 106 Stat. 584; Pub. L. 103–208, § 2(f)(15), Dec. 20, 1993, 107 Stat. 2471; Pub. L. 105–244, title IV, § 466, Oct. 7, 1998, 112 Stat. 1728; Pub. L. 110–84, title V, § 501, Sept. 27, 2007, 121 Stat. 801; Pub. L. 114–105, § 2(b), Dec. 18, 2015, 129 Stat. 2220.) Editorial Notes PRIOR PROVISIONS A prior section 1087ff, Pub. L. 89–329, title IV, § 466, as added Pub. L. 92–318, title I, § 137(b), June 23, 1972, 86 Stat. 278; amended Pub. L. 94–482, title I, § 130(h), Oct. 12, 1976, 90 Stat. 2147; Pub. L. 96–374, title IV, § 442(c), title XIII, § 1391(a)(1), Oct. 3, 1980, 94 Stat. 1440, 1503, re- lated to distribution of assets from student loan funds, prior to the general revision of this part by Pub. L. 99–498. AMENDMENTS 2015—Subsec. (a). Pub. L. 114–105, § 2(b)(1)(A), sub- stituted ‘‘Beginning October 1, 2017’’ for ‘‘After Sep- tember 30, 2003, and not later than March 31, 2004’’ in introductory provisions. Subsec. (a)(1). Pub. L. 114–105, § 2(b)(1)(B), substituted ‘‘September 30, 2017’’ for ‘‘September 30, 2003’’. Subsec. (b). Pub. L. 114–105, § 2(b)(2), substituted ‘‘Be- ginning October 1, 2017’’ for ‘‘After October 1, 2012’’ and ‘‘September 30, 2017’’ for ‘‘September 30, 2003’’. Subsec. (c)(1). Pub. L. 114–105, § 2(b)(3), substituted ‘‘October 1, 2017’’ for ‘‘October 1, 2004’’ in introductory provisions. 2007—Subsec. (b). Pub. L. 110–84 substituted ‘‘October 1, 2012’’ for ‘‘March 31, 2012’’. 1998—Subsec. (a). Pub. L. 105–244, § 466(1)(A), in intro- ductory provisions, substituted ‘‘2003’’ for ‘‘1996’’ and ‘‘2004’’ for ‘‘1997’’. Subsec. (a)(1). Pub. L. 105–244, § 466(1)(B), substituted ‘‘2003’’ for ‘‘1996’’. Subsec. (b). Pub. L. 105–244, § 466(2), substituted ‘‘2012’’ for ‘‘2005’’ and ‘‘2003’’ for ‘‘1996’’. Subsec. (c)(1). Pub. L. 105–244, § 466(3), substituted ‘‘2004’’ for ‘‘1997’’ in introductory provisions. 1993—Subsec. (c)(2). Pub. L. 103–208 realigned margin. 1992—Subsec. (b). Pub. L. 102–325, § 466(1), substituted ‘‘2005’’ for ‘‘1997’’. Subsec. (c). Pub. L. 102–325, § 466(2), designated exist- ing provisions as par. (1), redesignated former pars. (1) and (2) as subpars. (A) and (B), respectively, and added par. (2). 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 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 1993 AMENDMENT Amendment by Pub. L. 103–208 effective as if included in the Higher Education Amendments of 1992, Pub. L. 102–325, except as otherwise provided, see section 5(a) of Pub. L. 103–208, set out as a note under section 1051 of this title. § 1087gg. Collection of defaulted loans: Perkins Loan Revolving Fund (a) Authority of Secretary to collect referred, transferred, or assigned loans With respect to any loan— (1) which was made under this part, and (2) which is referred, transferred, or assigned to the Secretary by an institution with an agreement under section 1087cc(a) of this title, the Secretary is authorized to attempt to col- lect such loan by any means authorized by law for collecting claims of the United States (in- cluding referral to the Attorney General for liti- gation) and under such terms and conditions as the Secretary may prescribe, including reim- bursement for expenses reasonably incurred in attempting such collection. (b) Collection of referred, transferred, or as- signed loans The Secretary shall continue to attempt to collect any loan referred, transferred, or as- signed under paragraph (4) or (5) of section 1087cc(a) of this title until all appropriate col- lection efforts, as determined by the Secretary, have been expended. (Pub. L. 89–329, title IV, § 467, as added Pub. L. 99–498, title IV, § 405(a), Oct. 17, 1986, 100 Stat. 1453; amended Pub. L. 102–325, title IV, § 467, July 23, 1992, 106 Stat. 584; Pub. L. 105–244, title IV, § 467(a), Oct. 7, 1998, 112 Stat. 1728; Pub. L. 111–39, title IV, § 405(6), July 1, 2009, 123 Stat. 1947.) Editorial Notes PRIOR PROVISIONS A prior section 1087gg, Pub. L. 89–329, title IV, § 467, as added Pub. L. 96–49, § 5(d)(3)(A), Aug. 13, 1979, 93 Stat. 352; amended Pub. L. 96–374, title IV, § 445(c), title XIII, § 1391(a)(1), Oct. 3, 1980, 94 Stat. 1442, 1503; Pub. L. 99–272, title XVI, § 16029, Apr. 7, 1986, 100 Stat. 354, related to collection of defaulted loans, prior to the general revi- sion of this part by Pub. L. 99–498. AMENDMENTS 2009—Subsec. (b). Pub. L. 111–39 substituted ‘‘para- graph (4) or (5)’’ for ‘‘paragraph (5)(A), (5)(B)(i), or (6)’’. 1998—Subsec. (c). Pub. L. 105–244 struck out heading and text of subsec. (c) which established the Perkins Loan Revolving Fund and provided for deposits into and payments from the Fund. 1992—Pub. L. 102–325 amended section catchline gen- erally, inserting ‘‘: Perkins Loan Revolving Fund’’ after ‘‘loans’’ and added subsec. (c).