U.S. Code » Title 20 » Chapter CHAPTER 28— HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE › Subchapter SUBCHAPTER IV— STUDENT ASSISTANCE › Part Part B— Federal Family Education Loan Program

20 U.S.C. § 1074

Scope and duration of Federal loan insurance program

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(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) 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.

(Pub. L. 89–329, title IV, § 424, as added Pub. L. 99–498, title IV, § 402(a), Oct. 17, 1986, 100 Stat. 1358; amended Pub. L. 102–325, title IV, § 411(b)(1), July 23, 1992, 106 Stat. 510; Pub. L. 105–33, title VI, § 6104(1), Aug. 5, 1997, 111 Stat. 652; Pub. L. 105–244, title IV, § 414, Oct. 7, 1998, 112 Stat. 1679; Pub. L. 109–171, title VIII, § 8004(b)(1), Feb. 8, 2006, 120 Stat. 158; Pub. L. 110–315, title IV, § 421, Aug. 14, 2008, 122 Stat. 3227; Pub. L. 111–152, title II, § 2202, Mar. 30, 2010, 124 Stat. 1074.)Editorial NotesPrior Provisions

A prior section 1074, Pub. L. 89–329, title IV, § 424, Nov. 8, 1965, 79 Stat. 1237; Pub. L. 90–460, § 1(a)(1), Aug. 3, 1968, 82 Stat. 634; Pub. L. 90–575, title I, § 112(a), Oct. 16, 1968, 82 Stat. 1020; Pub. L. 92–318, title I, § 132(a), June 23, 1972, 86 Stat. 261; Pub. L. 94–328, § 2(a), June 30, 1976, 90 Stat. 727; Pub. L. 94–482, title I, § 127(a), Oct. 12, 1976, 90 Stat. 2103; Pub. L. 96–374, title IV, § 411(a), title XIII, § 1391(a)(1), Oct. 3, 1980, 94 Stat. 1415, 1503; Pub. L. 99–272, title XVI, § 16018(a)(1), Apr. 7, 1986, 100 Stat. 348, related to new loans under Federal loan insurance program, prior to the general revision of this part by Pub. L. 99–498.

Amendments

2010—Subsec. (a). Pub. L. 111–152 substituted “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.” for “September 30, 1976, and for each of the succeeding fiscal years ending prior to October 1, 2014. Thereafter, Federal loan insurance pursuant to this part may be granted only for loans made (or for loan installments paid pursuant to lines of credit) to enable students, who have obtained prior loans insured under this part, to continue or complete their educational program; but no insurance may be granted for any loan made or installment paid after September 30, 2018.”

2008—Subsec. (a). Pub. L. 110–315 substituted “October 1, 2014” for “October 1, 2012” and “September 30, 2018” for “September 30, 2016”.

2006—Subsec. (a). Pub. L. 109–171 substituted “October 1, 2012” for “October 1, 2004” and “September 30, 2016” for “September 30, 2008”.

1998—Subsec. (a). Pub. L. 105–244 substituted “October 1, 2004” for “October 1, 2002” and “September 30, 2008” for “September 30, 2006”.

1997—Subsec. (a). Pub. L. 105–33 substituted “October 1, 2002” for “October 1, 1998” and “September 30, 2006” for “September 30, 2002”.

1992—Subsec. (a). Pub. L. 102–325 substituted “October 1, 1998” for “October 1, 1992” and “September 30, 2002” for “September 30, 1997”.

Statutory Notes and Related SubsidiariesEffective 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

Amendment by Pub. L. 105–244 effective Oct. 1, 1998, except as otherwise provided in Pub. L. 105–244, see section 3 of Pub. L. 105–244, set out as a note under section 1001 of this title.

Notes of Decisions
Cited in 9 cases, 1972–2010 · leading case: Chae v. SLM Corp., 593 F.3d 936 (9th Cir. 2010).
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Chae v. SLM Corp., 593 F.3d 936 (9th Cir. 2010). “The statutes go so far as to mandate specified repayment terms and specified insurance and guaranty requirements. Id. As one example, the FFELP sets the maximum interest rate that a lender may charge, depending on the type of loan and the date when it was taken out.”
In Re McKinney, 120 B.R. 416 (Bankr. N.D. Ohio 1990). · cites it 2× “In reference to a consolidation loan being a new loan, this section refers to 20 U.S.C. § 1074 , entitled Scope and Duration of Federal Loan Insurance Program, and provides: (a) Limitations on amounts of loans covered by Federal insurance The total principal amount of new loans…”
Clarke v. Paige (In Re Clarke), 266 B.R. 301 (Bankr. E.D. Pa. 2001). “The consolidation of educational loans is governed by the Higher Education Act (the “HEA”), which states in relevant part: “Loans made under this section which are insured by the Secretary shall be considered to be new loans made to students for the purpose of § 424(a) [ 20…”
In Re McBurney, 357 B.R. 536 (9th Cir. BAP 2006). “Additionally, Congress expressly provided that a consolidation student loan is a new loan for purposes of 20 U.S.C. § 1074 , which sets the limitation on the annual amount of student loans covered by federal insurance.”
Rudnicki v. S. Coll. of Optometry (In Re Rudnicki), 228 B.R. 179 (6th Cir. BAP 1999). “The Act states in part: Loans made under this section which are insured by the Secretary shall be considered to be new loans made to students for the purpose of section 424(a) [ 20 U.S.C. § 1074 (a)] of this title. 20 U.”
Buwana v. U.S. Dep't of Educ. (In Re Buwana), 338 B.R. 441 (Bankr.D. Colo. 2004). “The Court found that: The consolidation of educational loans is governed by the Higher Education Act (the “HEA”), which states in relevant part: “Loans made under this section which are insured by the Secretary shall be considered to be new loans made to students for the purpose…”
Educ. Credit Mgmt. Corp. v. McBurney, 357 B.R. 536 (9th Cir. BAP 2006). “Additionally, Congress expressly provided that a consolidation student loan is a new loan for purposes of 20 U.S.C. § 1074 , which sets the limitation on the annual amount of student loans covered by federal insurance.”
Ann Chae v. Slm Corp. (9th Cir. 2010). “See 20 U.S.C. § 1074 . The stat- utes describe the nuts and bolts of the FFELP, defining the required terms of each type of loan.”
Clark v. Hammer, 342 F. Supp. 855 (D. Conn. 1972). “See also 20 U.S.C. § 1074 (a). . Of minor but passing interest is the fact that the emblem on the letterhead of the CSLF, on which was written the rejection of plaintiffs’ loan application, displays the Connecticut state seal.”
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