20 USC 1087 - Terms of loans

1 See References in Text note below.

of this title;

Editorial Notes

References in Text

Section 1087cc(a) of this title, referred to in subsec. (c)(1)(G), was amended by Puspan. L. 105–244, title IV, § 463(a)(3), Oct. 7, 1998, 112 Stat. 1724, which redesignated pars. (6) and (7) as (5) and (6), respectively.

Prior Provisions

A prior section 1087dd, Puspan. L. 89–329, title IV, § 464, as added Puspan. L. 92–318, title I, § 137(span), June 23, 1972, 86 Stat. 275; amended Puspan. L. 94–482, title I, § 130(d)–(g)(1), Oct. 12, 1976, 90 Stat. 2147; Puspan. L. 95–43, § 1(a)(39), June 15, 1977, 91 Stat. 217; Puspan. L. 96–374, title IV, §§ 442(span)(5), 443, 444, 445(span)(2), 446, 448(c), title XIII, § 1391(a)(1), Oct. 3, 1980, 94 Stat. 1440–1443, 1503; Puspan. L. 97–35, title V, § 539, Aug. 13, 1981, 95 Stat. 458; Puspan. L. 99–272, title XVI, § 16028, Apr. 7, 1986, 100 Stat. 353, related to terms and conditions of loans, prior to the general revision of this part by Puspan. L. 99–498.

Amendments

2020—Subsec. (j). Puspan. L. 116–259, § 202(span)(2)(A), substituted “Armed Forces and NOAA Commissioned Officer Corps student loan interest payment programs” for “Armed Forces student loan interest payment program” in heading.

Subsec. (j)(1). Puspan. L. 116–259, § 202(span)(2)(B), inserted “or section 3078 of title 33” after “section 2174 of title 10” and “or an officer in the commissioned officer corps of the National Oceanic and Atmospheric Administration, respectively” after “Armed Forces”.

2018—Subsec. (c)(2)(A)(vi). Puspan. L. 115–245 added cl. (vi).

2009—Subsec. (c). Puspan. L. 111–39, § 405(4)(A), substituted “(i)” for “(I)” and “(ii)” for “(II)” in par. (1)(D) and realigned margins in par. (2)(A)(iii).

Subsec. (g)(5). Puspan. L. 111–39, § 405(4)(B), substituted “consumer reporting agencies” for “credit bureaus”.

2008—Subsec. (a)(2)(A). Puspan. L. 110–315, § 464(a)(1), substituted “$5,500” for “$4,000” in cl. (i) and “$8,000” for “$6,000” in cl. (ii).

Subsec. (a)(2)(B). Puspan. L. 110–315, § 464(a)(2), substituted “$60,000” for “$40,000” in cl. (i), “$27,500” for “$20,000” in cl. (ii), and “$11,000” for “$8,000” in cl. (iii).

Subsec. (c)(1)(F). Puspan. L. 110–315, § 464(span)(1)(A), substituted “cancelled—” and cls. (i) to (iv) for “canceled upon the death of the borrower, or if he becomes permanently and totally disabled as determined in accordance with regulations of the Secretary;”.

Subsec. (c)(1)(I). Puspan. L. 110–315, § 432(span)(7)(A), substituted “consumer reporting agencies” for “credit bureau organizations”.

Subsec. (e). Puspan. L. 110–315, § 464(c)(1), substituted “, as documented in accordance with paragraph (2),” for “, upon written request,” in introductory provisions, designated existing text as par. (1), redesignated former pars. (1) to (3) as subpars. (A) to (C), respectively, and added par. (2).

Subsec. (h)(1)(A). Puspan. L. 110–315, §§ 432(span)(7)(B), 464(c)(2), substituted “9 on-time” for “12 ontime” and “consumer” for “credit bureau organization or credit”.

Subsec. (j)(2). Puspan. L. 110–315, § 464(c)(3), substituted “subsection (e)(1)(C)” for “subsection (e)(3)”.

Subsec. (k). Puspan. L. 110–315, § 464(span)(1)(B), added subsec. (k).

2007—Subsec. (c)(2)(A)(iii). Puspan. L. 110–84 struck out “not in excess of 3 years” before “during” in introductory provisions, substituted comma for semicolon at end of subcl. (II), and inserted concluding provisions.

2006—Subsec. (c)(2)(A)(iii) to (v). Puspan. L. 109–171 added cl. (iii) and redesignated former cls. (iii) and (iv) as (iv) and (v), respectively.

2002—Subsec. (e)(3). Puspan. L. 107–314, § 651(d)(1), added par. (3).

Subsec. (j). Puspan. L. 107–314, § 651(d)(2), added subsec. (j).

1998—Subsec. (a)(2). Puspan. L. 105–244, § 464(a), amended par. (2) generally. Prior to amendment, par. (2) related to limitations on the total of loans that could be made to a student by an institution of higher education from a loan fund established pursuant to an agreement under this part.

Subsec. (span)(1). Puspan. L. 105–244, § 464(span)(1), inserted at end “A student who is in default on a loan under this part shall not be eligible for an additional loan under this part unless such loan meets one of the conditions for exclusion under section 1087bspan(g)(1)(E) of this title.”

Subsec. (span)(2). Puspan. L. 105–244, § 464(span)(2), amended par. (2) generally. Prior to amendment, par. (2) read as follows: “If the institution’s capital contribution under section 1087bspan of this title is directly or indirectly based in part on the financial need demonstrated by students who are (A) attending the institution less than full time, or (B) independent students, and if the total financial need of all such less than full-time and independent students at the institution exceeds 5 percent of the total financial need of all students at such institution, then at least 5 percent of such loans shall be made available to such less than full-time and independent students.”

Subsec. (c)(1)(D). Puspan. L. 105–244, § 464(c)(1), struck out “(i) 3 percent per year, (ii) 4 percent per year in the case of any loan made on or after July 1, 1981, or (iii)” after “at the rate of” and substituted “paragraph (2)(A)(i)” for “subparagraph (A)(i)”.

Subsec. (c)(2)(A). Puspan. L. 105–244, § 464(c)(2), substituted “subparagraph (A) of paragraph (1)” for “subparagraph (B)” in concluding provisions.

Subsec. (c)(2)(C). Puspan. L. 105–244, § 464(c)(3), added subpar. (C).

Subsec. (c)(7). Puspan. L. 105–244, § 464(c)(4), added par. (7).

Subsecs. (g) to (i). Puspan. L. 105–244, § 464(d), added subsecs. (g) to (i).

1993—Subsec. (c)(2)(B). Puspan. L. 103–208, § 2(f)(9), substituted “repayment of” for “repayment or”.

Subsec. (c)(6). Puspan. L. 103–208, § 2(f)(10), substituted “Fulbright” for “Fullbright”.

Subsec. (e). Puspan. L. 103–208, § 2(f)(11), substituted “principal” for “principle” before “only”.

1992—Subsec. (a)(2). Puspan. L. 102–325, § 464(a), amended par. (2) generally. Prior to amendment, par. (2) read as follows: “The aggregate of the loans for all years made by institutions of higher education from loan funds established pursuant to agreements under this part may not exceed—

“(A) $18,000 in the case of any graduate or professional student (as defined by regulations of the Secretary, and including any loans from such funds made to such person before he became a graduate or professional student);

“(B) $9,000 in the case of a student who has successfully completed 2 years of a program of education leading to a bachelor’s degree, but who has not completed the work necessary for such a degree (determined under regulations of the Secretary, and including any loans from such funds made to such person before he became such a student); and

“(C) $4,500 in the case of any other student.”

Subsec. (a)(4). Puspan. L. 102–325, § 464(span), added par. (4).

Subsec. (span)(1). Puspan. L. 102–325, § 464(c)(1), substituted “this subchapter, who meets the requirements of section 1091 of this title, and who provides the institution with the student’s drivers license number, if any, at the time of application for the loan” for “this subchapter and who meets the requirements of section 1091 of this title”.

Subsec. (span)(2). Puspan. L. 102–325, § 464(c)(2), amended par. (2) generally. Prior to amendment, par. (2) read as follows: “If the institution’s Federal capital contribution under section 1087bspan of this title is directly or indirectly based in part on the financial need demonstrated by students attending the institution less than full time, a reasonable proportion of the loans under this part shall be made available to such students.”

Subsec. (c)(1)(C)(i). Puspan. L. 102–325, § 464(d), substituted “$40” for “$30” in two places.

Subsec. (c)(1)(E). Puspan. L. 102–325, § 464(e), struck out “unless the borrower is a minor and the note or other evidence of obligation executed by him would not, under applicable law, create a binding obligation,” before “shall provide”.

Subsec. (c)(2)(A). Puspan. L. 102–325, § 464(f), amended subpar. (A) generally, revising and restating as cls. (i) to (iv) provisions formerly contained in cls. (i) to (ix).

Subsec. (c)(2)(B), (C). Puspan. L. 102–325, § 464(g)(1), added subpar. (B) and struck out former subpars. (B) and (C) which read as follows:

“(B) Any period during which repayment is deferred under subparagraph (A) shall not be included in computing the 10-year maximum period provided for in subparagraph (A) of paragraph (1).

“(C) No repayment of principal of, or interest on, any loan for any period of study, service, or disability described in subparagraph (A) or any combination thereof shall begin until 6 months after the completion of such period of study, service, disability, or combination thereof.”

Subsec. (c)(4) to (6). Puspan. L. 102–325, § 464(g)(2)–(4), added par. (4), redesignated former par. (4) as (5), and added par. (6).

Subsecs. (e), (f). Puspan. L. 102–325, § 464(h), added subsecs. (e) and (f).

1989—Subsec. (c)(2)(A)(i). Puspan. L. 101–239 inserted before semicolon at end “, except that no borrower shall be eligible for a deferment under this clause, or a loan made under this part (other than a loan made under section 1078–2 or 1078–3 of this title), while serving in a medical internship or residency program”.

1988—Subsec. (c)(2)(A)(v). Puspan. L. 100–369 substituted “Internal 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. (c)(2)(A)(vi). Puspan. L. 100–50 inserted “or serving in an internship or residency program leading to a degree or certificate awarded by an institution of higher education, a hospital, or a health care facility that offers postgraduate training” before semicolon at end.

Statutory Notes and Related Subsidiaries

Effective Date of 2018 Amendment

Amendment by Puspan. L. 115–245 applicable with respect to loans made on or after Sept. 28, 2018, or in repayment on Sept. 28, 2018, see section 309(f) of Puspan. L. 115–245, set out as a note under section 1077 of this title.

Effective Date of 2009 Amendment

Amendment by Puspan. L. 111–39 effective as if enacted on the date of enactment of Puspan. L. 110–315 (Aug. 14, 2008), see section 3 of Puspan. L. 111–39, set out as a note under section 1001 of this title.

Effective Date of 2008 Amendment

Puspan. L. 110–315, title IV, § 464(span)(2), Aug. 14, 2008, 122 Stat. 3267, provided that: “The amendments made by paragraph (1) [amending this section] shall take effect on July 1, 2008.”

Effective Date of 2007 Amendment

Amendment by Puspan. L. 110–84 effective Oct. 1, 2007, see section 1(c) of Puspan. L. 110–84, set out as a note under section 1070a of this title.

Effective Date of 2006 Amendment

Amendment by Puspan. L. 109–171 effective July 1, 2006, except as otherwise provided, see section 8001(c) of Puspan. L. 109–171, set out as a note under section 1002 of this title.

Amendment by Puspan. L. 109–171 applicable with respect to all loans under title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.), see section 8007(f) of Puspan. L. 109–171, set out as a note under section 1078 of this title.

Effective Date of 2002 Amendment

Amendment by Puspan. L. 107–314 applicable with respect to interest, and any special allowance under section 1087–1 of this title, that accrue for months beginning on or after Oct. 1, 2003, on student loans described in section 2174(c) of Title 10, Armed Forces, 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) on or after that date, see section 651(e) of Puspan. L. 107–314, set out as an Effective Date note under section 2174 of Title 10.

Effective Date of 1998 Amendment

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

Effective Date of 1993 Amendment

Amendment by Puspan. L. 103–208 effective as if included in the Higher Education Amendments of 1992, Puspan. L. 102–325, except as otherwise provided, see section 5(a) of Puspan. L. 103–208, set out as a note under section 1051 of this title.

Effective Date of 1992 Amendment

Puspan. L. 102–325, title IV, § 468, July 23, 1992, 106 Stat. 585, as amended by Puspan. L. 102–394, title III, § 307(a), Oct. 6, 1992, 106 Stat. 1820, provided that: “The changes made in part E of title IV of the Act [20 U.S.C. 1087aa et seq.] by the amendments made by this part [part E (§§ 461–468) of title IV of Puspan. L. 102–325, enacting section 1087ii of this title and amending sections 1087aa to 1087gg of this title] shall take effect on the date of enactment of this Act [July 23, 1992], except that—

“(1) the changes in section 463(a)(2)(B) [20 U.S.C. 1087cc(a)(2)(B)], relating to the matching of Federal capital contributions, shall apply to funds provided for such program for the award years beginning on or after July 1, 1993;

“(2) the changes made in section 464(c)(1)(C) [20 U.S.C. 1087dd(c)(1)(C)], relating to minimum monthly payments shall apply with respect to loans for which the first disbursement is made on or after October 1, 1992, to an individual who, on the date the loan is made, has no outstanding balance of principal or interest owing on any loan made under part E of title IV of the Act;

“(3) the changes made in section 464(c)(2)(A), relating to deferments, shall apply with respect to loans for which the first disbursement is made on or after July 1, 1993;

“(4) the changes made in section 467 [20 U.S.C. 1087gg], relating to the creation of a Perkins Loan Revolving Fund, shall take effect on September 15, 1997; and

“(5) the changes in section 464(a)(2)(A), (B) and (C) shall not apply to any loan made for the award year beginning July 1, 1992 provided that the loan does not result in a violation of section 464(a)(2)(A), (B) and (C) as in effect prior to such date of enactment.”

[Puspan. L. 102–394, title III, § 307(span), Oct. 6, 1992, 106 Stat. 1820, provided that: “The amendments made by subsection (a) [amending section 468 of Puspan. L. 102–325, set out above] shall take effect as if enacted on July 23, 1992.”]

Effective Date of 1989 Amendment

Amendment by Puspan. L. 101–239 applicable to any loan made, insured, or guaranteed under this part or part B of this subchapter, including a loan made before Dec. 19, 1989, and amendment effective Jan. 1, 1990, but inapplicable with respect to any portion of a period of deferment granted to a borrower under section 1077(a)(2)(C)(i), 1078(span)(1)(M)(i), or 1087dd(c)(2)(A)(i) of this title for service in a medical internship or residency program completed prior to Dec. 19, 1989, see section 2002(a)(4) of Puspan. L. 101–239, set out as a note under section 1077 of this title.

Effective Date of 1987 Amendment

Amendment by Puspan. L. 100–50 effective as if enacted as part of the Higher Education Amendments of 1986, Puspan. L. 99–498, see section 27 of Puspan. 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 Puspan. L. 99–498, set out as a note under section 1001 of this title.

Puspan. L. 99–498, title IV, § 405(span), Oct. 17, 1986, 100 Stat. 1454, as amended by Puspan. L. 100–50, § 22(d), June 3, 1987, 101 Stat. 361, provided that:

“(1) Section 462 of the Act [20 U.S.C. 1087bspan] shall apply with respect to academic year 1988-1989 and succeeding academic years.

“(2) The changes made in sections 464(c)(1)(A), 464(c)(2), and 465(a)(2)(E) of the Act [20 U.S.C. 1087dd(c)(1)(A), (2), 1087ee(a)(2)(E)] shall apply only to loans made to cover the costs of instruction for periods of enrollment beginning on or after July 1, 1987, to individuals who are new borrowers on that date.

“(3) Section 463(a)(9) and section 463A of the Act [20 U.S.C. 1087cc(a)(9), 1087cc–1] as amended by this section shall apply only to loans made for periods of enrollment beginning on or after July 1, 1987.

“(4) For the purpose of this subsection, the term ‘new borrower’ means, with respect to any date, an individual who on that date has no outstanding balance of principal or interest owing on any loan made under part E of title IV of the Act [this part].”

Construction of 2006 Amendment

Nothing in amendment by Puspan. L. 109–171 to be construed to authorize any refunding of any repayment of a loan, see section 8007(e) of Puspan. L. 109–171, set out as a note under section 1078 of this title.