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United States Code (Last Updated: May 24, 2014) |
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Title 20. EDUCATION |
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Chapter 28. HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE |
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SubChapter IV. STUDENT ASSISTANCE |
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Part B. Federal Family Education Loan Program |
§ 1085. Definitions for student loan insurance program
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As used in this part: (a) Eligible institution (1) In general Except as provided in paragraph (2), the term “eligible institution” means an institution of higher education, as defined in section 1002 of this title, except that, for the purposes of sections 1077(a)(2)(C)(i) and 1078(b)(1)(M)(i) of this title, an eligible institution includes any institution that is within this definition without regard to whether such institution is participating in any program under this subchapter and part C of subchapter I of chapter 34 of title 42 and includes any institution ineligible for participation in any program under this part pursuant to paragraph (2) of this subsection.
(2) Ineligibility based on high default rates (A) An institution whose cohort default rate is equal to or greater than the threshold percentage specified in subparagraph (B) for each of the three most recent fiscal years for which data are available shall not be eligible to participate in a program under this part for the fiscal year for which the determination is made and for the two succeeding fiscal years, unless, within 30 days of receiving notification from the Secretary of the loss of eligibility under this paragraph, the institution appeals the loss of its eligibility to the Secretary. The Secretary shall issue a decision on any such appeal within 45 days after its submission. Such decision may permit the institution to continue to participate in a program under this part if— (i) the institution demonstrates to the satisfaction of the Secretary that the Secretary’s calculation of its cohort default rate is not accurate, and that recalculation would reduce its cohort default rate for any of the three fiscal years below the threshold percentage specified in subparagraph (B); (ii) there are exceptional mitigating circumstances within the meaning of paragraph (5); or (iii) there are, in the judgment of the Secretary, other exceptional mitigating circumstances that would make the application of this paragraph inequitable. During such appeal, the Secretary may permit the institution to continue to participate in a program under this part. If an institution continues to participate in a program under this part, and the institution’s appeal of the loss of eligibility is unsuccessful, the institution shall be required to pay to the Secretary an amount equal to the amount of interest, special allowance, reinsurance, and any related payments made by the Secretary (or which the Secretary is obligated to make) with respect to loans made under this part to students attending, or planning to attend, that institution during the pendency of such appeal. (B) For purposes of determinations under subparagraph (A), the threshold percentage is— (i) 35 percent for fiscal year 1991 and 1992; (ii) 30 percent for fiscal year 1993; (iii) 25 percent for fiscal year 1994 through fiscal year 2011; and (iv) 30 percent for fiscal year 2012 and any succeeding fiscal year. (C) Until July 1, 1999 , this paragraph shall not apply to any institution that is—(i) a part B institution within the meaning of section 1061(2) of this title; (ii) a tribally controlled college or university, as defined in section 1801(a)(4) of title 25; or (iii) a Navajo Community College under the Navajo Community College Act [25 U.S.C. 640a et seq.]. (D) Notwithstanding the first sentence of subparagraph (A), the Secretary shall restore the eligibility to participate in a program under subpart 1 of part A, part B, or part D of this subchapter of an institution that did not appeal its loss of eligibility within 30 days of receiving notification if the Secretary determines, on a case-by-case basis, that the institution’s failure to appeal was substantially justified under the circumstances, and that— (i) the institution made a timely request that the appropriate guaranty agency correct errors in the draft data used to calculate the institution’s cohort default rate; (ii) the guaranty agency did not correct the erroneous data in a timely fashion; and (iii) the institution would have been eligible if the erroneous data had been corrected by the guaranty agency. (3) Appeals for regulatory relief An institution whose cohort default rate, calculated in accordance with subsection (m), is equal to or greater than the threshold percentage specified in paragraph (2)(B)(iv) for any two consecutive fiscal years may, not later than 30 days after the date the institution receives notification from the Secretary, file an appeal demonstrating exceptional mitigating circumstances, as defined in paragraph (5). The Secretary shall issue a decision on any such appeal not later than 45 days after the date of submission of the appeal. If the Secretary determines that the institution demonstrates exceptional mitigating circumstances, the Secretary may not subject the institution to provisional certification based solely on the institution’s cohort default rate.
(4) Appeals based upon allegations of improper loan servicing An institution that— (A) is subject to loss of eligibility for the Federal Family Education Loan Program pursuant to paragraph (2)(A) of this subsection; (B) is subject to loss of eligibility for the Federal Supplemental Loans for Students pursuant to section 1078–1(a)(2) requirements of clause (i)(II). (B) No for-profit ownership or control (i) In general No State, political subdivision, authority, agency, instrumentality, or other entity described in paragraph (1)(A), (B), or (C) shall be an eligible not-for-profit holder under this chapter and part C of subchapter I of chapter 34 of title 42 if such State, political subdivision, authority, agency, instrumentality, or other entity is owned or controlled, in whole or in part, by a for-profit entity.
(ii) Trustees A trustee described in paragraph (1)(D) shall not be an eligible not-for-profit holder under this chapter and part C of subchapter I of chapter 34 of title 42 with respect to a State, political subdivision, authority, agency, instrumentality, or other entity described in subparagraph (A), (B), or (C) of paragraph (1), regardless of whether such State, political subdivision, authority, agency, instrumentality, or other entity is an eligible lender under subsection (d), if such State, political subdivision, authority, agency, instrumentality, or other entity is owned or controlled, in whole or in part, by a for-profit entity.
(C) Sole ownership of loans and income No State, political subdivision, authority, agency, instrumentality, trustee, or other entity described in paragraph (1)(A), (B), (C), or (D) shall be an eligible not-for-profit holder under this chapter and part C of subchapter I of chapter 34 of title 42 with respect to any loan, or income from any loan, unless— (i) such State, political subdivision, authority, agency, instrumentality, or other entity is the sole beneficial owner of such loan and the income from such loan; or (ii) such trustee holds the loan on behalf of a State, political subdivision, authority, agency, instrumentality, or other entity described in subparagraph (A), (B), or (C) of paragraph (1), regardless of whether such State, political subdivision, authority, agency, instrumentality, or other entity is an eligible lender under subsection (d), and such State, political subdivision, authority, agency, instrumentality, or other entity is the sole beneficial owner of such loan and the income from such loan. (D) Trustee compensation limitations A trustee described in paragraph (1)(D) shall not receive compensation as consideration for acting as an eligible lender on behalf of a State, political subdivision, authority, agency, instrumentality, or other entity described in subparagraph (A), (B), or (C) of paragraph (1), regardless of whether such State, political subdivision, authority, agency, instrumentality, or other entity is an eligible lender under subsection (d), in excess of reasonable and customary fees.
(E) Rule of construction For purposes of subparagraphs (A), (B), (C), and (D) of this paragraph, a State, political subdivision, authority, agency, instrumentality, or other entity described in subparagraph (A), (B), or (C) of paragraph (1), regardless of whether such State, political subdivision, authority, agency, instrumentality, or other entity is an eligible lender under subsection (d), shall not— (i) be deemed to be owned or controlled, in whole or in part, by a for-profit entity; or (ii) lose its status as the sole owner of a beneficial interest in a loan and the income from a loan, by such State, political subdivision, authority, agency, instrumentality, or other entity, or by the trustee described in paragraph (1)(D), granting a security interest in, or otherwise pledging as collateral, such loan, or the income from such loan, to secure a debt obligation for which such State, political subdivision, authority, agency, instrumentality, or other entity is the issuer of the debt obligation. (3) Prohibition In the case of a loan for which the special allowance payment is calculated under section 1087–1(b)(2)(I)(vi)(II) of this title and that is sold by the eligible not-for-profit holder holding the loan to an entity that is not an eligible not-for-profit holder under this chapter and part C of subchapter I of chapter 34 of title 42, the special allowance payment for such loan shall, beginning on the date of the sale, no longer be calculated under section 1087–1(b)(2)(I)(vi)(II) of this title and shall be calculated under section 1087–1(b)(2)(I)(vi)(I) of this title instead.
(4) Regulations Not later than 1 year after
September 27, 2007 , the Secretary shall promulgate regulations in accordance with the provisions of this subsection.
References In Text
The Navajo Community College Act, referred to in subsec. (a)(2)(C)(iii), is Pub. L. 92–189,
The Employee Retirement Income Security Act, referred to in subsec. (d)(1)(B), probably means the Employee Retirement Income Security Act of 1974, Pub. L. 93–406,
Section 1078–1 of this title, referred to in subsecs. (a)(4)(B) and (m)(1)(A), (2)(D), was repealed by Pub. L. 103–66, title IV, § 4047(b)–(d),
Section 1078(h) of this title, referred to in subsec. (d)(1)(H), was repealed by Pub. L. 110–315, title IV, § 438(a)(2)(B),
Public Law 499, Eighty-first Congress (64 Stat. 98 (1950)), referred to in subsec. (d)(1)(I), is act May 3, 1950, ch. 152, 64 Stat. 98, known as the Rural Rehabilitation Corporation Trust Liquidation Act, which was classified to sections 440 to 444 of former Title 40, Public Buildings, Property, and Works, and as notes set out under section 1001 of Title 7, Agriculture, and section 440 of former Title 40, and was omitted from the Code.
Title IV, referred to in subsec. (m)(2)(C), means title IV of the Higher Education Act of 1965, Pub. L. 89–329, which is classified generally to this subchapter and part C (§ 2751 et seq.) of subchapter I of chapter 34 of Title 42, The Public Health and Welfare. For complete classification of title IV to the Code, see Tables.
Prior Provisions
A prior section 1085, Pub. L. 89–329, title IV, § 435,
Amendments
2010—Subsec. (a)(5)(A)(i)(I). Pub. L. 111–152 substituted “one-half the Federal Pell Grant amount, determined under section 1070a(b)(2)(A) of this title, for which a student would be eligible” for “one-half the maximum Federal Pell Grant award for which a student would be eligible”.
2009—Subsec. (a)(2)(C)(ii). Pub. L. 111–39, § 402(f)(10)(A), substituted “a tribally controlled college or university, as defined in section 1801(a)(4) of title 25” for “a tribally controlled community college within the meaning of section 1801(a)(4) of title 25”.
Subsec. (d)(1). Pub. L. 111–39, § 402(f)(10)(B)(i), substituted “section 501(a) of such title” for “section 501(1) of such title” in subpar. (A)(ii)(III) and “sections 1078–2(d) and 1078–3 of this title,” for “sections 1078–1(d), 1078–2(d), and 1078–3 of this title,” in subpar (G).
Subsec. (d)(2)(A)(vi), (3). Pub. L. 111–39, § 402(f)(10)(B)(ii), (iii), made technical amendment to reference in original act which appears in text as reference to subsec. (m).
Subsec. (d)(5)(A). Pub. L. 111–39, § 402(f)(10)(B)(iv), substituted “to any institution of higher education, any employee of an institution of higher education, or any individual or entity in order to secure applicants for loans under this part” for “to any institution of higher education or any employee of an institution of higher education in order to secure applicants for loans under this part”.
Subsec. (d)(5)(E), (F). Pub. L. 111–39, § 402(b)(2), inserted “or 1092(l)” after “section 1092(b)”.
Subsec. (o)(1)(A)(ii). Pub. L. 111–39, § 402(f)(10)(C), made technical amendment to reference in original act which appears in text as reference to section 9902(2) of title 42.
Subsec. (p)(1). Pub. L. 111–39, § 402(f)(10)(D), made technical amendment to reference in original act which appears in text as reference to section 1141 of this title.
2008—Subsec. (a)(2)(A)(ii). Pub. L. 110–315, § 436(a)(1)(A)(i), substituted “paragraph (5)” for “paragraph (4)”.
Subsec. (a)(2)(B)(iii), (iv). Pub. L. 110–315, § 436(a)(1)(A)(ii), added cls. (iii) and (iv) and struck out former cl. (iii) which read as follows: “25 percent for any succeeding fiscal year.”
Subsec. (a)(3) to (8). Pub. L. 110–315, § 436(a)(1)(B)–(E), added pars. (3) and (7), redesignated former pars. (3), (4), (5), and (6), as (4), (5), (6), and (8), respectively, and, in introductory provisions of par. (5)(A), substituted “For purposes of this subsection, an institution of higher education shall be treated as having exceptional mitigating circumstances that make application of paragraph (2) inequitable, and that provide for regulatory relief under paragraph (3), if such institution, in the opinion of an independent auditor, meets the following criteria:” for “For purposes of paragraph (2)(A)(ii), an institution of higher education shall be treated as having exceptional mitigating circumstances that make application of that paragraph inequitable if such institution, in the opinion of an independent auditor, meets the following criteria:”.
Subsec. (a)(8)(A). Pub. L. 110–315, § 436(a)(1)(F), substituted “0.0625” for “0.0375”.
Subsec. (d)(1)(A)(ii). Pub. L. 110–315, § 436(b), substituted “part, (III)” for “part, or (III)” and inserted “, or (IV) it is a National or State chartered bank, or a credit union, with assets of less than $1,000,000,000” before semicolon at end.
Subsec. (d)(1)(G). Pub. L. 110–315, § 438(a)(3), substituted “and 1078–3” for “1078–3, and 1087–2(q)”.
Subsec. (d)(5). Pub. L. 110–315, § 436(c), amended par. (5) generally. Prior to amendment, par. (5) related to disqualification for use of certain incentives.
Subsec. (d)(8). Pub. L. 110–315, § 436(d), added par. (8).
Subsec. (m)(1)(A). Pub. L. 110–315, § 436(e)(1)(A)(i), substituted “end of the second fiscal year following the fiscal year in which the students entered repayment” for “end of the following fiscal year” in first sentence.
Subsec. (m)(1)(B). Pub. L. 110–315, § 436(e)(1)(A)(ii), substituted “such second fiscal year” for “such fiscal year”.
Subsec. (m)(1)(C). Pub. L. 110–315, § 436(e)(1)(A)(iii), substituted “end of the second fiscal year following the year in which they entered repayment” for “end of the fiscal year immediately following the year in which they entered repayment”.
Subsec. (m)(2)(C). Pub. L. 110–315, § 436(e)(1)(B), substituted “end of the second fiscal year following the year in which the loan entered repayment is not considered as in default for purposes of this subsection” for “end of such following fiscal year is not considered as in default for the purposes of this subsection” and “such second fiscal year” for “such following fiscal year”.
Subsec. (m)(4). Pub. L. 110–315, § 436(e)(1)(C)(i), substituted “Collection and reporting of cohort default rates and life of cohort default rates” for “Collection and reporting of cohort default rates” in heading.
Subsec. (m)(4)(A). Pub. L. 110–315, § 436(e)(1)(C)(ii), amended subpar. (A) generally. Prior to amendment, text read as follows: “The Secretary shall collect data from all insurers under this part and shall publish not less often than once every fiscal year a report showing default data for each category of institution, including (i) 4-year public institutions, (ii) 4-year private institutions, (iii) 2-year public institutions, (iv) 2-year private institutions, (v) 4-year proprietary institutions, (vi) 2-year proprietary institutions, and (vii) less than 2-year proprietary institutions.”
2007—Subsec. (o)(1)(A)(ii). Pub. L. 110–84, § 304(1)(A), substituted “150 percent of the poverty line applicable to the borrower’s family size” for “100 percent of the poverty line for a family of 2” and inserted “or” after semicolon at end.
Subsec. (o)(1)(B), (C). Pub. L. 110–84, § 304(1)(B), (C), redesignated subpar. (C) as (B) and struck out former subpar. (B) which read as follows: “such borrower is working full-time and has a Federal educational debt burden that equals or exceeds 20 percent of such borrower’s adjusted gross income, and the difference between such borrower’s adjusted gross income minus such burden is less than 220 percent of the greater of—
“(i) the annual earnings of an individual earning the minimum wage under section 206 of title 29; or
“(ii) the income official poverty line (as defined by the Office of Management and Budget, and revised annually in accordance with section 9902(2) of title 42) applicable to a family of two; or”.
Subsec. (o)(2). Pub. L. 110–84, § 304(2), substituted “(1)(B)” for “(1)(C)”.
Subsec. (p). Pub. L. 110–84, § 304(3), added subsec. (p).
Subsec. (p)(1)(D). Pub. L. 110–109, § 4(1), added subpar. (D) and struck out former subpar. (D) which read as follows: “a trustee acting as an eligible lender on behalf of a State, political subdivision, authority, agency, instrumentality, or other entity described in subparagraph (A), (B), or (C).”
Subsec. (p)(2)(A)(i)(II). Pub. L. 110–109, § 4(2)(A), added subcl. (II) and struck out former subcl. (II) which read as follows: “is a trustee acting as an eligible lender under this chapter on behalf of such a State, political subdivision, authority, agency, instrumentality, or other entity described in subclause (I) of this clause.”
Subsec. (p)(2)(A)(ii). Pub. L. 110–109, § 4(2)(B), inserted “of” after “waive the requirements”.
Subsec. (p)(2)(B). Pub. L. 110–109, § 4(2)(C), reenacted heading without change and amended text of subpar. (B) generally. Prior to amendment, text read as follows: “No political subdivision, authority, agency, instrumentality, or other entity described in paragraph (1)(A), (B), or (C) shall be an eligible not-for-profit holder under this chapter if such entity is owned or controlled, in whole or in part, by a for-profit entity.”
Subsec. (p)(2)(C). Pub. L. 110–109, § 4(2)(D), reenacted heading without change and amended text of subpar. (C) generally. Prior to amendment, text read as follows: “No State, political subdivision, authority, agency, instrumentality, or other entity described in paragraph (1)(A), (B), or (C) shall be an eligible not-for-profit holder under this chapter with respect to any loan, or income from any loan, unless the State, political subdivision, authority, agency, instrumentality, or other entity described in paragraph (1)(A), (B), or (C) is the sole owner of the beneficial interest in such loan and the income from such loan.”
Subsec. (p)(2)(D). Pub. L. 110–109, § 4(2)(E), substituted “a State, political subdivision, authority, agency, instrumentality, or other entity described in subparagraph (A), (B), or (C) of paragraph (1), regardless of whether such State, political subdivision, authority, agency, instrumentality, or other entity is an eligible lender under subsection (d),” for “an entity described in described in paragraph (1)(A), (B), or (C)”.
Subsec. (p)(2)(E). Pub. L. 110–109, § 4(2)(F), reenacted heading without change and amended text of subpar. (E) generally. Prior to amendment, text read as follows: “For purposes of subparagraphs (B), (C), and (D) of this paragraph, a State, political subdivision, authority, agency, instrumentality, or other entity described in paragraph (1)(A), (B), or (C) shall not—
“(i) be deemed to be owned or controlled, in whole or in part, by a for-profit entity, or
“(ii) lose its status as the sole owner of a beneficial interest in a loan and the income from a loan by that political subdivision, authority, agency, instrumentality, or other entity,
by granting a security interest in, or otherwise pledging as collateral, such loan, or the income from such loan, to secure a debt obligation in the operation of an arrangement described in paragraph (1)(D).”
2006—Subsec. (d)(2). Pub. L. 109–171 amended heading and text of par. (2) generally. Prior to amendment, text read as follows: “To be an eligible lender under this part, an eligible institution—
“(A) shall employ at least one person whose full-time responsibilities are limited to the administration of programs of financial aid for students attending such institution;
“(B) shall not be a home study school;
“(C) shall make loans to not more than 50 percent of the undergraduate students at the institution;
“(D) shall not make a loan, other than a loan to a graduate or professional student, unless the borrower has previously received a loan from the school or has been denied a loan by an eligible lender;
“(E) shall not have a cohort default rate (as defined in subsection (m) of this section) greater than 15 percent; and
“(F) shall use the proceeds from special allowance payments and interest payments from borrowers for need-based grant programs, except for reasonable reimbursement for direct administrative expenses;
except that the requirements of subparagraphs (C) and (D) shall not apply with respect to loans made, and loan commitments made, after
Subsec. (d)(7). Pub. L. 109–292 added par. (7).
2000—Subsec. (a)(2)(D). Pub. L. 106–554, § 1(a)(1) [title III, § 308(a)], added subpar. (D).
Subsec. (a)(5)(A)(i). Pub. L. 106–554, § 1(a)(1) [title III, § 312(1)], substituted “
Subsec. (a)(5)(B). Pub. L. 106–554, § 1(a)(1) [title III, § 312(2)], substituted “1999 through 2003” for “1999, 2000, and 2001” in introductory provisions.
1998—Subsec. (a)(1). Pub. L. 105–244, § 102(b)(2), substituted “section 1002” for “section 1088”.
Subsec. (a)(2)(A). Pub. L. 105–244, § 429(a)(1)(A)(i), (ii), struck out “or” at end of cl. (i), added cls. (ii) and (iii), and struck out former cl. (ii) which read as follows: “there are, in the judgment of the Secretary, exceptional mitigating circumstances that would make the application of this paragraph inequitable.”
Pub. L. 105–244, § 429(a)(1)(A)(iii), inserted at end of concluding provisions “If an institution continues to participate in a program under this part, and the institution’s appeal of the loss of eligibility is unsuccessful, the institution shall be required to pay to the Secretary an amount equal to the amount of interest, special allowance, reinsurance, and any related payments made by the Secretary (or which the Secretary is obligated to make) with respect to loans made under this part to students attending, or planning to attend, that institution during the pendency of such appeal.”
Subsec. (a)(2)(C). Pub. L. 105–244, § 429(a)(1)(B), substituted “
Subsec. (a)(2)(C)(ii). Pub. L. 105–244, § 901(d), made technical amendment to reference in original act which appears in text as reference to section 1801(a)(4) of title 25.
Subsec. (a)(3). Pub. L. 105–244, § 429(a)(2), in concluding provisions, inserted “for a reasonable period of time, not to exceed 30 days,” after “access” and substituted “used by a guaranty agency in determining whether to pay a claim on a defaulted loan or by the Department in determining an institution’s default rate in the loan program under part C of this subchapter” for “of the affected guaranty agencies and loan servicers for a reasonable period of time, not to exceed 30 days”.
Subsec. (a)(4) to (6). Pub. L. 105–244, § 429(a)(3), added pars. (4) to (6).
Subsec. (d)(1)(A)(ii)(III). Pub. L. 105–244, § 429(b)(1)(A), added subcl. (III).
Subsec. (d)(1)(K). Pub. L. 105–244, § 429(b)(1)(B)–(D), added subpar. (K).
Subsec. (d)(5). Pub. L. 105–244, § 429(b)(2), inserted concluding provisions.
Subsec. (l). Pub. L. 105–244, § 429(c)(1), substituted “270 days” for “180 days” and “330 days” for “240 days”.
Subsec. (m)(1)(B). Pub. L. 105–244, § 429(d)(1), substituted “insurance. In considering appeals with respect to cohort default rates pursuant to subsection (a)(3) of this section, the Secretary shall exclude, from the calculation of the number of students who entered repayment and from the calculation of the number of students who default,” for “insurance, and, in considering appeals with respect to cohort default rates pursuant to subsection (a)(3) of this section, exclude”.
Subsec. (m)(2)(C). Pub. L. 105–244, § 429(d)(2), inserted at end “The Secretary may require guaranty agencies to collect data with respect to defaulted loans in a manner that will permit the identification of any defaulted loan for which (i) the borrower is currently making payments and has made not less than 6 consecutive on-time payments by the end of such following fiscal year, and (ii) a guaranty agency has renewed the borrower’s title IV eligibility as provided in section 1078–6(b) of this title.”
Subsec. (m)(4)(D). Pub. L. 105–244, § 429(d)(3), added subpar. (D).
1996—Subsec. (d)(1)(F). Pub. L. 104–208, § 101(e) [title VI, § 602(b)(1)(A)(i)], inserted “or the Holding Company of the Student Loan Marketing Association, including any subsidiary of the Holding Company, created pursuant to section 1087–3 of this title,” after “Student Loan Marketing Association”.
Subsec. (d)(1)(G). Pub. L. 104–208, § 101(e) [title VI, § 602(b)(1)(A)(ii)], inserted “or the Holding Company of the Student Loan Marketing Association, including any subsidiary of the Holding Company, created pursuant to section 1087–3 of this title” after “Student Loan Marketing Association”.
1994—Subsec. (a)(2)(C). Pub. L. 103–235 substituted “
Subsec. (o)(1). Pub. L. 103–382, § 357(1)–(3), struck out “or” at end of subpar. (A), added subpar. (B), and redesignated former subpar. (B) as (C).
Subsec. (o)(2). Pub. L. 103–382, § 357(4), substituted “(1)(C)” for “(1)(B)”.
1993—Subsec. (a)(3). Pub. L. 103–208, § 2(c)(55), added par. (3).
Subsec. (d)(1). Pub. L. 103–66, § 4106(b)(1), in par. (1) substituted “through (6)” for “through (5)” in introductory provisions.
Subsec. (d)(2). Pub. L. 103–208, § 2(c)(57), realigned margins of closing provisions.
Subsec. (d)(2)(D). Pub. L. 103–208, § 2(c)(56), substituted “lender;” for “lender; and”.
Subsec. (d)(3). Pub. L. 103–208, § 2(c)(58), substituted “subsection (m)” for “subsection (o)”.
Subsec. (d)(6). Pub. L. 103–66, § 4106(b)(2), added par. (6).
Subsec. (m)(1). Pub. L. 103–66, § 4046(b)(1)(C), which directed the insertion in par. (1)(D) of “(or the portion of a loan made under section 1078–3 of this title that is used to repay a loan made under such section)” after “section 1078–1 of this title” the first place it appears, and “(or a loan made under section 1078–3 of this title a portion of which is used to repay a loan made under such section)” after “section 1078–1 of this title” the second place it appears, could not be executed because subsec. (m)(1) does not contain a subpar. (D).
Subsec. (m)(1)(A). Pub. L. 103–208, § 2(c)(60)(A), inserted at end “The Secretary shall require that each guaranty agency that has insured loans for current or former students of the institution afford such institution a reasonable opportunity (as specified by the Secretary) to review and correct errors in the information required to be provided to the Secretary by the guaranty agency for the purposes of calculating a cohort default rate for such institution, prior to the calculation of such rate.”
Pub. L. 103–208, § 2(c)(59), substituted “section 1078, 1078–1, or 1078–8” for “section 1078 or 1078–1”.
Pub. L. 103–66, § 4046(b)(1)(A), inserted “(or on the portion of a loan made under section 1078–3 of this title that is used to repay any such loans)” after “on such loans”.
Subsec. (m)(1)(B). Pub. L. 103–208, § 2(c)(60)(B), substituted “and, in considering appeals with respect to cohort default rates pursuant to subsection (a)(3) of this section, exclude any loans which, due to improper servicing or collection, would, as demonstrated by the evidence submitted in support of the institution’s timely appeal to the Secretary, result in an inaccurate or incomplete calculation of such cohort default rate.” for “and, in calculating the cohort default rate, exclude any loans which, due to improper servicing or collection, would result in an inaccurate or incomplete calculation of the cohort default rate.”
Subsec. (m)(1)(C). Pub. L. 103–66, § 4046(b)(1)(B), inserted “(or on the portion of a loan made under section 1078–3 of this title that is used to repay any such loans)” after “on such loans”.
Subsec. (m)(2)(D). Pub. L. 103–208, § 2(c)(61), inserted “(or the portion of a loan made under section 1078–3 of this title that is used to repay a loan made under section 1078–1 of this title)” after “in accordance with section 1078–1 of this title”, and “(or a loan made under section 1078–3 of this title a portion of which is used to repay a loan made under section 1078–1 of this title)” after “a loan made under section 1078–1 of this title”.
Subsec. (m)(4). Pub. L. 103–208, § 2(c)(62), added par. (4).
1992—Subsec. (a)(1). Pub. L. 102–325, § 427(a)(1), added par. (1) and struck out former par. (1) which read as follows: “Subject to subsection (n) of this section, the term ‘eligible institution’ means—
“(A) an institution of higher education;
“(B) a vocational school; or
“(C) with respect to students who are nationals of the United States, an institution outside the United States which is comparable to an institution of higher education or to a vocational school and which has been approved by the Secretary for the purpose of this part,
except that such term does not include any such institution or school which employs or uses commissioned salesmen to promote the availability of any loan program described in section 1078(a)(1), 1078–1, or 1078–2 of this title at that institution or school.”
Subsec. (a)(2). Pub. L. 102–325, § 427(a)(3), struck out “and” at end of subpar. (B)(i), substituted “fiscal year 1993; and” for “any succeeding fiscal year.” in subpar. (B)(ii), and added subpar. (B)(iii).
Pub. L. 102–325, § 427(a)(1), (2), redesignated par. (3) as (2) and struck out former par. (2) which required Secretary to establish criteria for qualifying foreign medical schools as “eligible institutions”.
Subsec. (a)(3). Pub. L. 102–325, § 427(a)(2), redesignated par. (3) as (2).
Subsec. (b). Pub. L. 102–325, § 427(b)(1), struck out subsec. (b) which defined “institution of higher education”.
Subsec. (c). Pub. L. 102–325, § 427(c), struck out subsec. (c) which defined “vocational school”.
Subsec. (d)(1)(A). Pub. L. 102–325, § 427(d)(1), in introductory provisions, struck out “a trust company,” after “stock savings bank,” and in cl. (ii), inserted at end of subcl. (I) “or a bank which is subject to examination and supervision by an agency of the United States, makes student loans as a trustee pursuant to an express trust, operated as a lender under this part prior to
Subsec. (d)(2)(E), (F). Pub. L. 102–325, § 427(d)(2), added subpars. (E) and (F).
Subsec. (f). Pub. L. 102–325, § 427(e), inserted “servicing and” before “collection practices”.
Subsecs. (g), (h). Pub. L. 102–325, § 427(f), struck out subsec. (g) which defined “temporarily totally disabled” and subsec. (h) which defined “parental leave”.
Subsec. (m). Pub. L. 102–325, § 427(g), amended subsec. (m) generally, revising and restating as pars. (1) to (3) provisions formerly contained in a single paragraph.
Subsec. (n). Pub. L. 102–325, § 427(f), struck out subsec. (n) which related to impact of loss of accreditation on certification or recertification as an eligible institution.
Subsec. (o). Pub. L. 102–325, § 416(e)(2), added subsec. (o).
1991—Subsec. (c)(1). Pub. L. 102–26 substituted “or who are beyond the age of compulsory school attendance in the State in which the institution is located” for “and who have the ability to benefit (as determined by the institution under section 1088(d) of this title) from the training offered by such institution;”.
1990—Subsec. (a)(3). Pub. L. 101–508 added par. (3).
Subsec. (l). Pub. L. 101–542, § 301(1), substituted “Except as provided in subsection (m) of this section, the term” for “The term”.
Subsec. (m). Pub. L. 101–542, § 301(2), inserted after first sentence “In determining the number of students who default before the end of such fiscal year, the Secretary shall include only loans for which the Secretary or a guaranty agency has paid claims for insurance, and, in calculating the cohort default rate, exclude any loans which, due to improper servicing or collection, would result in an inaccurate or incomplete calculation of the cohort default rate.”
1989—Subsec. (a)(1). Pub. L. 101–239, § 2007(a)(1), substituted “Subject to subsection (n) of this section, the term” for “The term”.
Subsec. (m). Pub. L. 101–239, § 2003(a)(2), added subsec. (m).
Subsec. (n). Pub. L. 101–239, § 2007(a)(2), added subsec. (n).
1987—Subsec. (b)(3). Pub. L. 100–50, § 10(aa)(1), inserted “, or in the case of a hospital or health care facility, which provides training of not less than one year for graduates of accredited health professions programs, leading to a degree or certificate upon completion of such training” before semicolon at end.
Subsec. (d)(1)(J). Pub. L. 100–50, § 10(aa)(2), added subpar. (J).
Subsec. (d)(2). Pub. L. 100–50, § 10(aa)(3), added subpars. (C) and (D) and inserted concluding provision that the requirements of subpars. (C) and (D) not apply with respect to loans made, and loan commitments made, after
Subsec. (g)(2). Pub. L. 100–50, § 10(aa)(4), added par. (2) and struck out former par. (2) which read as follows: “Such term when used with respect to the disabled dependent of a single parent borrower means a dependent who, by reason of injury or illness, cannot be expected to be able to attend school or to be gainfully employed during a period of injury or illness of not less than 3 months and who during such period requires continuous nursing or similar services.”
Subsec. (h). Pub. L. 100–50, § 10(aa)(5), struck out “Definition of” before “Parental” in heading.
Effective Date Of Amendment
Amendment by Pub. L. 111–152 effective
Amendment by Pub. L. 111–39 effective as if enacted on the date of enactment of Pub. L. 110–315 (
Pub. L. 110–315, title IV, § 436(a)(2),
Pub. L. 110–315, title IV, § 436(e)(2),
Amendment by Pub. L. 110–84 effective
Pub. L. 109–292, § 3(b),
Amendment by Pub. L. 109–171 effective
Pub. L. 106–554, § 1(a)(1) [title III, § 308(b)],
Amendment by sections 102(b)(2) and 429(a), (b), (d) of Pub. L. 105–244 effective
Pub. L. 105–244, title IV, § 429(c)(2),
Amendment by Pub. L. 104–208 effective on reorganization effective date as defined in section 1087–3(h) of this title, see section 101(e) [title VI, § 602(b)(1)(B)] of Pub. L. 104–208, set out as a note under section 1078–3 of this title.
Amendments by section 2(c)(55), (60)(B) of Pub. L. 103–208 applicable with respect to determination (and appeals from determinations) of cohort default rates for fiscal year 1989 and any succeeding fiscal year, amendments by section 2(c)(56)–(58), (61) of Pub. L. 103–208 effective, except as otherwise provided, as if included in the Higher Education Amendments of 1992, Pub. L. 102–325, amendment by section 2(c)(59) of Pub. L. 103–208 effective on and after 30 days after
Amendment by section 4046(b)(1) of Pub. L. 103–66 effective
Pub. L. 102–26, § 2(d)(1),
Pub. L. 101–508, title III, § 3004(d),
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
Definitions
Pub. L. 102–325, title IV, § 427(b)(2),