§1078–8 Unsubsidized Stafford loans for middle-income borrowers

Codification

by section 2(c)(42), (45) of Pub. L. 103–208 (which were effective as if included in Pub. L. 102–325) were executed to this section as amended by Pub. L. 102–325 and Pub. L. 103–66, to reflect the probable intent of Congress.

promulgated by the Secretary) shall be entitled to borrow an unsubsidized Stafford loan. Such student shall provide 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— “(1) sets forth such student’s estimated cost of attendance (as determined under section 1087ll of this title); “(2) sets forth such student’s estimated financial assistance, including a loan which qualifies for subsidy payments under section 1078 of this title; and “(3) certifies the eligibility of the student to receive a loan under this section and the amount of the loan for which such student is eligible, in accordance with subsection (c) of this section.” Subsec. (d)(2). Pub. L. 105–244, § 423(b)(1)(A), in introductory provisions, inserted “(as defined in section 1088(a)(2) of this title)” after “academic year” and struck out “or in any period of 7 consecutive months, whichever is longer,” after “or its equivalent”. Subsec. (d)(2)(A). Pub. L. 105–244, § 423(b)(1)(B), substituted “length; and” for “length (as determined under section 1088 of this title);” in cl. (i), added cl. (ii), and struck out former cls. (ii) and (iii) which read as follows: “(ii) $2,500, if such student is enrolled in a program whose length is less than one academic year, but at least ⅔ of such an academic year; and “(iii) $1,500, if such student is enrolled in a program whose length is less than ⅔, but at least ⅓, of such an academic year;”. Subsec. (d)(2)(D). Pub. L. 105–244, § 423(b)(1)(C), (D), added subpar. (D). Subsec. (d)(3). Pub. L. 105–244, § 423(b)(2), inserted at end “Interest capitalized shall not be deemed to exceed such maximum aggregate amount.” Subsec. (e)(2). Pub. L. 105–244, § 423(c), amended heading and text of par. (2) generally. Prior to amendment, text read as follows: “Interest on loans made under this section for which payments of principal are not required during the in-school and grace periods or for which payments are deferred under section 1077(a)(2)(C) and 1078(b)(1)(M) of this title shall, if agreed upon by the borrower and the lender (A) be paid monthly or quarterly, or (B) be added to the principal amount of the loan not more frequently than quarterly by the lender. Such capitalization of interest shall not be deemed to exceed the annual insurable limit on account of the student.” Subsec. (e)(6). Pub. L. 105–244, § 423(d), which directed substitution of “repayment period under section 1078(b)(9) of this title” for “10 year repayment period under section 1078(b)(1)(D) of this title”, was executed by making the substitution for “10-year repayment period under section 1078(b)(1)(D) of this title” to reflect the probable intent of Congress. Subsec. (e)(7). Pub. L. 105–244, § 423(e), added par. (7). Subsec. (f). Pub. L. 105–244, § 423(f), struck out heading and text of subsec. (f) which provided for lenders to charge borrowers origination fees on loans. 1996—Subsec. (d)(2). Pub. L. 104–134 substituted semicolon for period at end of subpar. (C) and inserted concluding provisions. 1993—Subsec. (b). Pub. L. 103–66, § 4047(a)(1), inserted “(including graduate and professional students as defined in

promulgated by the Secretary)” in introductory provisions. Subsec. (d). Pub. L. 103–66, § 4047(a)(2), amended subsec. (d) generally. Prior to amendment, subsec. (d) read as follows: “The annual and aggregate limits for loans under this section shall be the same as those established under section 1078(b)(1) of this title, less any amount received by such student pursuant to the subsidized loan program established under section 1078 of this title.” Subsec. (d)(2)(B). Pub. L. 103–208, § 2(c)(42), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “in the case of such a student attending an eligible institution who has completed the first 2 years of undergraduate study but who has not completed the remainder of a program of undergraduate study— “(i) $5,000, if such student is enrolled in a program whose length is at least one academic year in length (as determined under section 1088 of this section); “(ii) $3,325, if such student is enrolled in a program whose length is less than one academic year, but at least ⅔ of such an academic year; and “(iii) $1,675, if such student is enrolled in a program whose length is less than ⅔, but at least ⅓, of such an academic year; and”. See Codification note above. Subsec. (e)(1). Pub. L. 103–208, § 2(c)(43), substituted “shall begin at the beginning of the repayment period described in section 1078(b)(7) of this title.” for “shall commence 6 months after the month in which the student ceases to carry at least one-half the normal full-time workload as determined by the institution.” and inserted at end “Not less than 30 days prior to the anticipated commencement of such repayment period, the holder of such loan shall provide notice to the borrower that interest will accrue before repayment begins and of the borrower’s option to begin loan repayment at an earlier date.” Subsec. (e)(4). Pub. L. 103–208, § 2(c)(44), substituted “section 1077a” for “section 1077a(e)”. Subsec. (e)(5), (6). Pub. L. 103–66, § 4047(a)(3), added pars. (5) and (6). Subsec. (f). Pub. L. 103–66, § 4102(b)(1)(A), substituted “Origination fee” for “Insurance premium” in section catchline. Subsec. (f)(1). Pub. L. 103–66, § 4102(b)(1)(B), (C), struck out reference to insurance premium in heading and in text substituted “an origination fee in the amount of 3.0 percent” for “a combined origination fee and insurance premium in the amount of 6.5 percent” and struck out second sentence which read as follows: “A guaranty agency may not charge an insurance premium on any loan made under this section.” Subsec. (f)(2). Pub. L. 103–66, § 4102(b)(1)(D), substituted “origination fee” for “combined fee and premium”. Subsec. (f)(3). Pub. L. 103–66, § 4102(b)(1)(E), substituted “origination fee” for “combined origination fee and insurance premium”. Subsec. (f)(4). Pub. L. 103–66, § 4102(b)(1)(F), in heading substituted “origination fee” for “insurance premium” and in text substituted “origination fees” for “combined origination fee and insurance premiums” and “to pay” for “and premiums to pay”. Subsec. (f)(5). Pub. L. 103–66, § 4102(b)(1)(G), inserted “origination fee and” in heading and in text substituted “do not exceed the combined origination fee under this subsection and the insurance premium under subsection (h) of this section, the Secretary is directed to lower the origination fee and insurance premium accordingly” for “do not exceed the 6.5 percent insurance premium, the Secretary is directed to lower the insurance premium accordingly”. Subsec. (h). Pub. L. 103–208, § 2(c)(45), redesignated subsec. (l) as (h). See Codification note above. Subsec. (l). Pub. L. 103–208, § 2(c)(45), redesignated subsec. (l) as (h). See Codification note above. Pub. L. 103–66, § 4102(b)(2), added subsec. (l).

of 2018 AmendmentAmendment by Pub. 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 Pub. L. 115–245, set out as a note under section 1077 of this title.

of 2009 AmendmentAmendment 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.

of 2008 Amendment Pub. L. 110–315, title IV, § 428(b), Aug. 14, 2008, 122 Stat. 3236, provided that: “The

made by this section [amending this section] shall be effective for loans first disbursed on or after July 1, 2008.”

of 1998 AmendmentAmendment 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.

of 1996 Amendment Pub. L. 104–134, title I, § 101(d) [title V, § 514(b)], Apr. 26, 1996, 110 Stat. 1321–211, 1321–245, provided that: “The

made by subsection (a) [amending this section] shall be effective for loans made to cover the cost of instruction for periods of enrollment beginning on or after July 1, 1996.”

of 1993

Amendment by section 2(c)(42)–(43)(A), (44), (45) of Pub. L. 103–208 effective as if included in the Higher Education

of 1992, Pub. L. 102–325, except as otherwise provided, and amendment by section 2(c)(43)(B) of Pub. L. 103–208 effective on and after Apr. 1, 1994, see section 5(a), (b)(5) of Pub. L. 103–208, set out as a note under section 1051 of this title. Pub. L. 103–66, title IV, § 4047(d), Aug. 10, 1993, 107 Stat. 364, provided that: “Except as otherwise provided herein [see section 4047(c) of Pub. L. 103–66, set out below], the

Section effective with respect to loans made to cover the cost of instruction for periods of enrollment beginning on or after Oct. 1, 1992, see section 432(a)(12) of Pub. L. 102–325, set out as an

of 1992 Amendment note under section 1078 of this title. Student Eligibility Pub. L. 110–227, § 2(b), May 7, 2008, 122 Stat. 742, provided that: “Loan limit increases authorized by the

made by this section [amending this section] shall be available only to students who meet the requirements of section 484(a) of the Higher Education Act of 1965 (20 U.S.C. 1091(a)).” Continuing Applicability of Terms, Conditions, and Benefits of Loans Pub. L. 103–66, title IV, § 4047(c), Aug. 10, 1993, 107 Stat. 364, provided that: “Notwithstanding the

made by this section [amending this section and repealing section 1078–1 of this section], with respect to loans provided under section 428A [former 20 U.S.C. 1078–1] and 428H of the Act [20 U.S.C. 1078–8] (as such sections existed on the date preceding the date of enactment of this Act [Aug. 10, 1993]) the terms, conditions and benefits applicable to such loans under such sections shall continue to apply to such loans after the date of enactment of this Act.”