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Title 20 — EducationRelease 119-73

§1087i Authority to sell loans

Title 20 › Chapter CHAPTER 28— - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE › Subchapter SUBCHAPTER IV— - STUDENT ASSISTANCE › Part Part D— - William D. Ford Federal Direct Loan Program › § 1087i

Last updated Apr 6, 2026|Official source

Summary

The Secretary, after talking with the Secretary of the Treasury, can sell loans made under this part on terms the Secretary thinks are best for the United States. Any sale must not cause any cost to the Federal Government. Money from a sale can be used to lower a borrower's interest rate to encourage on-time repayment under section 1087e(b)(7), but only if the Secretary decides those reductions are in the Federal Government's best financial interest.

Full Legal Text

Title 20, §1087i

Education — Source: USLM XML via OLRC

The Secretary, in consultation with the Secretary of the Treasury, is authorized to sell loans made under this part on such terms as the Secretary determines are in the best interest of the United States, except that any such sale shall not result in any cost to the Federal Government. Notwithstanding any other provision of law, the proceeds of any such sale may be used by the Secretary to offer reductions in the interest rate paid by a borrower of a loan made under this part as the Secretary determines appropriate to encourage on-time repayment in accordance with section 1087e(b)(7) of this title. Such reductions may be offered only if the Secretary determines the reductions are in the best financial interests of the Federal Government.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

A prior section 1087i, Pub. L. 89–329, title IV, § 459, as added Pub. L. 102–325, title IV, § 451, July 23, 1992, 106 Stat. 575, which related to schedule of regulatory activities by Secretary under Federal direct loan demonstration program, was omitted in the general amendment of this part by Pub. L. 103–66.

Statutory Notes and Related Subsidiaries

Effective Date

Section effective Oct. 1, 1998, except as otherwise provided in Pub. L. 105–244, see section 3 of Pub. L. 105–244, set out as an

Effective Date

of 1998 Amendment note under section 1001 of this title.

Reference

Citations & Metadata

Citation

20 U.S.C. § 1087i

Title 20 — Education

Last Updated

Apr 6, 2026

Release point: 119-73