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Title 20, EducationRelease 119-102

§1087hh General Authority of Secretary

Title 20 › CHAPTER 28 — HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE › SUBCHAPTER IV — STUDENT ASSISTANCE › Part E — Federal Perkins Loans › § 1087hh

Last updated Aug 21, 2026|Official source

Summary

The Secretary can change loan deals by agreeing to alter interest rates, when payments are due, or other terms of the promissory note for loans made under this part. The Secretary can also enforce, pay, settle, forgive, or give up any legal claim, lien, or right (including equity or rights of redemption). The Secretary may go to court as allowed under section 1082(a)(2). The Secretary can also hire State or nonprofit agencies, and competitively select collection agencies, to service and collect these loans.

Full Legal Text

Title 20, §1087hh

Education, Source: USLM XML via OLRC

In carrying out the provisions of this part, the Secretary is authorized—
(1)to consent to modification, with respect to rate of interest, time of payment of any installment of principal and interest or any portion thereof, or any other provision of any note evidencing a loan which has been made under this part;
(2)to enforce, pay, compromise, waive, or release any right, title, claim, lien, or demand, however acquired, including any equity or any right of redemption;
(3)to conduct litigation in accordance with the provisions of section 1082(a)(2) of this title; and
(4)to enter into a contract or other arrangement with State or nonprofit agencies and, on a competitive basis, with collection agencies for servicing and collection of loans under this part.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

A prior section 1087hh, Pub. L. 89–329, title IV, § 468, as added Pub. L. 96–374, title IV, § 442(a), Oct. 3, 1980, 94 Stat. 1437, related to alternative source of funds, prior to the general revision of this part by Pub. L. 99–498. A prior section 1087ii, Pub. L. 89–329, title IV, § 469, as added Pub. L. 96–374, title IV, § 442(a), Oct. 3, 1980, 94 Stat. 1439, related to recapture of current balance of student loan funds, prior to the general revision of this part by Pub. L. 99–498.

Reference

Citations & Metadata

Citation

20 U.S.C. § 1087hh

Title 20, Education

Last Updated

Aug 21, 2026

Release point: 119-102