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Title 20 — EducationRelease 119-73not60

§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 Apr 5, 2026|Official source

Summary

The Secretary can manage loans made under this part. The Secretary can change loan terms like the interest rate or when payments are due. The Secretary can enforce, pay, settle, forgive, or give up any legal claim or lien on a loan, including ownership interests or the right to redeem property. The Secretary can bring or defend lawsuits under section 1082(a)(2) of this title. The Secretary can also make contracts with State or nonprofit agencies and, through a competitive process, with 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

Apr 5, 2026

Release point: 119-73not60