§1087i — Title 20 Education | U.S. Code

Summary

After consulting the Treasury Secretary, the Secretary may sell loans made under this part if the sale costs the Federal Government nothing. Sale money may be used to lower borrowers' interest to encourage on-time repayment under section 1087e(b)(7), but only if those cuts protect the Federal Government's finances.

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.

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.

§1087i Authority to Sell Loans

Summary

Title 20, §1087i

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

Statutory Notes and Related Subsidiaries

Effective Date

Effective Date

Citations & Metadata