Title 20, EducationRelease 119-102
§1087i Authority to Sell Loans
Title 20 › CHAPTER 28 — HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE › SUBCHAPTER IV — STUDENT ASSISTANCE › Part D — William D. Ford Federal Direct Loan Program › § 1087i
Summary
After consulting Treasury, the Secretary may sell loans under this part as the Secretary decides, as long as the sale does not cost the Federal Government; money from a sale can be used to lower borrowers' interest to encourage on-time repayment under section 1087e(b)(7) only if the Secretary finds 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
Aug 21, 2026
Release point: 119-102