§1097 — Title 20 Education | U.S. Code

Summary

People who steal, misuse, take by fraud or forgery, or fail to return money, assets, or property provided or insured under this law can be criminally punished. If the loss is more than $200, the penalty can be up to $20,000 in fines, up to 5 years in prison, or both. If the loss is $200 or less, the penalty can be up to $5,000 in fines, up to 1 year in prison, or both. Anyone who lies, gives false information, or hides important facts about assigning a loan made or insured under this law can be fined up to $10,000, jailed up to 1 year, or both. Making illegal payments to a lender to induce an insured loan has the same penalty. Destroying or hiding records about assistance under this law to defraud the United States or to stop the United States from enforcing its rights can bring fines up to $20,000, up to 5 years in prison, or both. Using another person’s access device (like a card, code, or login) obtained by fraud to get into Department computer systems for money, business advantage, or to help commit crimes also carries up to $20,000 in fines, up to 5 years in prison, or both.

Title 20, §1097

Education — Source: USLM XML via OLRC

(a)Any person who knowingly and willfully embezzles, misapplies, steals, obtains by fraud, false statement, or forgery, or fails to refund any funds, assets, or property provided or insured under this subchapter or attempts to so embezzle, misapply, steal, obtain by fraud, false statement or forgery, or fail to refund any funds, assets, or property, shall be fined not more than $20,000 or imprisoned for not more than 5 years, or both, except if the amount so embezzled, misapplied, stolen, obtained by fraud, false statement, or forgery, or failed to be refunded does not exceed $200, then the fine shall not be more than $5,000 and imprisonment shall not exceed one year, or both.

(b)Any person who knowingly and willfully makes any false statement, furnishes any false information, or conceals any material information in connection with the assignment of a loan which is made or insured under this subchapter or attempts to so make any false statement, furnish any false information, or conceal any material information in connection with such assignment shall, upon conviction thereof, be fined not more than $10,000 or imprisoned for not more than one year, or both.

(c)Any person who knowingly and willfully makes an unlawful payment to an eligible lender under part B or attempts to make such unlawful payment as an inducement to make, or to acquire by assignment, a loan insured under such part shall, upon conviction thereof, be fined not more than $10,000 or imprisoned for not more than one year, or both.

(d)Any person who knowingly and willfully destroys or conceals any record relating to the provision of assistance under this subchapter or attempts to so destroy or conceal with intent to defraud the United States or to prevent the United States from enforcing any right obtained by subrogation under this part, shall upon conviction thereof, be fined not more than $20,000 or imprisoned not more than 5 years, or both.

(e)Any person who knowingly uses an access device, as defined in section 1029(e)(1) of title 18, issued to another person or obtained by fraud or false statement to access Department information technology systems for purposes of obtaining commercial advantage or private financial gain, or in furtherance of any criminal or tortious act in violation of the Constitution or laws of the United States or of any State, shall be fined not more than $20,000, imprisoned for not more than 5 years, or both.

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

A prior section 1097, Pub. L. 89–329, title IV, § 490, as added Pub. L. 96–374, title IV, § 451(a), Oct. 3, 1980, 94 Stat. 1453, related to criminal penalties, prior to the general revision of this part by Pub. L. 99–498.

Amendments

2020—Subsec. (e). Pub. L. 116–251 added subsec. (e). 1992—Pub. L. 102–325 amended section generally, inserting provisions relating to attempted offenses, wherever appearing, and in subsec. (a) inserting provisions relating to failure to refund and substituting provisions relating to $20,000 and $5,000 fines for provisions relating to $10,000 and $1,000 fines, respectively, in subsec. (b) substituting provisions relating to $10,000 fines for provisions relating to $1,000 fines, in subsec. (c) substituting provisions relating to $10,000 fines for provisions relating $1,000 fines, and in subsec. (d) substituting provisions relating to $20,000 fines for provisions relating to $10,000 fines.

Statutory Notes and Related Subsidiaries

Effective Date

of 2020 AmendmentAmendment by Pub. L. 116–251 effective 180 days after Dec. 22, 2020, see section 6 of Pub. L. 116–251, set out as a note under section 1018 of this title. Guidance Pub. L. 116–251, § 2(b), Dec. 22, 2020, 134 Stat. 1129, provided that: “The Secretary shall issue guidance regarding the use of access devices in a manner that complies with this Act [see

Short Title

of 2020 Amendment note set out under section 1001 of this title], and the

Amendments

made by this Act.”

Effective Date

of Penalties Pub. L. 116–251, § 2(c), Dec. 22, 2020, 134 Stat. 1129, provided that: “Notwithstanding section 6 [set out as an

Effective Date

of 2020 Amendment note under section 1018 of this title], the penalties described in section 490(e) of the Higher Education Act of 1965 (20 U.S.C. 1097[(e)]), as added by subsection (a), shall take effect the day after the date on which the Secretary issues guidance regarding the use of access devices, as described in subsection (b) [set out as a Guidance note above].”

§1097 Criminal Penalties

Summary

Title 20, §1097

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

Amendments

Statutory Notes and Related Subsidiaries

Effective Date

Short Title

Amendments

Effective Date

Effective Date

Citations & Metadata