20 U.S.C. § 1161l–3: Education Disaster and…

Summary

The Secretary of Education, working with Homeland Security, can create a loan program to help colleges and universities hit by a major disaster or emergency declared by the President. Loans may pay for rebuilding, replacing, renovating, and running the school after such a disaster. Loans depend on money being available from Congress. To get a loan, a school must give financial records showing its disaster losses, show it had and used insurance where appropriate, and show it tried to get FEMA help first (but it does not have to wait to receive FEMA money to be eligible). The Secretary can audit the school’s records and can reduce the loan by any money the school already got from insurance, FEMA, or the Small Business Administration. The Secretary must write rules before giving money. Those rules must explain loan terms, how to apply (including online forms and help), and other conditions that fit with similar loan programs. “Institution affected by a Gulf hurricane disaster” means a school in the storm area that had physical damage and could not fully reopen for 30 days or more on or after August 29, 2005. Other key terms (like “area affected,” “emergency,” “major disaster,” and “institution of higher education”) use federal definitions in the cited laws. Loans under this program apply only to disasters or emergencies declared after August 14, 2008, except the Gulf hurricane exception above. Congress may provide whatever funds are needed for fiscal year 2009 and each of the five years after that.

Title 20, §1161l–3

Education, Source: USLM XML via OLRC

(a)Program authorized

The Secretary, in consultation with the Secretary of Homeland Security, is authorized to establish an Education Disaster and Emergency Relief Loan Program for institutions of higher education impacted by a major disaster or emergency declared by the President.

(b)Use of assistance

The Secretary shall, subject to the availability of appropriations, provide loans under this section to institutions of higher education after the declaration of a major disaster or emergency by the President. Loan funds provided under this section may be used for construction, replacement, renovation, and operations costs resulting from a major disaster or emergency declared by the President.

(c)Application requirements

To be considered for a loan under this section, an institution of higher education shall—

(1)submit a financial statement and other appropriate data, documentation, or evidence requested by the Secretary that indicates that the institution incurred losses resulting from the impact of a major disaster or emergency declared by the President, and the monetary amount of such losses;

(2)demonstrate that the institution had appropriate insurance policies prior to the major disaster or emergency and filed claims, as appropriate, related to the major disaster or emergency; and

(3)demonstrate that the institution attempted to minimize the cost of any losses by pursuing collateral source compensation from the Federal Emergency Management Agency prior to seeking a loan under this section, except that an institution of higher education shall not be required to receive collateral source compensation from the Federal Emergency Management Agency prior to being eligible for a loan under this section.

(d)Audit

The Secretary may audit a financial statement submitted under subsection (c) and an institution of higher education shall provide any information that the Secretary determines necessary to conduct such an audit.

(e)Reduction in loan amounts

To determine the amount of a loan to make available to an institution of higher education under this section, the Secretary shall calculate the monetary amount of losses incurred by such institution as a result of a major disaster or emergency declared by the President, and shall reduce such amount by the amount of collateral source compensation the institution has already received from insurance, the Federal Emergency Management Agency, and the Small Business Administration.

(f)Establishment of loan program

Prior to disbursing any loans under this section, the Secretary shall prescribe regulations that establish the Education Disaster and Emergency Relief Loan Program, including—

(1)terms for the loan program;

(2)procedures for an application for a loan;

(3)minimum requirements for the loan program and for receiving a loan, including—

(A)online forms to be used in submitting a request for a loan;

(B)information to be included in such forms; and

(C)procedures to assist in filing and pursuing a loan; and

(4)any other terms and conditions the Secretary may prescribe after taking into consideration the structure of other existing capital financing loan programs under this chapter.

(g)Definitions

In this section: (1) Institution affected by a Gulf hurricane disaster

(2)Area affected by a Gulf hurricane disaster; Gulf hurricane disaster

The terms “area affected by a Gulf hurricane disaster” and “Gulf hurricane disaster” have the meanings given such terms in section 209 of the Higher Education Hurricane Relief Act of 2005 (Public Law 109–148, 119 Stat. 2808).

(3)Emergency

The term “emergency” has the meaning given such term in section 5122(1) of title 42.

(4)Institutions of higher education

The term “institution of higher education” has the meaning given such term in section 1001 of this title.

(5)Major disaster

The term “major disaster” has the meaning given the term in section 5122(2) of title 42.

(h)Effective date

Loans provided to institutions of higher education pursuant to this section shall be available only with respect to major disasters or emergencies declared by the President that occur after August 14, 2008, except that loans may be provided pursuant to this section to an institution affected by a Gulf hurricane disaster with respect to such disaster.

(i)Authorization of appropriations

There are authorized to be appropriated to carry out this section such sums as may be necessary for fiscal year 2009 and each of the five succeeding fiscal years.

Notes & Related Subsidiaries

Editorial Notes

References in Text

section 209 of the Higher Education Hurricane Relief Act of 2005, referred to in subsec. (g)(2), is section 209 of title IV of div. B of Pub. L. 109–148, 119 Stat. 2808, which is not classified to the Code.

Amendments

2009—Subsec. (f)(3)(A). Pub. L. 111–39, § 801(7)(A), inserted “a” after “submitting”. Subsec. (f)(3)(C). Pub. L. 111–39, § 801(7)(B), substituted “pursuing” for “pursing”.

Statutory Notes and Related Subsidiaries

Effective Date

of 2009 AmendmentAmendment by Pub. L. 111–39 effective as if enacted on the date of enactment of Pub. L. 110–315 (Aug. 14, 2008), see section 3 of Pub. L. 111–39, set out as a note under section 1001 of this title.

§1161l–3 Education Disaster and Emergency Relief Loan Program