US Code

Public Law 119-87 (04/30/2026)

20 U.S.C. § 1071

Statement of purpose; nondiscrimination; and appropriations authorized

(a)

Purpose; discrimination prohibited

(1)

Purpose

The purpose of this part is to enable the Secretary—
(A)
section 1085 of this title to encourage States and nonprofit private institutions and organizations to establish adequate loan insurance programs for students in eligible institutions (as defined in ),
(B)
section 1078(b) of this title to provide a Federal program of student loan insurance for students or lenders who do not have reasonable access to a State or private nonprofit program of student loan insurance covered by an agreement under ,
(C)
to pay a portion of the interest on loans to qualified students which are insured under this part, and
(D)
section 1078(a)(1)(B) of this title to guarantee a portion of each loan insured under a program of a State or of a nonprofit private institution or organization which meets the requirements of .
(2)

Discrimination by creditors prohibited

No agency, organization, institution, bank, credit union, corporation, or other lender who regularly extends, renews, or continues credit or provides insurance under this part shall exclude from receipt or deny the benefits of, or discriminate against any borrower or applicant in obtaining, such credit or insurance on the basis of race, national origin, religion, sex, marital status, age, or handicapped status.

(b)

Authorization of appropriations

For the purpose of carrying out this part—
(1)
section 1081 of this title there are authorized to be appropriated to the student loan insurance fund (established by ) (A) the sum of $1,000,000, and (B) such further sums, if any, as may become necessary for the adequacy of the student loan insurance fund,
(2)
section 1078 of this titlesection 1087 of this title there are authorized to be appropriated, for payments under with respect to interest on student loans and for payments under , such sums for the fiscal year ending , and succeeding fiscal years, as may be required therefor,
(3)
section 1072 of this title there is authorized to be appropriated the sum of $17,500,000 for making advances pursuant to for the reserve funds of State and nonprofit private student loan insurance programs,
(4)
section 1072(c) of this title there are authorized to be appropriated (A) the sum of $12,500,000 for making advances after , pursuant to sections 1072(a) and (b) of this title, and (B) such sums as may be necessary for making advances pursuant to , for the reserve funds of State and nonprofit private student loan insurance programs,
(5)
section 1078(f) of this title there are authorized to be appropriated such sums as may be necessary for the purpose of paying a loan processing and issuance fee in accordance with to guaranty agencies, and
(6)
section 1072(c)(7) of this title there is authorized to be appropriated, and there are appropriated, out of any money in the Treasury not otherwise appropriated, such sums as may be necessary for the purpose of carrying out .
Sums appropriated under paragraphs (1), (2), (4), and (5) of this subsection shall remain available until expended, except that no sums may be expended after , with respect to loans under this part for which the first disbursement is after such date. No additional sums are authorized to be appropriated under paragraph (3) or (4) of this subsection by reason of the reenactment of such paragraphs by the Higher Education Amendments of 1986.
(c)

Designation

The program established under this part shall be referred to as the “Robert T. Stafford Federal Student Loan Program”. Loans made pursuant to sections 1077 and 1078 of this title shall be known as “Federal Stafford Loans”.

(d)

Termination of authority to make or insure new loans

Notwithstanding paragraphs (1) through (6) of subsection (b) or any other provision of law—
(1)
no new loans (including consolidation loans) may be made or insured under this part after ; and
(2)
no funds are authorized to be appropriated, or may be expended, under this chapter or any other Act to make or insure loans under this part (including consolidation loans) for which the first disbursement is after ,
except as expressly authorized by an Act of Congress enacted after .

Pub. L. 89–329, title IV, § 421Pub. L. 99–498, title IV, § 402(a)100 Stat. 1353 Pub. L. 100–297, title II, § 2601(a)102 Stat. 330 Pub. L. 100–369, § 8102 Stat. 837 Pub. L. 102–325, title IV, § 411(a)(2)106 Stat. 510 Pub. L. 105–244, title IV, § 411112 Stat. 1673 Pub. L. 109–171, title VIII, § 8004(a)120 Stat. 158 Pub. L. 110–227, § 6(a)122 Stat. 746 Pub. L. 111–152, title II, § 2201124 Stat. 1074 (, as added , , ; amended , , ; , , ; , (c), , , 511; , , ; , , ; , , ; , , .)

Editorial Notes

References in Text

Pub. L. 99–498100 Stat. 1268 section 1001 of this titleThe Higher Education Amendments of 1986, referred to in subsec. (b), is , , . For complete classification of this Act to the Code, see Short Title note set out under and Tables.

Codification

section 411 of Pub. L. 105–244Another enacted subpart 8 (§ 1070f et seq.) of part A of this subchapter.

Prior Provisions

Pub. L. 89–329, title IV, § 42179 Stat. 1236 Pub. L. 90–46082 Stat. 635 Pub. L. 90–575, title I82 Stat. 1021 Pub. L. 94–482, title I, § 127(a)90 Stat. 2099 Pub. L. 95–43, § 1(a)(8)91 Stat. 213 Pub. L. 96–374, title XIII, § 1391(a)(1)94 Stat. 1503 Pub. L. 98–79, § 697 Stat. 482 Pub. L. 99–498A prior section 1071, , , ; , §§ 2(b)(3), 3(a), , , 636; , §§ 113(b)(1), 114(a), 119(b), , , 1027; , , ; –(10), , ; , (2), , ; , , , related to statement of purpose of, appropriations for, and implementation of programs to provide low-interest insured loans to students in institutions of higher education, prior to the general revision of this part by .

Amendments

Pub. L. 111–152, § 2201(1)2010—Subsec. (b). , inserted “, except that no sums may be expended after , with respect to loans under this part for which the first disbursement is after such date” after “expended” in concluding provisions.

Pub. L. 111–152, § 2201(2)Subsec. (d). , added subsec. (d).

Pub. L. 110–2272008—Subsec. (b)(6). added par. (6).

Pub. L. 109–1712006—Subsec. (b)(5). substituted “a loan processing and issuance fee” for “an administrative cost allowance”.

Pub. L. 105–2441998—Subsec. (d). struck out heading and text of subsec. (d). Text read as follows: “Notwithstanding any other provision of this part, no new loan guarantees shall be issued after , if the Secretary does not issue final regulations implementing the changes made to this part under the Higher Education Amendments of 1992 prior to that date. The authority to issue new loan guarantees shall resume upon the Secretary’s issuance of such regulations. This subsection shall not provide the basis for avoiding any requirements for notice and public hearing on such regulations.”

Pub. L. 102–325, § 411(a)(2)1992—Subsec. (c). , added subsec. (c) and struck out former subsec. (c) which read as follows: “The program established under this part shall be referred to as the ‘Robert T. Stafford Student Loan Program’. Loans made under this part shall be known as ‘Stafford Loans’.”

Pub. L. 102–325, § 411(c)Subsec. (d). , added subsec. (d).

Pub. L. 100–3691988—Subsec. (c). substituted “shall be referred” for “may be referred” and inserted provision identifying loans made under this part as “Stafford Loans”.

Pub. L. 100–297 added subsec. (c).

Statutory Notes and Related Subsidiaries

Effective Date of 2008 Amendment

Pub. L. 110–227, § 6(b)122 Stat. 746

“The amendments made by subsection (a) [amending this section] shall take effect on the date of enactment of this Act [].”
, , , provided that:

Effective Date of 2006 Amendment

Pub. L. 109–171section 8001(c) of Pub. L. 109–171section 1002 of this titleAmendment by effective , except as otherwise provided, see , set out as a note under .

Effective Date of 1992 Amendment

Pub. L. 102–325section 432 of Pub. L. 102–325section 1078 of this titleAmendment by effective , with changes in the designation or names of loans or programs under this part effective with respect to applications or other documents (used in making such loans) that are printed after , see , set out as a note under .

Effective Date of 1988 Amendment

Pub. L. 100–297, title VI, § 6303102 Stat. 431 Pub. L. 100–351102 Stat. 661 Pub. L. 106–400, § 2114 Stat. 1675

“(a)

General Rule .—

Except as otherwise provided, this Act and the amendments made by this Act [see Tables for classification] shall take effect .
“(b)

Special Rules .—

(1)
Any provision of this Act or any amendment made by this Act which authorizes appropriations for fiscal year 1988 shall take effect on the date of the enactment of this Act [].
“(2)
The provisions of section 2402, relating to the National Center for Vocational Research, shall take effect on .
“(3)
The amendments made by section 3403 [amending sections 1221e and 1221e–1 of this title] shall take effect for assessments made after , with respect to State data.
“(4)
20 U.S.C. 270120 U.S.C. 1201Public Law 100–20220 U.S.C. 3801 Allotments to States made under chapters 1 and 2 of title I of the Elementary and Secondary Education Act of 1965 [formerly et seq., 2911 et seq.] and under the Adult Education Act [formerly et seq.] from amounts appropriated by the joint resolution entitled ‘Joint resolution making further continuing appropriations for the fiscal year 1988, and for other purposes’, approved (), shall be computed in accordance with the provisions of law applicable to allotments to States under chapters 1 and 2 of the Education Consolidation and Improvement Act of 1981 [formerly et seq., 3811 et seq.] and under the Adult Education Act, respectively, as such Acts were in effect on the day before the date of the enactment of this Act [].
“(5)
Public Law 100–202 Amounts appropriated by the joint resolution entitled ‘Joint resolution making further continuing appropriations for the fiscal year 1988, and for other purposes’, approved (), for the following programs shall be awarded in accordance with the applicable provisions of law in effect on the day before the date of the enactment of this Act []:
“(A)
20 U.S.C. 385120 U.S.C. 3851(c) Programs under subchapter D of chapter 2 of the Education Consolidation and Improvement Act of 1981 [formerly et seq.], except that projects under section 583(c) [formerly ] may not be reviewed by a program significance panel.
“(B)
20 U.S.C. 1201 National programs under the Adult Education Act [formerly et seq.].
“(C)
Pub. L. 92–318, title IV Programs under the Indian Education Act [, see Tables for classification].
“(D)
20 U.S.C. 3961 Programs under title II of the Education for Economic Security Act [formerly et seq.].
“(E)
42 U.S.C. 11421 The program under section 702 of the McKinney-Vento Homeless Assistance Act [formerly ].
“(6)
Pub. L. 100–297section 238 of this titlesection 238 of this title The provisions of part A of title II of this Act [§§ 2001 to 2034 of , amending sections 236 et seq. and 631 et seq. of this title], excluding sections 2014(e) and 2018 [amending and enacting provisions set out as a note under ], shall apply only with respect to amounts appropriated for fiscal years beginning after .
“(7)
section 11421 of Title 42 The amendments made by section 6001 [amending , The Public Health and Welfare], relating to literacy training of homeless adults, shall take effect on .
“(8)
25 U.S.C. 2508(b)(1) Any election under section 5209(b)(1) [] conveyed to the Secretary prior to , shall take effect for the fiscal year beginning on , and thereafter.”
, , , as amended by , , ; , , , provided that:

Effective Date

Pub. L. 99–498, title IV, § 402(b)100 Stat. 1428 Pub. L. 100–50, § 22(b)101 Stat. 361

“(b)

Effective Dates .—

20 U.S.C. 1071The changes made in part B of title IV of the Act [ et seq.] by the amendment made by subsection (a) of this section shall take effect on the date of enactment of this Act [], except—
“(1)
as otherwise provided in such part B;
“(2)
20 U.S.C. 1077(a)(2)(C) the changes in sections 427(a)(2)(C) and 428(b)(1)(M) of the Act [, 1078(b)(1)(M)] (other than clauses (viii), (ix), and (x) of each such section) shall apply only to loans to new borrowers that (A) are made to cover the cost of instruction for periods of enrollment beginning on or after ; or (B) are disbursed on or after ;
“(3)
20 U.S.C. 1075(a) the changes made in sections 425(a), 428(b)(1)(A), and 428(b)(1)(B) of the Act [, 1078(b)(1)(A), (B)] shall apply with respect only to loans disbursed on or after , or made to cover the costs of instruction for periods of enrollment beginning on or after ;
“(4)
20 U.S.C. 1083(a) the changes made in subsections (a), (b), and (d) of section 433 of the Act [, (b), (d)] shall apply with respect only to loans disbursed on or after , or made to cover the costs of instruction for periods of enrollment beginning on or after ;
“(5)
20 U.S.C. 1078(b)(1)(H) the changes in section 428(b)(1)(H) [] shall apply with respect only to loans for which the borrower files an application on or after ;
“(6)
20 U.S.C. 1085(d)(5) the changes in sections 435(d)(5) and 438(d) of the Act [, 1087–1(d)] shall take effect 30 days after the date of enactment of this Act []; and
“(7)
20 U.S.C. 1087–1(b) the changes made in section 438(b) [] shall take effect with respect to loans disbursed on or after 30 days after the date of enactment of this Act [] or made to cover the costs of instruction for periods of enrollment beginning on or after 30 days after the date of enactment of this Act.
“(c)

Changes Effective Without Regard to Regulations; Republication of Regulations .—

20 U.S.C. 1071The changes made in part B of title IV of the Act [ et seq.] by the amendment made by subsection (a) of this section shall be effective in accordance with subsection (b) of this section without regard to whether such changes are reflected in the regulations prescribed by the Secretary of Education for the purpose of such part.
“(d)

New Borrowers .—

20 U.S.C. 1071For the purpose of this section, the term ‘new borrower’ means, with respect to any date, an individual who on that date has no outstanding balance of principal or interest owing on any loan made, insured, or guaranteed under part B of title IV of the Act [ et seq.].”
–(d), , , 1429, as amended by , , , provided that:

Study of Role of Guaranty Agencies

Pub. L. 102–325, title XIV, § 1401106 Stat. 816 Pub. L. 105–332, § 6(b)(2)112 Stat. 3128 , , , directed Secretary of Education to review role of guaranty agencies within Federal Family Education Loan Program by examining administrative and financial operations of such agencies and the relationships between guaranty agencies and State governments and report to Congress within 1 year of , on the review, prior to repeal by , , .

General Accounting Office Reports

Pub. L. 99–498, title XIII100 Stat. 1583 Pub. L. 100–50, § 23(6)101 Stat. 362 Pub. L. 99–498Pub. L. 105–332, § 6(a)112 Stat. 3127 , §§ 1311–1314, , , 1584, as amended by , , , directed Comptroller General to conduct studies on practices of State guaranty agencies and multistate guarantors under the student loan program, on the feasibility and efficiency of permitting students to establish multiple year lines of credit with eligible lenders, on the impact of the multiple disbursement system on the ability of students and institutions of higher education to meet expenses, and on the cost, efficiency, and impact of the consolidation loan program established by , and directed Comptroller General to make and submit a report to Congress on each study not later than two years after , prior to repeal by , , .