US Code

Public Law 119-102 (07/12/2026)

20 U.S.C. § 1073

Effects of adequate non-Federal programs

Section text and notes

(a)

Federal insurance barred to lenders with access to State or private insurance

section 1079 of this titlesection 1078(b) of this titleExcept as provided in subsection (b), the Secretary shall not issue certificates of insurance under to lenders in a State if the Secretary determines that every eligible institution has reasonable access in that State to a State or private nonprofit student loan insurance program which is covered by an agreement under .

(b)

Exceptions

section 1079 of this titleThe Secretary may issue certificates of insurance under to a lender in a State—
(1)
section 1072 of this title for insurance of a loan made to a student borrower who does not, by reason of the borrower’s residence, have access to loan insurance under the loan insurance program of such State (or under any private nonprofit loan insurance program which has received an advance under for the benefit of students in such State);
(2)
for insurance of all the loans made to student borrowers by a lender who satisfies the Secretary that, by reason of the residence of such borrowers, such lender will not have access to any single State or nonprofit private loan insurance program which will insure substantially all of the loans such lender intends to make to such student borrowers; or
(3)
under such circumstances as may be approved by the guaranty agency in such State, for the insurance of a loan to a borrower for whom such lender previously was issued such a certificate if the loan covered by such certificate is not yet repaid.

Pub. L. 89–329, title IV, § 423Pub. L. 99–498, title IV, § 402(a)100 Stat. 1358 (, as added , , .)

Editorial Notes

Prior Provisions

Pub. L. 89–329, title IV, § 42379 Stat. 1237 Pub. L. 90–575, title I, § 119(a)82 Stat. 1026 Pub. L. 94–482, title I, § 127(a)90 Stat. 2103 Pub. L. 95–43, § 1(a)(14)91 Stat. 214 Pub. L. 96–374, title XIII, § 1391(a)(1)94 Stat. 1503 Pub. L. 99–498A prior section 1073, , , ; , , ; , , ; , , ; , , , limited participation in Federal loan insurance programs, prior to the general revision of this part by .