US Code

Public Law 119-83 (04/13/2026)

20 U.S.C. § 1075

Limitations on individual federally insured loans and on Federal loan insurance

(a)

Annual and aggregate limits

(1)

Annual limits

(A)
The total of loans made to a student in any academic year or its equivalent (as determined by the Secretary) which may be covered by Federal loan insurance under this part may not exceed—
(i)
in the case of a student at an eligible institution who has not successfully completed the first year of a program of undergraduate education—
(I)
section 1088 of this title $3,500, if such student is enrolled in a program whose length is at least one academic year in length (as determined under ); and
(II)
if such student is enrolled in a program of undergraduate education which is less than one academic year, the maximum annual loan amount that such student may receive may not exceed the amount that bears the same ratio to the amount specified in subclause (I) as the length of such program measured in semester, trimester, quarter, or clock hours bears to one academic year;
(ii)
in the case of a student at an eligible institution who has successfully completed such first year but has not successfully completed the remainder of a program of undergraduate education—
(I)
$4,500; or
(II)
if such student is enrolled in a program of undergraduate education, the remainder of which is less than one academic year, the maximum annual loan amount that such student may receive may not exceed the amount that bears the same ratio to the amount specified in subclause (I) as such remainder measured in semester, trimester, quarter, or clock hours bears to one academic year;
(iii)
in the case of a student at an eligible institution who has successfully completed the first and second years of a program of undergraduate education but has not successfully completed the remainder of such program—
(I)
$5,500; or
(II)
if such student is enrolled in a program of undergraduate education, the remainder of which is less than one academic year, the maximum annual loan amount that such student may receive may not exceed the amount that bears the same ratio to the amount specified in subclause (I) as such remainder measured in semester, trimester, quarter, or clock hours bears to one academic year; and
(iv)
in the case of a graduate or professional student (as defined in regulations of the Secretary) at an eligible institution, $8,500.
(B)
The annual insurable limits contained in subparagraph (A) shall not apply in cases where the Secretary determines, pursuant to regulations, that a higher amount is warranted in order to carry out the purpose of this part with respect to students engaged in specialized training requiring exceptionally high costs of education. The annual insurable limit per student shall not be deemed to be exceeded by a line of credit under which actual payments by the lender to the borrower will not be made in any year in excess of the annual limit.
(C)
For the purpose of subparagraph (A), the number of years that a student has completed in a program of undergraduate education shall include any prior enrollment in an eligible program of undergraduate education for which the student was awarded an associate or baccalaureate degree, if such degree is required by the institution for admission to the program in which the student is enrolled.
(2)

Aggregate limits

(A)
The aggregate insured unpaid principal amount for all such insured loans made to any student shall not at any time exceed—
(i)
1
1 See References in Text note below.
$23,000, in the case of any student who has not successfully completed a program of undergraduate education, excluding loans made under section 1078–1  or 1078–2 of this title; and
(ii)
2
2 So in original. There is no opening parenthesis.
1 $65,500, in the case of any graduate or professional student (as defined by regulations of the Secretary) and (I) including any loans which are insured by the Secretary under this section, or by a guaranty agency, made to such student before the student became a graduate or professional student), but (II) excluding loans made under section 1078–1  or 1078–2 of this title,
except that the Secretary may increase the limit applicable to students who are pursuing programs which the Secretary determines are exceptionally expensive.
(B)
The Secretary may increase the aggregate insurable limit applicable to students who are pursuing programs which the Secretary determines are exceptionally expensive.
(b)

Level of insurance coverage based on default rate

(1)

Reduction for defaults in excess of 5 or 9 percent

(A)
Except as provided in subparagraph (B), the insurance liability on any loan insured by the Secretary under this part shall be 100 percent of the unpaid balance of the principal amount of the loan plus interest, except that—
(i)
section 1080 of this titlesection 1085(d)(1)(D) of this title if, for any fiscal year, the total amount of payments under by the Secretary to any eligible lender as described in exceeds 5 percent of the sum of the loans made by such lender which are insured by the Secretary and which were in repayment at the end of the preceding fiscal year, the insurance liability under this subsection for that portion of such excess which represents loans insured after the applicable date with respect to such loans, as determined under subparagraph (C), shall be equal to 90 percent of the amount of such portion; or
(ii)
if, for any fiscal year, the total amount of such payments to such a lender exceeds 9 percent of such sum, the insurance liability under this subsection for that portion of such excess which represents loans insured after the applicable date with respect to such loans, as determined under subparagraph (C), shall be equal to 80 percent of the amount of such portion.
(B)
section 1085(d)(1)(D) of this title Notwithstanding subparagraph (A), the provisions of clauses (i) and (ii) of such subparagraph shall not apply to an eligible lender as described in for the fiscal year in which such lender begins to carry on a loan program insured by the Secretary, or for any of the 4 succeeding fiscal years.
(C)
section 1085(d)(1)(D) of this title The applicable date with respect to a loan made by an eligible lender as described in shall be—
(i)
the 90th day after the adjournment of the next regular session of the appropriate State legislature which convenes after , or
(ii)
if the primary source of lending capital for such lender is derived from the sale of bonds, and the constitution of the appropriate State prohibits a pledge of such State’s credit as security against such bonds, the day which is one year after such 90th day.
(2)

Computation of amounts in repayment

For the purpose of this subsection, the sum of the loans made by a lender which are insured by the Secretary and which are in repayment shall be the original principal amount of loans made by such lender which are insured by the Secretary reduced by—
(A)
the amount the Secretary has been required to pay to discharge his or her insurance obligations under this part;
(B)
the original principal amount of loans insured by the Secretary which have been fully repaid;
(C)
section 1077(a)(2)(B) of this titlesection 1077(a)(2)(C) of this title the original principal amount insured on those loans for which payment of first installment of principal has not become due pursuant to or such first installment need not be paid pursuant to ; and
(D)
section 1087 of this title the original principal amount of loans repaid by the Secretary under .
(3)

Payments to assignees

section 1080 of this titleFor the purpose of this subsection, payments by the Secretary under to an assignee of the lender with respect to a loan shall be deemed payments made to such lender.

(4)

Pledge of full faith and credit

The full faith and credit of the United States is pledged to the payment of all amounts which may be required to be paid under the provisions of section 1080 or 1087 of this title.

Pub. L. 89–329, title IV, § 425Pub. L. 99–498, title IV, § 402(a)100 Stat. 1359 Pub. L. 100–50, § 10(a)101 Stat. 341 Pub. L. 102–325, title IV, § 413106 Stat. 512 Pub. L. 103–208, § 2(c)(2)107 Stat. 2460 Pub. L. 105–244, title IV, § 415112 Stat. 1679 Pub. L. 109–171, title VIII, § 8005(a)120 Stat. 158 (, as added , , ; amended , , ; , , ; , (3), , , 2461; , , ; , , .)

Editorial Notes

References in Text

Section 1078–1 of this titlePub. L. 103–66, title IV, § 4047(b)107 Stat. 364 Pub. L. 105–244, title IV, § 418112 Stat. 1691 , referred to in subsec. (a)(2)(A), was repealed by –(d), , , eff. , except with respect to loans provided under that section as it existed prior to . Subsequently, a new section 1078–1, relating to voluntary flexible agreements with guaranty agencies, was enacted by , , .

Prior Provisions

Pub. L. 89–329, title IV, § 42579 Stat. 1238 Pub. L. 90–575, title I82 Stat. 1023 Pub. L. 92–318, title I86 Stat. 261 Pub. L. 94–482, title I, § 127(a)90 Stat. 2104 Pub. L. 95–43, § 1(a)(15)91 Stat. 214 Pub. L. 95–566, § 5(b)(2)92 Stat. 2403 Pub. L. 96–374, title IV, § 412(a)94 Stat. 1416 Pub. L. 97–35, title V, § 535(a)95 Stat. 455 Pub. L. 99–272, title XVI, § 16013(e)(1)100 Stat. 341 Pub. L. 99–498A prior section 1075, , , ; , §§ 116(b)(1), 120(a)(2), , , 1027; , §§ 132A(a), 132B(a), , , 262; , , ; –(17), , ; , , ; , (b), (f), title XIII, § 1391(a)(1), , , 1417, 1503; , (b), , ; , , , limited Federal loan insurance, prior to the general revision of this part by .

Amendments

Pub. L. 109–171, § 8005(a)(1)2006—Subsec. (a)(1)(A)(i)(I). , substituted “$3,500” for “$2,625”.

Pub. L. 109–171, § 8005(a)(2)Subsec. (a)(1)(A)(ii)(I). , substituted “$4,500” for “$3,500”.

Pub. L. 105–244, § 415(1)(A)1998—Subsec. (a)(1)(A)(i)(I). , inserted “and” after semicolon.

Pub. L. 105–244, § 415(1)(B)Subsec. (a)(1)(A)(i)(II), (III). , added subcl. (II) and struck out former subcls. (II) and (III) which read as follows:

“(II) $1,750, if such student is enrolled in a program whose length is less than one academic year, but at least ⅔ of such an academic year; and

“(III) $875, if such student is enrolled in a program whose length is less than ⅔, but at least ⅓, of such an academic year;”.

Pub. L. 105–244, § 415(2)Subsec. (a)(1)(A)(iii)(II). , inserted “and” after semicolon at end.

Pub. L. 103–208, § 2(c)(2)(A)1993—Subsec. (a)(1)(A)(ii), (iii). , added cls. (ii) and (iii) and struck out former cls. (ii) and (iii) which read as follows:

“(ii) the case of a student who has successfully completed such first year but has not successfully completed the remainder of a program of undergraduate study—

section 1088 of this title“(I) $3,500, if such student is enrolled in a program whose length is at least one academic year in length (as determined under );

“(II) $2,325, if such student is enrolled in a program whose length is less than one academic year, but at least ⅔ of such an academic year; and

“(III) $1,175, if such student is enrolled in a program whose length is less than ⅔, but at least ⅓, of such an academic year;

“(iii) in the case of a student at an eligible institution who has successfully completed such first and second year but has not successfully completed the remainder of a program of undergraduate study—

section 1088 of this title“(I) $5,500, if such student is enrolled in a program whose length is at least one academic year in length (as determined under );

“(II) $3,675, if such student is enrolled in a program whose length is less than one academic year, but at least ⅔ of such an academic year; and

“(III) $1,825, if such student is enrolled in a program whose length is less than ⅔, but at least ⅓, of such an academic year; and”.

Pub. L. 103–208, § 2(c)(2)(B)Subsec. (a)(1)(A)(iv). , substituted a period for semicolon at end.

Pub. L. 103–208, § 2(c)(3)Subsec. (a)(1)(C). , added subpar. (C).

Pub. L. 102–325, § 413(1)1992—Subsec. (a)(1)(A). , added cls. (i) to (iv) and struck out former cls. (i) to (iii) which read as follows:

“(i) $2,625, in the case of a student who has not successfully completed the first and second year of a program of undergraduate education;

“(ii) $4,000, in the case of a student who has successfully completed such first and second year but who has not successfully completed the remainder of a program of undergraduate education; or

“(iii) $7,500, in the case of a graduate or professional student (as defined in regulations of the Secretary).”

Pub. L. 102–325, § 413(2)Subsec. (a)(2)(A). , added cls. (i) and (ii) and concluding provision and struck out former cls. (i) and (ii) which read as follows:

“(i) $17,250, in the case of any student who has not successfully completed a program of undergraduate education, excluding loans made under section 1078–1 or 1078–2 of this title; and

“(ii) $54,750, in the case of any graduate or professional student (as defined by regulations of the Secretary and including any loans which are insured by the Secretary under this part, or by a guaranty agency, made to such person before he or she became a graduate or professional student), excluding loans made under section 1078–1 or 1078–2 of this title.”

Pub. L. 100–50, § 10(a)(1)1987—Subsec. (a)(2)(A)(i). , inserted “, excluding loans made under section 1078–1 or 1078–2 of this title” after “undergraduate education”.

Pub. L. 100–50, § 10(a)(2)Subsec. (a)(2)(A)(ii). , inserted “, excluding loans made under section 1078–1 or 1078–2 of this title” after “graduate or professional student)”.

Statutory Notes and Related Subsidiaries

Effective Date of 2006 Amendment

Pub. L. 109–171, title VIII, § 8005(e)120 Stat. 159

“The amendments made by subsections (a), (b), and (d) [amending this section and sections 1078 and 1078–8 of this title] shall be effective .”
, , , provided that:

Effective Date of 1998 Amendment

Pub. L. 105–244Pub. L. 105–244section 3 of Pub. L. 105–244section 1001 of this titleAmendment by effective , except as otherwise provided in , see , set out as a note under .

Effective Date of 1993 Amendment

section 2(c)(2) of Pub. L. 103–208section 2(c)(3) of Pub. L. 103–208Pub. L. 103–208section 1051 of this titleAmendment by effective on and after and amendment by effective on and after , see section 5(b)(2), (6) of 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 made in subsec. (a), relating to annual and aggregate loan limits, applicable with respect to loans for which first disbursement is made on or after , except that changes made in subsec. (a)(1)(A)(i) applicable with respect to loans for which first disbursement is made on or after , and except that changes made in subsec. (a)(1)(A)(iv) applicable with respect to loans to cover costs of instruction for periods of enrollment beginning on or after , see , set out as a note under .

Effective Date of 1987 Amendment

Pub. L. 100–50Pub. L. 99–498section 27 of Pub. L. 100–50section 1001 of this titleAmendment by effective as if enacted as part of the Higher Education Amendments of 1986, , see , set out as a note under .

Effective Date

section 402(b) of Pub. L. 99–498section 1071 of this titleSection effective , except that subsec. (a) of this section applicable only to loans disbursed on or after , or made to cover the costs of instruction for periods of enrollment beginning on or after , see , set out as a note under .