US Code

Public Law 119-73 (01/23/2026)

20 U.S.C. § 1087ff

Distribution of assets from student loan funds

(a)

In general

Beginning , there shall be a capital distribution of the balance of the student loan fund established under this part by each institution of higher education as follows:
(1)
The Secretary shall first be paid an amount which bears the same ratio to the balance in such fund at the close of , as the total amount of the Federal capital contributions to such fund by the Secretary under this part bears to the sum of such Federal contributions and the institution’s capital contributions to such fund.
(2)
The remainder of such balance shall be paid to the institution.
(b)

Distribution of late collections

Beginning , each institution with which the Secretary has made an agreement under this part, shall pay to the Secretary the same proportionate share of amounts received by this institution after , in payment of principal and interest on student loans made from the student loan fund established pursuant to such agreement (which amount shall be determined after deduction of any costs of litigation incurred in collection of the principal or interest on loans from the fund and not already reimbursed from the fund or from such payments of principal or interest), as was determined for the Secretary under subsection (a).

(c)

Distribution of excess capital

(1)
Upon a finding by the institution or the Secretary prior to , that the liquid assets of a student loan fund established pursuant to an agreement under this part exceed the amount required for loans or otherwise in the foreseeable future, and upon notice to such institution or to the Secretary, as the case may be, there shall be, subject to such limitations as may be included in regulations of the Secretary or in such agreement, a capital distribution from such fund. Such capital distribution shall be made as follows:
(A)
The Secretary shall first be paid an amount which bears the same ratio to the total to be distributed as the Federal capital contributions by the Secretary to the student loan fund prior to such distribution bear to the sum of such Federal capital contributions and the capital contributions to the fund made by the institution.
(B)
The remainder of the capital distribution shall be paid to the institution.
(2)
section 1087bb of this title No finding that the liquid assets of a student loan fund established under this part exceed the amount required under paragraph (1) may be made prior to a date which is 2 years after the date on which the institution of higher education received the funds from such institution’s allocation under .

Pub. L. 89–329, title IV, § 466Pub. L. 99–498, title IV, § 405(a)100 Stat. 1453Pub. L. 102–325, title IV, § 466106 Stat. 584Pub. L. 103–208, § 2(f)(15)107 Stat. 2471Pub. L. 105–244, title IV, § 466112 Stat. 1728Pub. L. 110–84, title V, § 501121 Stat. 801Pub. L. 114–105, § 2(b)129 Stat. 2220(, as added , , ; amended , , ; , , ; , , ; , , ; , , .)

Editorial Notes

Prior Provisions

Pub. L. 89–329, title IV, § 466Pub. L. 92–318, title I, § 137(b)86 Stat. 278Pub. L. 94–482, title I, § 130(h)90 Stat. 2147Pub. L. 96–374, title IV, § 442(c)94 Stat. 1440Pub. L. 99–498A prior section 1087ff, , as added , , ; amended , , ; , title XIII, § 1391(a)(1), , , 1503, related to distribution of assets from student loan funds, prior to the general revision of this part by .

Amendments

Pub. L. 114–105, § 2(b)(1)(A)2015—Subsec. (a). , substituted “Beginning ” for “After , and not later than ” in introductory provisions.

Pub. L. 114–105, § 2(b)(1)(B)Subsec. (a)(1). , substituted “” for “”.

Pub. L. 114–105, § 2(b)(2)Subsec. (b). , substituted “Beginning ” for “After ” and “” for “”.

Pub. L. 114–105, § 2(b)(3)Subsec. (c)(1). , substituted “” for “” in introductory provisions.

Pub. L. 110–842007—Subsec. (b). substituted “” for “”.

Pub. L. 105–244, § 466(1)(A)1998—Subsec. (a). , in introductory provisions, substituted “2003” for “1996” and “2004” for “1997”.

Pub. L. 105–244, § 466(1)(B)Subsec. (a)(1). , substituted “2003” for “1996”.

Pub. L. 105–244, § 466(2)Subsec. (b). , substituted “2012” for “2005” and “2003” for “1996”.

Pub. L. 105–244, § 466(3)Subsec. (c)(1). , substituted “2004” for “1997” in introductory provisions.

Pub. L. 103–2081993—Subsec. (c)(2). realigned margin.

Pub. L. 102–325, § 466(1)1992—Subsec. (b). , substituted “2005” for “1997”.

Pub. L. 102–325, § 466(2)Subsec. (c). , designated existing provisions as par. (1), redesignated former pars. (1) and (2) as subpars. (A) and (B), respectively, and added par. (2).

Statutory Notes and Related Subsidiaries

Effective Date of 2007 Amendment

Pub. L. 110–84section 1(c) of Pub. L. 110–84section 1070a of this titleAmendment by effective , see , set out as a note under .

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

Pub. L. 103–208Pub. L. 102–325section 5(a) of Pub. L. 103–208section 1051 of this titleAmendment by effective as if included in the Higher Education Amendments of 1992, , except as otherwise provided, see , set out as a note under .