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

42 U.S.C. § 297e

Distribution of assets from loan funds

(a)

Capital distribution of balance of loan fund

section 297a(b) of this titleIf a school terminates a loan fund established under an agreement pursuant to , or if the Secretary for good cause terminates the agreement with the school, there shall be a capital distribution as follows:
(1)
section 297a(b)(2)(A) of this titlesection 297a(b)(2)(B) of this title The Secretary shall first be paid an amount which bears the same ratio to such balance in such fund on the date of termination of the fund as the total amount of the Federal capital contributions to such fund by the Secretary pursuant to bears to the total amount in such fund derived from such Federal capital contributions and from funds deposited therein pursuant to .
(2)
The remainder of such balance shall be paid to the school.
(b)

Payment of principal or interest on loans

section 297a(b) of this titleIf a capital distribution is made under subsection (a), the school involved shall, after such capital distribution, pay to the Secretary, not less often than quarterly, the same proportionate share of amounts received by the school in payment of principal or interest on loans made from the loan fund established under as determined by the Secretary under subsection (a).

(c)

Payment of balance of loan fund

(1)
section 297a of this title1
1 See References in Text note below.
section 297a of this titlesection 297a(b)(2)(A) of this titlesection 297a(b)(2)(B) of this title Within 90 days after the termination of any agreement with a school under or the termination in any other manner of a school’s participation in the loan program under this part, such school shall pay to the Secretary from the balance of the loan fund of such school established under , an amount which bears the same ratio to the balance in such fund on the date of such termination as the total amount of the Federal capital contributions to such fund by the Secretary pursuant to bears to the total amount in such fund on such date derived from such Federal capital contributions and from funds deposited in the fund pursuant to . The remainder of such balance shall be paid to the school.
(2)
A school to which paragraph (1) applies shall pay to the Secretary after the date on which payment is made under such paragraph and not less than quarterly, the same proportionate share of amounts received by the school after the date of termination referred to in paragraph (1) in payment of principal or interest on loans made from the loan fund as was determined for the Secretary under such paragraph.

July 1, 1944, ch. 373 Pub. L. 88–581, § 278 Stat. 916 Pub. L. 89–751, § 6(d)80 Stat. 1235 Pub. L. 90–490, title II, § 222(f)82 Stat. 785 Pub. L. 92–52, § 3(b)85 Stat. 145 Pub. L. 92–158, § 6(d)(1)85 Stat. 478 Pub. L. 94–63, title IX89 Stat. 363 Pub. L. 96–32, § 7(j)93 Stat. 84 Pub. L. 96–76, title I, § 109(c)93 Stat. 580 Pub. L. 97–35, title XXVII, § 2757(d)95 Stat. 931 Pub. L. 99–92, § 8(f)99 Stat. 399 Pub. L. 100–607, title VII, § 713(i)102 Stat. 3161 Pub. L. 102–408, title II, § 208(b)106 Stat. 2075 Pub. L. 105–392, title I, § 133(e)112 Stat. 3577 Pub. L. 111–148, title V, § 5310(b)(5)124 Stat. 631 (, title VIII, § 839, formerly § 826, as added , , ; amended , , ; , , ; , , ; , , ; renumbered § 839 and amended , §§ 936(d), 941(h)(1), (2), (4)(B), (i)(1), (5), , , 365, 366; , , ; , , ; , , ; , , ; , , ; , , ; , , ; , , .)

Editorial Notes

References in Text

Pub. L. 105–392, title I, § 123(2)112 Stat. 3562 This part, referred to in subsec. (c)(1), was in the original “this subpart” and was translated to reflect the probable intent of Congress and the redesignation of subpart II of part B of this subchapter as part E of this subchapter by , , .

Amendments

Pub. L. 111–1482010— made technical amendment to section and subsec. (a) designations resulting in no change in text.

Pub. L. 105–392, § 133(e)(1)(A)section 297a of this title1998—Subsec. (a). , added introductory provisions and struck out former introductory provisions which read as follows: “After , and not later than , there shall be a capital distribution of the balance of the loan fund established under an agreement pursuant to by each school as follows:”.

Pub. L. 105–392, § 133(e)(1)(B)Subsec. (a)(1). , substituted “on the date of termination of the fund” for “at the close of ,”.

Pub. L. 105–392, § 133(e)(2)Subsec. (b). , amended subsec. (b) generally. Prior to amendment, subsec. (b) read as follows: “After , each school with which the Secretary has made an agreement under this subpart shall pay to the Secretary, not less often than quarterly, the same proportionate share of amounts received by the school after , in payment of principal or interest on loans made from the loan fund established pursuant to such agreement as was determined for the Secretary under subsection (a) of this section.”

Pub. L. 102–408, § 208(b)(2)1992—Subsec. (a). , substituted “1999” for “1994” in introductory provisions and in par. (1).

Pub. L. 102–408, § 208(b)(1), substituted “1996” for “1991” in introductory provisions.

Pub. L. 102–408, § 208(b)(2)Subsec. (b). , substituted “1999” for “1994” in two places.

Pub. L. 100–607, § 713(i)(1)(A)1988—Subsec. (a). , which directed substitution of “1994” for “1991” in text preceding par. (1), was executed by making the substitution for “1991” the second time appearing to reflect the probable intent of Congress.

Pub. L. 100–607, § 713(i)(1)(B)Subsec. (a)(1). , substituted “1994” for “1991”.

Pub. L. 100–607, § 713(i)(2)Subsec. (b). , substituted “1994” for “1991” in two places.

Pub. L. 99–92, § 8(f)(1)1985—Subsecs. (a), (b). , substituted “1991” for “1987” wherever appearing.

Pub. L. 99–92, § 8(f)(2)Subsec. (c). , added subsec. (c).

Pub. L. 97–351981— substituted “1987” for “1983” wherever appearing.

Pub. L. 96–76, § 109(c)(1)Pub. L. 96–76Pub. L. 96–321979—Subsec. (a). , substituted “, and not later than ” for “, and not later than ”. Prior to amendment, subsec. (a) referred to “” rather than to “” as cited in directory language of . See below for explanation of amendment by .

Pub. L. 96–32 substituted “” for “”.

Pub. L. 96–76, § 109(c)(2)Subsec. (a)(1). , substituted “1983” for “1980”.

Pub. L. 96–76, § 109(c)(3)Subsec. (b). , substituted “1983” for “1980” wherever appearing.

Pub. L. 94–63section 297a of this title1975—Subsec. (a). , §§ 936(d), 941(h)(2), (i)(5), substituted “” for “” wherever appearing, struck out “of Health, Education, and Welfare” after “Secretary”, and substituted references to section 835 of the Act for references to section 822, which had previously been translated as , requiring no further translations in text as a result of renumbering of the Public Health Service Act.

Pub. L. 94–63section 297f(d) of this titleSubsec. (b). , §§ 936(d), 941(h)(1), (4)(B), substituted “subpart” for “part”, “” for “”, and “” for “” and struck out provisions relating to payments from revolving fund established by .

Pub. L. 92–1581971— substituted “1977” for “1975” wherever appearing.

Pub. L. 92–52 substituted “1975” for “1974” wherever appearing.

Pub. L. 90–4901968— substituted “1974” for “1972” wherever appearing.

Pub. L. 89–751, § 6(d)(1)section 297a(b) of this title1966—Subsec. (a). , (2), substituted “an agreement pursuant to ” for “this part” in opening provisions, and in par. (1) substituted “such balance” for “the balance”.

Pub. L. 89–751, § 6(d)(3)section 297f(d) of this titleSubsec. (b). , inserted “(other than so much of such fund as relates to payments from the revolving fund established by )”.

Statutory Notes and Related Subsidiaries

Effective Date of 1985 Amendment

Pub. L. 99–92section 10(a) of Pub. L. 99–92section 297a of this titleAmendment by effective , see , set out as a note under .

Effective Date of 1975 Amendment

section 936(d) of Pub. L. 94–63section 905 of Pub. L. 94–63section 297a of this titleAmendment by effective , see , set out as a note under .

Pub. L. 94–63section 942 of Pub. L. 94–63section 297a of this titleAmendment by section 941(h)(1), (2), (4)(B), (i)(1), (5) of effective , see , set out as a note under .

Effective Date of 1966 Amendment

Pub. L. 89–751section 297f of this titlesection 6(e)(1) of Pub. L. 89–751section 297d of this titleAmendment by effective in the case of payments to student loan funds made after , except in the case of payments pursuant to commitments (made prior to ) to make loans under as in effect prior to , see , set out as a note under .