 
      CHAPTER 28--HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
 
                    SUBCHAPTER IV--STUDENT ASSISTANCE
 
              Part B--Federal Family Education Loan Program
 
Sec. 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) to encourage States and nonprofit private institutions 
        and organizations to establish adequate loan insurance programs 
        for students in eligible institutions (as defined in section 
        1085 of this title),
            (B) 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 section 1078(b) of this title,
            (C) to pay a portion of the interest on loans to qualified 
        students which are insured under this part, and
            (D) 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 section 
        1078(a)(1)(B) of this title.

             (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) there are authorized to be appropriated to the student loan 
    insurance fund (established by section 1081 of this title) (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) there are authorized to be appropriated, for payments under 
    section 1078 of this title with respect to interest on student loans 
    and for payments under section 1087 of this title, such sums for the 
    fiscal year ending June 30, 1966, and succeeding fiscal years, as 
    may be required therefor,
        (3) there is authorized to be appropriated the sum of 
    $17,500,000 for making advances pursuant to section 1072 of this 
    title for the reserve funds of State and nonprofit private student 
    loan insurance programs,
        (4) there are authorized to be appropriated (A) the sum of 
    $12,500,000 for making advances after June 30, 1968, pursuant to 
    sections 1072(a) and (b) of this title, and (B) such sums as may be 
    necessary for making advances pursuant to section 1072(c) of this 
    title, for the reserve funds of State and nonprofit private student 
    loan insurance programs, and
        (5) there are authorized to be appropriated such sums as may be 
    necessary for the purpose of paying an administrative cost allowance 
    in accordance with section 1078(f) of this title to guaranty 
    agencies.

Sums appropriated under paragraphs (1), (2), (4), and (5) of this 
subsection shall remain available until expended. No additional sums are 
authorized to be appropriated under paragraphs (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''.

(Pub. L. 89-329, title IV, Sec. 421, as added Pub. L. 99-498, title IV, 
Sec. 402(a), Oct. 17, 1986, 100 Stat. 1353; amended Pub. L. 100-297, 
title II, Sec. 2601(a), Apr. 28, 1988, 102 Stat. 330; Pub. L. 100-369, 
Sec. 8, July 18, 1988, 102 Stat. 837; Pub. L. 102-325, title IV, 
Sec. 411(a)(2), (c), July 23, 1992, 106 Stat. 510, 511; Pub. L. 105-244, 
title IV, Sec. 411, Oct. 7, 1998, 112 Stat. 1673.)

                       References in Text

    The Higher Education Amendments of 1986, referred to in subsec. (b), 
is Pub. L. 99-498, Oct. 17, 1986, 100 Stat. 1268. For complete 
classification of this Act to the Code, see Short Title note set out 
under section 1001 of this title and Tables.

                          Codification

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


                            Prior Provisions

    A prior section 1071, Pub. L. 89-329, title IV, Sec. 421, Nov. 8, 
1965, 79 Stat. 1236; Pub. L. 90-460, Secs. 2(b)(3), 3(a), Aug. 3, 1968, 
82 Stat. 635, 636; Pub. L. 90-575, title I, Secs. 113(b)(1), 114(a), 
119(b), Oct. 16, 1968, 82 Stat. 1021, 1027; Pub. L. 94-482, title I, 
Sec. 127(a), Oct. 12, 1976, 90 Stat. 2099; Pub. L. 95-43, Sec. 1(a)(8)-
(10), June 15, 1977, 91 Stat. 213; Pub. L. 96-374, title XIII, 
Sec. 1391(a)(1), (2), Oct. 3, 1980, 94 Stat. 1503; Pub. L. 98-79, 
Sec. 6, Aug. 15, 1983, 97 Stat. 482, 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 Pub. L. 99-498.


                               Amendments

    1998--Subsec. (d). Pub. L. 105-244 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 June 30, 
1994, 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.''
    1992--Subsec. (c). Pub. L. 102-325, Sec. 411(a)(2), 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'.''
    Subsec. (d). Pub. L. 102-325, Sec. 411(c), added subsec. (d).
    1988--Subsec. (c). Pub. L. 100-369 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).


                    Effective Date of 1992 Amendment

    Amendment by Pub. L. 102-325 effective July 23, 1992, 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 July 23, 1992, see section 432 
of Pub. L. 102-325, set out as a note under section 1078 of this title.


                    Effective Date of 1988 Amendment

    Pub. L. 100-297, title VI, Sec. 6303, Apr. 28, 1988, 102 Stat. 431, 
as amended by Pub. L. 100-351, June 27, 1988, 102 Stat. 661; Pub. L. 
106-400, Sec. 2, Oct. 30, 2000, 114 Stat. 1675, provided that:
    ``(a) General Rule.--Except as otherwise provided, this Act and the 
amendments made by this Act [see Tables for classification] shall take 
effect July 1, 1988.
    ``(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 [Apr. 28, 
1988].
    ``(2) The provisions of section 2402, relating to the National 
Center for Vocational Research, shall take effect on April 10, 1988.
    ``(3) The amendments made by section 3403 [amending sections 1221e 
and 1221e-1 of this title] shall take effect for assessments made after 
September 30, 1989, with respect to State data.
    ``(4) Allotments to States made under chapters 1 and 2 of title I of 
the Elementary and Secondary Education Act of 1965 [formerly 20 U.S.C. 
2701 et seq., 2911 et seq.] and under the Adult Education Act [formerly 
20 U.S.C. 1201 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 December 22, 1987 (Public Law 100-202), 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 20 U.S.C. 3801 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 [Apr. 28, 1988].
    ``(5) Amounts appropriated by the joint resolution entitled `Joint 
resolution making further continuing appropriations for the fiscal year 
1988, and for other purposes', approved December 22, 1987 (Public Law 
100-202), 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 [Apr. 28, 1988]:
        ``(A) Programs under subchapter D of chapter 2 of the Education 
    Consolidation and Improvement Act of 1981 [formerly 20 U.S.C. 3851 
    et seq.], except that projects under section 583(c) [formerly 20 
    U.S.C. 3851(c)] may not be reviewed by a program significance panel.
        ``(B) National programs under the Adult Education Act [formerly 
    20 U.S.C. 1201 et seq.].
        ``(C) Programs under the Indian Education Act [Pub. L. 92-318, 
    title IV, see Short Title note set out under former section 241aa of 
    this title].
        ``(D) Programs under title II of the Education for Economic 
    Security Act [formerly 20 U.S.C. 3961 et seq.].
        ``(E) The program under section 702 of the McKinney-Vento 
    Homeless Assistance Act [formerly 42 U.S.C. 11421].
    ``(6) The provisions of part A of title II of this Act [Secs. 2001 
to 2034 of Pub. L. 100-297, amending sections 236 et seq. and 631 et 
seq. of this title], excluding sections 2014(e) and 2018 [amending 
section 238 of this title and enacting provisions set out as a note 
under section 238 of this title], shall apply only with respect to 
amounts appropriated for fiscal years beginning after September 30, 
1988.
    ``(7) The amendments made by section 6001 [amending section 11421 of 
Title 42, The Public Health and Welfare], relating to literacy training 
of homeless adults, shall take effect on October 1, 1988.
    ``(8) Any election under section 5209(b)(1) [25 U.S.C. 2508(b)(1)] 
conveyed to the Secretary prior to August 1, 1988, shall take effect for 
the fiscal year beginning on October 1, 1988, and thereafter.''


                             Effective Date

    Section 402(b)-(d) of Pub. L. 99-498, as amended by Pub. L. 100-50, 
Sec. 22(b), June 3, 1987, 101 Stat. 361, provided that:
    ``(b) Effective Dates.--The changes made in part B of title IV of 
the Act [20 U.S.C. 1071 et seq.] by the amendment made by subsection (a) 
of this section shall take effect on the date of enactment of this Act 
[Oct. 17, 1986], except--
        ``(1) as otherwise provided in such part B;
        ``(2) the changes in sections 427(a)(2)(C) and 428(b)(1)(M) of 
    the Act [20 U.S.C. 1077(a)(2)(C), 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 July 1, 
    1987; or (B) are disbursed on or after July 1, 1987;
        ``(3) the changes made in sections 425(a), 428(b)(1)(A), and 
    428(b)(1)(B) of the Act [20 U.S.C. 1075(a), 1078(b)(1)(A), (B)] 
    shall apply with respect only to loans disbursed on or after January 
    1, 1987, or made to cover the costs of instruction for periods of 
    enrollment beginning on or after January 1, 1987;
        ``(4) the changes made in subsections (a), (b), and (d) of 
    section 433 of the Act [20 U.S.C. 1083(a), (b), (d)] shall apply 
    with respect only to loans disbursed on or after January 1, 1987, or 
    made to cover the costs of instruction for periods of enrollment 
    beginning on or after January 1, 1987;
        ``(5) the changes in section 428(b)(1)(H) [20 U.S.C. 
    1078(b)(1)(H)] shall apply with respect only to loans for which the 
    borrower files an application on or after July 1, 1987;
        ``(6) the changes in sections 435(d)(5) and 438(d) of the Act 
    [20 U.S.C. 1085(d)(5), 1087-1(d)] shall take effect 30 days after 
    the date of enactment of this Act [Oct. 17, 1986]; and
        ``(7) the changes made in section 438(b) [20 U.S.C. 1087-1(b)] 
    shall take effect with respect to loans disbursed on or after 30 
    days after the date of enactment of this Act [Oct. 17, 1986] 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.--The changes made in part B of title IV of the Act [20 
U.S.C. 1071 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.--For 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 
[20 U.S.C. 1071 et seq.].''


                   Study of Role of Guaranty Agencies

    Section 1401 of Pub. L. 102-325 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 July 23, 1992, on 
the review, prior to repeal by Pub. L. 105-332, Sec. 6(b)(2), Oct. 31, 
1998, 112 Stat. 3128.


                    General Accounting Office Reports

    Sections 1311 to 1314 of Pub. L. 99-498, as amended by Pub. L. 100-
50, Sec. 23(6), June 3, 1987, 101 Stat. 362, 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 Pub. L. 99-498, 
and directed Comptroller General to make and submit a report to Congress 
on each study not later than two years after Oct. 17, 1986, prior to 
repeal by Pub. L. 105-332, Sec. 6(a), Oct. 31, 1998, 112 Stat. 3127.

                  Section Referred to in Other Sections

    This section is referred to in section 1072 of this title.
