 
      CHAPTER 28--HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
 
                    SUBCHAPTER IV--STUDENT ASSISTANCE
 
              Part B--Federal Family Education Loan Program
 
Sec. 1073. Effects of adequate non-Federal programs


(a) Federal insurance barred to lenders with access to State or private 
        insurance

    Except as provided in subsection (b) of this section, the Secretary 
shall not issue certificates of insurance under section 1079 of this 
title 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 section 1078(b) of this title.

(b) Exceptions

    The Secretary may issue certificates of insurance under section 1079 
of this title to a lender in a State--
        (1) 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 section 1072 of this title 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, Sec. 423, as added Pub. L. 99-498, title IV, 
Sec. 402(a), Oct. 17, 1986, 100 Stat. 1358.)


                            Prior Provisions

    A prior section 1073, Pub. L. 89-329, title IV, Sec. 423, Nov. 8, 
1965, 79 Stat. 1237; Pub. L. 90-575, title I, Sec. 119(a), Oct. 16, 
1968, 82 Stat. 1026; Pub. L. 94-482, title I, Sec. 127(a), Oct. 12, 
1976, 90 Stat. 2103; Pub. L. 95-43, Sec. 1(a)(14), June 15, 1977, 91 
Stat. 214; Pub. L. 96-374, title XIII, Sec. 1391(a)(1), Oct. 3, 1980, 94 
Stat. 1503, limited participation in Federal loan insurance programs, 
prior to the general revision of this part by Pub. L. 99-498.
