 
      CHAPTER 28--HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
 
                    SUBCHAPTER IV--STUDENT ASSISTANCE
 
           Part C--William D. Ford Federal Direct Loan Program
 
Sec. 1087f. Contracts


(a) Contracts for supplies and services

                           (1) In general

        The Secretary shall, to the extent practicable, award contracts 
    for origination, servicing, and collection described in subsection 
    (b) of this section. In awarding such contracts, the Secretary shall 
    ensure that such services and supplies are provided at competitive 
    prices.

                            (2) Entities

        The entities with which the Secretary may enter into contracts 
    shall include only entities which the Secretary determines are 
    qualified to provide such services and supplies and will comply with 
    the procedures applicable to the award of such contracts. In the 
    case of awarding contracts for the origination, servicing, and 
    collection of loans under this part, the Secretary shall enter into 
    contracts only with entities that have extensive and relevant 
    experience and demonstrated effectiveness. The entities with which 
    the Secretary may enter into such contracts shall include, where 
    practicable, agencies with agreements with the Secretary under 
    sections 1078(b) and (c) of this title, if such agencies meet the 
    qualifications as determined by the Secretary under this subsection 
    and if those agencies have such experience and demonstrated 
    effectiveness. In awarding contracts to such State agencies, the 
    Secretary shall, to the extent practicable and consistent with the 
    purposes of this part, give special consideration to State agencies 
    with a history of high quality performance to perform services for 
    institutions of higher education within their State.

                      (3) Rule of construction

        Nothing in this section shall be construed as a limitation of 
    the authority of any State agency to enter into an agreement for the 
    purposes of this section as a member of a consortium of State 
    agencies.

(b) Contracts for origination, servicing, and data systems

    The Secretary may enter into contracts for--
        (1) the alternative origination of loans to students attending 
    institutions of higher education with agreements to participate in 
    the program under this part (or their parents), if such institutions 
    do not have agreements with the Secretary under section 1087d(b) of 
    this title;
        (2) the servicing and collection of loans made under this part;
        (3) the establishment and operation of 1 or more data systems 
    for the maintenance of records on all loans made under this part; 
    and
        (4) such other aspects of the direct student loan program as the 
    Secretary determines are necessary to ensure the successful 
    operation of the program.

(Pub. L. 89-329, title IV, Sec. 456, as added Pub. L. 102-325, title IV, 
Sec. 451, July 23, 1992, 106 Stat. 572; amended Pub. L. 103-66, title 
IV, Sec. 4021, Aug. 10, 1993, 107 Stat. 352; Pub. L. 105-244, title IV, 
Sec. 453, Oct. 7, 1998, 112 Stat. 1717.)


                               Amendments

    1998--Subsec. (b)(3). Pub. L. 105-244, Sec. 453(1), inserted ``and'' 
after semicolon.
    Subsec. (b)(4), (5). Pub. L. 105-244, Sec. 453(2), (3), redesignated 
par. (5) as (4) and struck out former par. (4) which read as follows: 
``services to assist in the orderly transition from the loan programs 
under part B of this subchapter to the direct student loan program under 
this part; and''.
    1993--Pub. L. 103-66 amended section generally, substituting 
provisions relating to contracts for former provisions relating to terms 
and conditions.


                    Effective Date of 1998 Amendment

    Amendment by Pub. L. 105-244 effective Oct. 1, 1998, except as 
otherwise provided in Pub. L. 105-244, see section 3 of Pub. L. 105-244, 
set out as a note under section 1001 of this title.


                             Effective Date

    Section effective Oct. 1, 1992, see section 2 of Pub. L. 102-325, 
set out as an Effective Date of 1992 Amendment note under section 1001 
of this title.

                  Section Referred to in Other Sections

    This section is referred to in section 1087c of this title.
