 
      CHAPTER 28--HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
 
                    SUBCHAPTER IV--STUDENT ASSISTANCE
 
           Part C--William D. Ford Federal Direct Loan Program
 
Sec. 1087i. Authority to sell loans

    The Secretary, in consultation with the Secretary of the Treasury, 
is authorized to sell loans made under this part on such terms as the 
Secretary determines are in the best interest of the United States, 
except that any such sale shall not result in any cost to the Federal 
Government. Notwithstanding any other provision of law, the proceeds of 
any such sale may be used by the Secretary to offer reductions in the 
interest rate paid by a borrower of a loan made under this part as the 
Secretary determines appropriate to encourage on-time repayment in 
accordance with section 1087e(b)(7) of this title. Such reductions may 
be offered only if the Secretary determines the reductions are in the 
best financial interests of the Federal Government.

(Pub. L. 89-329, title IV, Sec. 459, as added Pub. L. 105-244, title IV, 
Sec. 455, Oct. 7, 1998, 112 Stat. 1718.)


                             Effective Date

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