20 U.S.C. § 1087h — Funds for administrative expenses

submitted 34 years ago by Pub. L. 89-329 to r/title-20-EDUCATION · 566 words · no verdicts yet

in plain englishAI-generated · not legal advice

This section makes administrative funds available for the direct and guaranteed student-loan programs and sets aside specific amounts for technical assistance and job retention. It also sets the account-maintenance-fee calculation and requires detailed budget reporting.

(a) Administrative expenses. (1) An additional $1,000,000,000 is available to the Secretary for administrative costs under this part and part B, including servicing direct student loans. It remains available until spent. (2) Repealed. (3) For fiscal years 2007 through 2014, Congress authorizes appropriations needed for administrative costs under this part and part B, including direct-loan costs. (4) For fiscal years 2007 through 2021, funds not otherwise appropriated are available for account-maintenance fees payable to guaranty agencies under part B and calculated under subsection (b). (5) Those fees must be paid quarterly into the Agency Operating Fund under section 1072b. (6) The Secretary must give participating or prospective participating institutions technical assistance for setting up and running these programs. Congress authorizes and appropriates $50,000,000 for fiscal year 2010, in addition to other available funds. “Assistance” means technical support, training, materials, technical assistance, and financial assistance. (7) The Secretary must pay loan servicers for retaining jobs at United States locations where they operated under part B on January 1, 2010. Congress authorizes and appropriates $25,000,000 for each of fiscal years 2010 and 2011. (8) The Secretary may carry funds under this section into a later fiscal year. (b) Fees. Account-maintenance fees are 0.06 percent of the original principal of outstanding loans insured under part B. (c) Budget justification. The Secretary may not spend funds under this section unless the Department of Education’s yearly budget justification to Congress details the activities for which funds were used in prior and current years, planned activities and costs for the budget year, and projected activities and costs for each remaining year for which the funds are available.

the actual law source: uscode.house.gov ↗public domain

(a) Administrative expenses

(1) Additional mandatory funds for servicing

There shall be available to the Secretary (in addition to any other amounts appropriated under any appropriations Act for administrative costs under this part and part B and out of any money in the Treasury not otherwise appropriated) $1,000,000,000 to be obligated for administrative costs under this part and part B, including the costs of servicing the direct student loan programs under this part, which shall remain available until expended.

(2) Repealed. Pub. L. 113–67, div. A, title V, § 502(2), Dec. 26, 2013, 127 Stat. 1187

(3) Authorization for administrative costs beginning in fiscal years 2007 through 2014

For each of the fiscal years 2007 through 2014, there are authorized to be appropriated such sums as may be necessary for administrative costs under this part and part B, including the costs of the direct student loan programs under this part.

(4) Continuing mandatory funds for account maintenance fees

For each of the fiscal years 2007 through 2021,1 there shall be available to the Secretary, from funds not otherwise appropriated, funds to be obligated for account maintenance fees payable to guaranty agencies under part B and calculated in accordance with subsection (b).

(5) Account maintenance fees

Account maintenance fees under paragraph (3) 2 shall be paid quarterly and deposited in the Agency Operating Fund established under section 1072b of this title.

(6) Technical assistance to institutions of higher education

(A) Provision of assistance

The Secretary shall provide institutions of higher education participating, or seeking to participate, in the loan programs under this part with technical assistance in establishing and administering such programs.

(B) Funds

There are authorized to be appropriated, and there are appropriated, to carry out this paragraph (in addition to any other amounts appropriated to carry out this paragraph and out of any money in the Treasury not otherwise appropriated), $50,000,000 for fiscal year 2010.

In this paragraph, the term “assistance” means the provision of technical support, training, materials, technical assistance, and financial assistance.

(7) Additional payments

(A) Provision of assistance

The Secretary shall provide payments to loan servicers for retaining jobs at locations in the United States where such servicers were operating under part B on January 1, 2010.

(B) Funds

(8) Carryover

The Secretary may carry over funds made available under this section to a subsequent fiscal year.

(b) Calculation basis

Account maintenance fees payable to guaranty agencies under subsection (a)(4) shall be calculated on the basis of 0.06 percent of the original principal amount of outstanding loans on which insurance was issued under part B.

No funds may be expended under this section unless the Secretary includes in the Department of Education’s annual budget justification to Congress a detailed description of the specific activities for which the funds made available by this section have been used in the prior and current years (if applicable), the activities and costs planned for the budget year, and the projection of activities and costs for each remaining year for which administrative expenses under this section are made available.

Source credit: (Pub. L. 89–329, title IV, § 458, as added Pub. L. 102–325, title IV, § 451, July 23, 1992, 106 Stat. 573; amended Pub. L. 103–66, title IV, § 4021, Aug. 10, 1993, 107 Stat. 353; Pub. L. 104–19, title I, § 601, July 27, 1995, 109 Stat. 219; Pub. L. 105–33, title VI, § 6103, Aug. 5, 1997, 111 Stat. 652; Pub. L. 105–78, title VI, § 609(l), Nov. 13, 1997, 111 Stat. 1524; Pub. L. 105–244, title IV, § 454, Oct. 7, 1998, 112 Stat. 1717; Pub. L. 109–171, title VIII, § 8015, Feb. 8, 2006, 120 Stat. 172; Pub. L. 109–292, § 5, Sept. 30, 2006, 120 Stat. 1341; Pub. L. 110–84, title III, § 306, Sept. 27, 2007, 121 Stat. 800; Pub. L. 110–315, title IV, § 452, Aug. 14, 2008, 122 Stat. 3263; Pub. L. 111–152, title II, § 2212(b), Mar. 30, 2010, 124 Stat. 1080; Pub. L. 113–67, div. A, title V, § 502(2), Dec. 26, 2013, 127 Stat. 1187; Pub. L. 114–113, div. H, title III, § 310, Dec. 18, 2015, 129 Stat. 2638; Pub. L. 115–31, div. H, title III, § 309, May 5, 2017, 131 Stat. 552; Pub. L. 115–141, div. H, title III, § 309, Mar. 23, 2018, 132 Stat. 750; Pub. L. 115–245, div. B, title III, § 307, Sept. 28, 2018, 132 Stat. 3105; Pub. L. 116–94, div. A, title III, § 306, Dec. 20, 2019, 133 Stat. 2595; Pub. L. 116–260, div. H, title III, § 306, Dec. 27, 2020, 134 Stat. 1608; Pub. L. 119–21, title VIII, § 82005, July 4, 2025, 139 Stat. 349.)

history & why it existsrecord from the source credit

1992Enacted · Pub. L. 89-329 · 106 Stat. 573
1993Amended · Pub. L. 103-66 · 107 Stat. 353
1995Amended · Pub. L. 104-19 · 109 Stat. 219
1997Amended · Pub. L. 105-33 · 111 Stat. 652
1997Amended · Pub. L. 105-78 · 111 Stat. 1524
1998Amended · Pub. L. 105-244 · 112 Stat. 1717
2006Amended · Pub. L. 109-171 · 120 Stat. 172
2006Amended · Pub. L. 109-292 · 120 Stat. 1341
2007Amended · Pub. L. 110-84 · 121 Stat. 800
2008Amended · Pub. L. 110-315 · 122 Stat. 3263
2010Amended · Pub. L. 111-152 · 124 Stat. 1080
2013Amended · Pub. L. 113-67 · 127 Stat. 1187
2015Amended · Pub. L. 114-113 · 129 Stat. 2638
2017Amended · Pub. L. 115-31 · 131 Stat. 552
2018Amended · Pub. L. 115-141 · 132 Stat. 750
2018Amended · Pub. L. 115-245 · 132 Stat. 3105
2019Amended · Pub. L. 116-94 · 133 Stat. 2595
2020Amended · Pub. L. 116-260 · 134 Stat. 1608
2025Amended · Pub. L. 119-21 · 139 Stat. 349

A history note hasn’t been published yet. The record shows enactment by Pub. L. 89-329 on 1992-07-23.

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