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20 U.S.C. § 1091aStatute of limitations, and State court judgments

submitted 40 years ago by Pub. L. 89-329 to r/title-20-EDUCATION · 599 words · no verdicts yet

in plain englishAI-generated · not legal advice

This section prevents time limits from ending efforts to collect covered student-aid debts and allows qualifying state-court judgments to be registered in federal court. It also permits collection costs and protects a deceased student’s estate from repayment.

(a) In general. (1) The purpose is to enforce repayment of loans and grant overpayments without federal or State statutory, regulatory, or administrative time limits. (2) No such limit may end the time for a lawsuit, judgment enforcement, offset, garnishment, or other collection action by (A) an institution collecting a grant refund or work-assistance refund; (B) a guaranty agency with a § 1078(c) agreement collecting a part B loan after reimbursing its prior holder for the borrower’s default loss; (C) an institution with a § 1087c or § 1087cc(a) agreement collecting a part D or E loan after default; or (D) the Secretary, Attorney General, or another federal agency head collecting a grant refund or a loan assigned to the Secretary. (b) Costs and other charges. Despite State law, (1) a borrower in default must pay reasonable collection costs in addition to other charges; (2) a guaranty agency or the Secretary collecting a part B obligation cannot be met with an infancy defense; and (3) an institution with a § 1087cc(a) agreement collecting a part E obligation cannot be met with that defense. (c) State-court judgments. A State-court money judgment for grant, loan, or work assistance assigned or transferred to the Secretary may be registered in any federal district court by filing a certified judgment and assignment or transfer. The registered judgment has the same force and effect as, and may be enforced like, a judgment of that district court. (d) Special rule. This section does not apply to a deceased student, the student’s estate, or the student’s family’s estate. They do not have to repay any aid under this subchapter, including interest paid for the student, collection costs, or other charges.
the actual law source: uscode.house.gov ↗public domain
(a) In general
(1)

It is the purpose of this subsection to ensure that obligations to repay loans and grant overpayments are enforced without regard to any Federal or State statutory, regulatory, or administrative limitation on the period within which debts may be enforced.

(2)

Notwithstanding any other provision of statute, regulation, or administrative limitation, no limitation shall terminate the period within which suit may be filed, a judgment may be enforced, or an offset, garnishment, or other action initiated or taken by—

(A)

an institution that receives funds under this subchapter that is seeking to collect a refund due from a student on a grant made, or work assistance awarded, under this subchapter;

(B)

a guaranty agency that has an agreement with the Secretary under section 1078(c) of this title that is seeking the repayment of the amount due from a borrower on a loan made under part B of this subchapter after such guaranty agency reimburses the previous holder of the loan for its loss on account of the default of the borrower;

(C)

an institution that has an agreement with the Secretary pursuant to section 1087c or 1087cc(a) of this title that is seeking the repayment of the amount due from a borrower on a loan made under part D or E of this subchapter after the default of the borrower on such loan; or

(D)

the Secretary, the Attorney General, or the administrative head of another Federal agency, as the case may be, for payment of a refund due from a student on a grant made under this subchapter, or for the repayment of the amount due from a borrower on a loan made under this subchapter that has been assigned to the Secretary under this subchapter.

(b) Assessment of costs and other charges

Notwithstanding any provision of State law to the contrary—

(1)

a borrower who has defaulted on a loan made under this subchapter shall be required to pay, in addition to other charges specified in this subchapter reasonable collection costs;

(2)

in collecting any obligation arising from a loan made under part B of this subchapter, a guaranty agency or the Secretary shall not be subject to a defense raised by any borrower based on a claim of infancy; and

(3)

in collecting any obligation arising from a loan made under part E, an institution of higher education that has an agreement with the Secretary pursuant to section 1087cc(a) of this title shall not be subject to a defense raised by any borrower based on a claim of infancy.

(c) State court judgments

A judgment of a State court for the recovery of money provided as grant, loan, or work assistance under this subchapter that has been assigned or transferred to the Secretary under this subchapter may be registered in any district court of the United States by filing a certified copy of the judgment and a copy of the assignment or transfer. A judgment so registered shall have the same force and effect, and may be enforced in the same manner, as a judgment of the district court of the district in which the judgment is registered.

(d) Special rule

This section shall not apply in the case of a student who is deceased, or to a deceased student’s estate or the estate of such student’s family. If a student is deceased, then the student’s estate or the estate of the student’s family shall not be required to repay any financial assistance under this subchapter, including interest paid on the student’s behalf, collection costs, or other charges specified in this subchapter.

Source credit: (Pub. L. 89–329, title IV, § 484A, as added Pub. L. 99–498, title IV, § 407(a), Oct. 17, 1986, 100 Stat. 1482; amended Pub. L. 102–26, § 3(a), Apr. 9, 1991, 105 Stat. 124; Pub. L. 105–244, title IV, § 484, Oct. 7, 1998, 112 Stat. 1737; Pub. L. 110–315, title IV, § 486, Aug. 14, 2008, 122 Stat. 3290.)

history & why it existsrecord from the source credit
  • 1986Enacted · Pub. L. 89-329 · 100 Stat. 1482
  • 1991Amended · Pub. L. 102-26 · 105 Stat. 124
  • 1998Amended · Pub. L. 105-244 · 112 Stat. 1737
  • 2008Amended · Pub. L. 110-315 · 122 Stat. 3290

A history note hasn’t been published yet. The record shows enactment by Pub. L. 89-329 on 1986-10-17.

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