Advances for reserve funds of State and nonprofit private loan insurance programs

From sums appropriated pursuant to paragraphs (3) and (4)(A) of section 1071(b) of this title , the Secretary is authorized to make advances to any State with which the Secretary has made an agreement pursuant to section 1078(b) of this title for the purpose of helping to establish or strengthen the reserve fund of the student loan insurance program covered by that agreement. If for any fiscal year a State does not have a student loan insurance program covered by an agreement made pursuant to section 1078(b) of this title , and the Secretary determines after consultation with the chief executive officer of that State that there is no reasonable likelihood that the State will have such a student loan insurance program for such year, the Secretary may make advances for such year for the same purpose to one or more nonprofit private institutions or organizations with which the Secretary has made an agreement pursuant to section 1078(b) of this title in order to enable students in the State to participate in a program of student loan insurance covered by such an agreement. The Secretary may make advances under this subsection both to a State program (with which he has such an agreement) and to one or more nonprofit private institutions or organizations (with which he has such an agreement) in that State if he determines that such advances are necessary in order that students in each eligible institution have access through such institution to a student loan insurance program which meets the requirements of section 1078(b)(1) of this title .

( Pub. L. 89–329, title IV, § 422 , as added Pub. L. 99–498, title IV, § 402(a) , Oct. 17, 1986 , 100 Stat. 1354 ; amended Pub. L. 100–203, title III , §§ 3001(a), 3002(a), Dec. 22, 1987 , 101 Stat. 1330–36 , 1330–38; Pub. L. 102–325, title IV , §§ 412, 416(p)(8), July 23, 1992 , 106 Stat. 511 , 527; Pub. L. 103–66, title IV , §§ 4041(a), (2)(A), 4042, Aug. 10, 1993 , 107 Stat. 354 , 357; Pub. L. 103–208, § 2(c)(1) , Dec. 20, 1993 , 107 Stat. 2460 ; Pub. L. 105–33, title VI, § 6101(a) , Aug. 5, 1997 , 111 Stat. 648 ; Pub. L. 105–244, title IV, § 412 , Oct. 7, 1998 , 112 Stat. 1673 .)