20 USC 1071 - Statement of purpose; nondiscrimination; and appropriations authorized

(a) Purpose; discrimination prohibited 

(1) Purpose 
The purpose of this part is to enable the Secretary
(A) to encourage States and nonprofit private institutions and organizations to establish adequate loan insurance programs for students in eligible institutions (as defined in section 1085 of this title),
(B) to provide a Federal program of student loan insurance for students or lenders who do not have reasonable access to a State or private nonprofit program of student loan insurance covered by an agreement under section 1078 (b) of this title,

Advertisement
view counter
(C) to pay a portion of the interest on loans to qualified students which are insured under this part, and
(D) to guarantee a portion of each loan insured under a program of a State or of a nonprofit private institution or organization which meets the requirements of section 1078 (a)(1)(B) of this title.
(2) Discrimination by creditors prohibited 
No agency, organization, institution, bank, credit union, corporation, or other lender who regularly extends, renews, or continues credit or provides insurance under this part shall exclude from receipt or deny the benefits of, or discriminate against any borrower or applicant in obtaining, such credit or insurance on the basis of race, national origin, religion, sex, marital status, age, or handicapped status.
(b) Authorization of appropriations 
For the purpose of carrying out this part
(1) there are authorized to be appropriated to the student loan insurance fund (established by section 1081 of this title)
(A)  the sum of $1,000,000, and
(B)  such further sums, if any, as may become necessary for the adequacy of the student loan insurance fund,
(2) there are authorized to be appropriated, for payments under section 1078 of this title with respect to interest on student loans and for payments under section 1087 of this title, such sums for the fiscal year ending June 30, 1966, and succeeding fiscal years, as may be required therefor,
(3) there is authorized to be appropriated the sum of $17,500,000 for making advances pursuant to section 1072 of this title for the reserve funds of State and nonprofit private student loan insurance programs,
(4) there are authorized to be appropriated

Advertisement
view counter
(A)  the sum of $12,500,000 for making advances after June 30, 1968, pursuant to sections 1072 (a) and (b) of this title, and
(B)  such sums as may be necessary for making advances pursuant to section 1072 (c) of this title, for the reserve funds of State and nonprofit private student loan insurance programs, and
(5) there are authorized to be appropriated such sums as may be necessary for the purpose of paying a loan processing and issuance fee in accordance with section 1078 (f) of this title to guaranty agencies.

Sums appropriated under paragraphs (1), (2), (4), and (5) of this subsection shall remain available until expended. No additional sums are authorized to be appropriated under paragraph (3) or (4) of this subsection by reason of the reenactment of such paragraphs by the Higher Education Amendments of 1986.

(c) Designation 
The program established under this part shall be referred to as the Robert T. Stafford Federal Student Loan Program. Loans made pursuant to sections 1077 and 1078 of this title shall be known as Federal Stafford Loans.