20 USC 1073 - Effects of adequate non-Federal programs

(a) Federal insurance barred to lenders with access to State or private insurance 
Except as provided in subsection (b) of this section, the Secretary shall not issue certificates of insurance under section 1079 of this title to lenders in a State if the Secretary determines that every eligible institution has reasonable access in that State to a State or private nonprofit">nonprofit student loan insurance program which is covered by an agreement under section 1078 (b) of this title.
(b) Exceptions 
The Secretary may issue certificates of insurance under section 1079 of this title to a lender in a State
(1) for insurance of a loan made to a student borrower who does not, by reason of the borrowers residence, have access to loan insurance under the loan insurance program of such State (or under any private nonprofit">nonprofit loan insurance program which has received an advance under section 1072 of this title for the benefit of students in such State);
(2) for insurance of all the loans made to student borrowers by a lender who satisfies the Secretary that, by reason of the residence of such borrowers, such lender will not have access to any single State or nonprofit">nonprofit private loan insurance program which will insure substantially all of the loans such lender intends to make to such student borrowers; or

view counter
(3) under such circumstances as may be approved by the guaranty agency in such State, for the insurance of a loan to a borrower for whom such lender previously was issued such a certificate if the loan covered by such certificate is not yet repaid.