(a)Federal insurance barred to lenders with access to State or private insurance
Except as provided in subsection (b), 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 student
loan insurance program which is covered by an agreement under section 1078(b) of this title.
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
borrower's residence, have access to loan insurance under the loan insurance program
of such State (or under any private 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 private loan insurance program which
will insure substantially all of the loans such lender intends to make to such student
(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.
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
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