---
kind: "section"
citation: "20 U.S.C. § 1073"
title: "20"
title_heading: "Education"
number: "1073"
heading: "Effects of adequate non-Federal programs"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/20/1073"
units:
  - "Chapter 28 — Higher Education Resources and Student Assistance"
  - "Subchapter IV — Student Assistance"
  - "Part B — Federal Family Education Loan Program"
---

# §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)](#b), the [Secretary](/usc/20/1003.md?p=17) shall not issue certificates of insurance under [section 1079 of this title](/usc/20/1079.md) to [lenders](/usc/20/1019.md?p=6) in a [State](/usc/20/1003.md?p=21-A) if the [Secretary](/usc/20/1003.md?p=17) determines that every [eligible institution](/usc/20/1058.md?p=b) has reasonable access in that [State](/usc/20/1003.md?p=21-A) to a [State](/usc/20/1003.md?p=21-A) or private [nonprofit](/usc/20/1003.md?p=13) student [loan](/usc/20/1066a.md?p=2) insurance program which is covered by an agreement under [section 1078(b) of this title](/usc/20/1078.md?p=b).
- (b) **Exceptions—** The [Secretary](/usc/20/1003.md?p=17) may issue certificates of insurance under [section 1079 of this title](/usc/20/1079.md) to a [lender](/usc/20/1019.md?p=6) in a [State](/usc/20/1003.md?p=21-A)—
  - (1) for insurance of a [loan](/usc/20/1066a.md?p=2) made to a student borrower who does not, by reason of the borrower’s residence, have access to [loan](/usc/20/1066a.md?p=2) insurance under the [loan](/usc/20/1066a.md?p=2) insurance program of such [State](/usc/20/1003.md?p=21-A) (or under any private [nonprofit](/usc/20/1003.md?p=13) [loan](/usc/20/1066a.md?p=2) insurance program which has received an advance under [section 1072 of this title](/usc/20/1072.md) for the benefit of students in such [State](/usc/20/1003.md?p=21-A));
  - (2) for insurance of all the [loans](/usc/20/1066a.md?p=2) made to student borrowers by a [lender](/usc/20/1019.md?p=6) who satisfies the [Secretary](/usc/20/1003.md?p=17) that, by reason of the residence of such borrowers, such [lender](/usc/20/1019.md?p=6) will not have access to any single [State](/usc/20/1003.md?p=21-A) or [nonprofit](/usc/20/1003.md?p=13) private [loan](/usc/20/1066a.md?p=2) insurance program which will insure substantially all of the [loans](/usc/20/1066a.md?p=2) such [lender](/usc/20/1019.md?p=6) intends to make to such student borrowers; or
  - (3) under such circumstances as may be approved by the [guaranty agency](/usc/20/1085.md?p=j) in such [State](/usc/20/1003.md?p=21-A), for the insurance of a [loan](/usc/20/1066a.md?p=2) to a borrower for whom such [lender](/usc/20/1019.md?p=6) previously was issued such a certificate if the [loan](/usc/20/1066a.md?p=2) covered by such certificate is not yet repaid.

## Source credit

(Pub. L. 89–329, title IV, § 423, as added Pub. L. 99–498, title IV, § 402(a), Oct. 17, 1986, 100 Stat. 1358.)

## Notes

### Editorial Notes

### Prior Provisions

A prior section 1073, Pub. L. 89–329, title IV, § 423, Nov. 8, 1965, 79 Stat. 1237; Pub. L. 90–575, title I, § 119(a), Oct. 16, 1968, 82 Stat. 1026; Pub. L. 94–482, title I, § 127(a), Oct. 12, 1976, 90 Stat. 2103; Pub. L. 95–43, § 1(a)(14), June 15, 1977, 91 Stat. 214; Pub. L. 96–374, title XIII, § 1391(a)(1), Oct. 3, 1980, 94 Stat. 1503, limited participation in Federal loan insurance programs, prior to the general revision of this part by Pub. L. 99–498.