---
kind: "section"
citation: "20 U.S.C. § 1086"
title: "20"
title_heading: "Education"
number: "1086"
heading: "Delegation of functions"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/20/1086"
units:
  - "Chapter 28 — Higher Education Resources and Student Assistance"
  - "Subchapter IV — Student Assistance"
  - "Part B — Federal Family Education Loan Program"
---

# §1086. Delegation of functions

- (a) **In general—** An [eligible lender](/usc/20/1019.md?p=4) or [guaranty agency](/usc/20/1085.md?p=j) that contracts with another entity to perform any of the [lender](/usc/20/1019.md?p=6)’s or agency’s functions under this subchapter, or otherwise delegates the performance of such functions to such other entity—
  - (1) shall not be relieved of the [lender](/usc/20/1019.md?p=6)’s or agency’s duty to comply with the requirements of this subchapter; and
  - (2) shall monitor the activities of such other entity for compliance with such requirements.
- (b) **Special rule—** A [lender](/usc/20/1019.md?p=6) that holds a [loan](/usc/20/1066a.md?p=2) made under this part in the [lender](/usc/20/1019.md?p=6)’s capacity as a trustee is responsible for complying with all statutory and regulatory requirements imposed on any other [holder](/usc/20/1085.md?p=i) of a [loan](/usc/20/1066a.md?p=2) made under this part.

## Source credit

(Pub. L. 89–329, title IV, § 436, as added Pub. L. 99–498, title IV, § 402(a), Oct. 17, 1986, 100 Stat. 1413; amended Pub. L. 105–244, title IV, § 430, Oct. 7, 1998, 112 Stat. 1709.)

## Notes

### Editorial Notes

### Prior Provisions

A prior section 1086, Pub. L. 89–329, title IV, § 436, as added Pub. L. 89–752, § 12, Nov. 3, 1966, 80 Stat. 1244; amended Pub. L. 90–575, title I, § 116(b)(5), Oct. 16, 1968, 82 Stat. 1024; Pub. L. 94–482, title I, § 127(a), Oct. 12, 1976, 90 Stat. 2132; Pub. L. 96–374, title XIII, § 1391(a)(1), Oct. 3, 1980, 94 Stat. 1503, related to a District of Columbia student loan insurance program, prior to the general revision of this part by Pub. L. 99–498.

### Amendments

1998—Pub. L. 105–244 amended section catchline and text generally. Prior to amendment, section authorized establishment of a District of Columbia student loan insurance program.

### Statutory Notes and Related Subsidiaries

### Effective Date of 1998 Amendment

Amendment by Pub. L. 105–244 effective Oct. 1, 1998, except as otherwise provided in Pub. L. 105–244, see section 3 of Pub. L. 105–244, set out as a note under section 1001 of this title.