---
kind: "section"
citation: "20 U.S.C. § 1087i"
title: "20"
title_heading: "Education"
number: "1087i"
heading: "Authority to sell loans"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/20/1087i"
units:
  - "Chapter 28 — Higher Education Resources and Student Assistance"
  - "Subchapter IV — Student Assistance"
  - "Part D — William D. Ford Federal Direct Loan Program"
---

# §1087i. Authority to sell loans


The [Secretary](/usc/20/1003.md?p=17), in consultation with the [Secretary](/usc/20/1003.md?p=17) of the Treasury, is authorized to sell [loans](/usc/20/1066a.md?p=2) made under this part on such terms as the [Secretary](/usc/20/1003.md?p=17) determines are in the best [interest](/usc/20/1066a.md?p=6) of the United States, except that any such sale shall not result in any cost to the Federal Government. Notwithstanding any other provision of law, the proceeds of any such sale may be used by the [Secretary](/usc/20/1003.md?p=17) to offer reductions in the [interest](/usc/20/1066a.md?p=6) rate paid by a borrower of a [loan](/usc/20/1066a.md?p=2) made under this part as the [Secretary](/usc/20/1003.md?p=17) determines appropriate to encourage on-time repayment in accordance with [section 1087e(b)(7) of this title](/usc/20/1087e.md?p=b-7). Such reductions may be offered only if the [Secretary](/usc/20/1003.md?p=17) determines the reductions are in the best financial [interests](/usc/20/1066a.md?p=6) of the Federal Government.


## Source credit

(Pub. L. 89–329, title IV, § 459, as added Pub. L. 105–244, title IV, § 455, Oct. 7, 1998, 112 Stat. 1718.)

## Notes

### Editorial Notes

### Prior Provisions

A prior section 1087i, Pub. L. 89–329, title IV, § 459, as added Pub. L. 102–325, title IV, § 451, July 23, 1992, 106 Stat. 575, which related to schedule of regulatory activities by Secretary under Federal direct loan demonstration program, was omitted in the general amendment of this part by Pub. L. 103–66.

### Statutory Notes and Related Subsidiaries

### Effective Date

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