20 USC § 1086 - Delegation of functions

---
identifier: "/us/usc/t20/s1086"
source: "usc"
legal_status: "official_prima_facie"
title: "20 USC § 1086 - Delegation of functions"
title_number: 20
title_name: "EDUCATION"
section_number: "1086"
section_name: "Delegation of functions"
chapter_number: 28
chapter_name: "HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE"
subchapter_number: "IV"
subchapter_name: "STUDENT ASSISTANCE"
part_number: "B"
part_name: "Federal Family Education Loan Program"
positive_law: false
currency: "119-84"
last_updated: "2026-04-17"
format_version: "1.1.0"
generator: "[email protected]"
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.)"
---


# § 1086. Delegation of functions

**(a)** **In general** An eligible lender or guaranty agency that contracts with another entity to perform any of the lender’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’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 that holds a loan made under this part in the lender’s capacity as a trustee is responsible for complying with all statutory and regulatory requirements imposed on any other holder of a loan 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.)

## Editorial Notes

### Prior Provisions

A prior section 1086, , as added , , ; amended , , ; , , ; , , , related to a District of Columbia student loan insurance program, prior to the general revision of this part by .

### Amendments

1998— 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  effective , except as otherwise provided in , see , set out as a note under .