20 USC § 1087i - Authority to sell loans

---
identifier: "/us/usc/t20/s1087i"
source: "usc"
legal_status: "official_prima_facie"
title: "20 USC § 1087i - Authority to sell loans"
title_number: 20
title_name: "EDUCATION"
section_number: "1087i"
section_name: "Authority to sell loans"
chapter_number: 28
chapter_name: "HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE"
subchapter_number: "IV"
subchapter_name: "STUDENT ASSISTANCE"
part_number: "D"
part_name: "William D. Ford Federal Direct 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, § 459, as added Pub. L. 105–244, title IV, § 455, Oct. 7, 1998, 112 Stat. 1718.)"
---


# § 1087i. Authority to sell loans

section 1087e(b)(7) of this title

The Secretary, in consultation with the Secretary of the Treasury, is authorized to sell loans made under this part on such terms as the Secretary determines are in the best interest 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 to offer reductions in the interest rate paid by a borrower of a loan made under this part as the Secretary determines appropriate to encourage on-time repayment in accordance with . Such reductions may be offered only if the Secretary determines the reductions are in the best financial interests 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.)

## Editorial Notes

### Prior Provisions

A prior section 1087i, , as added , , , 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 .

## Statutory Notes and Related Subsidiaries

### Effective Date

Section effective , except as otherwise provided in , see , set out as an Effective Date of 1998 Amendment note under .