Sec. 421. STATEMENT OF PURPOSE; NONDISCRIMINATION; AND APPROPRIATIONS AUTHORIZED
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## SEC. 421 STATEMENT OF PURPOSE; NONDISCRIMINATION; AND APPROPRIATIONS AUTHORIZED **[**[20 U.S.C. 1071](/us/usc/t20/s1071)**]** ###
(a)Purpose; Discrimination Prohibited ####
(1)Purpose The purpose of this part is to enable the Secretary— #####
(A)to encourage States and nonprofit private institutions and organizations to establish adequate loan insurance programs for students in eligible institutions (as defined in section 435), #####
(B)to provide a Federal program of student loan insurance for students or lenders who do not have reasonable access to a State or private nonprofit program of student loan insurance covered by an agreement under section 428(b), #####
(C)to pay a portion of the interest on loans to qualified students which are insured under this part, and #####
(D)to guarantee a portion of each loan insured under a program of a State or of a nonprofit private institution or organization which meets the requirements of section 428(a)(1)(B). ####
(2)Discrimination by creditors prohibited No agency, organization, institution, bank, credit union, corporation, or other lender who regularly extends, renews, or continues credit or provides insurance under this part shall exclude from receipt or deny the benefits of, or discriminate against any borrower or applicant in obtaining, such credit or insurance on the basis of race, national origin, religion, sex, marital status, age, or handicapped status. ###
(b)Authorization of Appropriations For the purpose of carrying out this part— ####
(1)there are authorized to be appropriated to the student loan insurance fund (established by section 431)
(A)the sum of $1,000,000, and
(B)such further sums, if any, as may become necessary for the adequacy of the student loan insurance fund, ####
(2)there are authorized to be appropriated, for payments under section 428 with respect to interest on student loans and for payments under section 437, such sums for the fiscal year ending June 30, 1966, and succeeding fiscal years, as may be required therefor, ####
(3)there is authorized to be appropriated the sum of $17,500,000 for making advances pursuant to section 422 for the reserve funds of State and nonprofit private student loan insurance programs, ####
(4)there are authorized to be appropriated
(A)the sum of $12,500,000 for making advances after June 30, 1968, pursuant to sections 422
(a)and (b), and
(B)such sums as may be necessary for making advances pursuant to section 422(c), for the reserve funds of State and nonprofit private student loan insurance programs, ####
(5)there are authorized to be appropriated such sums as may be necessary for the purpose of paying a loan processing and issuance fee in accordance with section 428(f) to guaranty agencies, and ####
(6)there is authorized to be appropriated, and there are appropriated, out of any money in the Treasury not otherwise appropriated, such sums as may be necessary for the purpose of carrying out section 422(c)(7). Sums appropriated under paragraphs (1), (2), (4), and
(5)of this subsection shall remain available until expended, except that no sums may be expended after June 30, 2010, with respect to loans under this part for which the first disbursement is after such date. No additional sums are authorized to be appropriated under paragraph
(3)or
(4)of this subsection by reason of the reenactment of such paragraphs by the Higher Education Amendments of 1986. ###
(c)Designation The program established under this part shall be referred to as the “Robert T. Stafford Federal Student Loan Program”. Loans made pursuant to sections 427 and 428 shall be known as “Federal Stafford Loans”. ###
(d)Termination of Authority to Make or Insure New Loans Notwithstanding paragraphs
(1)through
(6)of subsection
(b)or any other provision of law— ####
(1)no new loans (including consolidation loans) may be made or insured under this part after June 30, 2010; and ####
(2)no funds are authorized to be appropriated, or may be expended, under this Act or any other Act to make or insure loans under this part (including consolidation loans) for which the first disbursement is after June 30, 2010, except as expressly authorized by an Act of Congress enacted after the date of enactment of the SAFRA Act.
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Sec. 421
STATEMENT OF PURPOSE; NONDISCRIMINATION; AND APPROPRIATIONS AUTHORIZED
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