US CODE: Title 20,1087h. Funds for administrative expenses

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TITLE 20 > CHAPTER 28 > SUBCHAPTER IV > Part C > § 1087h

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§ 1087h. Funds for administrative expenses

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(a) Administrative expenses

(1) In general

Each fiscal year there shall be available to the Secretary, from funds not otherwise appropriated, funds to be obligated for—

(A) administrative costs under this part and part B of this subchapter, including the costs of the direct student loan programs under this part; and

(B) account maintenance fees payable to guaranty agencies under part B of this subchapter and calculated in accordance with subsections (b) and (c) of this section,

not to exceed (from such funds not otherwise appropriated) $617,000,000 in fiscal year 1999, $735,000,000 in fiscal year 2000, $770,000,000 in fiscal year 2001, $780,000,000 in fiscal year 2002, and $795,000,000 in fiscal year 2003.

(2) Account maintenance fees

Account maintenance fees under paragraph (1)(B) shall be paid quarterly and deposited in the Agency Operating Fund established under section 1072b of this title.

(3) Carryover

The Secretary may carry over funds made available under this section to a subsequent fiscal year.

(b) Calculation basis

Except as provided in subsection (c) of this section, account maintenance fees payable to guaranty agencies under paragraph (1)(B) shall be calculated—

(1) for fiscal years 1999 and 2000, on the basis of 0.12 percent of the original principal amount of outstanding loans on which insurance was issued under part B of this subchapter; and

(2) for fiscal years 2001, 2002, and 2003, on the basis of 0.10 percent of the original principal amount of outstanding loans on which insurance was issued under part B of this subchapter.

(1) Fee cap

The total amount of account maintenance fees payable under this section—

(A) for fiscal year 1999, shall not exceed $177,000,000;

(B) for fiscal year 2000, shall not exceed $180,000,000;

(D) for fiscal year 2002, shall not exceed $180,000,000; and

(E) for fiscal year 2003, shall not exceed $195,000,000.

(2) Insufficient funding

(A) In general

If the amounts set forth in paragraph (1) are insufficient to pay the account maintenance fees payable to guaranty agencies pursuant to subsection (b) of this section for a fiscal year, the Secretary shall pay the insufficiency by requiring guaranty agencies to transfer funds from the Federal Student Loan Reserve Funds under section 1072a of this title to the Agency Operating Funds under section 1072b of this title.

(B) Entitlement

A guaranty agency shall be deemed to have a contractual right against the United States to receive payments according to the provisions of subparagraph (A).

(d) Budget justification

No funds may be expended under this section unless the Secretary includes in the Department of Education’s annual budget justification to Congress a detailed description of the specific activities for which the funds made available by this section have been used in the prior and current years (if applicable), the activities and costs planned for the budget year, and the projection of activities and costs for each remaining year for which administrative expenses under this section are made available.

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