§ 1071. Statement of purpose; nondiscrimination; and appropriations authorized
(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
1085 of this title),
(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
1078
(b) of this title,
(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
1081 of this title)
(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
1078 of this title with respect to interest on student loans and for payments under section
1087 of this title, 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
1072 of this title 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
1072
(a) and (b) of this title, and
(B)
such sums as may be necessary for making advances pursuant to section
1072
(c) of this title, 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
1078
(f) of this title 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
1072
(c)(7) of this title.
Sums appropriated under paragraphs (1), (2), (4), and (5) of this subsection shall remain available until expended. 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.