§ 1073. Effects of adequate non-Federal programs
(a)
Federal insurance barred to lenders with access to State or private insurance
Except as provided in subsection (b) of this section, the Secretary shall not issue certificates of insurance under section
1079 of this title to lenders in a State if the Secretary determines that every eligible institution has reasonable access in that State to a State or private nonprofit student loan insurance program which is covered by an agreement under section
1078
(b) of this title.
(b)
Exceptions
The Secretary may issue certificates of insurance under section
1079 of this title to a lender in a State—
(1)
for insurance of a loan made to a student borrower who does not, by reason of the borrower’s residence, have access to loan insurance under the loan insurance program of such State (or under any private nonprofit loan insurance program which has received an advance under section
1072 of this title for the benefit of students in such State);
(2)
for insurance of all the loans made to student borrowers by a lender who satisfies the Secretary that, by reason of the residence of such borrowers, such lender will not have access to any single State or nonprofit private loan insurance program which will insure substantially all of the loans such lender intends to make to such student borrowers; or