20 U.S.C. § 1071 — Statement of purpose; nondiscrimination;

Page 392 TITLE 20—EDUCATION § 1070g–3 2010 (20 U.S.C. 9903), and section 9 of the National Science Foundation Authorization Act of 2002 (42 U.S.C. 1862n), to ‘highly qualified’, as defined in sec- tion 9101 of the Elementary and Secondary Education Act of 1965 [now section 8101, 20 U.S.C. 7801], with re- spect to a teacher, means that the teacher meets ap- plicable State certification and licensure require- ments, including any requirements for certification obtained through alternative routes to certification.’’ § 1070g–3. Program period and funding Beginning on July 1, 2008, there shall be avail- able to the Secretary to carry out this subpart, from funds not otherwise appropriated, such sums as may be necessary to provide TEACH Grants in accordance with this subpart to each eligible applicant. (Pub. L. 89–329, title IV, § 420O, as added Pub. L. 110–84, title I, § 104, Sept. 27, 2007, 121 Stat. 790.) § 1070g–4. Program report Not later than two years after August 14, 2008, and every two years thereafter, the Secretary shall prepare and submit to the authorizing committees a report on TEACH grants with re- spect to the schools and students served by re- cipients of such grants. Such report shall take into consideration information related to— (1) the number of TEACH grant recipients; (2) the degrees obtained by such recipients; (3) the location, including the school, local educational agency, and State, where the re- cipients completed the service agreed to under section 1070g–2(b) of this title and the subject taught; (4) the duration of such service; and (5) any other data necessary to conduct such evaluation. (Pub. L. 89–329, title IV, § 420P, as added Pub. L. 110–315, title IV, § 412(a)(2), Aug. 14, 2008, 122 Stat. 3227.) SUBPART 10—SCHOLARSHIPS FOR VETERAN’S DEPENDENTS § 1070h. Repealed. Pub. L. 117–103, div. R, § 103(c)(2), Mar. 15, 2022, 136 Stat. 821 Section, Pub. L. 89–329, title IV, § 420R, as added Pub. L. 111–39, title IV, § 401(a)(9), July 1, 2009, 123 Stat. 1939, related to grants for veteran’s dependents, known as Iraq and Afghanistan Service Grants. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF REPEAL Repeal effective as if included in title VII of div. FF of Pub. L. 116–260 and subject to the effective date of section 701(b) of title VII (July 1, 2024), see section 103(d) of div. R of Pub. L. 117–103, set out as an Effective Date of 2022 Amendment note under section 1070a of this title. PART B—FEDERAL FAMILY EDUCATION LOAN PROGRAM Editorial Notes CODIFICATION Part B of title IV of the Higher Education Act of 1965, comprising this part, was originally enacted by Pub. L. 89–329, title IV, Nov. 8, 1965, 79 Stat. 1236, and amended by Pub. L. 89–698, Oct. 29, 1966, 80 Stat. 1066; Pub. L. 89–752, Nov. 3, 1966, 80 Stat. 1240; Pub. L. 89–794, Nov. 8, 1966, 80 Stat. 1451; Pub. L. 90–460, Aug. 3, 1968, 82 Stat. 634; Pub. L. 90–575, Oct. 16, 1968, 82 Stat. 1014; Pub. L. 91–206, Mar. 10, 1970, 84 Stat. 49; Pub. L. 92–318, June 23, 1972, 86 Stat. 235; Pub. L. 93–269, Apr. 18, 1974, 88 Stat. 87; Pub. L. 93–604, Jan. 2, 1975, 88 Stat. 1959; Pub. L. 94–273, Apr. 21, 1976, 90 Stat. 375; Pub. L. 94–328, June 30, 1976, 90 Stat. 727; Pub. L. 94–482, Oct. 12, 1976, 90 Stat. 2081; S. Res. 4, Feb. 4, 1977; Pub. L. 95–43, June 15, 1977, 91 Stat. 213; Pub. L. 95–561, Nov. 1, 1978, 92 Stat. 2143; Pub. L. 95–566, Nov. 1, 1978, 92 Stat. 2402; Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2549; Pub. L. 95–630, Nov. 10, 1978, 92 Stat. 3641; S. Res. 30, Mar. 7, 1979; Pub. L. 96–49, Aug. 13, 1979, 93 Stat. 351; Pub. L. 96–88, Oct. 17, 1979, 93 Stat. 668; Pub. L. 96–374, Oct. 3, 1980, 94 Stat. 1367; Pub. L. 97–35, Aug. 13, 1981, 95 Stat. 357; Pub. L. 97–115, Dec. 29, 1981, 95 Stat. 1595; Pub. L. 97–301, Oct. 13, 1982, 96 Stat. 1400; Pub. L. 98–79, Aug. 15, 1983, 97 Stat. 476; Pub. L. 99–272, Apr. 7, 1986, 100 Stat. 82; Pub. L. 99–320, May 23, 1986, 100 Stat. 491. Such part is shown herein, however, as having been added by Pub. L. 99–498, title IV, § 402(a), Oct. 17, 1986, 100 Stat. 1353, without reference to such intervening amendments because of the extensive revi- sion of part B by Pub. L. 99–498. § 1071. Statement of purpose; nondiscrimination; and appropriations authorized (a) Purpose; discrimination prohibited (1) Purpose The purpose of this part is to enable the Sec- retary— (A) to encourage States and nonprofit pri- vate institutions and organizations to estab- lish adequate loan insurance programs for students in eligible institutions (as defined in section 1085 of this title), (B) to provide a Federal program of stu- dent 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, (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 in- sured under a program of a State or of a non- profit private institution or organization which meets the requirements of section 1078(a)(1)(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 ex- clude from receipt or deny the benefits of, or discriminate against any borrower or appli- cant 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 (estab- lished by section 1081 of this title) (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 1078 of this title with respect to interest on student loans and Page 393 TITLE 20—EDUCATION § 1071 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 re- quired therefor, (3) there is authorized to be appropriated the sum of $17,500,000 for making advances pursu- ant 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, except that no sums may be ex- pended after June 30, 2010, with respect to loans under this part for which the first disbursement is after such date. No additional sums are au- thorized to be appropriated under paragraph (3) or (4) of this subsection by reason of the reen- actment of such paragraphs by the Higher Edu- cation 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 1077 and 1078 of this title 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 appro- priated, or may be expended, under this chap- ter 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 Con- gress enacted after March 30, 2010. (Pub. L. 89–329, title IV, § 421, as added Pub. L. 99–498, title IV, § 402(a), Oct. 17, 1986, 100 Stat. 1353; amended Pub. L. 100–297, title II, § 2601(a), Apr. 28, 1988, 102 Stat. 330; Pub. L. 100–369, § 8, July 18, 1988, 102 Stat. 837; Pub. L. 102–325, title IV, § 411(a)(2), (c), July 23, 1992, 106 Stat. 510, 511; Pub. L. 105–244, title IV, § 411, Oct. 7, 1998, 112 Stat. 1673; Pub. L. 109–171, title VIII, § 8004(a), Feb. 8, 2006, 120 Stat. 158; Pub. L. 110–227, § 6(a), May 7, 2008, 122 Stat. 746; Pub. L. 111–152, title II, § 2201, Mar. 30, 2010, 124 Stat. 1074.) Editorial Notes REFERENCES IN TEXT The Higher Education Amendments of 1986, referred to in subsec. (b), is Pub. L. 99–498, Oct. 17, 1986, 100 Stat. 1268. For complete classification of this Act to the Code, see Short Title note set out under section 1001 of this title and Tables. CODIFICATION Another section 411 of Pub. L. 105–244 enacted subpart 8 (§ 1070f et seq.) of part A of this subchapter. PRIOR PROVISIONS A prior section 1071, Pub. L. 89–329, title IV, § 421, Nov. 8, 1965, 79 Stat. 1236; Pub. L. 90–460, §§ 2(b)(3), 3(a), Aug. 3, 1968, 82 Stat. 635, 636; Pub. L. 90–575, title I, §§ 113(b)(1), 114(a), 119(b), Oct. 16, 1968, 82 Stat. 1021, 1027; Pub. L. 94–482, title I, § 127(a), Oct. 12, 1976, 90 Stat. 2099; Pub. L. 95–43, § 1(a)(8)–(10), June 15, 1977, 91 Stat. 213; Pub. L. 96–374, title XIII, § 1391(a)(1), (2), Oct. 3, 1980, 94 Stat. 1503; Pub. L. 98–79, § 6, Aug. 15, 1983, 97 Stat. 482, related to statement of purpose of, appropriations for, and implementation of programs to provide low-inter- est insured loans to students in institutions of higher education, prior to the general revision of this part by Pub. L. 99–498. AMENDMENTS 2010—Subsec. (b). Pub. L. 111–152, § 2201(1), inserted ‘‘, 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’’ after ‘‘expended’’ in concluding provisions. Subsec. (d). Pub. L. 111–152, § 2201(2), added subsec. (d). 2008—Subsec. (b)(6). Pub. L. 110–227 added par. (6). 2006—Subsec. (b)(5). Pub. L. 109–171 substituted ‘‘a loan processing and issuance fee’’ for ‘‘an administra- tive cost allowance’’. 1998—Subsec. (d). Pub. L. 105–244 struck out heading and text of subsec. (d). Text read as follows: ‘‘Notwith- standing any other provision of this part, no new loan guarantees shall be issued after June 30, 1994, if the Secretary does not issue final regulations imple- menting the changes made to this part under the High- er Education Amendments of 1992 prior to that date. The authority to issue new loan guarantees shall re- sume upon the Secretary’s issuance of such regula- tions. This subsection shall not provide the basis for avoiding any requirements for notice and public hear- ing on such regulations.’’ 1992—Subsec. (c). Pub. L. 102–325, § 411(a)(2), added subsec. (c) and struck out former subsec. (c) which read as follows: ‘‘The program established under this part shall be referred to as the ‘Robert T. Stafford Student Loan Program’. Loans made under this part shall be known as ‘Stafford Loans’.’’ Subsec. (d). Pub. L. 102–325, § 411(c), added subsec. (d). 1988—Subsec. (c). Pub. L. 100–369 substituted ‘‘shall be referred’’ for ‘‘may be referred’’ and inserted provision identifying loans made under this part as ‘‘Stafford Loans’’. Pub. L. 100–297 added subsec. (c). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2008 AMENDMENT Pub. L. 110–227, § 6(b), May 7, 2008, 122 Stat. 746, pro- vided that: ‘‘The amendments made by subsection (a) [amending this section] shall take effect on the date of enactment of this Act [May 7, 2008].’’ EFFECTIVE DATE OF 2006 AMENDMENT Amendment by Pub. L. 109–171 effective July 1, 2006, except as otherwise provided, see section 8001(c) of Pub. L. 109–171, set out as a note under section 1002 of this title. EFFECTIVE DATE OF 1992 AMENDMENT Amendment by Pub. L. 102–325 effective July 23, 1992, with changes in the designation or names of loans or Page 394 TITLE 20—EDUCATION § 1071 programs under this part effective with respect to ap- plications or other documents (used in making such loans) that are printed after July 23, 1992, see section 432 of Pub. L. 102–325, set out as a note under section 1078 of this title. EFFECTIVE DATE OF 1988 AMENDMENT Pub. L. 100–297, title VI, § 6303, Apr. 28, 1988, 102 Stat. 431, as amended by Pub. L. 100–351, June 27, 1988, 102 Stat. 661; Pub. L. 106–400, § 2, Oct. 30, 2000, 114 Stat. 1675, provided that: ‘‘(a) GENERAL RULE.—Except as otherwise provided, this Act and the amendments made by this Act [see Ta- bles for classification] shall take effect July 1, 1988. ‘‘(b) SPECIAL RULES.—(1) Any provision of this Act or any amendment made by this Act which authorizes ap- propriations for fiscal year 1988 shall take effect on the date of the enactment of this Act [Apr. 28, 1988]. ‘‘(2) The provisions of section 2402, relating to the Na- tional Center for Vocational Research, shall take effect on April 10, 1988. ‘‘(3) The amendments made by section 3403 [amending sections 1221e and 1221e–1 of this title] shall take effect for assessments made after September 30, 1989, with re- spect to State data. ‘‘(4) Allotments to States made under chapters 1 and 2 of title I of the Elementary and Secondary Education Act of 1965 [formerly 20 U.S.C. 2701 et seq., 2911 et seq.] and under the Adult Education Act [formerly 20 U.S.C. 1201 et seq.] from amounts appropriated by the joint resolution entitled ‘Joint resolution making further continuing appropriations for the fiscal year 1988, and for other purposes’, approved December 22, 1987 (Public Law 100–202), shall be computed in accordance with the provisions of law applicable to allotments to States under chapters 1 and 2 of the Education Consolidation and Improvement Act of 1981 [formerly 20 U.S.C. 3801 et seq., 3811 et seq.] and under the Adult Education Act, respectively, as such Acts were in effect on the day be- fore the date of the enactment of this Act [Apr. 28, 1988]. ‘‘(5) Amounts appropriated by the joint resolution en- titled ‘Joint resolution making further continuing ap- propriations for the fiscal year 1988, and for other pur- poses’, approved December 22, 1987 (Public Law 100–202), for the following programs shall be awarded in accord- ance with the applicable provisions of law in effect on the day before the date of the enactment of this Act [Apr. 28, 1988]: ‘‘(A) Programs under subchapter D of chapter 2 of the Education Consolidation and Improvement Act of 1981 [formerly 20 U.S.C. 3851 et seq.], except that projects under section 583(c) [formerly 20 U.S.C. 3851(c)] may not be reviewed by a program signifi- cance panel. ‘‘(B) National programs under the Adult Education Act [formerly 20 U.S.C. 1201 et seq.]. ‘‘(C) Programs under the Indian Education Act [Pub. L. 92–318, title IV, see Tables for classification]. ‘‘(D) Programs under title II of the Education for Economic Security Act [formerly 20 U.S.C. 3961 et seq.]. ‘‘(E) The program under section 702 of the McKin- ney-Vento Homeless Assistance Act [formerly 42 U.S.C. 11421]. ‘‘(6) The provisions of part A of title II of this Act [§§ 2001 to 2034 of Pub. L. 100–297, amending sections 236 et seq. and 631 et seq. of this title], excluding sections 2014(e) and 2018 [amending section 238 of this title and enacting provisions set out as a note under section 238 of this title], shall apply only with respect to amounts appropriated for fiscal years beginning after September 30, 1988. ‘‘(7) The amendments made by section 6001 [amending section 11421 of Title 42, The Public Health and Wel- fare], relating to literacy training of homeless adults, shall take effect on October 1, 1988. ‘‘(8) Any election under section 5209(b)(1) [25 U.S.C. 2508(b)(1)] conveyed to the Secretary prior to August 1, 1988, shall take effect for the fiscal year beginning on October 1, 1988, and thereafter.’’ EFFECTIVE DATE Pub. L. 99–498, title IV, § 402(b)–(d), Oct. 17, 1986, 100 Stat. 1428, 1429, as amended by Pub. L. 100–50, § 22(b), June 3, 1987, 101 Stat. 361, provided that: ‘‘(b) EFFECTIVE DATES.—The changes made in part B of title IV of the Act [20 U.S.C. 1071 et seq.] by the amendment made by subsection (a) of this section shall take effect on the date of enactment of this Act [Oct. 17, 1986], except— ‘‘(1) as otherwise provided in such part B; ‘‘(2) the changes in sections 427(a)(2)(C) and 428(b)(1)(M) of the Act [20 U.S.C. 1077(a)(2)(C), 1078(b)(1)(M)] (other than clauses (viii), (ix), and (x) of each such section) shall apply only to loans to new borrowers that (A) are made to cover the cost of in- struction for periods of enrollment beginning on or after July 1, 1987; or (B) are disbursed on or after July 1, 1987; ‘‘(3) the changes made in sections 425(a), 428(b)(1)(A), and 428(b)(1)(B) of the Act [20 U.S.C. 1075(a), 1078(b)(1)(A), (B)] shall apply with respect only to loans disbursed on or after January 1, 1987, or made to cover the costs of instruction for periods of enrollment beginning on or after January 1, 1987; ‘‘(4) the changes made in subsections (a), (b), and (d) of section 433 of the Act [20 U.S.C. 1083(a), (b), (d)] shall apply with respect only to loans disbursed on or after January 1, 1987, or made to cover the costs of in- struction for periods of enrollment beginning on or after January 1, 1987; ‘‘(5) the changes in section 428(b)(1)(H) [20 U.S.C. 1078(b)(1)(H)] shall apply with respect only to loans for which the borrower files an application on or after July 1, 1987; ‘‘(6) the changes in sections 435(d)(5) and 438(d) of the Act [20 U.S.C. 1085(d)(5), 1087–1(d)] shall take ef- fect 30 days after the date of enactment of this Act [Oct. 17, 1986]; and ‘‘(7) the changes made in section 438(b) [20 U.S.C. 1087–1(b)] shall take effect with respect to loans dis- bursed on or after 30 days after the date of enactment of this Act [Oct. 17, 1986] or made to cover the costs of instruction for periods of enrollment beginning on or after 30 days after the date of enactment of this Act. ‘‘(c) CHANGES EFFECTIVE WITHOUT REGARD TO REGULA- TIONS; REPUBLICATION OF REGULATIONS.—The changes made in part B of title IV of the Act [20 U.S.C. 1071 et seq.] by the amendment made by subsection (a) of this section shall be effective in accordance with subsection (b) of this section without regard to whether such changes are reflected in the regulations prescribed by the Secretary of Education for the purpose of such part. ‘‘(d) NEW BORROWERS.—For the purpose of this sec- tion, the term ‘new borrower’ means, with respect to any date, an individual who on that date has no out- standing balance of principal or interest owing on any loan made, insured, or guaranteed under part B of title IV of the Act [20 U.S.C. 1071 et seq.].’’ STUDY OF ROLE OF GUARANTY AGENCIES Pub. L. 102–325, title XIV, § 1401, July 23, 1992, 106 Stat. 816, directed Secretary of Education to review role of guaranty agencies within Federal Family Edu- cation Loan Program by examining administrative and financial operations of such agencies and the relation- ships between guaranty agencies and State govern- ments and report to Congress within 1 year of July 23, 1992, on the review, prior to repeal by Pub. L. 105–332, § 6(b)(2), Oct. 31, 1998, 112 Stat. 3128. GENERAL ACCOUNTING OFFICE REPORTS Pub. L. 99–498, title XIII, §§ 1311–1314, Oct. 17, 1986, 100 Stat. 1583, 1584, as amended by Pub. L. 100–50, § 23(6), June 3, 1987, 101 Stat. 362, directed Comptroller General to conduct studies on practices of State guaranty agen- cies and multistate guarantors under the student loan program, on the feasibility and efficiency of permitting Page 395 TITLE 20—EDUCATION § 1072 students to establish multiple year lines of credit with eligible lenders, on the impact of the multiple disburse- ment system on the ability of students and institutions of higher education to meet expenses, and on the cost, efficiency, and impact of the consolidation loan pro- gram established by Pub. L. 99–498, and directed Comp- troller General to make and submit a report to Con- gress on each study not later than two years after Oct. 17, 1986, prior to repeal by Pub. L. 105–332, § 6(a), Oct. 31, 1998, 112 Stat. 3127. § 1072. Advances for reserve funds of State and nonprofit private loan insurance programs (a) Purpose of and authority for advances to re- serve funds (1) Purpose; eligible recipients From sums appropriated pursuant to para- graphs (3) and (4)(A) of section 1071(b) of this title, the Secretary is authorized to make ad- vances to any State with which the Secretary has made an agreement pursuant to section 1078(b) of this title for the purpose of helping to establish or strengthen the reserve fund of the student loan insurance program covered by that agreement. If for any fiscal year a State does not have a student loan insurance program covered by an agreement made pursu- ant to section 1078(b) of this title, and the Sec- retary determines after consultation with the chief executive officer of that State that there is no reasonable likelihood that the State will have such a student loan insurance program for such year, the Secretary may make ad- vances for such year for the same purpose to one or more nonprofit private institutions or organizations with which the Secretary has made an agreement pursuant to section 1078(b) of this title in order to enable students in the State to participate in a program of student loan insurance covered by such an agreement. The Secretary may make advances under this subsection both to a State program (with which he has such an agreement) and to one or more nonprofit private institutions or organi- zations (with which he has such an agreement) in that State if he determines that such ad- vances are necessary in order that students in each eligible institution have access through such institution to a student loan insurance program which meets the requirements of sec- tion 1078(b)(1) of this title. (2) Matching requirement No advance shall be made after June 30, 1968, unless matched by an equal amount from non- Federal sources. Such equal amount may in- clude the unencumbered non-Federal portion of a reserve fund. As used in the preceding sen- tence, the term ‘‘unencumbered non-Federal portion’’ means the amount (determined as of the time immediately preceding the making of the advance) of the reserve fund less the great- er of— (A) the sum of— (i) advances made under this section prior to July 1, 1968; (ii) an amount equal to twice the amount of advances made under this section after June 30, 1968, and before the advance for purposes of which the determination is made; and (iii) the proceeds of earnings on advances made under this section; or (B) any amount which is required to be maintained in such fund pursuant to State law or regulation, or by agreement with lenders, as a reserve against the insurance of outstanding loans. Except as provided in section 1078(c)(9)(E) or (F) of this title, such unencumbered non-Fed- eral portion shall not be subject to recall, re- payment, or recovery by the Secretary. (3) Terms and conditions; repayment Advances pursuant to this subsection shall be upon such terms and conditions (including conditions relating to the time or times of payment) consistent with the requirements of section 1078(b) of this title as the Secretary determines will best carry out the purpose of this section. Advances made by the Secretary under this subsection shall be repaid within such period as the Secretary may deem to be appropriate in each case in the light of the maturity and solvency of the reserve fund for which the advance was made. (b) Limitations on total advances (1) In general The total of the advances from the sums ap- propriated pursuant to paragraph (4)(A) of sec- tion 1071(b) of this title to nonprofit private institutions and organizations for the benefit of students in any State and to such State may not exceed an amount which bears the same ratio to such sums as the population of such State aged 18 to 22, inclusive, bears to the population of all the States aged 18 to 22 inclu- sive, but such advances may otherwise be in such amounts as the Secretary determines will best achieve the purposes for which they are made. The amount available for advances to any State shall not be less than $25,000 and any additional funds needed to meet this re- quirement shall be derived by proportionately reducing (but not below $25,000) the amount available for advances to each of the remain- ing States. (2) Calculation of population For the purpose of this subsection, the popu- lation aged 18 to 22, inclusive, of each State and of all the States shall be determined by the Secretary on the basis of the most recent satisfactory data available to him. (c) Advances for insurance obligations (1) Use for payment of insurance obligations From sums appropriated pursuant to section 1071(b)(4)(B) of this title, the Secretary shall advance to each State which has an agreement with the Secretary under section 1078(c) of this title with respect to a student loan insurance program, an amount determined in accordance with paragraph (2) of this subsection to be used for the purpose of making payments under the State’s insurance obligations under such program. (2) Amount of advances (A) Except as provided in subparagraph (B), the amount to be advanced to each such State