20 U.S. Code 1080 – Default away from scholar significantly less than Federal financing insurance coverage system
On default because of the student borrower to your any financing protected by Federal loan insurance pursuant to that part, and you may ahead of the beginning out of fit or other administration proceedings on cover for this mortgage, the insurance coverage recipient shall timely alert this new Assistant, together with Secretary’s individual actions, if your insurance is still in effect, pay on the beneficiary the degree of losing supported by this new covered through to financing once you to number has already been calculated. …