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Co-Authored-By: Claude Opus 4.8 <noreply@anthropic.com>
2026-07-06 10:51:44 -04:00

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---
type: "LegalText"
title: "20 U.S.C. § 1086"
description: "Delegation of functions"
jurisdiction: "us"
corpus: "united_states_code"
kind: "code_section"
title_number: 20
title_name: "EDUCATION"
chapter_number: "28"
chapter_name: "HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE"
section: "1086"
citation: "20 U.S.C. § 1086"
status: "current"
release_point: "119-100"
release_date: "2026-06-26"
source: "official"
source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc20@119-100.zip"
source_identifier: "/us/usc/t20/s1086"
source_file: "data/legal/raw/us/code/title-20/usc20.xml"
source_hash: "a509e0bf42445a24525d71b21df0af518aff948cba2d20a592fbcb091361c0e5"
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text_hash: "0e81a258f27b95750c9aedfb9ef9f40ea20372966d36fe80ce4cebcdaf5988db"
retrieved_at: "2026-07-04"
confidence: "official"
tags: ["legal", "us-code"]
---
# 20 U.S.C. § 1086 - Delegation of functions
## Text
(a) In general An eligible lender or guaranty agency that contracts with another entity to perform any of the lenders or agencys functions under this subchapter, or otherwise delegates the performance of such functions to such other entity—
(1) shall not be relieved of the lenders or agencys duty to comply with the requirements of this subchapter; and
(2) shall monitor the activities of such other entity for compliance with such requirements.
(b) Special rule A lender that holds a loan made under this part in the lenders capacity as a trustee is responsible for complying with all statutory and regulatory requirements imposed on any other holder of a loan made under this part.
(Pub. L. 89329, title IV, § 436, as added Pub. L. 99498, title IV, § 402(a), Oct. 17, 1986, 100 Stat. 1413; amended Pub. L. 105244, title IV, § 430, Oct. 7, 1998, 112 Stat. 1709.)
## Notes
Editorial Notes
Prior ProvisionsA prior section 1086, Pub. L. 89329, title IV, § 436, as added Pub. L. 89752, § 12, Nov. 3, 1966, 80 Stat. 1244; amended Pub. L. 90575, title I, § 116(b)(5), Oct. 16, 1968, 82 Stat. 1024; Pub. L. 94482, title I, § 127(a), Oct. 12, 1976, 90 Stat. 2132; Pub. L. 96374, title XIII, § 1391(a)(1), Oct. 3, 1980, 94 Stat. 1503, related to a District of Columbia student loan insurance program, prior to the general revision of this part by Pub. L. 99498.
Amendments1998—Pub. L. 105244 amended section catchline and text generally. Prior to amendment, section authorized establishment of a District of Columbia student loan insurance program.
Statutory Notes and Related Subsidiaries
Effective Date of 1998 AmendmentAmendment by Pub. L. 105244 effective Oct. 1, 1998, except as otherwise provided in Pub. L. 105244, see section 3 of Pub. L. 105244, set out as a note under section 1001 of this title.