§3699. Revolving fund; insurance

(a) There is hereby established in the Treasury of the United States a revolving fund to be known as the "Department of Veterans Affairs Education Loan Fund" (hereinafter in this section referred to as the "Fund").

(b) The Fund shall be available to the Secretary, without fiscal year limitation, for the making of loans under this subchapter.

(c) There shall be deposited in the Fund (1) by transfer from current and future appropriations for readjustment benefits such amounts as may be necessary to establish and supplement the Fund in order to meet the requirements of the Fund, and (2) all collections of fees and principal and interest (including overpayments declared under section 3698(e) of this title) on loans made under this subchapter.

(d) The Secretary shall determine annually whether there has developed in the Fund a surplus which, in the Secretary's judgment, is more than necessary to meet the needs of the Fund, and such surplus, if any, shall be deemed to have been appropriated for readjustment benefits.

(e) A fee shall be collected from each veteran or person obtaining a loan made under this subchapter for the purpose of insuring against defaults on loans made under this subchapter; and no loan shall be made under this subchapter until the fee payable with respect to such loan has been collected and remitted to the Secretary. The amount of the fee shall be established from time to time by the Secretary, but shall in no event exceed 3 percent of the total loan amount. The amount of the fee may be included in the loan to the veteran or person and paid from the proceeds thereof.

(Added Pub. L. 93–508, title III, §301(a), Dec. 3, 1974, 88 Stat. 1591 , §1799; amended Pub. L. 94–502, title V, §513(a)(24), Oct. 15, 1976, 90 Stat. 2404 ; Pub. L. 97–295, §4(61), Oct. 12, 1982, 96 Stat. 1309 ; Pub. L. 101–237, title IV, §423(b)(1), (2), Dec. 18, 1989, 103 Stat. 2092 ; renumbered §3699 and amended Pub. L. 102–83, §5(a), (c)(1), Aug. 6, 1991, 105 Stat. 406 .)

Amendments

1991-Pub. L. 102–83, §5(a), renumbered section 1799 of this title as this section.

Subsec. (c). Pub. L. 102–83, §5(c)(1), substituted "3698(e)" for "1798(e)".

1989-Subsecs. (a), (b), (d), (e). Pub. L. 101–237 substituted "Department of Veterans Affairs" for "Veterans' Administration" in subsec. (a), "Secretary" for "Administrator" wherever appearing in subsecs. (b), (d), and (e), and "Secretary's" for "Administrator's" in subsec. (d).

1982-Subsec. (e). Pub. L. 97–295 substituted "percent" for "per centum".

1976-Subsec. (d). Pub. L. 94–502 substituted "the Administrator's" for "his".

Effective Date of 1976 Amendment

Amendment by Pub. L. 94–502 effective Oct. 15, 1976, see section 703(b) of Pub. L. 94–502, set out as an Effective Date note under section 3693 of this title.

Effective Date

Section effective Jan. 1, 1975, except that eligible persons shall, upon application, be entitled to a loan under this subchapter, the terms of which take into account the full amount of the actual cost of attendance as defined in section 1798(b)(2)(C) [now 3698(b)(2)(C)] of this title, which such persons incurred for the academic year beginning on or about Sept. 1, 1974, see section 502 of Pub. L. 93–508, set out as an Effective Date of 1974 Amendment note under section 3698 of this title.