Are Federal Student Loans Negotiable Instruments?

So, I understand that most promissory notes are negotiable instruments. What about a student loan promissory note, where the Guarantor is the Federal Government/US Department of Education.

If a person has defaulted on their studentloan, can that person demand payment from their promissory note to department of education, in order to pay off the debt?

Thank you for your time and informative site!!

Sarah

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Hi Sarah,

The Uniform Commercial Code is state law that governs negotiable instruments and the federal government through both the Supremacy Clause of the Constitution of the U.S. and more specifically to student loans, the Higher Education Act of 1965, is preempted from state law.

Thanks for the questions and hope this helps.

Paul

This author is not an attorney and this information should not be considered legal advice.  Please consult an attorney for legal advice.