US Codex
U.S.C.
Notes

§1078–3. Federal consolidation loans — Inbound Citations

20 U.S.C. § 1078–3

Cited by 64 provisions in release 119-102.

Citations to 20 U.S.C. § 1078–3 as a whole

  • 20 U.S.C. § 1019a(b)(1)(A)(i)
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    (i) For each education loan that is made, insured, or guaranteed under part B or D of subchapter IV (other than a loan made under section 1078–3 of this title or a Federal Direct Consolidation Loan), at or prior to the time the lender disburses such loan, the lender shall provide the prospective borrower or borrower, in writing (including through electronic means), with the disclosures described in subsections (a) and (c) of section 1083 of this title.
  • 20 U.S.C. § 1077(a)
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    (a) Except as provided in section 1078–3 of this title, a loan by an eligible lender shall be insurable by the Secretary under the provisions of this part only if—
    (1) made to a student who (A) is an eligible student under section 1091 of this title, (B) has agreed to notify promptly the holder of the loan concerning any change of address, and (C) is carrying at least one-half the normal full-time academic workload for the course of study the student is pursuing (as determined by the institution); and
    (2) evidenced by a note or other written agreement which—
    (A) is made without security and without endorsement;
    (B) provides for repayment (except as provided in subsection (c)) of the principal amount of the loan in installments over a period of not less than 5 years (unless sooner repaid or unless the student, during the 6 months preceding the start of the repayment period, specifically requests that repayment be made over a shorter period) nor more than 10 years beginning 6 months after the month in which the student ceases to carry at an eligible institution at least one-half the normal full-time academic workload as determined by the institution, except—
    (i) as provided in subparagraph (C);
    (ii) that the note or other written instrument may contain such reasonable provisions relating to repayment in the event of default in the payment of interest or in the payment of the cost of insurance premiums, or other default by the borrower, as may be authorized by regulations of the Secretary in effect at the time the loan is made; and
    (iii) that the lender and the student, after the student ceases to carry at an eligible institution at least one-half the normal full-time academic workload as determined by the institution, may agree to a repayment schedule which begins earlier, or is of shorter duration, than required by this subparagraph, but in the event a borrower has requested and obtained a repayment period of less than 5 years, the borrower may at any time prior to the total repayment of the loan, have the repayment period extended so that the total repayment period is not less than 5 years;
    (C) provides that periodic installments of principal need not be paid, but interest shall accrue and be paid, during any period—
    (i) during which the borrower—
    (I) is pursuing at least a half-time course of study as determined by an eligible institution; or
    (II) is pursuing a course of study pursuant to a graduate fellowship program approved by the Secretary, or pursuant to a rehabilitation training program for individuals with disabilities approved by the Secretary,
    except that no borrower shall be eligible for a deferment under this clause, or a loan made under this part (other than a loan made under section 1078–2 or 1078–3 of this title), while serving in a medical internship or residency program;
    (ii) not in excess of 3 years during which the borrower is seeking and unable to find full-time employment;
    (iii) not in excess of 3 years for any reason which the lender determines, in accordance with regulations prescribed by the Secretary under section 1085(o) of this title, has caused or will cause the borrower to have an economic hardship; or
    (iv) in which the borrower is receiving treatment for cancer and the 6 months after such period.1
    and provides that any such period shall not be included in determining the 10-year period described in subparagraph (B);
    (D) provides for interest on the unpaid principal balance of the loan at a yearly rate, not exceeding the applicable maximum rate prescribed in section 1077a of this title, which interest shall be payable in installments over the period of the loan except that, if provided in the note or other written agreement, any interest payable by the student may be deferred until not later than the date upon which repayment of the first installment of principal falls due, in which case interest accrued during that period may be added on that date to the principal;
    (E) provides that the lender will not collect or attempt to collect from the borrower any portion of the interest on the note which is payable by the Secretary under this part, and that the lender will enter into such agreements with the Secretary as may be necessary for the purpose of section 1087 of this title;
    (F) entitles the student borrower to accelerate without penalty repayment of the whole or any part of the loan;
    (i) contains a notice of the system,2 of disclosure of information concerning such loan to consumer reporting agencies under section 1080a of this title, and (ii) provides that the lender on request of the borrower will provide information on the repayment status of the note to such consumer reporting agencies;
    (H) provides that, no more than 6 months prior to the date on which the borrower’s first payment on a loan is due, the lender shall offer the borrower the option of repaying the loan in accordance with a graduated or income-sensitive repayment schedule established by the lender and in accordance with the regulations of the Secretary; and
    (I) contains such other terms and conditions, consistent with the provisions of this part and with the regulations issued by the Secretary pursuant to this part, as may be agreed upon by the parties to such loan, including, if agreed upon, a provision requiring the borrower to pay the lender, in addition to principal and interest, amounts equal to the insurance premiums payable by the lender to the Secretary with respect to such loan;
    (3) the funds borrowed by a student are disbursed to the institution by check or other means that is payable to and requires the endorsement or other certification by such student, except—
    (A) that nothing in this subchapter shall be interpreted—
    (i) to allow the Secretary to require checks to be made copayable to the institution and the borrower; or
    (ii) to prohibit the disbursement of loan proceeds by means other than by check; and
    (B) in the case of any student who is studying outside the United States in a program of study abroad that is approved for credit by the home institution at which such student is enrolled, the funds shall, at the request of the borrower, be delivered directly to the student and the checks may be endorsed, and fund transfers authorized, pursuant to an authorized power-of-attorney; and
    (4) the funds borrowed by a student are disbursed in accordance with section 1078–7 of this title.
  • 20 U.S.C. § 1077(a)(2)(C)
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    (C) provides that periodic installments of principal need not be paid, but interest shall accrue and be paid, during any period—
    (i) during which the borrower—
    (I) is pursuing at least a half-time course of study as determined by an eligible institution; or
    (II) is pursuing a course of study pursuant to a graduate fellowship program approved by the Secretary, or pursuant to a rehabilitation training program for individuals with disabilities approved by the Secretary,
    except that no borrower shall be eligible for a deferment under this clause, or a loan made under this part (other than a loan made under section 1078–2 or 1078–3 of this title), while serving in a medical internship or residency program;
    (ii) not in excess of 3 years during which the borrower is seeking and unable to find full-time employment;
    (iii) not in excess of 3 years for any reason which the lender determines, in accordance with regulations prescribed by the Secretary under section 1085(o) of this title, has caused or will cause the borrower to have an economic hardship; or
    (iv) in which the borrower is receiving treatment for cancer and the 6 months after such period.1
    and provides that any such period shall not be included in determining the 10-year period described in subparagraph (B);
  • 20 U.S.C. § 1077(b)(2)
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    (2) the requirements of such subsection shall not apply in the case of a loan made under section 1078–2 or 1078–3 of this title, or made to a student to cover the cost of attendance at an eligible institution outside the United States.
  • 20 U.S.C. § 1077a(d)
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    (d) Notwithstanding subsections (a) and (b) of this section, with respect to any loan (other than a loan made pursuant to sections 1078–1,1 1078–2, and 1078–3 of this title) to cover the cost of instruction for any period of enrollment beginning on or after July 1, 1988, to any borrower who, on the date of entering into the note or other written evidence of the loan, has no outstanding balance of principal or interest on any loan made, insured, or guaranteed under this part, the applicable rate of interest shall be—
    (1) 8 percent per year on the unpaid principal balance of the loan during the period beginning on the date of the disbursement of the loan and ending 4 years after the commencement of repayment; and
    (2) 10 percent per year on the unpaid principal balance of the loan during the remainder of the repayment period.
  • 20 U.S.C. § 1077a(e)(1)
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    (1) Notwithstanding subsections (a), (b), and (d) of this section, with respect to any loan (other than a loan made pursuant to sections 1078–1,1 1078–2 and 1078–3 of this title) for which the first disbursement is made on or after October 1, 1992, to any borrower who, on the date of entering into the note or other written evidence of the loan, has no outstanding balance of principal or interest on any loan made, insured, or guaranteed under section 1077, 1078, or 1078–8 of this title, the applicable rate of interest shall, during any 12-month period beginning on July 1 and ending on June 30, be determined on the preceding June 1 and be equal to—
    (A) the bond equivalent rate of 91-day Treasury bills auctioned at the final auction held prior to such June 1; plus
    (B) 3.10 percent,
    except that such rate shall not exceed 9 percent.
  • 20 U.S.C. § 1077a(f)(1)
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    (1) Notwithstanding subsections (a), (b), (d), and (e) of this section, with respect to any loan made, insured, or guaranteed under this part (other than a loan made pursuant to section 1078–2 or 1078–3 of this title) for which the first disbursement is made on or after July 1, 1994, the applicable rate of interest shall, during any 12-month period beginning on July 1 and ending on June 30, be determined on the preceding June 1 and be equal to—
    (A) the bond equivalent rate of 91-day Treasury bills auctioned at the final auction held prior to such June 1; plus
    (B) 3.10 percent,
    except that such rate shall not exceed 8.25 percent.
  • 20 U.S.C. § 1077a(h)(1)
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    (1) Notwithstanding subsections (a), (b), (d), (e), (f), and (g) of this section, with respect to any loan made, insured, or guaranteed under this part (other than a loan made pursuant to sections 1078–2 and 1078–3 of this title) for which the first disbursement is made on or after July 1, 1998, the applicable rate of interest shall, during any 12-month period beginning on July 1 and ending on June 30, be determined on the preceding June 1 and be equal to—
    (A) the bond equivalent rate of the securities with a comparable maturity as established by the Secretary; plus
    (B) 1.0 percent,
    except that such rate shall not exceed 8.25 percent.
  • 20 U.S.C. § 1077a(j)(1)
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    (1) Notwithstanding subsection (h), but subject to paragraph (2), with respect to any loan made, insured, or guaranteed under this part (other than a loan made pursuant to section 1078–2 or 1078–3 of this title) for which the first disbursement is made on or after July 1, 1998, and before October 1, 1998, the applicable rate of interest shall, during any 12-month period beginning on July 1 and ending on June 30, be determined on the preceding June 1 and be equal to—
    (A) the bond equivalent rate of 91-day Treasury bills auctioned at the final auction held prior to such June 1; plus
    (B) 2.3 percent,
    except that such rate shall not exceed 8.25 percent.
  • 20 U.S.C. § 1077a(j)(2)
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    (2) Notwithstanding subsection (h), with respect to any loan under this part (other than a loan made pursuant to section 1078–2 or 1078–3 of this title) for which the first disbursement is made on or after July 1, 1998, and before October 1, 1998, the applicable rate of interest for interest which accrues—
    (A) prior to the beginning of the repayment period of the loan; or
    (B) during the period in which principal need not be paid (whether or not such principal is in fact paid) by reason of a provision described in section 1078(b)(1)(M) or 1077(a)(2)(C) of this title,
    shall be determined under paragraph (1) by substituting “1.7 percent” for “2.3 percent”.
  • 20 U.S.C. § 1077a(k)(1)
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    (1) Notwithstanding subsection (h) and subject to paragraph (2) of this subsection, with respect to any loan made, insured, or guaranteed under this part (other than a loan made pursuant to section 1078–2 or 1078–3 of this title) for which the first disbursement is made on or after October 1, 1998, and before July 1, 2006, the applicable rate of interest shall, during any 12-month period beginning on July 1 and ending on June 30, be determined on the preceding June 1 and be equal to—
    (A) the bond equivalent rate of 91-day Treasury bills auctioned at the final auction held prior to such June 1; plus
    (B) 2.3 percent,
    except that such rate shall not exceed 8.25 percent.
  • 20 U.S.C. § 1077a(k)(2)
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    (2) Notwithstanding subsection (h), with respect to any loan under this part (other than a loan made pursuant to section 1078–2 or 1078–3 of this title) for which the first disbursement is made on or after October 1, 1998, and before July 1, 2006, the applicable rate of interest for interest which accrues—
    (A) prior to the beginning of the repayment period of the loan; or
    (B) during the period in which principal need not be paid (whether or not such principal is in fact paid) by reason of a provision described in section 1077(a)(2)(C) or 1078(b)(1)(M) of this title,
    shall be determined under paragraph (1) by substituting “1.7 percent” for “2.3 percent”.
  • 20 U.S.C. § 1077a(k)(4)
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    (4) With respect to any consolidation loan under section 1078–3 of this title for which the application is received by an eligible lender on or after October 1, 1998, and before July 1, 2006, the applicable rate of interest shall be at an annual rate on the unpaid principal balance of the loan that is equal to the lesser of—
    (A) the weighted average of the interest rates on the loans consolidated, rounded to the nearest higher one-eighth of 1 percent; or
    (B) 8.25 percent.
  • 20 U.S.C. § 1077a(l)(1)
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    (1) Notwithstanding subsection (h), with respect to any loan made, insured, or guaranteed under this part (other than a loan made pursuant to section 1078–2 or 1078–3 of this title) for which the first disbursement is made on or after July 1, 2006, and before July 1, 2010, the applicable rate of interest shall be 6.8 percent on the unpaid principal balance of the loan.
  • 20 U.S.C. § 1077a(l)(3)
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    (3) With respect to any consolidation loan under section 1078–3 of this title for which the application is received by an eligible lender on or after July 1, 2006, and that was disbursed before July 1, 2010, the applicable rate of interest shall be at an annual rate on the unpaid principal balance of the loan that is equal to the lesser of—
    (A) the weighted average of the interest rates on the loans consolidated, rounded to the nearest higher one-eighth of 1 percent; or
    (B) 8.25 percent.
  • 20 U.S.C. § 1077a(l)(4)
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    (4) Notwithstanding subsection (h) and paragraph (1) of this subsection, with respect to any loan to an undergraduate student made, insured, or guaranteed under this part (other than a loan made pursuant to section 1078–2, 1078–3, or 1078–8 of this title) for which the first disbursement is made on or after July 1, 2006, and before July 1, 2010, the applicable rate of interest shall be as follows:
    (A) For a loan for which the first disbursement is made on or after July 1, 2006, and before July 1, 2008, 6.8 percent on the unpaid principal balance of the loan.
    (B) For a loan for which the first disbursement is made on or after July 1, 2008, and before July 1, 2009, 6.0 percent on the unpaid principal balance of the loan.
    (C) For a loan for which the first disbursement is made on or after July 1, 2009, and before July 1, 2010, 5.6 percent on the unpaid principal balance of the loan.
  • 20 U.S.C. § 1077a(m)
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    (m) Nothing in this section or section 1078–3 of this title shall be construed to prohibit a lender from charging a borrower interest at a rate less than the rate which is applicable under this part.
  • 20 U.S.C. § 1078(b)(1)(M)
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    (M) provides that periodic installments of principal need not be paid, but interest shall accrue and be paid by the Secretary, during any period—
    (i) during which the borrower—
    (I) is pursuing at least a half-time course of study as determined by an eligible institution, except that no borrower, notwithstanding the provisions of the promissory note, shall be required to borrow an additional loan under this subchapter in order to be eligible to receive a deferment under this clause; or
    (II) is pursuing a course of study pursuant to a graduate fellowship program approved by the Secretary, or pursuant to a rehabilitation training program for disabled individuals approved by the Secretary,
    except that no borrower shall be eligible for a deferment under this clause, or loan made under this part (other than a loan made under section 1078–2 or 1078–3 of this title), while serving in a medical internship or residency program;
    (ii) not in excess of 3 years during which the borrower is seeking and unable to find full-time employment, except that no borrower who provides evidence of eligibility for unemployment benefits shall be required to provide additional paperwork for a deferment under this clause;
    (iii) during which the borrower—
    (I) is serving on active duty during a war or other military operation or national emergency; or
    (II) is performing qualifying National Guard duty during a war or other military operation or national emergency,
    and for the 180-day period following the demobilization date for the service described in subclause (I) or (II);
    (iv) not in excess of 3 years for any reason which the lender determines, in accordance with regulations prescribed by the Secretary under section 1085(o) of this title, has caused or will cause the borrower to have an economic hardship; or
    (v) during which the borrower is receiving treatment for cancer and the 6 months after such period;
  • 20 U.S.C. § 1078(b)(7)(C)
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    (C) In the case of a loan made under section 1078–2 or 1078–3 of this title, the repayment period shall begin on the day the loan is disbursed, or, if the loan is disbursed in multiple installments, on the day of the last such disbursement, and shall exclude any period of authorized deferment or forbearance.
  • 20 U.S.C. § 1078(b)(9)(A)(v)
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    (v) beginning July 1, 2009, an income-based repayment plan that enables a borrower to make a lower monthly payment in accordance with section 1098e of this title, except that the plan described in this clause shall not be available to a borrower for a loan under section 1078–2 of this title made on behalf of a dependent student or for a consolidation loan under section 1078–3 of this title, if the proceeds of such loan were used to discharge the liability of a loan under section 1078–2 of this title made on behalf of a dependent student.
  • 20 U.S.C. § 1078(j)(1)
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    (1) In each State, the guaranty agency or an eligible lender in the State described in section 1085(d)(1)(D) of this title shall, before July 1, 2010, make loans directly, or through an agreement with an eligible lender or lenders, to eligible students and parents who are otherwise unable to obtain loans under this part (except for consolidation loans under section 1078–3 of this title) or who attend an institution of higher education in the State that is designated under paragraph (4). Loans made under this subsection shall not exceed the amount of the need of the borrower, as determined under subsection (a)(2)(B), nor be less than $200. No loan under section 1078, 1078–2, or 1078–8 of this title that is made pursuant to this subsection shall be made with interest rates, origination or default fees, or other terms and conditions that are more favorable to the borrower than the maximum interest rates, origination or default fees, or other terms and conditions applicable to that type of loan under this part. The guaranty agency shall consider the request of any eligible lender, as defined under section 1085(d)(1)(A) of this title, to serve as the lender-of-last-resort pursuant to this subsection.
  • 20 U.S.C. § 1078(j)(2)(B)
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    (B) consistent with standards established by the Secretary, students applying for loans under this subsection shall not be subject to additional eligibility requirements or requests for additional information beyond what is required under this subchapter in order to receive a loan under this part from an eligible lender, nor, in the case of students and parents applying for loans under this subsection because of an inability to otherwise obtain loans under this part (except for consolidation loans under section 1078–3 of this title), be required to receive more than two rejections from eligible lenders in order to obtain a loan under this subsection;
  • 20 U.S.C. § 1078(j)(4)
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    (4) Upon the request of an institution of higher education and pursuant to standards developed by the Secretary, the Secretary shall designate such institution for participation in the lender-of-last-resort program under this paragraph.5 If the Secretary designates an institution under this paragraph, the guaranty agency designated for the State in which the institution is located shall make loans, in the same manner as such loans are made under paragraph (1), to students and parent borrowers of the designated institution, regardless of whether the students or parent borrowers are otherwise unable to obtain loans under this part (other than a consolidation loan under section 1078–3 of this title).
  • 20 U.S.C. § 1078–10(c)(2)
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    (2) A loan amount for a loan made under section 1078–3 of this title may be a qualified loan amount for the purposes of this subsection only to the extent that such loan amount was used to repay a Federal Direct Stafford Loan, a Federal Direct Unsubsidized Stafford Loan, or a loan made under section 1078 or 1078–8 of this title for a borrower who meets the requirements of subsection (b), as determined in accordance with regulations prescribed by the Secretary.
  • 20 U.S.C. § 1078–12(b)(2)(A)(ii)
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    (ii) a loan made under section 1078–3 or 1087e(g) of this title, to the extent that such loan was used to repay—
    (I) a Federal Direct Stafford Loan, a Federal Direct Unsubsidized Stafford Loan, or a Federal Direct PLUS Loan;
    (II) a loan made under section 1078, 1078–2, or 1078–8 of this title; or
    (III) a loan made under part E.
  • 20 U.S.C. § 1078–12(b)(2)(B)(iii)
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    (iii) A loan made under section 1078–3 or 1087e(g) of this title, to the extent that such loan was used to repay—
    (I) a loan made to the parents of a dependent student under section 1078–2 of this title; or
    (II) a Federal Direct PLUS Loan made to the parents of a dependent student.
  • 20 U.S.C. § 1078–7(e)
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    (e) The provisions of this section shall not apply in the case of a loan made under section 1078–3 of this title, or made to a student to cover the cost of attendance in a program of study abroad approved by the home eligible institution if the home eligible institution has a cohort default rate (as calculated under section 1085(m) of this title) of less than 5 percent.
  • 20 U.S.C. § 1082(m)(1)(C)
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    (C) For academic year 1999–2000 and succeeding academic years, the Secretary shall prescribe the form developed under section 1090 of this title as the application form under this part, other than for loans under sections 1078–2 and 1078–3 of this title.
  • 20 U.S.C. § 1083(a)
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    (a) Each eligible lender, at or prior to the time such lender disburses a loan that is insured or guaranteed under this part (other than a loan made under section 1078–3 of this title), shall provide thorough and accurate loan information on such loan to the borrower in simple and understandable terms. Any disclosure required by this subsection may be made by an eligible lender by written or electronic means, including as part of the application material provided to the borrower, as part of the promissory note evidencing the loan, or on a separate written form provided to the borrower. Each lender shall provide to each borrower a telephone number, and may provide an electronic address, through which additional loan information can be obtained. The disclosure shall include—
    (1) a statement prominently and clearly displayed and in bold print that the borrower is receiving a loan that must be repaid;
    (2) the name of the eligible lender, and the address to which communications and payments should be sent;
    (3) the principal amount of the loan;
    (4) the amount of any charges, such as the origination fee and Federal default fee, and whether those fees will be—
    (A) collected by the lender at or prior to the disbursal of the loan;
    (B) deducted from the proceeds of the loan;
    (C) paid separately by the borrower; or
    (D) paid by the lender;
    (5) the stated interest rate on the loan;
    (6) for loans made under section 1078–8 of this title or to a student borrower under section 1078–2 of this title, an explanation—
    (A) that the borrower has the option to pay the interest that accrues on the loan while the borrower is a student at an institution of higher education; and
    (B) if the borrower does not pay such interest while attending an institution, when and how often interest on the loan will be capitalized;
    (7) for loans made to a parent borrower on behalf of a student under section 1078–2 of this title, an explanation—
    (A) that the parent has the option to defer payment on the loan while the student is enrolled on at least a half-time basis in an institution of higher education;
    (B) if the parent does not pay the interest on the loan while the student is enrolled in an institution, when and how often interest on the loan will be capitalized; and
    (C) that the parent may be eligible for a deferment on the loan if the parent is enrolled on at least a half-time basis in an institution of higher education;
    (8) the yearly and cumulative maximum amounts that may be borrowed;
    (9) a statement of the total cumulative balance, including the loan being disbursed, owed by the borrower to that lender, and an estimate of the projected monthly payment, given such cumulative balance;
    (10) an explanation of when repayment of the loan will be required and when the borrower will be obligated to pay interest that accrues on the loan;
    (11) a description of the types of repayment plans that are available for the loan;
    (12) a statement as to the minimum and maximum repayment terms which the lender may impose, and the minimum annual payment required by law;
    (13) an explanation of any special options the borrower may have for loan consolidation or other refinancing of the loan;
    (14) a statement that the borrower has the right to prepay all or part of the loan, at any time, without penalty;
    (15) a statement summarizing circumstances in which repayment of the loan or interest that accrues on the loan may be deferred;
    (16) a statement summarizing the circumstances in which a borrower may obtain forbearance on the loan;
    (17) a description of the options available for forgiveness of the loan, and the requirements to obtain loan forgiveness;
    (18) a definition of default and the consequences to the borrower if the borrower defaults, including a statement that the default will be reported to a consumer reporting agency; and
    (19) an explanation of any cost the borrower may incur during repayment or in the collection of the loan, including fees that the borrower may be charged, such as late payment fees and collection costs.
  • 20 U.S.C. § 1085(d)(1)(G)
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    (G) for purposes of making loans under sections 1078–2(d) and 1078–3 of this title, the Student Loan Marketing Association or the Holding Company of the Student Loan Marketing Association, including any subsidiary of the Holding Company, created pursuant to section 1087–3 of this title;
  • 20 U.S.C. § 1085(d)(1)(J)
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    (J) for purpose of making loans under section 1078–3 of this title, any nonprofit private agency functioning in any State as a secondary market; and
  • 20 U.S.C. § 1085(m)(1)(A)
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    (A) Except as provided in paragraph (2), the term “cohort default rate” means, for any fiscal year in which 30 or more current and former students at the institution enter repayment on loans under section 1078, 1078–1,1 or 1078–8 of this title received for attendance at the institution, the percentage of those current and former students who enter repayment on such loans (or on the portion of a loan made under section 1078–3 of this title that is used to repay any such loans) received for attendance at that institution in that fiscal year who default before the end of the second fiscal year following the fiscal year in which the students entered repayment. The Secretary shall require that each guaranty agency that has insured loans for current or former students of the institution afford such institution a reasonable opportunity (as specified by the Secretary) to review and correct errors in the information required to be provided to the Secretary by the guaranty agency for the purposes of calculating a cohort default rate for such institution, prior to the calculation of such rate.
  • 20 U.S.C. § 1085(m)(1)(C)
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    (C) For any fiscal year in which fewer than 30 of the institution’s current and former students enter repayment, the term “cohort default rate” means the percentage of such current and former students who entered repayment on such loans (or on the portion of a loan made under section 1078–3 of this title that is used to repay any such loans) in any of the three most recent fiscal years, who default before the end of the second fiscal year following the year in which they entered repayment.
  • 20 U.S.C. § 1085(m)(2)(D)
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    (D) For the purposes of this subsection, a loan made in accordance with section 1078–11 of this title (or the portion of a loan made under section 1078–3 of this title that is used to repay a loan made under section 1078–11 of this title) shall not be considered to enter repayment until after the borrower has ceased to be enrolled in a course of study leading to a degree or certificate at an eligible institution on at least a half-time basis (as determined by the institution) and ceased to be in a period of forbearance based on such enrollment. Each eligible lender of a loan made under section 1078–11 of this title (or a loan made under section 1078–3 of this title a portion of which is used to repay a loan made under section 1078–11 of this title) shall provide the guaranty agency with the information necessary to determine when the loan entered repayment for purposes of this subsection, and the guaranty agency shall provide such information to the Secretary.
  • 20 U.S.C. § 1085(m)(4)(A)
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    (A) The Secretary shall publish not less often than once every fiscal year a report showing cohort default data and life of cohort default rates for each category of institution, including: (i) four-year public institutions; (ii) four-year private nonprofit institutions; (iii) two-year public institutions; (iv) two-year private nonprofit institutions; (v) four-year proprietary institutions; (vi) two-year proprietary institutions; and (vii) less than two-year proprietary institutions. For purposes of this subparagraph, for any fiscal year in which one or more current and former students at an institution enter repayment on loans under section 1078, 1078–2, or 1078–8 of this title, received for attendance at the institution, the Secretary shall publish the percentage of those current and former students who enter repayment on such loans (or on the portion of a loan made under section 1078–3 of this title that is used to repay any such loans) received for attendance at the institution in that fiscal year who default before the end of each succeeding fiscal year.
  • 20 U.S.C. § 1087e(a)(1)
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    (1) Unless otherwise specified in this part, loans made to borrowers under this part shall have the same terms, conditions, and benefits, and be available in the same amounts, as loans made to borrowers, and first disbursed on June 30, 2010, under sections 1078, 1078–2, 1078–3, and 1078–8 of this title.
  • 20 U.S.C. § 1087e(a)(2)(C)
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    (C) section 1078–3 of this title shall be known as “Federal Direct Consolidation Loans”; and
  • 20 U.S.C. § 1087–1(b)(2)(H)(vi)
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    (vi) In the case of consolidation loans made under section 1078–3 of this title and for which the application is received on or after October 1, 1998, and before January 1, 2000, for which the interest rate is determined under section 1077a(k)(4) of this title, a special allowance shall not be paid for such loan during any 3-month period ending March 31, June 30, September 30, or December 31 unless—
    (I) the average of the bond equivalent rate of 91-day Treasury bills auctioned for such 3-month period; plus
    (II) 3.1 percent,
    exceeds the rate determined under section 1077a(k)(4) of this title.
  • 20 U.S.C. § 1087–1(c)(2)(A)
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    (A) Subject to paragraph (6) of this subsection, with respect to any loan (including loans made under section 1078–8 of this title, but excluding loans made under sections 1078–3 and 1087–2(o) of this title) for which a completed note or other written evidence of the loan was sent or delivered to the borrower for signing on or after 10 days after August 13, 1981, each eligible lender under this part is authorized to charge the borrower an origination fee in an amount not to exceed 3.0 percent of the principal amount of the loan, to be deducted proportionately from each installment payment of the proceeds of the loan prior to payment to the borrower. Except as provided in paragraph (8), a lender that charges an origination fee under this paragraph shall assess the same fee to all student borrowers.
  • 20 U.S.C. § 1087–1(c)(2)(B)
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    (B) Subparagraph (A) shall be applied to loans made under this part (other than loans made under sections 1078–3 and 1087–2(o) of this title)—
    (i) by substituting “2.0 percent” for “3.0 percent” with respect to loans for which the first disbursement of principal is made on or after July 1, 2006, and before July 1, 2007;
    (ii) by substituting “1.5 percent” for “3.0 percent” with respect to loans for which the first disbursement of principal is made on or after July 1, 2007, and before July 1, 2008;
    (iii) by substituting “1.0 percent” for “3.0 percent” with respect to loans for which the first disbursement of principal is made on or after July 1, 2008, and before July 1, 2009; and
    (iv) by substituting “0.5 percent” for “3.0 percent” with respect to loans for which the first disbursement of principal is made on or after July 1, 2009, and before July 1, 2010.
  • 20 U.S.C. § 1087–2(d)(1)(D)
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    (D) to undertake a program of loan insurance pursuant to agreements with the Secretary under section 1078 of this title, and except with respect to loans under subsection (o) of this section or under section 1078–3 of this title, the Secretary may enter into an agreement with the Association for such purpose only if the Secretary determines that (i) eligible borrowers are seeking and unable to obtain loans under this part, and (ii) no guaranty agency is capable of or willing to provide a program of loan insurance for such borrowers; and
  • 20 U.S.C. § 1087–2(h)(7)(A)
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    (A) The Association shall pay to the Secretary, on a monthly basis, an offset fee calculated on an annual basis in an amount equal to 0.30 percent of the principal amount of each loan made, insured or guaranteed under this part that the Association holds (except for loans made pursuant to section 1078–3 of this title, subsection (o), or subsection (q)) and that was acquired on or after August 10, 1993.
  • 20 U.S.C. § 1087–2(o)(1)
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    (1) The Association or its designated agent may, upon request of a borrower, consolidate loans received under this subchapter in accordance with section 1078–3 of this title.
  • 20 U.S.C. § 1091(b)(1)
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    (1) In order to be eligible to receive any loan under this subchapter (other than a loan under section 1078–2 or 1078–3 of this title, or under section 1078–8 of this title pursuant to an exercise of discretion under section 1087tt of this title) for any period of enrollment, a student who is not a graduate or professional student (as defined in regulations of the Secretary), and who is enrolled in a program at an institution which has a participation agreement with the Secretary to make awards under subpart 1 of part A of this subchapter, shall—
    (i) have received a determination of eligibility or ineligibility for a Pell Grant under such subpart 1 for such period of enrollment; and (ii) if determined to be eligible, have filed an application for a Pell Grant for such enrollment period; or
    (B) have (i) filed an application with the Pell Grant processor for such institution for such enrollment period, and (ii) received from the financial aid administrator of the institution a preliminary determination of the student’s eligibility or ineligibility for a grant under such subpart 1.
  • 20 U.S.C. § 1092(b)(1)(A)
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    (A) Each eligible institution shall, through financial aid offices or otherwise, provide counseling to borrowers of loans that are made, insured, or guaranteed under part B (other than loans made pursuant to section 1078–3 of this title or loans under section 1078–2 of this title made on behalf of a student) or made under part D (other than Federal Direct Consolidation Loans or Federal Direct PLUS Loans made on behalf of a student) or made under part E of this subchapter prior to the completion of the course of study for which the borrower enrolled at the institution or at the time of departure from such institution. The counseling required by this subsection shall include—
    (i) information on the repayment plans available, including a description of the different features of each plan and sample information showing the average anticipated monthly payments, and the difference in interest paid and total payments, under each plan;
    (ii) debt management strategies that are designed to facilitate the repayment of such indebtedness;
    (iii) an explanation that the borrower has the options to prepay each loan, pay each loan on a shorter schedule, and change repayment plans;
    (iv) for any loan forgiveness or cancellation provision of this subchapter, a general description of the terms and conditions under which the borrower may obtain full or partial forgiveness or cancellation of the principal and interest, and a copy of the information provided by the Secretary under section 1092(d) of this title;
    (v) for any forbearance provision of this subchapter, a general description of the terms and conditions under which the borrower may defer repayment of principal or interest or be granted forbearance, and a copy of the information provided by the Secretary under section 1092(d) of this title;
    (vi) the consequences of defaulting on a loan, including adverse credit reports, delinquent debt collection procedures under Federal law, and litigation;
    (vii) information on the effects of using a consolidation loan under section 1078–3 of this title or a Federal Direct Consolidation Loan to discharge the borrower’s loans under parts B, D, and E, including at a minimum—
    (I) the effects of consolidation on total interest to be paid, fees to be paid, and length of repayment;
    (II) the effects of consolidation on a borrower’s underlying loan benefits, including grace periods, loan forgiveness, cancellation, and deferment opportunities;
    (III) the option of the borrower to prepay the loan or to change repayment plans; and
    (IV) that borrower benefit programs may vary among different lenders;
    (viii) a general description of the types of tax benefits that may be available to borrowers;
    (ix) a notice to borrowers about the availability of the National Student Loan Data System and how the system can be used by a borrower to obtain information on the status of the borrower’s loans; and
    (x) an explanation that—
    (I) the borrower may be contacted during the repayment period by third-party student debt relief companies;
    (II) the borrower should use caution when dealing with those companies; and
    (III) the services that those companies typically provide are already offered to borrowers free of charge through the Department or the borrower’s servicer; and
  • 20 U.S.C. § 1092(b)(1)(A)(vii)
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    (vii) information on the effects of using a consolidation loan under section 1078–3 of this title or a Federal Direct Consolidation Loan to discharge the borrower’s loans under parts B, D, and E, including at a minimum—
    (I) the effects of consolidation on total interest to be paid, fees to be paid, and length of repayment;
    (II) the effects of consolidation on a borrower’s underlying loan benefits, including grace periods, loan forgiveness, cancellation, and deferment opportunities;
    (III) the option of the borrower to prepay the loan or to change repayment plans; and
    (IV) that borrower benefit programs may vary among different lenders;
  • 20 U.S.C. § 1092(l)(1)(A)
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    (A) Each eligible institution shall, at or prior to the time of a disbursement to a first-time borrower of a loan made, insured, or guaranteed under part B (other than a loan made pursuant to section 1078–3 of this title or a loan made on behalf of a student pursuant to section 1078–2 of this title) or made under part D (other than a Federal Direct Consolidation Loan or a Federal Direct PLUS loan made on behalf of a student), ensure that the borrower receives comprehensive information on the terms and conditions of the loan and of the responsibilities the borrower has with respect to such loan in accordance with paragraph (2). Such information—
    (i) shall be provided in a simple and understandable manner; and
    (ii) may be provided—
    (I) during an entrance counseling session conduction in person;
    (II) on a separate written form provided to the borrower that the borrower signs and returns to the institution; or
    (III) online, with the borrower acknowledging receipt of the information.
  • 20 U.S.C. § 1092a(a)
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    (a) Upon the request of the borrower, a lender described in subparagraph (A), (B), or (C) of section 1078–3(a)(1) of this title, or an eligible lender as defined in section 719 of the Public Health Service Act (42 U.S.C. 292o) may, with respect to a consolidation loan made under section 1078–3 of this title (and section 1087–2(o) of this title as in effect prior to the enactment of section 1078–3 of this title) and loans guaranteed under part A of title VII of the Public Health Service Act (42 U.S.C. 292 et seq.), offer a combined payment plan under which the lender shall submit one bill to the borrower for the repayment of all such loans for the monthly or other similar period of repayment.
  • 20 U.S.C. § 1092a(b)
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    (b) A lender offering a combined payment plan shall comply with all provisions of section 1078–3 of this title applicable to loans consolidated or to be consolidated and shall comply with all provisions of part A of title VII of the Public Health Service Act (42 U.S.C. 292 et seq.) applicable to loans under that subpart which are made part of the combined payment plan, except that a lender offering a combined payment plan under this section may offer consolidation loans pursuant to section 1078–3(b)(1)(A) of this title if such lender holds any outstanding loan of a borrower which is selected for inclusion in a combined payment plan.
  • 20 U.S.C. § 1098e(a)(2)(A)(i)
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    (i) a consolidation loan under section 1078–3 of this title, or a Federal Direct Consolidation Loan, if the proceeds of such loan were used to discharge the liability on an excepted PLUS loan; or
  • 20 U.S.C. § 1098e(a)(2)(A)(ii)
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    (ii) a consolidation loan under section 1078–3 of this title, or a Federal Direct Consolidation Loan, if the proceeds of such loan were used to discharge the liability on a consolidation loan under section 1078–3 of this title, or a Federal Direct Consolidation Loan described in clause (i).
  • 20 U.S.C. § 1099d(b)(3)(L)(vi)
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    (vi) Any loan under section 1078–3 of this title consolidated under this paragraph shall not be subject to the interest payment rebate fee under section 1078–3(f) of this title.
  • 34 U.S.C. § 10671(b)(3)(A)(iii)
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    (iii) a loan made under section 428C or 455(g) of the Higher Education Act of 1965 (20 U.S.C. 1078–3 and 1087e(g)).
  • 34 U.S.C. § 10671(b)(3)(B)(iii)
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    (iii) A loan made under section 428C or 455(g) of the Higher Education Act of 1965 (20 U.S.C. 1078–3 and 1087e(g)) to the extent that such loan was used to repay a loan described in clause (i) or (ii).
  • 42 U.S.C. § 292e(e)
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    (e) Nothing in this section shall be construed to preclude the lender and the borrower, by mutual agreement, from consolidating all of the borrower’s loans insured under this subpart into a single instrument (or, if the borrower obtained only 1 loan insured under this subpart, refinancing the loan 1 time) under the terms applicable to an insured loan made at the same time as the consolidation. The lender or loan holder should provide full information to the borrower concerning the advantages and disadvantages of loan consolidation or refinancing. Nothing in this section shall be construed to preclude the consolidation of the borrower’s loans insured under this subpart under section 1078–3 of title 20. Any loans insured pursuant to this subpart that are consolidated under section 1078–3 of title 20 shall not be eligible for special allowance payments under section 1087–1 of title 20.

Citations to §1078–3(a)(1)

Citations to §1078–3(a)(3)

Citations to §1078–3(a)(3)(A)

  • 20 U.S.C. § 1087e(g)(2)(B)
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    (B) Notwithstanding section 1078–3(a)(3)(A) of this title or any other provision of law, for each individual borrower who applies under subparagraph (A), the Secretary shall—
    (i) make a separate Federal Direct Consolidation Loan under this part that—
    (I) shall be for an amount equal to the product of—
    (aa) the unpaid principal and accrued unpaid interest of the joint consolidation loan (as of the date that is the day before such separate consolidation loan is made) and any outstanding charges and fees with respect to such loan; and
    (bb) the percentage of the joint consolidation loan attributable to the loans of the individual borrower for whom such separate consolidation loan is being made, as determined—
    (AA) on the basis of the loan obligations of such borrower with respect to such joint consolidation loan (as of the date such joint consolidation loan was made); or
    (BB) in the case in which both borrowers request, on the basis of proportions outlined in a divorce decree, court order, or settlement agreement; and
    (II) has the same rate of interest as the joint consolidation loan (as of the date that is the day before such separate consolidation loan is made); and
    (ii) in a timely manner, notify each individual borrower that the joint consolidation loan had been repaid and of the terms and conditions of their new loans.

Citations to §1078–3(a)(4)

Citations to §1078–3(b)(1)(A)

Citations to §1078–3(b)(1)(E)

Citations to §1078–3(f)