---
kind: "section"
citation: "20 U.S.C. § 1087i–2"
title: "20"
title_heading: "Education"
number: "1087i–2"
heading: "Temporary loan consolidation authority"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/20/1087i-2"
units:
  - "Chapter 28 — Higher Education Resources and Student Assistance"
  - "Subchapter IV — Student Assistance"
  - "Part D — William D. Ford Federal Direct Loan Program"
---

# §1087i–2. Temporary loan consolidation authority

- (a) **Temporary loan consolidation authority—**
  - (1) **In general—** A borrower who has 1 or more [loans](/usc/20/1066a.md?p=2) in 2 or more of the categories described in [paragraph (2)](#a-2), and who has not yet entered repayment on 1 or more of those [loans](/usc/20/1066a.md?p=2) in any of the categories, may consolidate all of the [loans](/usc/20/1066a.md?p=2) of the borrower that are described in [paragraph (2)](#a-2) into a Federal Direct Consolidation [Loan](/usc/20/1066a.md?p=2) during the period described in [paragraph (3)](#a-3).
  - (2) **Categories of loans that may be consolidated—** The categories of [loans](/usc/20/1066a.md?p=2) that may be consolidated under [paragraph (1)](#a-1) are—
    - (A) [loans](/usc/20/1066a.md?p=2) made under this part;
    - (B) [loans](/usc/20/1066a.md?p=2) purchased by the [Secretary](/usc/20/1003.md?p=17) pursuant to [section 1087i–1 of this title](/usc/20/1087i–1.md); and
    - (C) [loans](/usc/20/1066a.md?p=2) made under part B that are held by an [eligible lender](/usc/20/1019.md?p=4), as such term is defined in [section 1085(d) of this title](/usc/20/1085.md?p=d).
  - (3) **Time period in which loans may be consolidated—** The [Secretary](/usc/20/1003.md?p=17) may make a Federal Direct Consolidation [Loan](/usc/20/1066a.md?p=2) under this section to a borrower whose application for such Federal Direct Consolidation [Loan](/usc/20/1066a.md?p=2) is received on or after July 1, 2010, and before July 1, 2011.
- (b) **Terms of loans—** A Federal Direct Consolidation [Loan](/usc/20/1066a.md?p=2) made under this section shall have the same terms and conditions as a Federal Direct Consolidation [Loan](/usc/20/1066a.md?p=2) made under [section 1087e(g) of this title](/usc/20/1087e.md?p=g), except that—
  - (1) in determining the applicable rate of [interest](/usc/20/1066a.md?p=6) on the Federal Direct Consolidation [Loan](/usc/20/1066a.md?p=2) made under this section (other than on a Federal Direct Consolidation [Loan](/usc/20/1066a.md?p=2) described in [paragraph (2)](#b-2)), [section 1077a(l)(3)](/usc/20/1077a.md?p=l-3) of this title shall be applied without rounding the weighted average of the [interest](/usc/20/1066a.md?p=6) rate on the [loans](/usc/20/1066a.md?p=2) consolidated to the nearest higher one-eighth of 1 percent as described in [subparagraph (A)](/usc/20/1077a.md?p=l-3-A) of section 1077a(l)(3) of this title; and
  - (2) if a Federal Direct Consolidation [Loan](/usc/20/1066a.md?p=2) made under this section that repays a [loan](/usc/20/1066a.md?p=2) which is subject to an [interest](/usc/20/1066a.md?p=6) rate determined under [section 1077a(g)(2)](/usc/20/1077a.md?p=g-2), (j)(2), or (k)(2) of this title, then the [interest](/usc/20/1066a.md?p=6) rate for such Federal Direct Consolidation [Loan](/usc/20/1066a.md?p=2) shall be calculated—
    - (A) by using the applicable rate of [interest](/usc/20/1066a.md?p=6) described in [section 1077a(g)(2)](/usc/20/1077a.md?p=g-2), (j)(2), or (k)(2) of this title, respectively; and
    - (B) in accordance with [section 1077a(l)(3)](/usc/20/1077a.md?p=l-3) of this title.

## Source credit

(Pub. L. 89–329, title IV, § 459B, as added Pub. L. 111–152, title II, § 2206(b), Mar. 30, 2010, 124 Stat. 1075.)