20 U.S.C. § 1087e
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.
Loans made to borrowers under this part that, except as otherwise specified in this part, have the same terms, conditions, and benefits as loans made to borrowers under-
Subject to subparagraph (B) and notwithstanding any provision of this part or part B, for any period of instruction beginning on or after July 1, 2012-
Subparagraph (A) shall not apply to an individual enrolled in course work specified in paragraph (3)(B) or (4)(B) of section 1091(b) of this title.
For Federal Direct Stafford Loans and Federal Direct Unsubsidized Stafford Loans 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-
except that such rate shall not exceed 8.25 percent.
shall not exceed the rate determined under subparagraph (B).
except that such rate shall not exceed 8.25 percent.
Notwithstanding paragraphs (1) and (2), for Federal Direct Stafford Loans and Federal Direct Unsubsidized Stafford Loans 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-
except that such rate shall not exceed 8.25 percent.
except that such rate shall not exceed 9 percent.
except that such rate shall not exceed 9 percent.
except that such rate shall not exceed 9 percent.
Notwithstanding the preceding paragraphs of this subsection, for Federal Direct Stafford Loans and Federal Direct Unsubsidized Stafford Loans 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-
except that such rate shall not exceed 8.25 percent.
Notwithstanding the preceding paragraphs of this subsection, with respect to any Federal Direct Stafford Loan or Federal Direct Unsubsidized Stafford Loan 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-
shall be determined under subparagraph (A) by substituting "1.7 percent" for "2.3 percent".
Notwithstanding the preceding paragraphs of this subsection, with respect to Federal Direct PLUS Loan for which the first disbursement is made on or after July 1, 1998, and before October 1, 1998, the applicable rate of interest shall be determined under subparagraph (A)-
Notwithstanding the preceding paragraphs of this subsection, for Federal Direct Stafford Loans and Federal Direct Unsubsidized Stafford Loans 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-
except that such rate shall not exceed 8.25 percent.
Notwithstanding the preceding paragraphs of this subsection, with respect to any Federal Direct Stafford Loan or Federal Direct Unsubsidized Stafford Loan 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-
shall be determined under subparagraph (A) by substituting "1.7 percent" for "2.3 percent".
Notwithstanding the preceding paragraphs of this subsection, with respect to Federal Direct PLUS Loan for which the first disbursement is made on or after October 1, 1998, and before July 1, 2006, the applicable rate of interest shall be determined under subparagraph (A)-
Notwithstanding the preceding paragraphs of this subsection, any Federal Direct Consolidation loan for which the application is received on or after February 1, 1999, and before July 1, 2006, shall bear interest at an annual rate on the unpaid principal balance of the loan that is equal to the lesser of-
Notwithstanding the preceding paragraphs of this subsection, any Federal Direct Consolidation loan for which the application is received on or after October 1, 1998, and before February 1, 1999, shall bear interest at an annual rate on the unpaid principal balance of the loan that is equal to-
except that such rate shall not exceed 8.25 percent.
Notwithstanding the preceding paragraphs of this subsection, for Federal Direct Stafford Loans and Federal Direct Unsubsidized Stafford Loans for which the first disbursement is made on or after July 1, 2006, and before July 1, 2013, the applicable rate of interest shall be 6.8 percent on the unpaid principal balance of the loan.
Notwithstanding the preceding paragraphs of this subsection, with respect to any Federal Direct PLUS loan for which the first disbursement is made on or after July 1, 2006, and before July 1, 2013, the applicable rate of interest shall be 7.9 percent on the unpaid principal balance of the loan.
Notwithstanding the preceding paragraphs of this subsection, any Federal Direct Consolidation loan for which the application is received on or after July 1, 2006, and before July 1, 2013, shall bear interest at an annual rate on the unpaid principal balance of the loan that is equal to the lesser of-
Notwithstanding the preceding paragraphs of this subsection and subparagraph (A) of this paragraph, for Federal Direct Stafford Loans made to undergraduate students for which the first disbursement is made on or after July 1, 2006, and before July 1, 2013, the applicable rate of interest shall be as follows:
Notwithstanding the preceding paragraphs of this subsection, for Federal Direct Stafford Loans and Federal Direct Unsubsidized Stafford Loans issued to undergraduate students, for which the first disbursement is made on or after July 1, 2013, the applicable rate of interest shall, for loans disbursed 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 the lesser of-
Notwithstanding the preceding paragraphs of this subsection, for Federal Direct Unsubsidized Stafford Loans issued to graduate or professional students, for which the first disbursement is made on or after July 1, 2013, the applicable rate of interest shall, for loans disbursed 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 the lesser of-
Notwithstanding the preceding paragraphs of this subsection, for Federal Direct PLUS Loans, for which the first disbursement is made on or after July 1, 2013, the applicable rate of interest shall, for loans disbursed 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 the lesser of-
Notwithstanding the preceding paragraphs of this subsection, any Federal Direct Consolidation Loan for which the application is received on or after July 1, 2013, shall bear interest at an annual rate on the unpaid principal balance of the loan that is equal to the weighted average of the interest rates on the loans consolidated, rounded to the nearest higher one-eighth of one percent.
The Secretary shall determine the applicable rate of interest under this paragraph after consultation with the Secretary of the Treasury and shall publish such rate in the Federal Register as soon as practicable after the date of determination.
The applicable rate of interest determined under this paragraph for a Federal Direct Stafford Loan, a Federal Direct Unsubsidized Stafford Loan, or a Federal Direct PLUS Loan shall be fixed for the period of the loan.
Notwithstanding any other provision of this part 1 with respect to loans for which the first disbursement of principal is made before July 1, 2012,,2 the Secretary is authorized to prescribe by regulation such reductions in the interest rate or origination fee paid by a borrower of a loan made under this part as the Secretary determines appropriate to encourage on-time repayment of the loan. Such reductions may be offered only if the Secretary determines the reductions are cost neutral and in the best financial interest of the Federal Government. Any increase in subsidy costs resulting from such reductions shall be completely offset by corresponding savings in funds available for the William D. Ford Federal Direct Loan Program in that fiscal year from section 1087h of this title and other administrative accounts.
Prior to publishing regulations proposing repayment incentives with respect to loans for which the first disbursement of principal is made before July 1, 2012, the Secretary shall ensure the cost neutrality of such reductions. The Secretary shall not prescribe such regulations in final form unless an official report from the Director of the Office of Management and Budget to the Secretary and a comparable report from the Director of the Congressional Budget Office to the Congress each certify that any such reductions will be completely cost neutral. Such reports shall be transmitted to the authorizing committees not less than 60 days prior to the publication of regulations proposing such reductions.
Notwithstanding any other provision of this part, the Secretary is prohibited from authorizing or providing any repayment incentive not otherwise authorized under this part to encourage on-time repayment of a loan under this part for which the first disbursement of principal is made on or after July 1, 2012, including any reduction in the interest or origination fee rate paid by a borrower of such a loan, except that the Secretary may provide for an interest rate reduction for a borrower who agrees to have payments on such a loan automatically electronically debited from a bank account.
The Secretary shall determine the applicable rates of interest under this subsection after consultation with the Secretary of the Treasury and shall publish such rate in the Federal Register as soon as practicable after the date of determination.
The Secretary shall charge the borrower of a loan made under this part an origination fee of 4.0 percent of the principal amount of loan.
Paragraph (1) shall be applied to loans made under this part, other than Federal Direct Consolidation loans and Federal Direct PLUS loans-
Consistent with criteria established by the Secretary, the Secretary shall offer a borrower of a loan made under this part a variety of plans for repayment of such loan, including principal and interest on the loan. The borrower shall be entitled to accelerate, without penalty, repayment on the borrower's loans under this part. The borrower may choose-
If a borrower of a loan made under this part does not select a repayment plan described in paragraph (1), the Secretary may provide the borrower with a repayment plan described in subparagraph (A), (B), or (C) of paragraph (1).
The borrower of a loan made under this part may change the borrower's selection of a repayment plan under paragraph (1), or the Secretary's selection of a plan for the borrower under paragraph (2), as the case may be, under such terms and conditions as may be established by the Secretary.
The Secretary may provide, on a case by case basis, an alternative repayment plan to a borrower of a loan made under this part who demonstrates to the satisfaction of the Secretary that the terms and conditions of the repayment plans available under paragraph (1) are not adequate to accommodate the borrower's exceptional circumstances. In designing such alternative repayment plans, the Secretary shall ensure that such plans do not exceed the cost to the Federal Government, as determined on the basis of the present value of future payments by such borrowers, of loans made using the plans available under paragraph (1).
The Secretary may require any borrower who has defaulted on a loan made under this part to-
The Secretary may obtain such information as is reasonably necessary regarding the income of a borrower (and the borrower's spouse, if applicable) of a loan made under this part that is, or may be, repaid pursuant to income contingent repayment, for the purpose of determining the annual repayment obligation of the borrower. Returns and return information (as defined in section 6103 of title 26) may be obtained under the preceding sentence only to the extent authorized by section 6103(l)(13) of title 26. The Secretary shall establish procedures for determining the borrower's repayment obligation on that loan for such year, and such other procedures as are necessary to implement effectively income contingent repayment.
A repayment schedule for a loan made under this part and repaid pursuant to income contingent repayment shall be based on the adjusted gross income (as defined in section 62 of title 26) of the borrower or, if the borrower is married and files a Federal income tax return jointly with the borrower's spouse, on the adjusted gross income of the borrower and the borrower's spouse.
A borrower who chooses, or is required, to repay a loan made under this part pursuant to income contingent repayment, and for whom adjusted gross income is unavailable or does not reasonably reflect the borrower's current income, shall provide to the Secretary other documentation of income satisfactory to the Secretary, which documentation the Secretary may use to determine an appropriate repayment schedule.
Income contingent repayment schedules shall be established by regulations promulgated by the Secretary and shall require payments that vary in relation to the appropriate portion of the annual income of the borrower (and the borrower's spouse, if applicable) as determined by the Secretary.
The balance due on a loan made under this part that is repaid pursuant to income contingent repayment shall equal the unpaid principal amount of the loan, any accrued interest, and any fees, such as late charges, assessed on such loan. The Secretary may promulgate regulations limiting the amount of interest that may be capitalized on such loan, and the timing of any such capitalization.
The Secretary shall establish procedures under which a borrower of a loan made under this part who chooses or is required to repay such loan pursuant to income contingent repayment is notified of the terms and conditions of such plan, including notification of such borrower, that if a borrower considers that special circumstances, such as a loss of employment by the borrower or the borrower's spouse, warrant an adjustment in the borrower's loan repayment, the borrower may contact the Secretary, who shall determine whether such adjustment is appropriate, in accordance with criteria established by the Secretary.
In calculating the extended period of time for which an income contingent repayment plan under this subsection may be in effect for a borrower, the Secretary shall include all time periods during which a borrower of loans under part B, part D, or part E-
The Secretary shall establish and implement, with respect to any borrower described in subparagraph (B), procedures to-
Subparagraph (A) shall apply to each borrower of a loan made under this part who, on or after the date on which the Secretary establishes procedures under such subparagraph-
A borrower of a loan made under this part who meets the requirements described in paragraph (2) shall be eligible for a deferment, during which periodic installments of principal need not be paid, and interest-
A borrower of a loan made under this part shall be eligible for a deferment during any period-
except that no borrower shall be eligible for a deferment under this subparagraph, or a loan made under this part (other than a Federal Direct PLUS Loan or a Federal Direct Consolidation Loan), while serving in a medical internship or residency program;
and for the 180-day period following the demobilization date for the service described in clause (i) or (ii); or
A borrower of a loan made under this part who meets the requirements of subparagraph (B) shall be eligible for a deferment, during which periodic installments of principal need not be paid, and interest shall not accrue.
A borrower of a loan made under this part shall be eligible for a deferment during-
This paragraph shall apply with respect to loans-
A borrower of a loan made under this part who meets the requirements of subparagraph (B) shall be eligible for a deferment for an aggregate period of 180 days, during which periodic installments of principal need not be paid, and interest-
A borrower of a loan made under this part shall be eligible for a deferment under subparagraph (A) if the borrower-
A borrower may establish eligibility for a deferment under subparagraph (A) by providing to the Secretary-
The documentation described in this clause is-
For the purpose of this subsection, the term "borrower" means an individual who is a new borrower on the date such individual applies for a loan under this part for which the first disbursement is made on or after July 1, 1993.
A borrower of a loan made under this part, who at the time such individual applies for such loan, has an outstanding balance of principal or interest owing on any loan made, insured, or guaranteed under part B of this subchapter prior to July 1, 1993, shall be eligible for a deferment under section 1077(a)(2)(C) of this title or section 1078(b)(1)(M) of this title as such sections were in effect on July 22, 1992.
A borrower of a loan made under this part may consolidate such loan with the loans described in section 1078-3(a)(4) of this title, including any loan made under part B and first disbursed before July 1, 2010. To be eligible for a consolidation loan under this part, a borrower shall meet the eligibility criteria set forth in section 1078-3(a)(3) of this title.
A married couple, or 2 individuals who were previously a married couple, and who received a joint consolidation loan as such married couple under subparagraph (C) of section 1078-3(a)(3) of this title (as such subparagraph was in effect on June 30, 2006), may apply to the Secretary, in accordance with subparagraph (C) of this paragraph, for each individual borrower in the married couple (or previously married couple) to receive a separate Federal Direct Consolidation Loan under this part.
Notwithstanding any other provision of this chapter, a married couple, or 2 individuals who were previously a married couple, who are in default on a joint consolidation loan may be eligible to receive a separate Federal Direct Consolidation Loan under this part in accordance with this paragraph.
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-
Except as provided in clause (ii), to receive separate consolidation loans under this part, both individual borrowers in a married couple (or previously married couple) shall jointly apply under subparagraph (A).
An individual borrower in a married couple (or previously married couple) may apply for a separate consolidation loan under subparagraph (A) separately and without regard to whether or when the other individual borrower in the married couple (or previously married couple) applies under subparagraph (A), in a case in which-
In the case of an individual borrower who receives a separate consolidation loan due to the circumstances described in clause (ii), the other non-applying individual borrower shall become solely liable for the remaining balance of the joint consolidation loan.
Notwithstanding any other provision of State or Federal law, the Secretary shall specify in regulations which acts or omissions of an institution of higher education a borrower may assert as a defense to repayment of a loan made under this part, except that in no event may a borrower recover from the Secretary, in any action arising from or relating to a loan made under this part, an amount in excess of the amount such borrower has repaid on such loan.
The common financial reporting form required in section 1090(a)(1) of this title shall constitute the application for loans made under this part (other than a Federal Direct PLUS loan). The Secretary shall develop, print, and distribute to participating institutions a standard promissory note and loan disclosure form.
Proceeds of loans to students under this part shall be applied to the student's account for tuition and fees, and, in the case of institutionally owned housing, to room and board. Loan proceeds that remain after the application of the previous sentence shall be delivered to the borrower by check or other means that is payable to and requires the endorsement or other certification by such borrower.
The Secretary shall establish periods for the payments described in paragraph (1) in a manner consistent with payment of Federal Pell Grants under subpart 1 of part A of this subchapter.
Payments and refunds shall be reconciled in a manner consistent with the manner set forth for the submission of a payment summary report required of institutions participating in the program under subpart 1 of part A, except that nothing in this paragraph shall prevent such reconciliations on a monthly basis.
All transaction histories under this part shall be maintained using the same system designated by the Secretary for the provision of Federal Pell Grants under subpart 1 of part A of this subchapter.
Using funds received by transfer to the Secretary under section 2174 of title 10 or section 3078 of title 33 for the payment of interest on a loan made under this part to a member of the Armed Forces or an officer in the commissioned officer corps of the National Oceanic and Atmospheric Administration, respectively, the Secretary shall pay the interest on the loan as due for a period not in excess of 36 consecutive months. The Secretary may not pay interest on such a loan out of any funds other than funds that have been so transferred.
During the period in which the Secretary is making payments on a loan under paragraph (1), the Secretary shall grant the borrower forbearance, in the form of a temporary cessation of all payments on the loan other than the payments of interest on the loan that are made under that paragraph.
The Secretary shall cancel the balance of interest and principal due, in accordance with paragraph (2), on any eligible Federal Direct Loan not in default for a borrower who-
After the conclusion of the employment period described in paragraph (1), the Secretary shall cancel the obligation to repay the balance of principal and interest due as of the time of such cancellation, on the eligible Federal Direct Loans made to the borrower under this part.
In this subsection:
The term "eligible Federal Direct Loan" means a Federal Direct Stafford Loan, Federal Direct PLUS Loan, or Federal Direct Unsubsidized Stafford Loan, or a Federal Direct Consolidation Loan.
The term "public service job" means-
No borrower may, for the same service, receive a reduction of loan obligations under both this subsection and section 1078-10, 1078-11, 1078-12, or 1087j of this title.
The Secretary shall take such steps as may be necessary to ensure that monthly Federal Direct Loan statements and other publications of the Department do not contain more than four digits of the Social Security number of any individual.
Notwithstanding any other provision of this part and in accordance with paragraphs (2) and (4), interest shall not accrue for an eligible military borrower on a loan made under this part for which the first disbursement is made on or after October 1, 2008.
In the case of any consolidation loan made under this part that is disbursed on or after October 1, 2008, interest shall not accrue pursuant to this subsection only on such portion of such loan as was used to repay a loan made under this part for which the first disbursement is made on or after October 1, 2008.
In this subsection, the term "eligible military borrower" means an individual who-
An individual who qualifies as an eligible military borrower under this subsection may receive the benefit of this subsection for not more than 60 months.
Each institution of higher education with which the Secretary has an agreement under section 1087c of this title, and each contractor with which the Secretary has a contract under section 1087f of this title, shall, with respect to loans under this part and in accordance with such regulations as the Secretary shall prescribe, comply with each of the requirements under section 1083 of this title that apply to a lender with respect to a loan under part B.
1 So in original. Probably should be followed by a comma.
2 So in original. The second comma probably should not appear.
20 U.S.C. § 1087e
EDITORIAL NOTES
REFERENCES IN TEXTSections 1077(a)(2)(C) and 1078(b)(1)(M) of this title as such sections were in effect on July 22, 1992, referred to in subsec. (f)(6), means sections 1077(a)(2)(C) and 1078(b)(1)(M) of this title prior to being amended generally by sections 414(b) and 416(e)(1), respectively, of Pub. L. 102-325, 106 Stat. 513, 519.Subparagraph (C) of section 1078-3(a)(3) of this title (as such subparagraph was in effect on June 30, 2006), referred to in subsec. (g)(2)(A)(i), means section 1078-3(a)(3)(C) of this title prior to being struck out by Pub. L. 109-171, §8009, 120 Stat. 164, effective July 1, 2006. Text of subsec. (a)(3)(C) prior to its repeal is set out in a 2006 Amendment note under section 1078-3 of this title.
AMENDMENTS2023-Subsec. (f)(4) to (6). Pub. L. 118-31 added par. (4) and redesignated former pars. (4) and (5) as (5) and (6), respectively. 2022-Subsec. (g). Pub. L. 117-200 designated existing provisions as par. (1), inserted heading, and added par. (2). 2020-Subsec. (l). Pub. L. 116-259, §202(b)(2)(A), substituted "Armed Forces and NOAA Commissioned Officer Corps student loan interest payment programs" for "Armed Forces student loan interest payment program" in heading.Subsec. (l)(1). Pub. L. 116-259, §202(b)(2)(B), inserted "or section 3078 of title 33" after "section 2174 of title 10" and "or an officer in the commissioned officer corps of the National Oceanic and Atmospheric Administration, respectively" after "Armed Forces".Subsec. (q). Pub. L. 116-260 struck out subsec. (q) which related to eligibility for, and interest charges on, Federal Direct Stafford Loans for new borrowers on or after July 1, 2013. 2019-Subsec. (e)(6). Pub. L. 116-91, §4(a)(2), substituted "including notification of such borrower, that if a borrower" for "including notification of such borrower-"(A) that the Internal Revenue Service will disclose to the Secretary tax return information as authorized under section 6103(l)(13) of title 26; and"(B) that if a borrower"and struck out "as determined using the information described in subparagraph (A), or the alternative documentation described in paragraph (3)" after "borrower's loan repayment". Subsec. (e)(8). Pub. L. 116-91, §4(a)(1), added par. (8). 2018-Subsec. (f)(3) to (5). Pub. L. 115-245 added par. (3) and redesignated former pars. (3) and (4) as (4) and (5), respectively.2016-Subsec. (o)(3)(B). Pub. L. 114-328 inserted ", or paragraph (1) or (3) of section 351(a)," after "section 310".2013-Subsec. (b)(7). Pub. L. 113-28, §2(a)(1)(A), inserted "and before July 1, 2013" after "on or after July 1, 2006" in heading.Subsec. (b)(7)(A) to (C). Pub. L. 113-28, §2(a)(1)(B) -(D), inserted "and before July 1, 2013," after "on or after July 1, 2006,".Subsec. (b)(8) to (10). Pub. L. 113-28, §2(a)(2), (3), added par. (8) and redesignated former pars. (8) and (9) as (9) and (10), respectively.2012-Subsec. (b)(7)(D). Pub. L. 112-141, §100301(1), substituted "and before July 1, 2013," for "and before July 1, 2012," in introductory provisions. Subsec. (b)(7)(D)(v). Pub. L. 112-141, §100301(2), substituted "and before July 1, 2013," for "and before July 1, 2012,". Subsec. (q). Pub. L. 112-141, §100302(a), added subsec. (q). 2011-Subsec. (a)(3). Pub. L. 112-25, §502, added par. (3).Subsec. (b)(8)(A). Pub. L. 112-25, §503(1), substituted "Incentives for loans disbursed before July 1, 2012" for "In general" in heading and inserted "with respect to loans for which the first disbursement of principal is made before July 1, 2012," after "of this part" in text. Subsec. (b)(8)(B). Pub. L. 112-25, §503(2), inserted "with respect to loans for which the first disbursement of principal is made before July 1, 2012" after "repayment incentives".Subsec. (b)(8)(C). Pub. L. 112-25, §503(3), added subpar. (C). 2010-Subsec. (a)(1). Pub. L. 111-152, §2211(a)(1), inserted ", and first disbursed on June 30, 2010," before "under sections 1078".Subsec. (g). Pub. L. 111-152, §2211(a)(2), inserted ", including any loan made under part B and first disbursed before July 1, 2010" after "section 1078-3(a)(4) of this title" and struck out at end "The Secretary, upon application for such a loan, shall comply with the requirements applicable to a lender under section 1078-3(b)(1)(G) of this title." 2009-Subsec. (d)(1)(C). Pub. L. 111-39, §404(b)(2)(A), substituted "1078(b)(9)(A)(iv)" for "1078(b)(9)(A)(v)". Subsec. (h). Pub. L. 111-39, §404(b)(2)(B), struck out "(except as authorized under section 1087g(a)(1) of this title)" after "regulations".Subsec. (k)(1)(B). Pub. L. 111-39, §404(b)(2)(C), struck out ", or in a notice under section 1087g(a)(1) of this title," after "regulations of the Secretary". 2008-Subsec. (b)(8)(B). Pub. L. 110-315, §103(b)(8), substituted "authorizing committees" for "Committee on Labor and Human Resources of the Senate and the Committee on Education and the Workforce of the House of Representatives".Subsec. (d)(1)(E). Pub. L. 110-315, §451(a), added subpar. (E). Subsec. (g). Pub. L. 110-315, §425(b)(3), substituted "section 1078-3(b)(1)(G)" for "section 1078-3(b)(1)(F)".Subsec. (m)(3)(B). Pub. L. 110-315, §451(b)(1), amended subpar. (B) generally. Prior to amendment, text read as follows: "The term 'public service job' means-"(i) a full-time job in emergency management, government, military service, public safety, law enforcement, public health, public education (including early childhood education), social work in a public child or family service agency, public interest law services (including prosecution or public defense or legal advocacy in low-income communities at a nonprofit organization), public child care, public service for individuals with disabilities, public service for the elderly, public library sciences, school-based library sciences and other school-based services, or at an organization that is described in section 501(c)(3) of title 26 and exempt from taxation under section 501(a) of such title; or"(ii) teaching as a full-time faculty member at a Tribal College or University as defined in section 1059c(b) of this title and other faculty teaching in high-needs areas, as determined by the Secretary."Subsec. (m)(4). Pub. L. 110-315, §451(b)(2), added par. (4). Subsec. (n). Pub. L. 110-315, §451(c), added subsec. (n).Subsec. (o). Pub. L. 110-315, §451(d), added subsec. (o).Subsec. (p). Pub. L. 110-315, §451(e), added subsec. (p).2007-Subsec. (b)(7)(D). Pub. L. 110-84, §201(b), added subpar. (D).Subsec. (d)(1)(D). Pub. L. 110-84, §203(b)(3), inserted "made on behalf of a dependent student" after "PLUS loan".Subsec. (e)(7). Pub. L. 110-84, §205, added par. (7).Subsec. (f)(2)(C). Pub. L. 110-84, §202(b), struck out "not in excess of 3 years" before "during" in introductory provisions, substituted comma for "; or" at end of cl. (ii), and inserted concluding provisions.Subsec. (m). Pub. L. 110-84, §401, added subsec. (m). 2006-Subsec. (a)(1). Pub. L. 109-171, §8009(d)(1), inserted "1078-3," after "1078-2,".Subsec. (a)(2)(C), (D). Pub. L. 109-171, §8009(d)(2), added subpar. (C) and redesignated former subpar. (C) as (D).Subsec. (b)(8)(A). Pub. L. 109-171, §8008(c)(3), inserted "or origination fee" after "reductions in the interest rate".Subsec. (c). Pub. L. 109-171, §8008(c)(2), designated existing provisions as par. (1), inserted par. (1) heading, and added par. (2).Subsec. (d)(1)(A) to (C). Pub. L. 109-171, §8008(b), added subpars. (A) to (C) and struck out former subpars. (A) to (C), which read as follows:"(A) a standard repayment plan, with a fixed annual repayment amount paid over a fixed period of time, consistent with subsection (a)(1) of this section; "(B) an extended repayment plan, with a fixed annual repayment amount paid over an extended period of time, except that the borrower shall annually repay a minimum amount determined by the Secretary in accordance with section 1078(b)(1)(L) of this title;"(C) a graduated repayment plan, with annual repayment amounts established at 2 or more graduated levels and paid over a fixed or extended period of time, except that the borrower's scheduled payments shall not be less than 50 percent, nor more than 150 percent, of what the amortized payment on the amount owed would be if the loan were repaid under the standard repayment plan; and".Subsec. (f)(2)(C), (D). Pub. L. 109-171, §8007(b), added subpar. (C) and redesignated former subpar. (C) as (D).Subsec. (g). Pub. L. 109-171, §8009(d)(3), substituted "To be eligible for a consolidation loan under this part, a borrower shall meet the eligibility criteria set forth in section 1078-3(a)(3) of this title. The Secretary, upon application for such a loan, shall comply with the requirements applicable to a lender under section 1078-3(b)(1)(F) of this title." for "Loans made under this subsection shall be known as 'Federal Direct Consolidation Loans'." 2002-Subsec. (b)(6) to (9). Pub. L. 107-139, in par. (6) relating to interest rate provision for new loans substituted "2006" for "2003" in heading and "July 1, 2006," for "July 1, 2003," wherever appearing in text, added par. (7), redesignated former par. (7) as (8), and redesignated par. (6) relating to publication of rate in Federal Register as (9). Subsec. (l). Pub. L. 107-314 added subsec. (l). 2000-Subsec. (b)(4)(A). Pub. L. 106-554 amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: "For Federal Direct PLUS Loans 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-"(i) the bond equivalent rate of 52-week Treasury bills auctioned at final auction held prior to such June 1; plus"(ii) 3.1 percent,except that such rate shall not exceed 9 percent."1998-Subsec. (b)(5). Pub. L. 105-178, §8301(c)(2), which directed amendment of section 455(b) (20 U.S.C. 1087e(b)) by adding par. (5), was executed to this section, which is section 455(b) of Pub. L. 89-329, to reflect the probable intent of Congress. Former par. (5) redesignated (6).Subsec. (b)(6). Pub. L. 105-244, §452(a)(1), added par. (6) relating to interest rate provision for new loans. Pub. L. 105-178, §8301(c)(1), which directed amendment of section 455(b) (20 U.S.C. 1087e(b)) by redesignating par. (5) as (6), was executed to this section, which is section 455(b) of Pub. L. 89-329, to reflect the probable intent of Congress. Subsec. (b)(7). Pub. L. 105-244, §452(b), added par. (7).Subsec. (g). Pub. L. 105-244, §452(c), struck out "only under such terms and conditions as the Secretary shall establish pursuant to section 1087g(a)(1) of this title or regulations promulgated under this part" after "section 1078-3(a)(4) of this title".Subsecs. (j)(2), (k)(3). Pub. L. 105-244, §401(g)(6), substituted "Federal Pell Grants" for "basic grants". 1994-Subsec. (f)(3), (4). Pub. L. 103-382 added pars. (3) and (4). 1993- Pub. L. 103-66 amended section generally, substituting provisions relating to terms and conditions of loans for former provisions relating to withdrawal and termination procedures. 1992- Pub. L. 102-325 amended section generally, substituting provisions relating to withdrawal and termination procedures for former provisions relating to feasibility study.
STATUTORY NOTES AND RELATED SUBSIDIARIES
EFFECTIVE DATE OF 2023 AMENDMENT Pub. L. 118-31, div. A, title X, §1054(b), Dec. 22, 2023, 137 Stat. 398, provided that: "The amendments made by subsection (a) [amending this section] shall take effect 90 days after the date of the enactment of this Act [Dec. 22, 2023]."
EFFECTIVE DATE OF 2020 AMENDMENT Amendment by Pub. L. 116-260 effective July 1, 2024, except as otherwise expressly provided, and applicable with respect to award year 2024-2025 and each subsequent award year, as determined under this chapter, see section 701(b) of Pub. L. 116-260, set out as a note under section 1001 of this title. Pub. L. 116-260, div. FF, title VII, §705(b), Dec. 27, 2020, 134 Stat. 3200, provided that: "Notwithstanding section 701(b) of this Act [div. FF of Pub. L. 116-260, set out as an Effective Date of 2020 Amendment note under section 1001 of this title] and section 455(q) of the Higher Education Act of 1965 (20 U.S.C. 1087e(q)) as in effect on the date of enactment of this Act [Dec. 27, 2020], the Secretary of Education may implement the repeal authorized under subsection (a) [repealing subsec. (q) of this section] before (but not later than) July 1, 2023. The Secretary shall specify in a designation on what date and for which award years the implementation of such repeal will be effective prior to July 1, 2023. The Secretary shall publish any designation under this paragraph in the Federal Register at least 60 days before implementation."[Effective date of title VII of div. FF of Pub. L. 116-260 was changed from July 1, 2023, to July 1, 2024, by section 102(a) of Pub. L. 117-103, see section 701(b) of div. FF of Pub. L. 116-260, set out as a note under section 1001 of this title. However, the July 1, 2023, implementation dates in section 705(b) of Pub. L. 116-260, set out above, were not correspondingly amended.]
EFFECTIVE DATE OF 2018 AMENDMENT Amendment by Pub. L. 115-245 applicable with respect to loans made on or after Sept. 28, 2018, or in repayment on Sept. 28, 2018, see section 309(f) of Pub. L. 115-245, set out as a note under section 1077 of this title.
EFFECTIVE DATE OF 2013 AMENDMENT Pub. L. 113-28, §2(b), Aug. 9, 2013, 127 Stat. 507, provided that: "The amendments made by subsection (a) [amending this section] shall take effect as if enacted on July 1, 2013."
EFFECTIVE DATE OF 2010 AMENDMENT Pub. L. 111-152, §2211, 124 Stat. 1078, provided that: "The amendment made by subsection (a)(1) [amending this section] shall apply with respect to loans first disbursed under part D of title IV of the Higher Education Act of 1965 (20 U.S.C. 1087a et seq.) on or after July 1, 2010."
EFFECTIVE DATE OF 2009 AMENDMENT Amendment by Pub. L. 111-39 effective as if enacted on the date of enactment of Pub. L. 110-315 (Aug. 14, 2008), see section 3 of Pub. L. 111-39, set out as a note under section 1001 of this title.
EFFECTIVE DATE OF 2007 AMENDMENT Amendment by sections 201(b), 202(b), 205, and 401 of Pub. L. 110-84 effective Oct. 1, 2007, see section 1(c) of Pub. L. 110-84, set out as a note under section 1070a of this title.Amendment by section 203(b)(3) of Pub. L. 110-84 effective July 1, 2009, see section 203(c)(1) of Pub. L. 110-84, set out as a note under section 1078-3 of this title.
EFFECTIVE DATE OF 2006 AMENDMENT Amendment by Pub. L. 109-171 effective July 1, 2006, except as otherwise provided, see section 8001(c) of Pub. L. 109-171, set out as a note under section 1002 of this title.Amendment by section 8007(b) of Pub. L. 109-171 applicable with respect to all loans under title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.), see section 8007(f) of Pub. L. 109-171, set out as a note under section 1078 of this title.
EFFECTIVE DATE OF 2002 AMENDMENT Amendment by Pub. L. 107-314 applicable with respect to interest, and any special allowance under section 1087-1 of this title, that accrue for months beginning on or after Oct. 1, 2003, on student loans described in section 2174(c) of Title 10, Armed Forces, that were made before, on, or after such date to members of the Armed Forces who are on active duty (as defined in section 101(d) of Title 10) on or after that date, see section 651(e) of Pub. L. 107-314, set out as an Effective Date note under section 2174 of Title 10.
EFFECTIVE DATE OF 1998 AMENDMENT Amendment by sections 401(g)(6) and 452(b), (c) of Pub. L. 105-244 effective Oct. 1, 1998, except as otherwise provided in Pub. L. 105-244, see section 3 of Pub. L. 105-244, set out as a note under section 1001 of this title. Pub. L. 105-244, §452, 112 Stat. 1717, provided that: "The amendments made by subsection (a) [amending this section] shall apply with respect to any loan made under part D of title IV of the Higher Education Act of 1965 [this part] for which the first disbursement is made on or after October 1, 1998, and before July 1, 2003, except that such amendments shall apply with respect to a Federal Direct Consolidation Loan for which the application is received on or after October 1, 1998, and before July 1, 2003."
EFFECTIVE DATE OF 1992 AMENDMENT Amendment by Pub. L. 102-325 effective Oct. 1, 1992, see section 2 of Pub. L. 102-325, set out as a note under section 1001 of this title.
CONSTRUCTION OF 2006 AMENDMENT Nothing in amendment by section 8007(b) of Pub. L. 109-171 to be construed to authorize any refunding of any repayment of a loan, see section 8007(e) of Pub. L. 109-171, set out as a note under section 1078 of this title.
LIMITATION ON CONSOLIDATION LOANS DURING TEMPORARY INTEREST RATE Pub. L. 105-244, §452, 112 Stat. 1716, provided that: "Notwithstanding section 455(g) of the Higher Education Act of 1965 [subsec. (g) of this section], a borrower who is enrolled or accepted for enrollment in an institution of higher education may not consolidate loans under such section during the period beginning October 1, 1998, and ending February 1, 1999, unless the borrower certifies that the borrower has no outstanding loans made, insured, or guaranteed under title IV of such Act [20 U.S.C. 1070 et seq.] other than loans made under part D of such title [this part]."
EXECUTIVE DOCUMENTS
CONTINUED STUDENT LOAN PAYMENT RELIEF DURING THE COVID-19 PANDEMICMemorandum of President of the United States, Aug. 8, 2020, 85 F.R. 49585, provided:Memorandum for the Secretary of EducationBy the authority vested in me as President by the Constitution and the laws of the United States of America, it is hereby ordered as follows:SECTION 1. Policy. The 2019 novel coronavirus known as SARS-CoV-2, the virus causing outbreaks of the disease COVID-19, has significantly disrupted the lives of Americans. In Proclamation 9994 of March 13, 2020 (Declaring a National Emergency Concerning the Novel Coronavirus Disease (COVID-19) Outbreak) [50 U.S.C. 1621 note], I declared, pursuant to the National Emergencies Act (50 U.S.C. 1601 et seq.), that the COVID-19 outbreak in the United States constituted a national emergency (the "national emergency"). The same day, I also determined that the COVID-19 outbreak constituted an emergency of nationwide scope, pursuant to section 501(b) of the Stafford Act (42 U.S.C. 5191(b)).On March 20, 2020, my Administration took action to provide immediate relief to tens of millions of student loan borrowers during the pandemic caused by COVID-19 by both suspending loan payments and temporarily setting interest rates to 0 percent. This relief has helped many students and parents retain financial stability. And many other Americans have continued to routinely pay down their student loan balances, to more quickly eliminate their loans in the long run. During this time, borrowers have been able to determine the best path forward for themselves.The original announcement of this policy specified that it would continue for at least 60 days. In the interim, the Coronavirus Aid, Relief, and Economic Security Act [Pub. L. 116-136] provided this same student loan payment relief, but that program is scheduled to expire on September 30, 2020. Currently, many Americans remain unemployed due to the COVID-19 pandemic, and many more have accepted lower wages and reduced hours while States and localities continue to impose social distancing measures. It is therefore appropriate to extend this policy until such time that the economy has stabilized, schools have re-opened, and the crisis brought on by the COVID-19 pandemic has subsided.SEC. 2. Extension of Student Loan Payment Relief. (a) In light of the national emergency declared on March 13, 2020, the Secretary of Education shall take action pursuant to applicable law to effectuate appropriate waivers of and modifications to the requirements and conditions of economic hardship deferments described in section 455(f)(2)(D) of the Higher Education Act of 1965, as amended, 20 U.S.C. 1087e(f)(2)(D), and provide such deferments to borrowers as necessary to continue the temporary cessation of payments and the waiver of all interest on student loans held by the Department of Education until December 31, 2020.(b) All persons who wish to continue making student loan payments shall be allowed to do so, notwithstanding the deferments provided pursuant to subsection (a) of this section.SEC. 3. General Provisions. (a) Nothing in this memorandum shall be construed to impair or otherwise affect:(i) the authority granted by law to an executive department or agency, or the head thereof; or(ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.(b) This memorandum shall be implemented consistent with applicable law and subject to the availability of appropriations.(c) This memorandum is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.(d) You are authorized and directed to publish this memorandum in the Federal Register. Donald J. Trump.