Temporary loan consolidation authority
In general
A borrower who has 1 or more loans in 2 or more of the categories described in paragraph (2), and who has not yet entered repayment on 1 or more of those loans in any of the categories, may consolidate all of the loans of the borrower that are described in paragraph (2) into a Federal Direct Consolidation Loan during the period described in paragraph (3).
Categories of loans that may be consolidated
The categories of loans that may be consolidated under paragraph (1) are—
loans made under this part;
section 1087i–1 of this title loans purchased by the Secretary pursuant to ; and
section 1085(d) of this title loans made under part B that are held by an eligible lender, as such term is defined in .
Time period in which loans may be consolidated
The Secretary may make a Federal Direct Consolidation Loan under this section to a borrower whose application for such Federal Direct Consolidation Loan is received on or after , and before .
Terms of loans
section 1087e(g) of this titleA Federal Direct Consolidation Loan made under this section shall have the same terms and conditions as a Federal Direct Consolidation Loan made under , except that—
ll in determining the applicable rate of interest on the Federal Direct Consolidation Loan made under this section (other than on a Federal Direct Consolidation Loan described in paragraph (2)), section 1077a()(3) of this title shall be applied without rounding the weighted average of the interest rate on the loans consolidated to the nearest higher one-eighth of 1 percent as described in subparagraph (A) of section 1077a()(3) of this title; and
if a Federal Direct Consolidation Loan made under this section that repays a loan which is subject to an interest rate determined under section 1077a(g)(2), (j)(2), or (k)(2) of this title, then the interest rate for such Federal Direct Consolidation Loan shall be calculated—
by using the applicable rate of interest described in section 1077a(g)(2), (j)(2), or (k)(2) of this title, respectively; and
l in accordance with section 1077a()(3) of this title.
Pub. L. 89–329, title IV, § 459BPub. L. 111–152, title II, § 2206(b)124 Stat. 1075(, as added , , .)