US Code

Public Law 119-73 (01/23/2026)

20 U.S.C. § 1092a

Combined payment plan

(a)

Eligibility for plan

section 1078–3(a)(1) of this title42 U.S.C. 292osection 1078–3 of this titleosection 1078–3 of this title42 U.S.C. 292Upon the request of the borrower, a lender described in subparagraph (A), (B), or (C) of , or an eligible lender as defined in section 719 of the Public Health Service Act () may, with respect to a consolidation loan made under (and section 1087–2() of this title as in effect prior to the enactment of ) and loans guaranteed under part A of title VII of the Public Health Service Act ( 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.

(b)

Applicability of other requirements

section 1078–3 of this title42 U.S.C. 292section 1078–3(b)(1)(A) of this titleA lender offering a combined payment plan shall comply with all provisions of 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 ( 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 if such lender holds any outstanding loan of a borrower which is selected for inclusion in a combined payment plan.

(c)

Lender eligibility

Such lender may offer a combined payment plan only if—
(1)
the lender holds an outstanding loan of that borrower which is selected by the borrower for incorporation into a combined payment plan pursuant to this section (including loans which are selected by the borrower for consolidation under this section); or
(2)
the borrower certifies that the borrower has sought and has been unable to obtain a combined payment plan from the holders of the outstanding loans of that borrower.
(d)

Borrower selection of competing offers

In the case of multiple offers by lenders to administer a combined payment plan for a borrower, the borrower shall select from among them the lender to administer the combined payment plan including its loan consolidation component.

(e)

Effect of plan

42 U.S.C. 292Upon selection of a lender to administer the combined payment plan, the lender may reissue any loan under part A of title VII of the Public Health Service Act ( et seq.) selected by the borrower for incorporation in the combined payment plan which is not held by such lender and the proceeds of such reissued loan shall be paid by the lender to the holder or holders of the loans so selected to discharge the liability on such loans, if—
(1)
the lender selected to administer the combined payment plan has determined to its satisfaction, in accordance with reasonable and prudent business practices, for each loan being reissued (A) that the loan is a legal, valid, and binding obligation of the borrower; (B) that each such loan was made and serviced in compliance with applicable laws and regulations; and (C) the insurance on such loan is in full force and effect; and
(2)
42 U.S.C. 292f(e)(3) the loan being reissued was not in default (as defined in section 707(e)(3) of the Public Health Service Act []) at the time the request for a combined payment plan is made.
(f)

Notes and insurance certificates

(1)
42 U.S.C. 29242 U.S.C. 292i1
1 See References in Text note below.
Each loan reissued under subsection (e) shall be evidenced by a note executed by the borrower. The Secretary of Health and Human Services shall insure such loan under a certificate of comprehensive insurance with no insurance limit, but any such certificate shall only be issued to an authorized holder of loans insured under part A of title VII of the Public Health Service Act ( et seq.) (including the Student Loan Marketing Association). Such certificates shall provide that all loans reissued under this section shall be fully insured against loss of principal and interest. Any insurance issued with respect to loans reissued under this section shall be excluded from the limitation on maximum insurance authority set forth in section 710 of the Public Health Service Act []. Notwithstanding the provisions of section 729(a)  of the Public Health Service Act, the reissued loan shall be made in an amount, including outstanding principal, capitalized interest, accrued unpaid interest not yet capitalized, and authorized late charges. The proceeds of each such loan will be paid by the lender to the holder of the original loan being reissued and the borrower’s obligation to that holder on that loan shall be discharged.
(2)
42 U.S.C. 29242 U.S.C. 201 Except as otherwise specifically provided for under the provisions of this section, the terms of any reissued loan shall be the same as the terms of the original loan. The maximum repayment period for a loan reissued under this section shall not exceed the remainder of the period which would have been permitted on the original loan. If the lender holds more than one loan insured under part A of title VII of the Public Health Service Act ( et seq.), the maximum repayment period for all such loans may extend to the latest date permitted for any individual loan. Any reissued loan may be consolidated with any other Health Education Assistance Loan as provided in the Public Health Service Act [ et seq.], and, with the concurrence of the borrower, repayment of any such loans during any period may be made in amounts that are less than the interest that accrues on such loans during that period.
(g)

Termination of borrower eligibility

The status of an individual as an eligible combined payment plan borrower terminates upon receipt of a combined payment plan.

(h)

Fees and premiums

No origination fee or insurance premium shall be charged to the borrower on any combined payment plan, and no origination fee or insurance premium shall be payable by the lender to the Secretary of Health and Human Services.

(i)

Commencement of repayment

Repayment of a combined payment plan shall commence within 60 days after the later of the date of acceptance of the lender’s offer to administer a combined payment plan, the making of the consolidation loan or the reissuance of any Health Education Assistance Loans pursuant to subsection (e).

Pub. L. 89–329, title IV, § 485APub. L. 99–498, title IV, § 407(a)100 Stat. 1484Pub. L. 100–50, § 15(12)101 Stat. 357Pub. L. 111–39, title IV, § 407(b)(6)123 Stat. 1951(, as added , , ; amended , , ; , , .)

Editorial Notes

References in Text

act July 1, 1944, ch. 37358 Stat. 682section 294b of Title 42Pub. L. 102–408, title I, § 102106 Stat. 1994section 201 of Title 42The Public Health Service Act, referred to in subsecs. (a), (b), (e), and (f), is , , which is classified generally to chapter 6A (§ 201 et seq.) of Title 42, The Public Health and Welfare. Part A of title VII of the Act is classified generally to part A (§ 292 et seq.) of subchapter V of chapter 6A of Title 42. Section 729 of the Act was classified to and was omitted in the general revision of subchapter V of chapter 6A by , , . For complete classification of this Act to the Code, see Short Title note set out under and Tables.

Amendments

Pub. L. 111–39, § 407(b)(6)(A)42 U.S.C. 292o42 U.S.C. 2922009—Subsec. (a). , substituted “or an eligible lender as defined in section 719 of the Public Health Service Act ()” for “or defined in subpart I of part C of title VII of the Public Health Service Act” and “under part A of title VII of the Public Health Service Act ( et seq.)” for “under subpart I of part C of title VII of the Public Health Service Act (known as Health Education Assistance Loans)”.

Pub. L. 111–39, § 407(b)(6)(B)42 U.S.C. 292Subsec. (b). , substituted “part A of title VII of the Public Health Service Act ( et seq.)” for “subpart I of part C of title VII of the Public Health Service Act”.

Pub. L. 111–39, § 407(b)(6)(C)(i)42 U.S.C. 292Subsec. (e). , substituted “loan under part A of title VII of the Public Health Service Act ( et seq.)” for “Health Education Assistance Loan” in introductory provisions.

Pub. L. 111–39, § 407(b)(6)(C)(ii)Subsec. (e)(2). , substituted “707(e)(3)” for “733(e)(3)”.

Pub. L. 111–39, § 407(b)(6)(D)(i)42 U.S.C. 292Subsec. (f)(1). , substituted “part A of title VII of the Public Health Service Act ( et seq.)” for “subpart I of part C of title VII of the Public Health Service Act” and “710” for “728(a)”.

Pub. L. 111–39, § 407(b)(6)(D)(ii)42 U.S.C. 292Subsec. (f)(2). , substituted “part A of title VII of the Public Health Service Act ( et seq.)” for “subpart I of part C of title VII of the Public Health Service Act”.

Pub. L. 100–501987—Subsec. (a). substituted “subparagraph (A), (B), or (C)” for “clause (i), (ii), or (iii)”.

Statutory Notes and Related Subsidiaries

Effective Date of 2009 Amendment

Pub. L. 111–39Pub. L. 110–315section 3 of Pub. L. 111–39section 1001 of this titleAmendment by effective as if enacted on the date of enactment of (), see , set out as a note under .

Effective Date of 1987 Amendment

Pub. L. 100–50Pub. L. 99–498section 27 of Pub. L. 100–50section 1001 of this titleAmendment by effective as if enacted as part of the Higher Education Amendments of 1986, , see , set out as a note under .