U.S Code last checked for updates: Jun 18, 2024
§ 1087e.
Terms and conditions of loans
(a)
In general
(1)
Parallel terms, conditions, benefits, and amounts
(2)
Designation of loans
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—
(A)
section 1078 of this title shall be known as “Federal Direct Stafford Loans”;
(B)
section 1078–2 of this title shall be known as “Federal Direct PLUS Loans”;
(C)
section 1078–3 of this title shall be known as “Federal Direct Consolidation Loans”; and
(D)
section 1078–8 of this title shall be known as “Federal Direct Unsubsidized Stafford Loans”.
(3)
Termination of authority to make interest subsidized loans to graduate and professional students
(A)
In general
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
(i)
a graduate or professional student shall not be eligible to receive a Federal Direct Stafford loan under this part; and
(ii)
the maximum annual amount of Federal Direct Unsubsidized Stafford loans such a student may borrow in any academic year (as defined in section 1088(a)(2) of this title) or its equivalent shall be the maximum annual amount for such student determined under section 1078–8 of this title, plus an amount equal to the amount of Federal Direct Stafford loans the student would have received in the absence of this subparagraph.
(B)
Exception
(b)
Interest rate
(1)
Rates for FDSL and FDUSL
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—
(A)
the bond equivalent rate of 91-day Treasury bills auctioned at the final auction held prior to such June 1; plus
(B)
3.1 percent,
except that such rate shall not exceed 8.25 percent.
(2)
In school and grace period rules
(A)
Notwithstanding the provisions of paragraph (1), but subject to paragraph (3), 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, 1995, the applicable rate of interest for interest which accrues—
(i)
prior to the beginning of the repayment period of the loan; or
(ii)
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 not exceed the rate determined under subparagraph (B).
(B)
For the purpose of subparagraph (A), the rate determined under this subparagraph 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 91-day Treasury bills auctioned at the final auction prior to such June 1; plus
(ii)
2.5 percent,
except that such rate shall not exceed 8.25 percent.
(3)
Out-year rule
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—
(A)
the bond equivalent rate of the security with a comparable maturity as established by the Secretary; plus
(B)
1.0 percent,
except that such rate shall not exceed 8.25 percent.
(4)
Rates for FDPLUS
(A)
(i)
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 or before June 30, 2001, 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.
(ii)
For any 12-month period beginning on July 1 of 2001 or any succeeding year, the applicable rate of interest determined under this subparagraph shall be determined on the preceding June 26 and be equal to—
(I)
the weekly average 1-year constant maturity Treasury yield, as published by the Board of Governors of the Federal Reserve System, for the last calendar week ending on or before such June 26; plus
(II)
3.1 percent,
except that such rate shall not exceed 9 percent.
(B)
For Federal Direct PLUS 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—
(i)
the bond equivalent rate of the security with a comparable maturity as established by the Secretary; plus
(ii)
2.1 percent,
except that such rate shall not exceed 9 percent.
(5)
Temporary interest rate provision
(A)
Rates for FDSL and FDUSL
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—
(i)
the bond equivalent rate of 91-day Treasury bills auctioned at the final auction held prior to such June 1; plus
(ii)
2.3 percent,
except that such rate shall not exceed 8.25 percent.
(B)
In school and grace period rules
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—
(i)
prior to the beginning of the repayment period of the loan; or
(ii)
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 subparagraph (A) by substituting “1.7 percent” for “2.3 percent”.
(C)
PLUS loans
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)—
(i)
by substituting “3.1 percent” for “2.3 percent”; and
(ii)
by substituting “9.0 percent” for “8.25 percent”.
(6)
Interest rate provision for new loans on or after October 1, 1998, and before July 1, 2006
(A)
Rates for FDSL and FDUSL
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—
(i)
the bond equivalent rate of 91-day Treasury bills auctioned at the final auction held prior to such June 1; plus
(ii)
2.3 percent,
except that such rate shall not exceed 8.25 percent.
(B)
In school and grace period rules
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—
(i)
prior to the beginning of the repayment period of the loan; or
(ii)
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 subparagraph (A) by substituting “1.7 percent” for “2.3 percent”.
(C)
PLUS loans
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)—
(i)
by substituting “3.1 percent” for “2.3 percent”; and
(ii)
by substituting “9.0 percent” for “8.25 percent”.
(D)
Consolidation loans
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—
(i)
the weighted average of the interest rates on the loans consolidated, rounded to the nearest higher one-eighth of one percent; or
(ii)
8.25 percent.
(E)
Temporary rules for consolidation loans
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—
(i)
the bond equivalent rate of 91-day Treasury bills auctioned at the final auction held prior to such June 1; plus
(ii)
2.3 percent,
except that such rate shall not exceed 8.25 percent.
(7)
Interest rate provision for new loans on or after July 1, 2006 and before July 1, 2013
(A)
Rates for FDSL and FDUSL
(B)
PLUS loans
(C)
Consolidation loans
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—
(i)
the weighted average of the interest rates on the loans consolidated, rounded to the nearest higher one-eighth of one percent; or
(ii)
8.25 percent.
(D)
Reduced rates for undergraduate FDSL
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:
(i)
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.
(ii)
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.
(iii)
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.
(iv)
For a loan for which the first disbursement is made on or after July 1, 2010, and before July 1, 2011, 4.5 percent on the unpaid principal balance of the loan.
(v)
For a loan for which the first disbursement is made on or after July 1, 2011, and before July 1, 2013, 3.4 percent on the unpaid principal balance of the loan.
(8)
Interest rate provisions for new loans on or after July 1, 2013
(A)
Rates for undergraduate FDSL and FDUSL
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—
(i)
a rate equal to the high yield of the 10-year Treasury note auctioned at the final auction held prior to such June 1 plus 2.05 percent; or
(ii)
8.25 percent.
(B)
Rates for graduate and professional FDUSL
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—
(i)
a rate equal to the high yield of the 10-year Treasury note auctioned at the final auction held prior to such June 1 plus 3.6 percent; or
(ii)
9.5 percent.
(C)
PLUS loans
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—
(i)
a rate equal to the high yield of the 10-year Treasury note auctioned at the final auction held prior to such June 1 plus 4.6 percent; or
(ii)
10.5 percent.
(D)
Consolidation loans
(E)
Consultation
(F)
Rate
(9)
Repayment incentives
(A)
Incentives for loans disbursed before July 1, 2012
(B)
Accountability
(C)
No repayment incentives for new loans disbursed on or after July 1, 2012
(10)
Publication
(c)
Loan fee
(1)
In general
(2)
Subsequent reduction
Paragraph (1) shall be applied to loans made under this part, other than Federal Direct Consolidation loans and Federal Direct PLUS loans—
(A)
by substituting “3.0 percent” for “4.0 percent” with respect to loans for which the first disbursement of principal is made on or after February 8, 2006, and before July 1, 2007;
(B)
by substituting “2.5 percent” for “4.0 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;
(C)
by substituting “2.0 percent” for “4.0 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;
(D)
by substituting “1.5 percent” for “4.0 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; and
(E)
by substituting “1.0 percent” for “4.0 percent” with respect to loans for which the first disbursement of principal is made on or after July 1, 2010.
(d)
Repayment plans
(1)
Design and selection
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—
(A)
a standard repayment plan, consistent with subsection (a)(1) of this section and with section 1078(b)(9)(A)(i) of this title;
(B)
a graduated repayment plan, consistent with section 1078(b)(9)(A)(ii) of this title;
(C)
an extended repayment plan, consistent with section 1078(b)(9)(A)(iv) of this title, 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;
(D)
an income contingent repayment plan, with varying annual repayment amounts based on the income of the borrower, paid over an extended period of time prescribed by the Secretary, not to exceed 25 years, except that the plan described in this subparagraph shall not be available to the borrower of a Federal Direct PLUS loan made on behalf of a dependent student; and
(E)
beginning on July 1, 2009, an income-based repayment plan that enables borrowers who have a partial financial hardship to make a lower monthly payment in accordance with section 1098e of this title, except that the plan described in this subparagraph shall not be available to the borrower of a Federal Direct PLUS Loan made on behalf of a dependent student or a Federal Direct Consolidation Loan, if the proceeds of such loan were used to discharge the liability on such Federal Direct PLUS Loan or a loan under section 1078–2 of this title made on behalf of a dependent student.
(2)
Selection by Secretary
(3)
Changes in selections
(4)
Alternative repayment plans
(5)
Repayment after default
The Secretary may require any borrower who has defaulted on a loan made under this part to—
(A)
pay all reasonable collection costs associated with such loan; and
(B)
repay the loan pursuant to an income contingent repayment plan.
(e)
Income contingent repayment
(1)
Information and procedures
(2)
Repayment based on adjusted gross income
(3)
Additional documents
(4)
Repayment schedules
(5)
Calculation of balance due
(6)
Notification to borrowers
(7)
Maximum repayment period
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—
(A)
is not in default on any loan that is included in the income contingent repayment plan; and
(B)
(i)
is in deferment due to an economic hardship described in section 1085(o) of this title;
(ii)
makes monthly payments under paragraph (1) or (6) of section 1098e(b) of this title;
(iii)
makes monthly payments of not less than the monthly amount calculated under section 1078(b)(9)(A)(i) of this title or subsection (d)(1)(A), based on a 10-year repayment period, when the borrower first made the election described in section 1098e(b)(1) of this title;
(iv)
makes payments of not less than the payments required under a standard repayment plan under section 1078(b)(9)(A)(i) of this title or subsection (d)(1)(A) with a repayment period of 10 years; or
(v)
makes payments under an income contingent repayment plan under subsection (d)(1)(D).
(8)
Automatic recertification
(A)
In general
The Secretary shall establish and implement, with respect to any borrower described in subparagraph (B), procedures to—
(i)
use return information disclosed under section 6103(l)(13) of title 26, pursuant to approval provided under section 1098h of this title, to determine the repayment obligation of the borrower without further action by the borrower;
(ii)
allow the borrower (or the spouse of the borrower), at any time, to opt out of disclosure under such section 6103(l)(13) and instead provide such information as the Secretary may require to determine the repayment obligation of the borrower (or withdraw from the repayment plan under this subsection); and
(iii)
provide the borrower with an opportunity to update the return information so disclosed before the determination of the repayment obligation of the borrower.
(B)
Applicability
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—
(i)
selects, or is required to repay such loan pursuant to, an income-contingent repayment plan; or
(ii)
recertifies income or family size under such plan.
(f)
Deferment
(1)
Effect on principal and interest
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)
shall not accrue, in the case of a—
(i)
Federal Direct Stafford Loan; or
(ii)
a Federal Direct Consolidation Loan that consolidated only Federal Direct Stafford Loans, or a combination of such loans and Federal Stafford Loans for which the student borrower received an interest subsidy under section 1078 of this title; or
(B)
shall accrue and be capitalized or paid by the borrower, in the case of a Federal Direct PLUS Loan, a Federal Direct Unsubsidized Stafford Loan, or a Federal Direct Consolidation Loan not described in subparagraph (A)(ii).
(2)
Eligibility
A borrower of a loan made under this part shall be eligible for a deferment during any period—
(A)
during which the borrower—
(i)
is carrying at least one-half the normal full-time work load for the course of study that the borrower is pursuing, as determined by the eligible institution (as such term is defined in section 1085(a) of this title) the borrower is attending; 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 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;
(B)
not in excess of 3 years during which the borrower is seeking and unable to find full-time employment;
(C)
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 clause (i) or (ii); or
(D)
not in excess of 3 years during which the Secretary determines, in accordance with regulations prescribed under section 1085(o) of this title, that the borrower has experienced or will experience an economic hardship.
(3)
Deferment for borrowers receiving cancer treatment
(A)
Effect on principal and interest
(B)
Eligibility
A borrower of a loan made under this part shall be eligible for a deferment during—
(i)
any period in which such borrower is receiving treatment for cancer; and
(ii)
the 6 months after such period.
(C)
Applicability
This paragraph shall apply with respect to loans—
(i)
made on or after September 28, 2018; or
(ii)
in repayment on September 28, 2018.
(4)
Deferment for dislocated military spouses
(A)
Duration and effect on principal and interest
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—
(i)
shall not accrue, in the case of a—
(I)
Federal Direct Stafford Loan; or
(II)
a Federal Direct Consolidation Loan that consolidated only Federal Direct Stafford Loans, or a combination of such loans and Federal Stafford Loans for which the student borrower received an interest subsidy under section 1078 of this title; or
(ii)
shall accrue and be capitalized or paid by the borrower, in the case of a Federal Direct PLUS Loan, a Federal Direct Unsubsidized Stafford Loan, or a Federal Direct Consolidation Loan not described in clause (i)(II).
(B)
Eligibility
A borrower of a loan made under this part shall be eligible for a deferment under subparagraph (A) if the borrower—
(i)
is the spouse of a member of the Armed Forces serving on active duty; and
(ii)
has experienced a loss of employment as a result of relocation to accommodate a permanent change in duty station of such member.
(C)
Documentation and approval
(i)
In general
A borrower may establish eligibility for a deferment under subparagraph (A) by providing to the Secretary—
(I)
the documentation described in clause (ii); or
(II)
such other documentation as the Secretary determines appropriate.
(ii)
Documentation
The documentation described in this clause is—
(I)
evidence that the borrower is the spouse of a member of the Armed Forces serving on active duty;
(II)
evidence that a military permanent change of station order was issued to such member; and
(III)
(aa)
evidence that the borrower is eligible for unemployment benefits due to a loss of employment resulting from relocation to accommodate such permanent change in duty station; or
(bb)
a written certification, or an equivalent as approved by the Secretary, that the borrower is registered with a public or private employment agency due to a loss of employment resulting from relocation to accommodate such permanent change in duty station.
(5)
“Borrower” defined
(6)
Deferments for previous part B loan borrowers
(g)
Federal Direct Consolidation Loans
(1)
In general
(2)
Separating joint consolidation loans
(A)
In general
(i)
Authorization
(ii)
Eligibility for borrowers in default
(B)
Secretarial requirements
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.
(C)
Application for separate direct consolidation loan
(i)
Joint application
(ii)
Separate application
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—
(I)
the individual borrower certifies to the Secretary that such borrower—
(aa)
has experienced an act of domestic violence (as defined in section 12291 of title 34 from the other individual borrower;
(bb)
has experienced economic abuse (as defined in section 12291 of title 34 from the other individual borrower; or
(cc)
is unable to reasonably reach or access the loan information of the other individual borrower; or
(II)
the Secretary determines that authorizing each individual borrower to apply separately under subparagraph (A) would be in the best fiscal interests of the Federal Government.
(iii)
Remaining obligation from separate application
(h)
Borrower defenses
(i)
Loan application and promissory note
(j)
Loan disbursement
(1)
In general
(2)
Payment periods
(k)
Fiscal control and fund accountability
(1)
In general
(A)
An institution shall maintain financial records in a manner consistent with records maintained for other programs under this subchapter.
(B)
Except as otherwise required by regulations of the Secretary 1 an institution may maintain loan funds under this part in the same account as other Federal student financial assistance.
(2)
Payments and refunds
(3)
Transaction histories
(l)
Armed Forces and NOAA Commissioned Officer Corps student loan interest payment programs
(1)
Authority
(2)
Forbearance
(m)
Repayment plan for public service employees
(1)
In general
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—
(A)
has made 120 monthly payments on the eligible Federal Direct Loan after October 1, 2007, pursuant to any one or a combination of the following—
(i)
payments under an income-based repayment plan under section 1098e of this title;
(ii)
payments under a standard repayment plan under subsection (d)(1)(A), based on a 10-year repayment period;
(iii)
monthly payments under a repayment plan under subsection (d)(1) or (g) of not less than the monthly amount calculated under subsection (d)(1)(A), based on a 10-year repayment period; or
(iv)
payments under an income contingent repayment plan under subsection (d)(1)(D); and
(B)
(i)
is employed in a public service job at the time of such forgiveness; and
(ii)
has been employed in a public service job during the period in which the borrower makes each of the 120 payments described in subparagraph (A).
(2)
Loan cancellation amount
(3)
Definitions
In this subsection:
(A)
Eligible Federal Direct Loan
(B)
Public service job
The term “public service job” means—
(i)
a full-time job in emergency management, government (excluding time served as a member of Congress), military service, public safety, law enforcement, public health (including nurses, nurse practitioners, nurses in a clinical setting, and full-time professionals engaged in health care practitioner occupations and health care support occupations, as such terms are defined by the Bureau of Labor Statistics), public education, social work in a public child or family service agency, public interest law services (including prosecution or public defense or legal advocacy on behalf of low-income communities at a nonprofit organization), early childhood education (including licensed or regulated childcare, Head Start, and State funded prekindergarten), 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 subject areas or areas of shortage (including nurse faculty, foreign language faculty, and part-time faculty at community colleges), as determined by the Secretary.
(4)
Ineligibility for double benefits
(n)
Identity fraud protection
(o)
No accrual of interest for active duty service members
(1)
In general
(2)
Consolidation loans
(3)
Eligible military borrower
In this subsection, the term “eligible military borrower” means an individual who—
(A)
(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
(B)
is serving in an area of hostilities in which service qualifies for special pay under section 310, or paragraph (1) or (3) of section 351(a), of title 37.
(4)
Limitation
(p)
Disclosures
(q)
Eligibility for, and interest charges on, Federal Direct Stafford Loans for new borrowers on or after July 1, 2013
(1)
In general
(2)
Accrual of interest on Federal Direct Stafford Loans
(3)
Period of enrollment
(A)
In general
The aggregate period of enrollment referred to in paragraph (1) shall not exceed the lesser of—
(i)
a period equal to 150 percent of the published length of the educational program in which the student is enrolled; or
(ii)
in the case of a borrower who was previously enrolled in one or more other educational programs that began on or after July 1, 2013, and subject to subparagraph (B), a period of time equal to the difference between—
(I)
150 percent of the published length of the longest educational program in which the borrower was, or is, enrolled; and
(II)
any periods of enrollment in which the borrower received a Federal Direct Stafford Loan.
(B)
Regulations
The Secretary shall specify in regulation—
(i)
how the aggregate period described in subparagraph (A) shall be calculated with respect to a borrower who was or is enrolled on less than a full-time basis; and
(ii)
how such aggregate period shall be calculated to include a course of study or program described in paragraph (3)(B) or (4)(B) of section 1091(b) of this title, respectively.
(Pub. L. 89–329, title IV, § 455, as added Pub. L. 99–498, title IV, § 404, Oct. 17, 1986, 100 Stat. 1439; amended Pub. L. 102–325, title IV, § 451, July 23, 1992, 106 Stat. 572; Pub. L. 103–66, title IV, § 4021, Aug. 10, 1993, 107 Stat. 346; Pub. L. 103–382, title III, § 359, Oct. 20, 1994, 108 Stat. 3968; Pub. L. 105–178, title VIII, § 8301(c), June 9, 1998, 112 Stat. 498; Pub. L. 105–244, title IV, §§ 401(g)(6), 452(a)(1), (b), (c), Oct. 7, 1998, 112 Stat. 1652, 1715–1717; Pub. L. 106–554, § 1(a)(1) [title III, § 318(b)], Dec. 21, 2000, 114 Stat. 2763, 2763A–49; Pub. L. 107–139, § 1(b), (c), Feb. 8, 2002, 116 Stat. 9; Pub. L. 107–314, div. A, title VI, § 651(c), Dec. 2, 2002, 116 Stat. 2580; Pub. L. 109–171, title VIII, §§ 8007(b), 8008(b), (c)(2), (3), 8009(d), Feb. 8, 2006, 120 Stat. 160, 162–164; Pub. L. 110–84, title II, §§ 201(b), 202(b), 203(b)(3), 205, title IV, § 401, Sept. 27, 2007, 121 Stat. 791, 795, 800; Pub. L. 110–315, title I, § 103(b)(8), title IV, §§ 425(b)(3), 451, Aug. 14, 2008, 122 Stat. 3089, 3234, 3261; Pub. L. 111–39, title IV, § 404(b)(2), July 1, 2009, 123 Stat. 1946; Pub. L. 111–152, title II, § 2211(a), Mar. 30, 2010, 124 Stat. 1078; Pub. L. 112–25, title V, §§ 502, 503, Aug. 2, 2011, 125 Stat. 266; Pub. L. 112–141, div. F, title III, §§ 100301, 100302(a), July 6, 2012, 126 Stat. 979; Pub. L. 113–28, § 2(a), Aug. 9, 2013, 127 Stat. 506; Pub. L. 114–328, div. A, title VI, § 618(e), Dec. 23, 2016, 130 Stat. 2160; Pub. L. 115–245, div. B, title III, § 309(a), Sept. 28, 2018, 132 Stat. 3105; Pub. L. 116–91, § 4(a), Dec. 19, 2019, 133 Stat. 1192; Pub. L. 116–259, title II, § 202(b)(2), Dec. 23, 2020, 134 Stat. 1163; Pub. L. 116–260, div. FF, title VII, § 705(a), Dec. 27, 2020, 134 Stat. 3200; Pub. L. 117–200, § 2(a), Oct. 11, 2022,
cite as: 20 USC 1087e