20 U.S.C. § 1087e — Terms and conditions of loans

Page 558 TITLE 20—EDUCATION § 1087e interests of the United States and to promote the purposes of this part. (b) Origination An agreement with any institution of higher education, or consortia thereof, for the origina- tion of loans under this part shall— (1) supplement the agreement entered into in accordance with subsection (a); (2) include provisions established by the Sec- retary that are similar to the participation agreement provisions described in paragraphs (1)(E)(ii), (2), (3), (4), (5), and (6) of subsection (a), as modified to relate to the origination of loans by the institution or consortium; (3) provide that the institution or consor- tium will originate loans to eligible students and parents in accordance with this part; and (4) provide that the note or evidence of obli- gation on the loan shall be the property of the Secretary. (c) Withdrawal and termination procedures The Secretary shall establish procedures by which institutions or consortia may withdraw or be terminated from the program under this part. (Pub. L. 89–329, title IV, § 454, as added Pub. L. 99–498, title IV, § 404, Oct. 17, 1986, 100 Stat. 1438; amended Pub. L. 100–50, § 12, June 3, 1987, 101 Stat. 348; Pub. L. 102–325, title IV, § 451, July 23, 1992, 106 Stat. 571; Pub. L. 103–66, title IV, § 4021, Aug. 10, 1993, 107 Stat. 345; Pub. L. 111–152, title II, § 2210(a), Mar. 30, 2010, 124 Stat. 1078; Pub. L. 116–260, div. FF, title VII, § 704(1), Dec. 27, 2020, 134 Stat. 3199.) Editorial Notes AMENDMENTS 2020—Subsec. (a)(1)(B). Pub. L. 116–260 substituted ‘‘the student aid index’’ for ‘‘the expected family con- tribution’’. 2010—Subsec. (a)(4) to (7). Pub. L. 111–152, § 2210(a)(1), redesignated pars. (5) to (7) as (4) to (6), respectively, and struck out former par. (4), which read as follows: ‘‘provide that students at the institution and their par- ents (with respect to such students) will be eligible to participate in the programs under part B of this sub- chapter at the discretion of the Secretary for the pe- riod during which such institution participates in the direct student loan program under this part, except that a student or parent may not receive loans under both this part and part B of this subchapter for the same period of enrollment;’’. Subsec. (b)(2). Pub. L. 111–152, § 2210(a)(2), substituted ‘‘(5), and (6)’’ for ‘‘(5), (6), and (7)’’. 1993—Pub. L. 103–66 amended section generally, sub- stituting provisions relating to agreements with insti- tutions, consisting of subsecs. (a) to (c), for former pro- visions relating to requirements of agreements, con- sisting of pars. (1) to (7). 1992—Pub. L. 102–325 amended section generally, sub- stituting provisions relating to requirements of agree- ments for former provisions relating to terms of loans under pilot program. 1987—Subsec. (a)(4). Pub. L. 100–50 amended par. (4) generally. Prior to amendment, par. (4) read as follows: ‘‘The interest rate on all such loans shall be the rate equal to the rate obtained for each calendar year (A) by computing the average of the bond equivalent rates of 91-day Treasury bills auctioned for such 3-month period preceding such year, and (B) by adding 3 percent to the resulting percent.’’ Statutory Notes and Related Subsidiaries 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 subse- quent 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. EFFECTIVE DATE OF 2010 AMENDMENT Pub. L. 111–152, title II, § 2210(b), Mar. 30, 2010, 124 Stat. 1078, provided that: ‘‘The amendments made by subsection (a) [amending this section] shall take effect on July 1, 2010.’’ 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. EFFECTIVE DATE OF 1987 AMENDMENT Amendment by Pub. L. 100–50 effective as if enacted as part of the Higher Education Amendments of 1986, Pub. L. 99–498, see section 27 of Pub. L. 100–50, set out as a note under section 1001 of this title. § 1087e. Terms and conditions of loans (a) In general (1) Parallel terms, conditions, benefits, and amounts 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. (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 Staf- ford Loans’’. (3) Termination of authority to make interest subsidized loans to graduate and profes- sional students (A) In general Subject to subparagraph (B) and notwith- standing 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 Fed- eral Direct Unsubsidized Stafford loans such a student may borrow in any aca- demic year (as defined in section 1088(a)(2) of this title) or its equivalent shall be the maximum annual amount for such student Page 559 TITLE 20—EDUCATION § 1087e determined under section 1078–8 of this title, plus an amount equal to the amount of Federal Direct Stafford loans the stu- dent would have received in the absence of this subparagraph. (B) Exception Subparagraph (A) shall not apply to an in- dividual enrolled in course work specified in paragraph (3)(B) or (4)(B) of section 1091(b) of this title. (b) Interest rate (1) Rates for FDSL and FDUSL For Federal Direct Stafford Loans and Fed- eral Direct Unsubsidized Stafford Loans for which the first disbursement is made on or after July 1, 1994, the applicable rate of inter- est shall, during any 12-month period begin- ning on July 1 and ending on June 30, be deter- mined 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 per- cent. (2) In school and grace period rules (A) Notwithstanding the provisions of para- graph (1), but subject to paragraph (3), with re- spect 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 inter- est 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 prin- cipal 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 deter- mined 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 per- cent. (3) Out-year rule Notwithstanding paragraphs (1) and (2), for Federal Direct Stafford Loans and Federal Di- rect Unsubsidized Stafford Loans made on or after July 1, 1998, the applicable rate of inter- est shall, during any 12-month period begin- ning on July 1 and ending on June 30, be deter- mined on the preceding June 1 and be equal to— (A) the bond equivalent rate of the secu- rity with a comparable maturity as estab- lished by the Secretary; plus (B) 1.0 percent, except that such rate shall not exceed 8.25 per- cent. (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 inter- est shall, during any 12-month period begin- ning 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 per- cent. (ii) For any 12-month period beginning on July 1 of 2001 or any succeeding year, the ap- plicable rate of interest determined under this subparagraph shall be determined on the pre- ceding June 26 and be equal to— (I) the weekly average 1-year constant ma- turity 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 per- cent. (B) For Federal Direct PLUS loans made on or after July 1, 1998, the applicable rate of in- terest shall, during any 12-month period begin- ning on July 1 and ending on June 30, be deter- mined 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 per- cent. (5) Temporary interest rate provision (A) Rates for FDSL and FDUSL Notwithstanding the preceding paragraphs of this subsection, for Federal Direct Staf- ford Loans and Federal Direct Unsubsidized Stafford Loans for which the first disburse- ment is made on or after July 1, 1998, and be- fore October 1, 1998, the applicable rate of in- terest shall, during any 12-month period be- ginning 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 auc- tion 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 Fed- eral Direct Stafford Loan or Federal Direct Unsubsidized Stafford Loan for which the first disbursement is made on or after July Page 560 TITLE 20—EDUCATION § 1087e 1, 1998, and before October 1, 1998, the appli- cable rate of interest for interest which ac- crues— (i) prior to the beginning of the repay- ment period of the loan; or (ii) during the period in which principal need not be paid (whether or not such prin- cipal is in fact paid) by reason of a provi- sion 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 per- cent’’. (C) PLUS loans Notwithstanding the preceding paragraphs of this subsection, with respect to Federal Direct PLUS Loan for which the first dis- bursement 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 Staf- ford Loans and Federal Direct Unsubsidized Stafford Loans for which the first disburse- ment is made on or after October 1, 1998, and before July 1, 2006, the applicable rate of in- terest shall, during any 12-month period be- ginning 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 auc- tion 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 Fed- eral Direct Stafford Loan or Federal Direct Unsubsidized Stafford Loan for which the first disbursement is made on or after Octo- ber 1, 1998, and before July 1, 2006, the appli- cable rate of interest for interest which ac- crues— (i) prior to the beginning of the repay- ment period of the loan; or (ii) during the period in which principal need not be paid (whether or not such prin- cipal is in fact paid) by reason of a provi- sion 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 per- cent’’. (C) PLUS loans Notwithstanding the preceding paragraphs of this subsection, with respect to Federal Direct PLUS Loan for which the first dis- bursement 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 Con- solidation loan for which the application is received on or after February 1, 1999, and be- fore July 1, 2006, shall bear interest at an an- nual 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 per- cent; or (ii) 8.25 percent. (E) Temporary rules for consolidation loans Notwithstanding the preceding paragraphs of this subsection, any Federal Direct Con- solidation loan for which the application is received on or after October 1, 1998, and be- fore February 1, 1999, shall bear interest at an annual rate on the unpaid principal bal- ance of the loan that is equal to— (i) the bond equivalent rate of 91-day Treasury bills auctioned at the final auc- tion 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 Notwithstanding the preceding paragraphs of this subsection, for Federal Direct Staf- ford Loans and Federal Direct Unsubsidized Stafford Loans for which the first disburse- ment is made on or after July 1, 2006, and be- fore July 1, 2013, the applicable rate of inter- est shall be 6.8 percent on the unpaid prin- cipal balance of the loan. (B) PLUS loans Notwithstanding the preceding paragraphs of this subsection, with respect to any Fed- eral 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. (C) Consolidation loans Notwithstanding the preceding paragraphs of this subsection, any Federal Direct Con- solidation 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 per- cent; or Page 561 TITLE 20—EDUCATION § 1087e 1 So in original. Probably should be followed by a comma. 2 So in original. The second comma probably should not ap- pear. (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 fol- lows: (i) For a loan for which the first dis- bursement 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 dis- bursement 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 dis- bursement 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 dis- bursement 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 dis- bursement 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 Staf- ford Loans and Federal Direct Unsubsidized Stafford Loans issued to undergraduate stu- dents, 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 Unsub- sidized Stafford Loans issued to graduate or professional students, for which the first dis- bursement 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 Notwithstanding the preceding paragraphs of this subsection, any Federal Direct Con- solidation 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 near- est higher one-eighth of one percent. (E) Consultation The Secretary shall determine the applica- ble 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. (F) Rate The applicable rate of interest determined under this paragraph for a Federal Direct Stafford Loan, a Federal Direct Unsub- sidized Stafford Loan, or a Federal Direct PLUS Loan shall be fixed for the period of the loan. (9) Repayment incentives (A) Incentives for loans disbursed before July 1, 2012 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 author- ized to prescribe by regulation such reduc- tions in the interest rate or origination fee paid by a borrower of a loan made under this part as the Secretary determines appro- priate to encourage on-time repayment of the loan. Such reductions may be offered only if the Secretary determines the reduc- tions are cost neutral and in the best finan- cial 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. (B) Accountability 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 Page 562 TITLE 20—EDUCATION § 1087e shall ensure the cost neutrality of such re- ductions. The Secretary shall not prescribe such regulations in final form unless an offi- cial 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 reduc- tions will be completely cost neutral. Such reports shall be transmitted to the author- izing committees not less than 60 days prior to the publication of regulations proposing such reductions. (C) No repayment incentives for new loans disbursed on or after July 1, 2012 Notwithstanding any other provision of this part, the Secretary is prohibited from authorizing or providing any repayment in- centive not otherwise authorized under this part to encourage on-time repayment of a loan under this part for which the first dis- bursement 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 Sec- retary may provide for an interest rate re- duction for a borrower who agrees to have payments on such a loan automatically elec- tronically debited from a bank account. (10) Publication The Secretary shall determine the applica- ble 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. (c) Loan fee (1) In general 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. (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 bor- rower 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, con- sistent with section 1078(b)(9)(A)(ii) of this title; (C) an extended repayment plan, con- sistent with section 1078(b)(9)(A)(iv) of this title, except that the borrower shall annu- ally 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, ex- cept that the plan described in this subpara- graph shall not be available to the borrower of a Federal Direct PLUS loan made on be- half of a dependent student; and (E) beginning on July 1, 2009, an income- based repayment plan that enables bor- rowers who have a partial financial hardship to make a lower monthly payment in ac- cordance with section 1098e of this title, ex- cept that the plan described in this subpara- graph shall not be available to the borrower of a Federal Direct PLUS Loan made on be- half of a dependent student or a Federal Di- rect Consolidation Loan, if the proceeds of such loan were used to discharge the liabil- ity 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 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). (3) Changes in selections The borrower of a loan made under this part may change the borrower’s selection of a re- payment plan under paragraph (1), or the Sec- retary’s selection of a plan for the borrower under paragraph (2), as the case may be, under such terms and conditions as may be estab- lished by the Secretary. (4) Alternative repayment plans 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 Sec- retary that the terms and conditions of the re- payment plans available under paragraph (1) are not adequate to accommodate the bor- rower’s exceptional circumstances. In design- Page 563 TITLE 20—EDUCATION § 1087e ing such alternative repayment plans, the Sec- retary shall ensure that such plans do not ex- ceed 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 para- graph (1). (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 as- sociated with such loan; and (B) repay the loan pursuant to an income contingent repayment plan. (e) Income contingent repayment (1) Information and procedures The Secretary may obtain such information as is reasonably necessary regarding the in- come 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 de- termining 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 proce- dures for determining the borrower’s repay- ment obligation on that loan for such year, and such other procedures as are necessary to implement effectively income contingent re- payment. (2) Repayment based on adjusted gross income A repayment schedule for a loan made under this part and repaid pursuant to income con- tingent repayment shall be based on the ad- justed 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 ad- justed gross income of the borrower and the borrower’s spouse. (3) Additional documents 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 Sec- retary may use to determine an appropriate repayment schedule. (4) Repayment schedules Income contingent repayment schedules shall be established by regulations promul- gated by the Secretary and shall require pay- ments 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. (5) Calculation of balance due The balance due on a loan made under this part that is repaid pursuant to income contin- gent repayment shall equal the unpaid prin- cipal amount of the loan, any accrued inter- est, and any fees, such as late charges, as- sessed on such loan. The Secretary may pro- mulgate regulations limiting the amount of interest that may be capitalized on such loan, and the timing of any such capitalization. (6) Notification to borrowers 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 re- payment is notified of the terms and condi- tions 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 bor- rower’s loan repayment, the borrower may contact the Secretary, who shall determine whether such adjustment is appropriate, in ac- cordance with criteria established by the Sec- retary. (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 in- cluded 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 para- graph (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 sub- section (d)(1)(A), based on a 10-year repay- ment 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 repay- ment plan under section 1078(b)(9)(A)(i) of this title or subsection (d)(1)(A) with a re- payment period of 10 years; or (v) makes payments under an income con- tingent repayment plan under subsection (d)(1)(D). (8) Automatic recertification (A) In general The Secretary shall establish and imple- ment, with respect to any borrower de- scribed in subparagraph (B), procedures to— (i) use return information disclosed under section 6103(l)(13) of title 26, pursu- ant to approval provided under section 1098h of this title, to determine the repay- ment 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 Page 564 TITLE 20—EDUCATION § 1087e the repayment obligation of the borrower (or withdraw from the repayment plan under this subsection); and (iii) provide the borrower with an oppor- tunity 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 bor- rower of a loan made under this part who, on or after the date on which the Secretary es- tablishes procedures under such subpara- graph— (i) selects, or is required to repay such loan pursuant to, an income-contingent re- payment 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 para- graph (2) shall be eligible for a deferment, dur- ing 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 in- terest 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 Di- rect PLUS Loan, a Federal Direct Unsub- sidized Stafford Loan, or a Federal Direct Consolidation Loan not described in sub- paragraph (A)(ii). (2) Eligibility A borrower of a loan made under this part shall be eligible for a deferment during any pe- riod— (A) during which the borrower— (i) is carrying at least one-half the nor- mal full-time work load for the course of study that the borrower is pursuing, as de- termined 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 pursu- ant to a graduate fellowship program ap- proved by the Secretary, or pursuant to a rehabilitation training program for indi- viduals 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 Fed- eral Direct PLUS Loan or a Federal Direct Consolidation Loan), while serving in a med- ical 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 de- mobilization 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 ex- perienced or will experience an economic hardship. (3) Deferment for borrowers receiving cancer treatment (A) 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, during which periodic installments of principal need not be paid, and interest shall not ac- crue. (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 in- terest 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 Di- rect 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 Fed- eral 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 sub- paragraph (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. Page 565 TITLE 20—EDUCATION § 1087e (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 perma- nent 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 perma- nent 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 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. (6) Deferments for previous part B loan bor- rowers A borrower of a loan made under this part, who at the time such individual applies for such loan, has an outstanding balance of prin- cipal or interest owing on any loan made, in- sured, or guaranteed under part B of this sub- chapter 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. (g) Federal Direct Consolidation Loans (1) In general A borrower of a loan made under this part may consolidate such loan with the loans de- scribed in section 1078–3(a)(4) of this title, in- cluding any loan made under part B and first disbursed before July 1, 2010. To be eligible for a consolidation loan under this part, a bor- rower shall meet the eligibility criteria set forth in section 1078–3(a)(3) of this title. (2) Separating joint consolidation loans (A) In general (i) Authorization 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 ac- cordance with subparagraph (C) of this paragraph, for each individual borrower in the married couple (or previously married couple) to receive a separate Federal Di- rect Consolidation Loan under this part. (ii) Eligibility for borrowers in default Notwithstanding any other provision of this chapter, a married couple, or 2 indi- viduals who were previously a married couple, who are in default on a joint con- solidation loan may be eligible to receive a separate Federal Direct Consolidation Loan under this part in accordance with this paragraph. (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 Con- solidation 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 consolida- tion 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 con- solidation 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 obli- gations of such borrower with re- spect to such joint consolidation loan (as of the date such joint con- solidation loan was made); or (BB) in the case in which both bor- rowers request, on the basis of pro- portions outlined in a divorce decree, court order, or settlement agree- ment; and (II) has the same rate of interest as the joint consolidation loan (as of the date that is the day before such separate con- solidation loan is made); and (ii) in a timely manner, notify each indi- vidual borrower that the joint consolida- tion loan had been repaid and of the terms and conditions of their new loans. (C) Application for separate direct consolida- tion loan (i) Joint application Except as provided in clause (ii), to re- ceive separate consolidation loans under this part, both individual borrowers in a married couple (or previously married cou- ple) shall jointly apply under subpara- graph (A). (ii) Separate application An individual borrower in a married cou- ple (or previously married couple) may apply for a separate consolidation loan Page 566 TITLE 20—EDUCATION § 1087e under subparagraph (A) separately and without regard to whether or when the other individual borrower in the married couple (or previously married couple) ap- plies 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 domes- tic 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 au- thorizing 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 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 indi- vidual borrower shall become solely liable for the remaining balance of the joint con- solidation loan. (h) Borrower defenses Notwithstanding any other provision of State or Federal law, the Secretary shall specify in regulations which acts or omissions of an insti- tution of higher education a borrower may as- sert 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 ac- tion 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. (i) Loan application and promissory note 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. (j) Loan disbursement (1) In general 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 institu- tionally owned housing, to room and board. Loan proceeds that remain after the applica- tion 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. (2) Payment periods The Secretary shall establish periods for the payments described in paragraph (1) in a man- ner consistent with payment of Federal Pell Grants under subpart 1 of part A of this sub- chapter. (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 sub- chapter. (B) Except as otherwise required by regula- tions of the Secretary 1 an institution may maintain loan funds under this part in the same account as other Federal student finan- cial assistance. (2) Payments and refunds Payments and refunds shall be reconciled in a manner consistent with the manner set forth for the submission of a payment summary re- port 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. (3) Transaction histories 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. (l) Armed Forces and NOAA Commissioned Offi- cer Corps student loan interest payment pro- grams (1) Authority Using funds received by transfer to the Sec- retary 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 commis- sioned officer corps of the National Oceanic and Atmospheric Administration, respec- tively, 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 trans- ferred. (2) Forbearance During the period in which the Secretary is making payments on a loan under paragraph (1), the Secretary shall grant the borrower for- bearance, 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. (m) Repayment plan for public service employ- ees (1) In general The Secretary shall cancel the balance of in- terest 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 re- payment plan under section 1098e of this title; (ii) payments under a standard repay- ment plan under subsection (d)(1)(A), based on a 10-year repayment period; Page 567 TITLE 20—EDUCATION § 1087e (iii) monthly payments under a repay- ment plan under subsection (d)(1) or (g) of not less than the monthly amount cal- culated under subsection (d)(1)(A), based on a 10-year repayment period; or (iv) payments under an income contin- gent 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 After the conclusion of the employment pe- riod described in paragraph (1), the Secretary shall cancel the obligation to repay the bal- ance of principal and interest due as of the time of such cancellation, on the eligible Fed- eral Direct Loans made to the borrower under this part. (3) Definitions In this subsection: (A) Eligible Federal Direct Loan The term ‘‘eligible Federal Direct Loan’’ means a Federal Direct Stafford Loan, Fed- eral Direct PLUS Loan, or Federal Direct Unsubsidized Stafford Loan, or a Federal Di- rect Consolidation Loan. (B) Public service job The term ‘‘public service job’’ means— (i) a full-time job in emergency manage- ment, government (excluding time served as a member of Congress), military serv- ice, public safety, law enforcement, public health (including nurses, nurse practi- tioners, 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 Statis- tics), public education, social work in a public child or family service agency, pub- lic interest law services (including pros- ecution 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 indi- viduals 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 mem- ber at a Tribal College or University as de- fined in section 1059c(b) of this title and other faculty teaching in high-needs sub- ject areas or areas of shortage (including nurse faculty, foreign language faculty, and part-time faculty at community col- leges), as determined by the Secretary. (4) Ineligibility for double benefits No borrower may, for the same service, re- ceive a reduction of loan obligations under both this subsection and section 1078–10, 1078–11, 1078–12, or 1087j of this title. (n) Identity fraud protection The Secretary shall take such steps as may be necessary to ensure that monthly Federal Di- rect Loan statements and other publications of the Department do not contain more than four digits of the Social Security number of any indi- vidual. (o) No accrual of interest for active duty service members (1) In general 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. (2) Consolidation loans In the case of any consolidation loan made under this part that is disbursed on or after October 1, 2008, interest shall not accrue pur- suant 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 disburse- ment is made on or after October 1, 2008. (3) Eligible military borrower In this subsection, the term ‘‘eligible mili- tary 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 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. (p) Disclosures 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 pre- scribe, 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. (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, Page 568 TITLE 20—EDUCATION § 1087e § 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, 136 Stat. 2219; Pub. L. 118–31, div. A, title X, § 1054(a), Dec. 22, 2023, 137 Stat. 397.) Editorial Notes REFERENCES IN TEXT Sections 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 gen- erally by sections 414(b) and 416(e)(1), respectively, of Pub. L. 102–325, title IV, July 23, 1992, 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, title VIII, § 8009(c), Feb. 8, 2006, 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. AMENDMENTS 2023—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), sub- stituted ‘‘Armed Forces and NOAA Commissioned Offi- cer Corps student loan interest payment programs’’ for ‘‘Armed Forces student loan interest payment pro- gram’’ 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 Administra- tion, 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), sub- stituted ‘‘including notification of such borrower, that if a borrower’’ for ‘‘including notification of such bor- rower— ‘‘(A) that the Internal Revenue Service will disclose to the Secretary tax return information as author- ized 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 docu- mentation described in paragraph (3)’’ after ‘‘bor- rower’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), in- serted ‘‘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), sub- stituted ‘‘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), sub- stituted ‘‘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 ‘‘repay- ment 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), in- serted ‘‘, 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 dis- bursed 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 re- quirements 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), sub- stituted ‘‘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 sub- par. (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, gov- ernment, military service, public safety, law enforce- ment, 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 non- profit 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 or- ganization that is described in section 501(c)(3) of title 26 and exempt from taxation under section 501(a) of such title; or Page 569 TITLE 20—EDUCATION § 1087e ‘‘(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 introduc- tory 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), in- serted ‘‘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 ex- isting 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 sub- pars. (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 ac- cordance with section 1078(b)(1)(L) of this title; ‘‘(C) a graduated repayment plan, with annual repay- ment amounts established at 2 or more graduated lev- els and paid over a fixed or extended period of time, ex- cept 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 re- payment 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 re- quirements 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 Consolida- tion Loans’.’’ 2002—Subsec. (b)(6) to (9). Pub. L. 107–139, in par. (6) relating to interest rate provision for new loans sub- stituted ‘‘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 redesig- nated 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 sub- par. (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 sec- tion, which is section 455(b) of Pub. L. 89–329, to reflect the probable intent of Congress. Former par. (5) redes- ignated (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 ‘‘sec- tion 1078–3(a)(4) of this title’’. Subsecs. (j)(2), (k)(3). Pub. L. 105–244, § 401(g)(6), sub- stituted ‘‘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, sub- stituting 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, sub- stituting provisions relating to withdrawal and termi- nation procedures for former provisions relating to fea- sibility 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 subse- quent 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 High- er 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 au- thorized 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 be- fore 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 sec- tion 1001 of this title. However, the July 1, 2023, imple- mentation 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 re- spect to loans made on or after Sept. 28, 2018, or in re- payment on Sept. 28, 2018, see section 309(f) of Pub. L. 115–245, set out as a note under section 1077 of this title. Page 570 TITLE 20—EDUCATION § 1087e EFFECTIVE DATE OF 2013 AMENDMENT Pub. L. 113–28, § 2(b), Aug. 9, 2013, 127 Stat. 507, pro- vided 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, title II, § 2211(b), Mar. 30, 2010, 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 ef- fective 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 ap- plicable 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 re- spect to interest, and any special allowance under sec- tion 1087–1 of this title, that accrue for months begin- ning 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 sec- tion 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, title IV, § 452(d), Oct. 7, 1998, 112 Stat. 1717, provided that: ‘‘The amendments made by sub- section (a) [amending this section] shall apply with re- spect 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 Consolida- tion 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. ENSURING ACCESS TO CERTAIN HIGHER EDUCATION BENEFITS Pub. L. 118–159, div. A, title V, § 559B, Dec. 23, 2024, 138 Stat. 1900, provided that: ‘‘(a) DATA MATCHING REQUIRED.—Not later than one year after the date of the enactment of this Act [Dec. 23, 2024], the Secretary of Defense and the Secretary of Education shall jointly complete a data matching proc- ess— ‘‘(1) to identify each individual who, while serving as a covered employee of the Department of Defense, made one or more student loan payments eligible to be counted for purposes of the Public Service Loan Forgiveness program under section 455(m) of the Higher Education Act of 1965 (20 U.S.C. 1087e(m)); and ‘‘(2) without requiring further information or ac- tion from such individual— ‘‘(A) to certify the total period of such employ- ment for purposes of such program; and ‘‘(B) to count the total number of qualifying pay- ments made by the individual for purposes of such program during such period. ‘‘(b) COVERED EMPLOYEE DEFINED.—In this section, the term ‘covered employee’ means an individual who, at any time beginning on or after October 1, 2007, was— ‘‘(1) a member of the Armed Forces serving on ac- tive duty for a period of more than 30 consecutive days; or ‘‘(2) a civilian employee of the Department of De- fense.’’ LIMITATION ON CONSOLIDATION LOANS DURING TEMPORARY INTEREST RATE Pub. L. 105–244, title IV, § 452(a)(2), Oct. 7, 1998, 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 pe- riod 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 PANDEMIC Memorandum of President of the United States, Aug. 8, 2020, 85 F.R. 49585, provided: Memorandum for the Secretary of Education By 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 dis- ease COVID–19, has significantly disrupted the lives of Americans. In Proclamation 9994 of March 13, 2020 (De- claring a National Emergency Concerning the Novel Coronavirus Disease (COVID–19) Outbreak) [50 U.S.C. 1621 note], I declared, pursuant to the National Emer- gencies 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 con- stituted 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 tem- porarily 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 Page 571 TITLE 20—EDUCATION § 1087f more quickly eliminate their loans in the long run. During this time, borrowers have been able to deter- mine the best path forward for themselves. The original announcement of this policy specified that it would continue for at least 60 days. In the in- terim, the Coronavirus Aid, Relief, and Economic Secu- rity 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 Ameri- cans remain unemployed due to the COVID–19 pan- demic, and many more have accepted lower wages and reduced hours while States and localities continue to impose social distancing measures. It is therefore ap- propriate 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 sub- sided. 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 pur- suant to applicable law to effectuate appropriate waiv- ers of and modifications to the requirements and condi- tions of economic hardship deferments described in sec- tion 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, notwith- standing the deferments provided pursuant to sub- section (a) of this section. SEC. 3. General Provisions. (a) Nothing in this memo- randum shall be construed to impair or otherwise af- fect: (i) the authority granted by law to an executive de- partment or agency, or the head thereof; or (ii) the functions of the Director of the Office of Man- agement and Budget relating to budgetary, administra- tive, or legislative proposals. (b) This memorandum shall be implemented con- sistent with applicable law and subject to the avail- ability of appropriations. (c) This memorandum is not intended to, and does not, create any right or benefit, substantive or proce- dural, 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. § 1087f. Contracts (a) Contracts for supplies and services (1) In general The Secretary shall, to the extent prac- ticable, award contracts for origination, serv- icing, and collection described in subsection (b). In awarding such contracts, the Secretary shall ensure that such services and supplies are provided at competitive prices. (2) Entities The entities with which the Secretary may enter into contracts shall include only entities which the Secretary determines are qualified to provide such services and supplies and will comply with the procedures applicable to the award of such contracts. In the case of award- ing contracts for the origination, servicing, and collection of loans under this part, the Secretary shall enter into contracts only with entities that have extensive and relevant expe- rience and demonstrated effectiveness. The en- tities with which the Secretary may enter into such contracts shall include, where prac- ticable, agencies with agreements with the Secretary under sections 1078(b) and (c) of this title, if such agencies meet the qualifications as determined by the Secretary under this sub- section and if those agencies have such experi- ence and demonstrated effectiveness. In awarding contracts to such State agencies, the Secretary shall, to the extent practicable and consistent with the purposes of this part, give special consideration to State agencies with a history of high quality performance to per- form services for institutions of higher edu- cation within their State. (3) Rule of construction Nothing in this section shall be construed as a limitation of the authority of any State agency to enter into an agreement for the pur- poses of this section as a member of a consor- tium of State agencies. (b) Contracts for origination, servicing, and data systems The Secretary may enter into contracts for— (1) the alternative origination of loans to students attending institutions of higher edu- cation with agreements to participate in the program under this part (or their parents), if such institutions do not have agreements with the Secretary under section 1087d(b) of this title; (2) the servicing and collection of loans made or purchased under this part; (3) the establishment and operation of 1 or more data systems for the maintenance of records on all loans made or purchased under this part; and (4) such other aspects of the direct student loan program as the Secretary determines are necessary to ensure the successful operation of the program. (Pub. L. 89–329, title IV, § 456, as added Pub. L. 102–325, title IV, § 451, July 23, 1992, 106 Stat. 572; amended Pub. L. 103–66, title IV, § 4021, Aug. 10, 1993, 107 Stat. 352; Pub. L. 105–244, title IV, § 453, Oct. 7, 1998, 112 Stat. 1717; Pub. L. 110–227, § 7(c), May 7, 2008, 122 Stat. 747; Pub. L. 111–152, title II, § 2212(a), Mar. 30, 2010, 124 Stat. 1078; Pub. L. 113–67, div. A, title V, § 502(1), Dec. 26, 2013, 127 Stat. 1187.) Editorial Notes AMENDMENTS 2013—Subsec. (a)(4). Pub. L. 113–67, § 502(1)(A), struck out par. (4) which related to servicing by eligible not- for-profit servicers. Subsec. (c). Pub. L. 113–67, § 502(1)(B), struck out sub- sec. (c) which defined eligible not-for-profit servicer for purposes of this section. 2010—Subsec. (a)(4). Pub. L. 111–152, § 2212(a)(1)(A), added par. (4). Subsec. (c). Pub. L. 111–152, § 2212(a)(2), added subsec. (c). 2008—Subsec. (b)(2), (3). Pub. L. 110–227 inserted ‘‘or purchased’’ after ‘‘loans made’’. 1998—Subsec. (b)(3). Pub. L. 105–244, § 453(1), inserted ‘‘and’’ after semicolon. Subsec. (b)(4), (5). Pub. L. 105–244, § 453(2), (3), redesig- nated par. (5) as (4) and struck out former par. (4) which read as follows: ‘‘services to assist in the orderly tran-