eligible borrower

(3) Definition of eligible borrower (A) For the purpose of this section, the term “eligible borrower” means a borrower who— (i) is not subject to a judgment secured through litigation with respect to a loan under this subchapter or to an order for wage garnishment under section 1095a of this title ; and (ii) at the time of application for a consolidation loan— (I) is in repayment status as determined under section 1078(b)(7)(A) of this title ; (II) is in a grace period preceding repayment; or (III) is a defaulted borrower who has made arrangements to repay the obligation on the defaulted loans satisfactory to the holders of the defaulted loans. (B) (i) An individual’s status as an eligible borrower under this section or under section 1087e(g) of this title terminates under both sections upon receipt of a consolidation loan under this section or under section 1087e(g) of this title , except that— (I) an individual who receives eligible student loans after the date of receipt of the consolidation loan may receive a subsequent consolidation loan; (II) loans received prior to the date of the consolidation loan may be added during the 180-day period following the making of the consolidation loan; (III) loans received following the making of the consolidation loan may be added during the 180-day period following the making of the consolidation loan; (IV) loans received prior to the date of the first consolidation loan may be added to a subsequent consolidation loan; and (V) an individual may obtain a subsequent consolidation loan under section 1087e(g) of this title only— (aa) for the purposes of obtaining income contingent repayment or income-based repayment, and only if the loan has been submitted to the guaranty agency for default aversion or if the loan is already in default; (bb) for the purposes of using the public service loan forgiveness program under section 1087e(m) of this title ; (cc) for the purpose of using the no accrual of interest for active duty service members benefit offered under section 1087e(o) of this title ; or (dd) for the purpose of separating a joint consolidation loan into 2 separate Federal Direct Consolidation Loans under section 1087e(g)(2) of this title .

Source

20 USC § 1078-3(a)(3)


Scoping language

For the purpose of this section
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