12 2 STA T .3 23 4PUBLIC LA W 11 0– 31 5— AU G .14 , 200 8‘ ‘ (a a )thep e riods d u ri ngw hi c h no interest accrues on such l oan while the b orrower is enrolled in school at least hal f- ti m e
‘‘(bb) the grace period under section 46 4(c)( 1 )( A ); and ‘‘(cc) the periods during which the bor- rower ’ s student loan repa y ments are deferred under section 464(c)( 2 ); ‘‘( I I) that if a borrower includes a F ederal P er- k ins L oan in the consolidation loan , the borrower will no longer be eligible for cancellation of part or all of the Federal Perkins Loan under section 46 5 (a); and ‘‘(III) the occupations listed in section 465 that q ualify for Federal Perkins Loan cancellation under section 465(a); ‘‘(iii) the repayment plans that are a v ailable to the borrower; ‘‘(iv) the options of the borrower to prepay the consolidation loan, to pay such loan on a shorter schedule, and to change repayment plans; ‘‘(v) that borrower benefit programs for a consolida- tion loan may vary among different lenders; ‘‘(vi) the consequences of default on the consolida- tion loan; and ‘‘(vii) that by applying for a consolidation loan, the borrower is not obligated to agree to take the consolidation loan; and’’ . (2) CONS O LIDAT ION LOANS. —S ection 42 8 C(b)(5) (2 0U .S.C. 10 7 8 –3 (b)(5)) is amended— (A) by inserting after the first sentence the following
‘‘In addition, in the event that a borrower chooses to obtain a consolidation loan for the purposes of using the no accrual of interest for active duty service members program offered under section 455(o), the Secretary shall offer a Federal D irect Consolidation loan to any such borrower who applies for participation in such program.’’; and ( B ) by striking ‘‘Such direct consolidation loan’’ and inserting ‘‘A direct consolidation loan offered under this paragraph’’. (3) CON F O RM IN G AM E NDMENT.—Section 455(g) (20 U.S.C. 1087e(g)) is amended by striking ‘‘section 428C(b)(1)(F)’’ and inserting ‘‘section 428C(b)(1)( G )’’. (c) T E CH NICAL AMENDMENT.—Section 203(b)(2)(C) of the College Cost R eduction and Access Act (121 Stat. 7 9 4) is amended by striking ‘‘the second sentence’’ and inserting ‘‘the third sentence’’. (d) INCOME-BASED RE P A Y MENT.— (1) AMENDMENTS.—Section 428C(c) (20 U.S.C. 1078–3(c)) is amended— (A) in the matter preceding clause (i) of paragraph (2)(A)— (i) by striking ‘‘or income-sensitive’’ and inserting ‘‘income-sensitive, or income-based’’; and (ii) by inserting ‘‘or income-based’’ after ‘‘such income-sensitive’’; and (B) in paragraph (3)— (i) in subparagraph (A)— 20USC1 0 78–3.
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