Upon the request of the borrower, a lender described in subparagraph (A), (B), or (C) of section 1078-3(a)(1) of this title, or an eligible lender as defined in section 719 of the Public Health Service Act (42 U.S.C. 292o) may, with respect to a consolidation loan made under section 1078-3 of this title (and section 1087-2(o) of this title as in effect prior to the enactment of section 1078-3 of this title) and loans guaranteed under part A of title VII of the Public Health Service Act (42 U.S.C. 292 et seq.), offer a combined payment plan under which the lender shall submit one bill to the borrower for the repayment of all such loans for the monthly or other similar period of repayment.
A lender offering a combined payment plan shall comply with all provisions of section 1078-3 of this title applicable to loans consolidated or to be consolidated and shall comply with all provisions of part A of title VII of the Public Health Service Act (42 U.S.C. 292 et seq.) applicable to loans under that subpart which are made part of the combined payment plan, except that a lender offering a combined payment plan under this section may offer consolidation loans pursuant to section 1078-3(b)(1)(A) of this title if such lender holds any outstanding loan of a borrower which is selected for inclusion in a combined payment plan.
Such lender may offer a combined payment plan only if-
In the case of multiple offers by lenders to administer a combined payment plan for a borrower, the borrower shall select from among them the lender to administer the combined payment plan including its loan consolidation component.
Upon selection of a lender to administer the combined payment plan, the lender may reissue any loan under part A of title VII of the Public Health Service Act (42 U.S.C. 292 et seq.) selected by the borrower for incorporation in the combined payment plan which is not held by such lender and the proceeds of such reissued loan shall be paid by the lender to the holder or holders of the loans so selected to discharge the liability on such loans, if-
The status of an individual as an eligible combined payment plan borrower terminates upon receipt of a combined payment plan.
No origination fee or insurance premium shall be charged to the borrower on any combined payment plan, and no origination fee or insurance premium shall be payable by the lender to the Secretary of Health and Human Services.
Repayment of a combined payment plan shall commence within 60 days after the later of the date of acceptance of the lender's offer to administer a combined payment plan, the making of the consolidation loan or the reissuance of any Health Education Assistance Loans pursuant to subsection (e).
1 See References in Text note below.
20 U.S.C. § 1092a
EDITORIAL NOTES
REFERENCES IN TEXTThe Public Health Service Act, referred to in subsecs. (a), (b), (e), and (f), is act July 1, 1944, ch. 373, 58 Stat. 682, which is classified generally to chapter 6A (§201 et seq.) of Title 42, The Public Health and Welfare. Part A of title VII of the Act is classified generally to part A (§292 et seq.) of subchapter V of chapter 6A of Title 42. Section 729 of the Act was classified to section 294b of Title 42 and was omitted in the general revision of subchapter V of chapter 6A by Pub. L. 102-408, §102, 106 Stat. 1994. For complete classification of this Act to the Code, see Short Title note set out under section 201 of Title 42 and Tables.
AMENDMENTS2009-Subsec. (a). Pub. L. 111-39, §407(b)(6)(A), substituted "or an eligible lender as defined in section 719 of the Public Health Service Act (42 U.S.C. 292o)" for "or defined in subpart I of part C of title VII of the Public Health Service Act" and "under part A of title VII of the Public Health Service Act (42 U.S.C. 292 et seq.)" for "under subpart I of part C of title VII of the Public Health Service Act (known as Health Education Assistance Loans)". Subsec. (b). Pub. L. 111-39, §407(b)(6)(B), substituted "part A of title VII of the Public Health Service Act (42 U.S.C. 292 et seq.)" for "subpart I of part C of title VII of the Public Health Service Act". Subsec. (e). Pub. L. 111-39, §407(b)(6)(C)(i), substituted "loan under part A of title VII of the Public Health Service Act (42 U.S.C. 292 et seq.)" for "Health Education Assistance Loan" in introductory provisions. Subsec. (e)(2). Pub. L. 111-39, §407(b)(6)(C) (ii), substituted "707(e)(3)" for "733(e)(3)". Subsec. (f)(1). Pub. L. 111-39, §407(b)(6)(D)(i), substituted "part A of title VII of the Public Health Service Act (42 U.S.C. 292 et seq.)" for "subpart I of part C of title VII of the Public Health Service Act" and "710" for "728(a)".Subsec. (f)(2). Pub. L. 111-39, §407(b)(6)(D) (ii), substituted "part A of title VII of the Public Health Service Act (42 U.S.C. 292 et seq.)" for "subpart I of part C of title VII of the Public Health Service Act". 1987-Subsec. (a). Pub. L. 100-50 substituted "subparagraph (A), (B), or (C)" for "clause (i), (ii), or (iii)".
STATUTORY NOTES AND RELATED SUBSIDIARIES
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 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.