United States Code
USC most recently checked for updates: Aug 15, 2020
Except as provided in subsections (c), (d), and (e), loans made under this section shall have the same terms, conditions, and benefits as all other loans made under this part.
Whenever necessary to carry out the provisions of this section, the terms “student” and “borrower” as used in this part shall include a parent borrower under this section.
In this subparagraph, the term “mortgage loan” means an extension of credit to a borrower that is secured by the primary residence of the borrower.
Nothing in this subparagraph shall be construed to limit an eligible lender’s authority under the regulations promulgated pursuant to paragraph (1)(A) to determine that extenuating circumstances exist.
Any loan under this section may be counted as part of the expected family contribution in the determination of need under this subchapter, but no loan may be made to any graduate or professional student or any parent under this section for any academic year in excess of (A) the student’s estimated cost of attendance, minus (B) other financial aid as certified by the eligible institution under section 1078(a)(2)(A) of this title. The annual insurable limit on account of any student shall not be deemed to be exceeded by a line of credit under which actual payments to the borrower will not be made in any year in excess of the annual limit.
Capitalization of interest under this paragraph shall not be deemed to exceed the annual insurable limit on account of the borrower.
No payments to reduce interest costs shall be paid pursuant to section 1078(a) of this title on loans made pursuant to this section.
Interest on loans made pursuant to this section shall be at the applicable rate of interest provided in section 1077a of this title.
An eligible lender may at any time consolidate loans held by it which are made under this section to a borrower, including loans which were made under this section as in effect prior to
An eligible lender may reissue a loan which was made under this section before
Each new lender may accept certification from the original lender of the borrower’s original loan in lieu of presentation of the original promissory note.