20 USC 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 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;

Advertisement
view counter
(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 Stafford Loans.
(b) Interest rate 

(1) Rates for FDSL and FDUSL 
For Federal Direct Stafford Loans and Federal Direct Unsubsidized Stafford 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
(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 percent.

(2) In school and grace period rules 

(A) Notwithstanding the provisions of paragraph (1), but subject to paragraph (3), with respect 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 interest for interest which accrues
(i) prior to the beginning of the repayment period of the loan; or

Advertisement
view counter
(ii) during the period in which principal need not be paid (whether or not such principal 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 determined 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 percent.

(3) Out-year rule 
Notwithstanding paragraphs (1) and (2), for Federal Direct Stafford Loans and Federal Direct Unsubsidized Stafford Loans made on or after July 1, 1998, 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
(A) the bond equivalent rate of the security with a comparable maturity as established by the Secretary; plus
(B) 1.0 percent,

except that such rate shall not exceed 8.25 percent.

(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 interest shall, during any 12-month period beginning 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 percent.

(ii) For any 12-month period beginning on July 1 of 2001 or any succeeding year, the applicable rate of interest determined under this subparagraph shall be determined on the preceding June 26 and be equal to
(I) the weekly average 1-year constant maturity 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 percent.

(B) For Federal Direct PLUS loans made on or after July 1, 1998, 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 the security with a comparable maturity as established by the Secretary; plus
(ii) 2.1 percent,

except that such rate shall not exceed 9 percent.

(5) Temporary interest rate provision 

(A) Rates for FDSL and FDUSL 
Notwithstanding the preceding paragraphs of this subsection, for Federal Direct Stafford Loans and Federal Direct Unsubsidized Stafford Loans for which the first disbursement is made on or after July 1, 1998, and before October 1, 1998, 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 91-day Treasury bills auctioned at the final auction 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 Federal Direct Stafford Loan or Federal Direct Unsubsidized Stafford Loan for which the first disbursement is made on or after July 1, 1998, and before October 1, 1998, the applicable rate of interest 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 principal 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 be determined under subparagraph (A) by substituting 1.7 percent for 2.3 percent.

(C) PLUS loans 
Notwithstanding the preceding paragraphs of this subsection, with respect to Federal Direct PLUS Loan for which the first disbursement 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 Stafford Loans and Federal Direct Unsubsidized Stafford Loans for which the first disbursement is made on or after October 1, 1998, and before July 1, 2006, 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 91-day Treasury bills auctioned at the final auction 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 Federal Direct Stafford Loan or Federal Direct Unsubsidized Stafford Loan for which the first disbursement is made on or after October 1, 1998, and before July 1, 2006, the applicable rate of interest 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 principal 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 be determined under subparagraph (A) by substituting 1.7 percent for 2.3 percent.

(C) PLUS loans 
Notwithstanding the preceding paragraphs of this subsection, with respect to Federal Direct PLUS Loan for which the first disbursement 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 Consolidation loan for which the application is received on or after February 1, 1999, and before July 1, 2006, 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 percent; or
(ii) 8.25 percent.
(E) Temporary rules for consolidation loans 
Notwithstanding the preceding paragraphs of this subsection, any Federal Direct Consolidation loan for which the application is received on or after October 1, 1998, and before February 1, 1999, shall bear interest at an annual rate on the unpaid principal balance of the loan that is equal to
(i) the bond equivalent rate of 91-day Treasury bills auctioned at the final auction 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 

(A) Rates for FDSL and FDUSL 
Notwithstanding the preceding paragraphs of this subsection, for Federal Direct Stafford Loans and Federal Direct Unsubsidized Stafford Loans for which the first disbursement is made on or after July 1, 2006, the applicable rate of interest shall be 6.8 percent on the unpaid principal balance of the loan.
(B) PLUS loans 
Notwithstanding the preceding paragraphs of this subsection, with respect to any Federal Direct PLUS loan for which the first disbursement is made on or after July 1, 2006, 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 Consolidation loan for which the application is received on or after July 1, 2006, 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 percent; or
(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, 2012, the applicable rate of interest shall be as follows:
(i) For a loan for which the first disbursement 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 disbursement 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 disbursement 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 disbursement 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 disbursement is made on or after July 1, 2011, and before July 1, 2012, 3.4 percent on the unpaid principal balance of the loan.
(8) Repayment incentives 

(A) In general 
Notwithstanding any other provision of this part, the Secretary is authorized to prescribe by regulation such reductions in the interest rate or origination fee paid by a borrower of a loan made under this part as the Secretary determines appropriate to encourage on-time repayment of the loan. Such reductions may be offered only if the Secretary determines the reductions are cost neutral and in the best financial 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, the Secretary shall ensure the cost neutrality of such reductions. The Secretary shall not prescribe such regulations in final form unless an official 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 reductions will be completely cost neutral. Such reports shall be transmitted to the Committee on Labor and Human Resources of the Senate and the Committee on Education and the Workforce of the House of Representatives not less than 60 days prior to the publication of regulations proposing such reductions.
(9) Publication 
The Secretary shall determine the applicable 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 borrower shall be entitled to accelerate, without penalty, repayment on the borrowers 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, consistent with section 1078 (b)(9)(A)(ii) of this title;
(C) an extended repayment plan, consistent with section 1078 (b)(9)(A)(v) of this title, except that the borrower shall annually repay a minimum amount determined by the Secretary in accordance with section 1078 (b)(1)(L) of this title; and
(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, except that the plan described in this subparagraph shall not be available to the borrower of a Federal Direct PLUS loan.
(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 borrowers selection of a repayment plan under paragraph (1), or the Secretarys selection of a plan for the borrower under paragraph (2), as the case may be, under such terms and conditions as may be established 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 Secretary that the terms and conditions of the repayment plans available under paragraph (1) are not adequate to accommodate the borrowers exceptional circumstances. In designing such alternative repayment plans, the Secretary shall ensure that such plans do not exceed 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 paragraph (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 associated 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 income of a borrower (and the borrowers 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 determining 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 procedures for determining the borrowers repayment obligation on that loan for such year, and such other procedures as are necessary to implement effectively income contingent repayment.
(2) Repayment based on adjusted gross income 
A repayment schedule for a loan made under this part and repaid pursuant to income contingent repayment shall be based on the adjusted 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 borrowers spouse, on the adjusted gross income of the borrower and the borrowers 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 borrowers current income, shall provide to the Secretary other documentation of income satisfactory to the Secretary, which documentation the Secretary may use to determine an appropriate repayment schedule.
(4) Repayment schedules 
Income contingent repayment schedules shall be established by regulations promulgated by the Secretary and shall require payments that vary in relation to the appropriate portion of the annual income of the borrower (and the borrowers 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 contingent repayment shall equal the unpaid principal amount of the loan, any accrued interest, and any fees, such as late charges, assessed on such loan. The Secretary may promulgate 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 repayment is notified of the terms and conditions of such plan, including notification of such borrower
(A) that the Internal Revenue Service will disclose to the Secretary tax return information as authorized under section 6103 (l)(13) of title 26; and
(B) that if a borrower considers that special circumstances, such as a loss of employment by the borrower or the borrowers spouse, warrant an adjustment in the borrowers loan repayment as determined using the information described in subparagraph (A), or the alternative documentation described in paragraph (3), the borrower may contact the Secretary, who shall determine whether such adjustment is appropriate, in accordance with criteria established by the Secretary.
(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 C, or part D
(A) is not in default on any loan that is included 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 paragraph (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 subsection (d)(1)(A), based on a 10-year repayment 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 repayment plan under section 1078 (b)(9)(A)(i) of this title or subsection (d)(1)(A) with a repayment period of 10 years; or
(v) makes payments under an income contingent repayment plan under subsection (d)(1)(D).
(f) Deferment 

(1) Effect on principal and interest 
A borrower of a loan made under this part who meets the requirements described in paragraph (2) shall be eligible for a deferment, during 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 interest 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 Direct PLUS Loan, a Federal Direct Unsubsidized Stafford Loan, or a Federal Direct Consolidation Loan not described in subparagraph (A)(ii).
(2) Eligibility 
A borrower of a loan made under this part shall be eligible for a deferment during any period
(A) during which the borrower
(i) is carrying at least one-half the normal full-time work load for the course of study that the borrower is pursuing, as determined 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 pursuant to a graduate fellowship program approved by the Secretary, or pursuant to a rehabilitation training program for individuals 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 Federal Direct PLUS Loan or a Federal Direct Consolidation Loan), while serving in a medical 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 demobilization 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 experienced or will experience an economic hardship.
(3) “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.
(4) Deferments for previous part B loan borrowers 
A borrower of a loan made under this part, who at the time such individual applies for such loan, has an outstanding balance of principal or interest owing on any loan made, insured, or guaranteed under part B of this subchapter 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 
A borrower of a loan made under this part may consolidate such loan with the loans described in section 1078–3 (a)(4) of this title. 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 requirements applicable to a lender under section 1078–3 (b)(1)(F) of this title.
(h) Borrower defenses 
Notwithstanding any other provision of State or Federal law, the Secretary shall specify in regulations (except as authorized under section 1087g (a)(1) of this title) which acts or omissions of an institution of higher education a borrower may assert 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 action 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 students account for tuition and fees, and, in the case of institutionally owned housing, to room and board. Loan proceeds that remain after the application 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 manner consistent with payment of Federal Pell Grants under subpart 1 of part A of this subchapter.
(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 subchapter.
(B) Except as otherwise required by regulations of the Secretary, or in a notice under section 1087g (a)(1) of this title, an institution may maintain loan funds under this part in the same account as other Federal student financial 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 report required of institutions participating in the program under subpart 1 of part A of this subchapter, 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 student loan interest payment program 

(1) Authority 
Using funds received by transfer to the Secretary under section 2174 of title 10 for the payment of interest on a loan made under this part to a member of the Armed Forces, 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 transferred.
(2) Forbearance 
During the period in which the Secretary is making payments on a loan under paragraph (1), the Secretary shall grant the borrower forbearance, 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 employees 

(1) In general 
The Secretary shall cancel the balance of interest 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 repayment plan under section 1098e of this title;
(ii) payments under a standard repayment plan under subsection (d)(1)(A), based on a 10-year repayment period;
(iii) monthly payments under a repayment plan under subsection (d)(1) or (g) of not less than the monthly amount calculated under subsection (d)(1)(A), based on a 10-year repayment period; or
(iv) payments under an income contingent 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 period described in paragraph (1), the Secretary shall cancel the obligation to repay the balance of principal and interest due as of the time of such cancellation, on the eligible Federal 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, Federal Direct PLUS Loan, or Federal Direct Unsubsidized Stafford Loan, or a Federal Direct Consolidation Loan.
(B) Public service job 
The term public service job means
(i) a full-time job in emergency management, government, military service, public safety, law enforcement, 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 nonprofit 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 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 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.