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excepted loan

Defined in 1 place of the United States Code.

For the purposes of this paragraph, the term “excepted loan” means a loan with an outstanding balance that is—

(I) a Federal Direct PLUS Loan that is made on behalf of a dependent student; or

(II) a Federal Direct Consolidation Loan, if the proceeds of such loan were used to discharge the liability on—

(aa) an excepted PLUS loan, as defined in section 1098e(a)(1) of this title; or

(bb) an excepted consolidation loan (as such term is defined in section 1098e(a)(2)(A) of this title, notwithstanding subparagraph (B) of such section).

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