Title 20, EducationRelease 119-110
§1092a Combined Payment Plan
Title 20 › CHAPTER 28 — HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE › SUBCHAPTER IV — STUDENT ASSISTANCE › Part G — General Provisions Relating to Student Assistance Programs › § 1092a
Summary
A lender may, if a borrower asks, offer a combined payment plan that lets the borrower get one monthly bill for a consolidation loan and certain loans made under the Public Health Service Act. The lender must follow the same rules that apply to consolidation loans and to those Public Health Service Act loans. To offer the plan, the lender must either already hold at least one of the borrower’s loans that the borrower wants included, or the borrower must say they tried but could not get a combined plan from the other loan holders. If more than one lender offers to run the plan, the borrower picks which lender will do it. When a borrower picks a lender, that lender can make a new loan to replace any selected Public Health Service Act loan it does not already hold and must pay the old loan holder so the borrower’s obligation to that holder is ended. The lender can do this only after checking that each loan is valid, was made and handled under the law, has insurance, and was not in default when the borrower asked for the plan. Each replaced loan gets a new note signed by the borrower and is fully insured by the Department of Health and Human Services under a comprehensive certificate. The new loan keeps the same terms as the old loan, and its repayment time can’t be longer than what was left on the original (though if the lender holds several loans the period may extend to the latest date allowed). No origination fees or insurance premiums may be charged to the borrower or paid by the lender, and repayment must begin within 60 days after the later of the borrower accepting the lender’s offer, the consolidation loan being made, or the replacement of any Public Health Service Act loan.
Full Legal Text
Title 20, §1092a
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(a)Eligibility for plan
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.
(b)Applicability of other requirements
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.
(c)Lender eligibility
Such lender may offer a combined payment plan only if—
(1)the lender holds an outstanding loan of that borrower which is selected by the borrower for incorporation into a combined payment plan pursuant to this section (including loans which are selected by the borrower for consolidation under this section); or
(2)the borrower certifies that the borrower has sought and has been unable to obtain a combined payment plan from the holders of the outstanding loans of that borrower.
(d)Borrower selection of competing offers
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.
(e)Effect of plan
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—
(1)the lender selected to administer the combined payment plan has determined to its satisfaction, in accordance with reasonable and prudent business practices, for each loan being reissued (A) that the loan is a legal, valid, and binding obligation of the borrower; (B) that each such loan was made and serviced in compliance with applicable laws and regulations; and (C) the insurance on such loan is in full force and effect; and
(2)the loan being reissued was not in default (as defined in section 707(e)(3) of the Public Health Service Act [42 U.S.C. 292f(e)(3)]) at the time the request for a combined payment plan is made.
(f)Notes and insurance certificates
(1)Each loan reissued under subsection (e) shall be evidenced by a note executed by the borrower. The Secretary of Health and Human Services shall insure such loan under a certificate of comprehensive insurance with no insurance limit, but any such certificate shall only be issued to an authorized holder of loans insured under part A of title VII of the Public Health Service Act (42 U.S.C. 292 et seq.) (including the Student Loan Marketing Association). Such certificates shall provide that all loans reissued under this section shall be fully insured against loss of principal and interest. Any insurance issued with respect to loans reissued under this section shall be excluded from the limitation on maximum insurance authority set forth in section 710 of the Public Health Service Act [42 U.S.C. 292i]. Notwithstanding the provisions of section 729(a) of the Public Health Service Act, the reissued loan shall be made in an amount, including outstanding principal, capitalized interest, accrued unpaid interest not yet capitalized, and authorized late charges. The proceeds of each such loan will be paid by the lender to the holder of the original loan being reissued and the borrower’s obligation to that holder on that loan shall be discharged.
(2)Except as otherwise specifically provided for under the provisions of this section, the terms of any reissued loan shall be the same as the terms of the original loan. The maximum repayment period for a loan reissued under this section shall not exceed the remainder of the period which would have been permitted on the original loan. If the lender holds more than one loan insured under part A of title VII of the Public Health Service Act (42 U.S.C. 292 et seq.), the maximum repayment period for all such loans may extend to the latest date permitted for any individual loan. Any reissued loan may be consolidated with any other Health Education Assistance Loan as provided in the Public Health Service Act [42 U.S.C. 201 et seq.], and, with the concurrence of the borrower, repayment of any such loans during any period may be made in amounts that are less than the interest that accrues on such loans during that period.
(g)Termination of borrower eligibility
The status of an individual as an eligible combined payment plan borrower terminates upon receipt of a combined payment plan.
(h)Fees and premiums
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.
(i)Commencement of repayment
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).
Legislative History
Notes & Related Subsidiaries
Editorial Notes
References in Text
The 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, title I, § 102, Oct. 13, 1992, 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.
Amendments
2009—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 AmendmentAmendment 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 AmendmentAmendment 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.
Reference
Citations & Metadata
Citation
20 U.S.C. § 1092a
Title 20, Education
Last Updated
Sep 23, 2026
Release point: 119-110