portion of their private education debt as Federal Direct 
Consolidation Loans. 
TITLE I—CONSOLIDATION OF 
PRIVATE EDUCATION LOANS 
SEC. 101. CONSOLIDATION OF PRIVATE EDUCATION LOANS. 
Section 455(g) of the Higher Education Act of 1965 
(20 U.S.C. 1087e(g)) is amended— 
(1) by striking ‘‘A borrower’’; and inserting the 
following: 
‘‘(1) IN GENERAL.—A borrower’’; 
(2) by inserting ‘‘, including any loan made 
under part B and first disbursed before July 1, 
2010, and any loan described in paragraph (2),’’ 
after ‘‘section 428C(a)(4)’’; 
(3) by striking the third sentence; and 
(4) by adding at the end the following new 
paragraph: 
‘‘(2) CONSOLIDATION OF PRIVATE EDUCATION 
LOANS
AS
A
FEDERAL
DIRECT
CONSOLIDATION 
LOAN.— 
‘‘(A) IN GENERAL.—Notwithstanding any 
other provision of law, a borrower who meets 
the eligibility criteria described in paragraph 
(1) and subparagraph (B) of this paragraph 
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may be eligible to obtain a Federal Direct Con-
solidation loan under this paragraph that— 
‘‘(i) shall include an eligible private 
education loan; and 
‘‘(ii) may include a loan described in 
section 428C(a)(4). 
‘‘(B) ELIGIBLE
BORROWER.—A borrower 
of an eligible private education loan is eligible 
to obtain a Federal Direct Consolidation Loan 
under this paragraph if the borrower— 
‘‘(i) is not in default on a loan made, 
insured, or guaranteed under this title or 
in default (as such term is defined in sec-
tion 435(l)) on any eligible private edu-
cation loan that the borrower is seeking to 
consolidate under this paragraph, except 
that a borrower who entered such default 
at any time during the period beginning on 
December 1, 2007, through December 31, 
2009, due to an economic hardship (as 
such term is defined in section 435(o)), as 
determined by the Secretary, shall not be 
ineligible under this clause; 
‘‘(ii) was— 
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‘‘(I) at any time on or after July 
1, 1994, and before July 1, 2010, en-
rolled as an undergraduate, graduate, 
or professional student who was eligi-
ble to borrow a loan under section 
428H or a Federal Direct Unsub-
sidized Stafford Loan; or 
‘‘(II) at any time on or after July 
1, 2006, and July 1, 2010, enrolled as 
a graduate or professional student 
who was eligible to borrow a loan 
under section 428B or a Federal Di-
rect PLUS loan; 
‘‘(iii) borrowed at least one eligible 
private education loan for a period of en-
rollment described in clause (ii); 
‘‘(iv) is in— 
‘‘(I) repayment status on the eli-
gible private education loan that the 
borrower is seeking to consolidate 
under this paragraph; or 
‘‘(II) a grace period preceding re-
payment on such loan; 
‘‘(v) does not have an adverse credit 
history, as such term is defined by the Sec-
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retary, by regulation, with respect to Fed-
eral Direct PLUS loans; and 
‘‘(vi) has not previously obtained a 
Federal Direct Consolidation Loan under 
this paragraph. 
‘‘(C) DEFINITION
OF
ELIGIBLE
PRIVATE 
EDUCATION LOAN.—For purposes of this para-
graph, the term ‘eligible private education loan’ 
means a private education loan (as such term 
is defined in section 140 of the Truth in Lend-
ing Act (15 U.S.C. 1650)) that was disbursed 
to a borrower on or after July 1, 1994, and be-
fore July 1, 2010. 
‘‘(D) AMOUNT
THAT
MAY
BE
CONSOLI-
DATED.—The aggregate maximum amount of 
eligible private education loans that may be 
consolidated by a borrower under this para-
graph is— 
‘‘(i) for loans made to a borrower for 
a period of enrollment described in sub-
paragraph (B)(ii)(I), an amount equal to 
the amount of outstanding principal, ac-
crued interest, and related fees and costs 
(as determined by the Secretary) owed by 
the borrower on eligible private education 
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