SECTION 1. PRIVATE EDUCATION LOAN REFINANCING.

    Title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et 
seq.) is amended by adding at the end the following:

              ``PART J--PRIVATE EDUCATION LOAN REFINANCING

``SEC. 499A. PRIVATE EDUCATION LOAN REFINANCING FOR PHYSICIANS.

    ``(a) In General.--
            ``(1) Authority.--The Secretary shall carry out a Physician 
        Private Education Loan Refinancing Program in accordance with 
        this section.
            ``(2) Availability of funds.--There are hereby made 
        available, in accordance with the provisions of this section, 
        such sums as may be necessary to make loans under this section 
        through refinancing private education loans to all individuals 
        eligible to receive refinancing under this section.
            ``(3) Private education loan.--In this section, the term 
        `private education loan' has the meaning given the term 
        `qualified education loan' in section 221 of the Internal 
        Revenue Code, but does not include any loan made under this 
        title or under the Public Health Service Act.
    ``(b) Eligible Borrower.--An individual shall be eligible to 
receive private education loan refinancing under this section if the 
individual meets the following requirements:
            ``(1) The individual is participating in a residency 
        program, approved by the Accreditation Council for Graduate 
        Medical Education or the American Osteopathic Association, at a 
        hospital in one of the following specialties:
                    ``(A) Family medicine.
                    ``(B) Obstetrics/gynecology.
                    ``(C) General internal medicine.
                    ``(D) Gerontology.
                    ``(E) General pediatrics.
                    ``(F) General psychiatry.
            ``(2) The individual is not enrolled, on a half-time or 
        more basis, in an eligible institution under this title (as 
        such term is defined in section 435(a)).
            ``(3) The individual is indebted on at least 1 private 
        education loan for the period of enrollment preceding their 
        residency program.
            ``(4) The individual is not in default on a loan made, 
        insured, or guaranteed under this title.
            ``(5) The individual has not previously obtained 
        refinancing under this section.
    ``(c) Refinancing Under the Physician Private Education Loan 
Refinancing Program.--
            ``(1) In general.--The Secretary shall refinance a private 
        education loan in accordance with this section for an 
        individual who is eligible for private education loan 
        refinancing pursuant to subsection (b). Such refinancing loans 
        shall have the same terms and conditions as a Federal Direct 
        Consolidation Loan, except as provided in paragraphs (4) and 
        (5).
            ``(2) Types of loans eligible to be refinanced.--A private 
        education loan is eligible to be refinanced under this section 
        if the loan was incurred after July 1, 2008.
            ``(3) Loan limits.--The maximum amount of private education 
        loans that may be refinanced by an individual under this 
        section is an amount equal to the sum of unpaid principal, 
        accrued interest, and late charges of all private education 
        loans eligible under paragraph (2) incurred by such individual.
            ``(4) Interest rate.--The interest rate for a private 
        education loan refinanced under this section shall be 8.25 
        percent.
            ``(5) Repayment terms.--A loan refinanced under this 
        section shall have the same repayment terms, conditions, and 
        benefits as a Federal Direct Consolidation Loan, except that 
        such loan shall not be eligible for--
                    ``(A) consolidation with any other loan eligible 
                for loan consolidation under this title;
                    ``(B) income-based repayment terms under this 
                title; or
                    ``(C) any loan forgiveness or cancellation provided 
                under this title or under the Public Health Service 
                Act, except in the case of death or permanent and total 
                disability.
            ``(6) Loan application and promissory note.--The Secretary 
        shall develop and distribute a standard application and 
        promissory note and loan disclosure form for loans refinanced 
        under this section.
            ``(7) Loan disbursement.--The proceeds of any loan 
        refinanced under this section shall be paid by the Secretary 
        directly to the holder of the private education loan being 
        refinanced for the purpose of discharging or reducing the debt 
        on such private education loan on behalf of the borrower, 
        subject to repayment terms under this section.
    ``(d) Annual Report to Congress.--The Secretary shall report to 
Congress annually on the volume and repayment status of private 
education loans refinanced under this section.''.
Output: Amends title IV (Student Assistance) of the Higher Education Act of 1965 to direct the Secretary of Education to refinance the private education loans of individuals who are participating in a residency program in: (1) family medicine; (2) obstetrics/gynecology; (3) general internal medicine; (4) gerontology; (5) general pediatrics; or (6) general psychiatry.

Sets the interest rate on the refinanced loans at 8.25%.

Requires the refinanced loans to have the same terms and conditions as a Direct Consolidation Loan, except they are made ineligible for: (1) consolidation with another loan eligible for consolidation under title IV; (2) income-based repayment terms under title IV; or (3) any loan forgiveness or cancellation under title IV or the Public Health Service Act, except in the case of death or permanent and total disability.