[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 4926 Introduced in Senate (IS)]

<DOC>






118th CONGRESS
  2d Session
                                S. 4926

          To establish a new Guaranteed Student Loan Program.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             August 1, 2024

  Mr. Rounds introduced the following bill; which was read twice and 
  referred to the Committee on Health, Education, Labor, and Pensions

_______________________________________________________________________

                                 A BILL


 
          To establish a new Guaranteed Student Loan Program.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Affordable Future Loan Program Act 
of 2024''.

SEC. 2. GOVERNMENT GUARANTEED STUDENT LOAN PROGRAM.

    At the end of title IV of the Higher Education Act of 1965 (20 
U.S.C. 1070 et seq.), add the following:

               ``PART J--GUARANTEED STUDENT LOAN PROGRAM

``SEC. 499A. STATEMENT OF PURPOSE; NONDISCRIMINATION; APPROPRIATIONS 
              AUTHORIZED.

    ``(a) Purpose; Discrimination Prohibited.--
            ``(1) Purpose.--The purpose of this part is to enable the 
        Secretary--
                    ``(A) to pay a portion of the interest on loans to 
                qualified students that are guaranteed under this part; 
                and
                    ``(B) to guarantee a portion of each loan under 
                this part.
            ``(2) Discrimination by creditors prohibited.--No agency, 
        organization, institution, bank, credit union, corporation, or 
        other lender who regularly extends, renews, or continues credit 
        under this part shall exclude from receipt or deny the benefits 
        of, or discriminate against any borrower or applicant in 
        obtaining, such credit on the basis of--
                    ``(A) race, national origin, religion, sex, marital 
                status, age, or disability status;
                    ``(B) the type or category of institution of higher 
                education that the borrower or applicant attends or 
                attended;
                    ``(C) the degree or program of study of the 
                borrower or applicant; or
                    ``(D) the creditworthiness of the borrower or 
                applicant.
    ``(b) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this part such sums as may be necessary for 
the period of fiscal years 2025 through 2029.
    ``(c) Designation.--The program established under this part shall 
be referred to as the `Affordable Future Loan Program'. Loans made 
pursuant to this part shall be known as `Affordable Future loans'.

``SEC. 499A-1. PROGRAM AUTHORITY.

    ``The Secretary shall implement the Affordable Future Loan Program, 
through which the Secretary shall--
            ``(1) pay an eligible lender 98 percent of the amount of 
        principal and interest due on each defaulted eligible loan that 
        is issued under this part by an eligible lender;
            ``(2) reimburse an eligible lender for amounts of 
        subsidized interest under this part; and
            ``(3) ensure that only eligible lenders that issue loans in 
        accordance with this part receive the guarantee funds described 
        in paragraph (1) and the reimbursement described in paragraph 
        (2).

``SEC. 499A-2. ELIGIBLE LENDERS AND ELIGIBLE LOANS.

    ``(a) Eligible Lender.--For purposes of this part an eligible 
lender is an eligible lender as described in subparagraphs (A) through 
(D), (I), and (K) of section 435(d)(1), except that references to 'this 
part' or references to other sections in part B in such subsection 
shall be construed to mean this part rather than part B or any section 
of part B.
    ``(b) Eligible Loan.--
            ``(1) In general.--An eligible loan is a loan issued under 
        this part on or after the date of enactment of the Affordable 
        Future Loan Program Act of 2024 to an undergraduate student who 
        is otherwise eligible under section 484, who meets the 
        requirements of paragraph (2), and who is enrolled or will be 
        enrolled at an eligible institution of higher education, to 
        enable such student to pursue the student's courses of study at 
        such institution.
            ``(2) Federal loans.--A student who desires to apply for a 
        loan under this part and is otherwise eligible to do so, may 
        not apply for such loan until the student--
                    ``(A) has applied for, and received a determination 
                notice about, financial assistance under subpart 1 of 
                part A and part D for the applicable period of study; 
                or
                    ``(B) states that the student elects not to apply 
                for financial assistance under subpart 1 of part A and 
                part D for the applicable period of study.

``SEC. 499A-3. AGREEMENTS WITH ELIGIBLE LENDERS.

    ``(a) Participation Agreements.--An agreement with an eligible 
lender for participation in the program under this part shall--
            ``(1) provide that an eligible lender will offer the 
        maximum amount of eligible loans under this part to any 
        undergraduate student for attendance at an eligible institution 
        of higher education;
            ``(2) provide that the eligible lender accepts 
        responsibility and financial liability stemming from its 
        failure to perform its functions pursuant to the agreement;
            ``(3) provide for the implementation of a quality assurance 
        system, as established by the Secretary and developed in 
        consultation with eligible lenders, to ensure that the eligible 
        lender is complying with program requirements and meeting 
        program objectives;
            ``(4) provide that an eligible lender will comply with the 
        requirements of subsection (c);
            ``(5) provide that the funds borrowed by a student are 
        disbursed to the institution by check or other means that is 
        payable to and requires the endorsement or other certification 
        by such student, except--
                    ``(A) that nothing in this section shall be 
                interpreted--
                            ``(i) to allow the Secretary to require 
                        checks to be made copayable to the institution 
                        and the borrower; or
                            ``(ii) to prohibit the disbursement of loan 
                        proceeds by means other than by check; and
                    ``(B) in the case of any student who is studying 
                outside the United States in a program of study abroad 
                that is approved for credit by the home institution at 
                which such student is enrolled, the funds shall, at the 
                request of the borrower, be delivered directly to the 
                student and the checks may be endorsed, and fund 
                transfers authorized, pursuant to an authorized power-
                of-attorney;
            ``(6) provide that funds will be disbursed in a manner that 
        ensures that any Federal Pell Grant funds, any Federal Direct 
        Loan funds, and any State or institutional grant or scholarship 
        funds awarded to the borrower are disbursed prior to 
        disbursement of any funds from a loan under this part; and
            ``(7) provide that the funds borrowed by a student are 
        otherwise disbursed in accordance with section 428G.
    ``(b) Withdrawal and Termination Procedures.--The Secretary shall 
establish procedures by which eligible lenders may withdraw or be 
terminated from the program under this part.
    ``(c) Submission of Statements by Holders on Amount of Payment.--
Each holder of an eligible loan under this part, with respect to which 
payments of interest are required to be made by the Secretary, shall 
submit to the Secretary, at such time or times and in such manner as 
the Secretary may prescribe, statements containing such information as 
may be required by or pursuant to regulation for the purpose of 
enabling the Secretary to determine the amount of the payment which the 
Secretary must make with respect to that loan.

``SEC. 499A-4. PAYMENT OF LOAN GUARANTEE FOR DEFAULTED LOANS.

    ``(a) Notice to Secretary and Payment of Loss.--Upon default by the 
student borrower on any eligible loan under this part, and prior to the 
commencement of suit or other enforcement proceedings upon security for 
that loan, the insurance beneficiary shall promptly notify the 
Secretary, and the Secretary shall if requested (at that time or after 
further collection efforts) by the beneficiary, or may on the 
Secretary's own motion, if the insurance is still in effect, pay to the 
beneficiary 96 percent of the amount of the loss sustained by the 
insured upon that loan as soon as that amount has been determined.
    ``(b) Amount of Loss.--The `amount of the loss' on any loan shall, 
for the purposes of this subsection and subsection (e), be deemed to be 
an amount equal to the unpaid balance of the principal amount and 
accrued interest, including interest accruing from the date of 
submission of a valid default claim (as determined by the Secretary) to 
the date on which payment is authorized by the Secretary, except that 
such amount may be reduced based on default rate in a manner similar to 
the reductions described in section 425(b).
    ``(c) Due Diligence.--Such beneficiary shall be required to meet 
the standards of due diligence in the collection of the loan and shall 
be required to submit proof that the institution was contacted and 
other reasonable attempts were made to locate the borrower (when the 
location of the borrower is unknown) and proof that contact was made 
with the borrower (when the location is known).
    ``(d) Timing of Determination.--The Secretary shall make the 
determination required to carry out the provisions of this section not 
later than 90 days after the notification by the insurance beneficiary 
and shall make payment in full on the amount of the beneficiary's loss 
pending completion of the due diligence investigation.
    ``(e) Effect of Payment of Loss.--Upon payment of the amount of the 
loss pursuant to subsection (a), the United States shall be subrogated 
for all of the rights of the holder of the obligation upon the insured 
loan and shall be entitled to an assignment of the note or other 
evidence of the insured loan by the insurance beneficiary. The 
Secretary may, in attempting to make recovery on such loans, contract 
with private business concerns, State student loan insurance agencies, 
or State guaranty agencies, for payment for services rendered by such 
concerns or agencies in assisting the Secretary in making such 
recovery. Any contract under this subsection entered into by the 
Secretary shall provide that attempts to make recovery on such loans 
shall be fair and reasonable, and do not involve harassment, 
intimidation, false or misleading representations, or unnecessary 
communications concerning the existence of any such loan to persons 
other than the student borrower.
    ``(f) Forbearance Not Precluded.--Nothing in this section or in 
this part shall be construed to preclude any forbearance for the 
benefit of the student borrower which may be agreed upon by the parties 
to the insured loan and approved by the Secretary, or to preclude 
forbearance by the Secretary in the enforcement of the insured 
obligation after payment on that insurance. Any forbearance which is 
approved by the Secretary under this subsection with respect to the 
repayment of a loan, including a forbearance during default, shall not 
be considered as indicating that a holder of a federally insured loan 
has failed to exercise reasonable care and due diligence in the 
collection of the loan.
    ``(g) Care and Diligence Required of Holders.--Nothing in this 
section or in this part shall be construed to excuse the holder of a 
federally insured loan from exercising reasonable care and diligence in 
the making and collection of loans under the provisions of this part. 
If the Secretary, after a reasonable notice and opportunity for hearing 
to an eligible lender, finds that it has substantially failed to 
exercise such care and diligence or to make the reports and statements 
required under section 499A-3(c), the Secretary shall disqualify that 
lender for further Federal insurance on loans granted pursuant to this 
part until the Secretary is satisfied that its failure has ceased and 
finds that there is reasonable assurance that the lender will in the 
future exercise necessary care and diligence or comply with such 
requirements, as the case may be.
    ``(h) Reports to Consumer Reporting Agencies and Institutions of 
Higher Education.--For the purpose of promoting responsible repayment 
of loans under this part, the Secretary and each eligible lender and 
subsequent holder shall enter into an agreement with each consumer 
reporting agency to exchange information concerning student borrowers 
in the same manner as such agreements are made under section 430A.

``SEC. 499A-5. PURCHASE OF LOANS SOLD IN SECONDARY MARKET.

    ``(a) In General.--Loans under this part may be sold in the 
secondary market to another eligible lender.
    ``(b) Servicing and Liquidation.--When an eligible lender has sold 
the guaranteed portion of a loan in the secondary market, the loan 
holder must perform all necessary servicing and liquidation actions for 
such loan.
    ``(c) Status Report.--In the event that the Secretary purchases its 
guaranteed portion of such a loan from the holder of the loan, the loan 
holder shall provide the Secretary with a loan status report within 15 
business days of such purchase. This report shall include a status 
report on the borrower and plans for any type of loan workout or loan 
restructuring. The report shall accompany requested documentation that 
the Secretary determines is sufficient to be able to review the loan 
holder's administration of the loan. Failure to provide requested 
documentation to the Secretary may lead to initiation of an action for 
recovery from the loan holder of all or some of the amounts the 
Secretary paid to the holder of the loan on a guarantee.
    ``(d) Further Evaluation.--The Secretary shall evaluate the 
eligible lender's continued participation in the secondary market and 
may restrict further sale of guaranteed portions into the secondary 
market until the Secretary determines that the eligible lender has 
provided sufficient documentation for purchases.

``SEC. 499A-6. DEFAULT REDUCTION PROGRAM.

    ``(a) Other Repayment Incentives.--
            ``(1) Sale or assignment of loan.--
                    ``(A) In general.--The Secretary, upon securing 9 
                payments made within 20 days of the due date during 10 
                consecutive months of amounts owed on a loan for which 
                the Secretary has made a payment under this section, 
                shall, if practicable, sell the loan to another 
                eligible lender.
                    ``(B) Monthly payments.--The Secretary shall not 
                demand from a borrower as monthly payment amounts 
                described in subparagraph (A) more than is reasonable 
                and affordable based on the borrower's total financial 
                circumstances, except such monthly payment amount shall 
                not be less than $5.
                    ``(C) Consumer reporting agencies.--Upon the sale 
                or assignment of the loan, the Secretary shall request 
                any consumer reporting agency to which the Secretary or 
                holder, as applicable, reported the default of the 
                loan, to remove the record of the default from the 
                borrower's credit history.
                    ``(D) Eligible lender limitation.--A loan shall not 
                be sold to an eligible lender under subparagraph (A) if 
                such lender has been found by the Secretary to have 
                substantially failed to exercise the due diligence 
                required of lenders under this part.
                    ``(E) Default due to error.--A loan that does not 
                meet the requirements of subparagraph (A) may also be 
                eligible for sale or assignment under this paragraph 
                upon a determination that the loan was in default due 
                to clerical or data processing error and would not, in 
                the absence of such error, be in a delinquent status.
            ``(2) Borrower eligibility.--Any borrower whose loan is 
        sold under paragraph (1)(A) shall not be precluded by section 
        484 from receiving additional loans or grants under this title 
        (for which he or she is otherwise eligible) on the basis of 
        defaulting on the loan prior to such loan sale.
            ``(3) Applicability of general loan conditions.--A loan 
        that is sold under paragraph (1)(A) shall, so long as the 
        borrower continues to make scheduled repayments thereon, be 
        subject to the same terms and conditions and qualify for the 
        same benefits and privileges as other loans made under this 
        part.
            ``(4) Limitation.--A borrower may obtain the benefits 
        available under this subsection with respect to rehabilitating 
        a loan (whether by loan sale or assignment) not more than 2 
        times per loan.
    ``(b) Satisfactory Repayment Arrangements To Renew Eligibility.--
The Secretary shall establish a program which allows a borrower with a 
defaulted loan or loans to renew eligibility for all title IV student 
financial assistance (regardless of whether the defaulted loan has been 
sold to an eligible lender or assigned to the Secretary) upon the 
borrower's payment of 6 consecutive monthly payments. The loan holder 
shall not demand from a borrower as a monthly payment amount under this 
subsection more than is reasonable and affordable based upon the 
borrower's total financial circumstances. A borrower may only obtain 
the benefit of this subsection with respect to renewed eligibility 
once.
    ``(c) Financial and Economic Literacy.--Each program described in 
subsection (b) shall include making available financial and economic 
education materials for a borrower who has rehabilitated a loan.

``SEC. 499A-7. TERMS AND CONDITIONS OF LOANS.

    ``(a) Eligibility; Maximum Aid.--
            ``(1) Eligibility.--A student's amount of need for a loan 
        under this part shall be based solely on the student's 
        estimated cost of attendance and estimated financial 
        assistance, including other assistance through a Federal Pell 
        Grant or a Federal Direct Loan under this title or any State or 
        institutional grant or scholarship funds awarded to the 
        student. An expected family contribution or student aid index 
        shall not be considered.
            ``(2) Maximum aid.--
                    ``(A) In general.--Subject to subparagraph (B), the 
                maximum dollar amount of financial assistance provided 
                annually under this part to a student shall not exceed 
                an amount equal to--
                            ``(i) the cost of attendance for such 
                        student; minus
                            ``(ii) the total amount of--
                                    ``(I) other financial assistance 
                                not received under this title (as 
                                defined in section 480(i)); and
                                    ``(II) other financial assistance 
                                received under this title, including a 
                                Federal Pell Grant or a Federal Direct 
                                Loan.
                    ``(B) Limitation.--A loan under this part shall not 
                exceed an amount equal to--
                            ``(i) $19,000 adjusted annually according 
                        to the estimated percentage change in the 
                        Consumer Price Index (as determined by the 
                        Secretary, using the definition in section 
                        478(f)) for the most recent calendar year 
                        ending prior to the beginning of that award 
                        year; minus
                            ``(ii) the amount described in subclause 
                        (II) of subparagraph (A)(ii).
    ``(b) Interest Rate.--
            ``(1) Rates for borrowers not in repayment status.--In the 
        case of a borrower who is not in repayment status, for an 
        Affordable Future Loan for which the first disbursement is made 
        on or after July 1, 2025, 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 the lesser of--
                    ``(A) a rate equal to the high yield of the 10-year 
                Treasury note auctioned at the final auction held prior 
                to such June 1 plus 1 percent; or
                    ``(B) 6.28 percent.
            ``(2) Rates for borrowers in repayment status.--In the case 
        of a borrower who is in repayment status, for an Affordable 
        Future Loan for which the first disbursement is made on or 
        after July 1, 2025, 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 
        the lesser of--
                    ``(A) a rate equal to the high yield of the 10-year 
                Treasury note auctioned at the final auction held prior 
                to such June 1 plus 2 percent; or
                    ``(B) 6.28 percent.
            ``(3) 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, but before June 1 
        preceding the award year.
            ``(4) Subsidized interest.--The amount of interest for a 
        loan under this part shall be paid by the Secretary to the 
        eligible lender on behalf of the borrower only during the 
        period of time that the borrower is not in repayment status.
            ``(5) Not in repayment status.--In this section the term 
        `not in repayment status' means any period of time described in 
        subparagraphs (A), (C), or (D) of subsection (e)(2).
    ``(c) Loan Fee.--Each eligible lender under this part may charge 
the borrower an origination fee in an amount not to exceed 1.0 percent 
of the principal amount of the loan, to be deducted proportionately 
from each installment payment of the proceeds of the loan prior to 
payment to the borrower. A lender that charges an origination fee under 
this paragraph shall assess the same fee to all student borrowers.
    ``(d) Repayment Plans.--
            ``(1) Design and selection.--Consistent with criteria 
        established by the Secretary, a borrower of a loan made under 
        this part shall be offered 2 repayment plans for such loan. The 
        borrower shall be entitled to accelerate, without penalty, 
        repayment on the borrower's loans under this part. The borrower 
        may choose--
                    ``(A) a 15-year fixed installment repayment plan; 
                or
                    ``(B) the income driven repayment plan described in 
                paragraph (2).
            ``(2) Income driven repayment plan.--
                    ``(A) In general.--Under the income-driven 
                repayment plan under this subsection the borrower's 
                aggregate monthly payment for loans under this part 
                shall be equal to the income-driven calculation, 
                divided by 12.
                    ``(B) Discretionary income.--The term 
                `discretionary income' means the amount by which a 
                borrower's (and the borrower's spouse, if applicable) 
                annual adjusted gross income exceeds 150 percent of the 
                poverty line applicable to the borrower's family size.
                    ``(C) Discretionary income bend point.--The term 
                `discretionary income bend point' means $25,000, 
                adjusted annually for inflation as determined by the 
                Consumer Price Index (as such term is defined in 
                section 478(f)) for the previous calendar year.
                    ``(D) Income-driven calculation.--
                            ``(i) In general.--The term `income-driven 
                        calculation', when used with respect to a 
                        borrower, means the annual amount due on the 
                        total amount of loans under this part, which 
                        annual amount is equivalent to--
                                    ``(I) 10 percent of the borrower's 
                                discretionary income that is less than 
                                the discretionary income bend point, 
                                plus
                                    ``(II) 15 percent of the borrower's 
                                discretionary income that is equal to 
                                or greater than the discretionary 
                                income bend point.
                            ``(ii) Annual calculation.--The calculation 
                        under clause (i) shall be determined on an 
                        annual basis for the duration of the repayment 
                        period.
            ``(3) Selection by lender.--If a borrower of a loan made 
        under this part does not select a repayment plan described in 
        paragraph (1), the eligible lender shall provide the borrower 
        with a repayment plan described in subparagraph (A) of 
        paragraph (1).
            ``(4) Changes in selections.--The borrower of a loan made 
        under this part may change the borrower's selection of a 
        repayment plan under paragraph (1), or the eligible lender's 
        selection of the plan for the borrower under paragraph (3), as 
        the case may be, without penalty or subject to additional fees, 
        except that such borrower shall remain in a selected repayment 
        plan for not less than 6 months.
            ``(5) Alternative repayment plans.--The lender 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 lender that the terms and conditions of the 
        repayment plans available under paragraph (1) are not adequate 
        to accommodate the borrower's exceptional circumstances. In 
        designing such alternative repayment plans, the lender 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).
            ``(6) Repayment after default.--
                    ``(A) Lender costs.--The eligible lender may 
                require any borrower who has defaulted on a loan made 
                under this part to pay all reasonable collection costs 
                associated with such loan.
                    ``(B) Payment to secretary.--The Secretary may 
                require any borrower who has defaulted on a loan made 
                under this part to repay the loan pursuant to the 
                income driven repayment plan described in paragraph 
                (1)(B).
    ``(e) Deferment.--
            ``(1) In general.--A borrower of a loan made under this 
        part who meets any of the requirements described in 
        subparagraphs (A) through (D) of paragraph (2) shall be 
        eligible for a deferment, during which periodic installments of 
        principal and interest need not be paid.
            ``(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 is carrying at 
                least a 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 435(a)) the borrower is attending; or
                    ``(B) for 6 months following the date on which the 
                borrower ceases to carry the normal full-time work load 
                as described in subparagraph (A);
                    ``(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) during--
                            ``(i) any period in which such borrower is 
                        receiving treatment for cancer; and
                            ``(ii) the 6 months after such period.
            ``(3) Interest accrual.--During periods described in 
        subparagraphs (A), (C), and (D) of paragraph (2) interest shall 
        be subsidized in accordance with subsection (b)(4).
    ``(f) Loan Application and Promissory Note.--The common financial 
reporting form required in section 483(a)(1) shall constitute the 
application for loans made under this part. The Secretary shall 
develop, print, and distribute to participating eligible lenders a 
standard promissory note and loan disclosure form.
    ``(g) Loan Disbursement.--Loans shall be disbursed in accordance 
with section 499A-3.
    ``(h) Disclosures.--With respect to loans under this part and in 
accordance with such regulations as the Secretary shall prescribe, each 
eligible lender participating in this part shall comply with each of 
the requirements under section 433 that apply to a lender with respect 
to a loan under part B.
    ``(i) Enrollment Period Limitations.--In order to continue to be 
eligible for a loan under this part, a borrower shall complete the 
program of study not more than 5 years after the date the borrower 
first enters the program of study.

``SEC. 499A-8. RELATIONSHIP TO OTHER FEDERAL LOANS.

    ``(a) In General.--A borrower may borrow loans both under part D 
and under this part for the same period of study. If a borrower is 
borrowing loans under both part D and this part for the same period of 
study, the eligible lender shall ensure that the Secretary has made 
determinations about the amount of loans awarded under part D for such 
period prior to determining the amount of loans under this part that 
the borrower is eligible to borrow, in accordance with section 499A-
2(b).
    ``(b) Rule of Construction.--Nothing in this Act shall be construed 
to require a borrower who borrows loans under this part to also borrow 
loans under part D.
    ``(c) Prohibition on Combining Loans.--The Secretary may not 
combine or otherwise consolidate a loan made under this part with a 
loan made under part D, unless the borrower of such loans elects to 
consolidate such loans.''.
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