§ 3078 — Interest Payment Program

(a) The Secretary may pay the interest and any special allowances that accrue on one or more student loans of an eligible officer, in accordance with this section. (b) An officer is eligible for the benefit described in subsection (a) while the officer— (1) is serving on active duty; (2) has not completed more than three years of service on active duty; (3) is the debtor on one or more unpaid loans described in subsection (c); and (4) is not in default on any such loan. (c) The authority to make payments under subsection (a) may be exercised with respect to the following loans: (1) A loan made, insured, or guaranteed under part B of title IV of the Higher Education Act of 1965 (20 U.S.C. 1071 et seq.). (2) A loan made under part D of such title (20 U.S.C. 1087a et seq.). (3) A loan made under part E of such title (20 U.S.C. 1087aa et seq.). (d) Interest and any special allowance may be paid on behalf of an officer under this section for any of the 36 consecutive months during which the officer is eligible under subsection (b). (1) The Secretary shall consult with the Secretary of Education regarding the administration of this section. (2) The Secretary is authorized to reimburse the Secretary of Education— (A) and (B) for any reasonable administrative costs incurred by the Secretary of Education in coordinating the program under this section with the administration of the student loan programs under parts B, D, and E of title IV of the Higher Education Act of 1965 (20 U.S.C. 1071 et seq., 1087a et seq., 1087aa et seq.). (f) In this section, the term ‘special allowance’ means a special allowance that is payable under section 438 of the Higher Education Act of 1965 (20 U.S.C. 1087–1).