112 STAT. 1716 PUBLIC LAW 105-244—OCT. 7, 1998 " (B) IN SCHOOL AND GRACE PERIOD RULES. —Notwithstanding the preceding paragraphs of this subsection, with respect to any Federal Direct Stafford Loan or Federal Direct Unsubsidized Stafford Loan for which the first disbursement is made on or after October 1, 1998, and before July 1, 2003, the applicable rate of interest for interest which accrues— "(i) prior to the beginning of the repayment period of the loan; or "(ii) during the period in which principal need not be paid (whether or not such principal is in fact paid) by reason of a provision described in section 428(b)(l)(M) or 427(a)(2)(C), shall be determined under subparagraph (A) by substituting '1.7 percent' for '2.3 percent'.
- (C) PLUS LOANS. — Notwithstanding the preceding
paragraphs of this subsection, with respect to Feder^ Direct PLUS Loan for which the first disbursement is made on or after October 1, 1998, and before July 1, 2003, the applicable rate of interest shall be determined under subparagraph (A)— "(i) by substituting *3.1 percent' for *2.3 percent'; and
- (ii) by substituting *9.0 percent' for *8.25 percent'.
" (D) CONSOLIDATION LOANS. —Notwithstanding the preceding paragraphs of this subsection, any Federal Direct Consolidation loan for which the application is received on or after February 1, 1999, and before July 1, 2003, shall bear interest at an annual rate on the unpaid principal balance of the loan that is equal to the lesser of— "(i) the weighted average of the interest rates on the loans consolidated, rounded to the nearest higher one-eighth of one percent; or " (ii) 8.25 percent. "(E) TEMPORARY RULES FOR CONSOLIDATION LOANS.— Notwithstanding the preceding paragraphs of this subsection, any Federal Direct Consolidation loan for which the application is received on or after October 1, 1998, and before February 1, 1999, shall bear interest at an annual rate on the unpaid principal balance of the loan that is equal to— (i) the bond equivalent rate of 91-day Treasury bills auctioned at the final auction held prior to such June 1; plus "(ii) 2.3 percent, except that such rate shall not exceed 8.25 percent.". 20 USC l087e (2) LIMITATION ON CONSOLIDATION LOANS DURING TEM- note- PORARY INTEREST RATE.— Notwithstanding section 455(g) of the Higher Education Act of 1965, a borrower who is enrolled or accepted for enrollment in an institution of higher education may not consolidate loans under such section during the period beginning October 1, 1998, and ending February 1, 1999, unless the borrower certifies that the borrower has no outstanding loans made, insured, or guaranteed under title IV of such Act other than loans made under part D of such title, (b) REPAYMENT INCENTIVES.— Section 455(b) (20 U.S.C. 1087e(b)) is further amended by adding at the end the following:
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