### Question
How is the term excepted consolidation loan defined?


### Answer
The term **excepted consolidation loan** is defined in *20 U.S.C. § 1098e* as the following:

> a consolidation loan under section 1078–3 of this title, or a Federal Direct Consolidation Loan, if the proceeds of such loan were used to the discharge the liability on an excepted PLUS loan

#### Citation:
  - *20 U.S.C. § 1098e*
  - Heading: **CHAPTER 28-HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE > SUBCHAPTER IV-STUDENT ASSISTANCE > Part G-General Provisions Relating to Student Assistance Programs**

