### Question
How does the law define excepted consolidation loan?


### Answer
Under *20 U.S.C. § 1098e*, **excepted consolidation loan** is defined as:

> 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 F-General Provisions Relating to Student Assistance Programs**

