### Question
How is the term eligible borrower defined?


### Answer
The term **eligible borrower** is defined in *20 U.S.C. § 1078* as the following:

> a borrower who, at the time of application for a consolidation loan is in repayment status, or in a grace period preceding repayment, or is a defaulted borrower who has made arrangements to repay the obligation on the defaulted loans satisfactory to the holders of the defaulted loans

#### Citation:
  - *20 U.S.C. § 1078*
  - Heading: **CHAPTER 27-NATIONAL VOCATIONAL STUDENT LOAN INSURANCE > SUBCHAPTER IV-STUDENT ASSISTANCE > Part B-Federal Family Education Loan Program**

