10 U.S.C. § 2174 — Interest payment program: members on active duty

(a) Authority .— (1) The Secretary concerned^* can pay^* under this section the interest and any special allowances that accrue on one or more student loans of an eligible member of the armed forces^*.
(2) The Secretary of a military department can exercise the authority under paragraph
(1) only if approved by the Secretary of Defense and subject to that requirements, conditions, and restrictions as the Secretary of Defense can prescribe.

(b) Eligible Members .— A member of the armed forces is eligible for the benefit under subsection

(a) while the member— (1) is serving on active duty^* in fulfillment of the member’s first enlistment in the armed forces or, in the case of an officer^*, is serving on active duty and has not completed more than three years of service on active duty;
(2) is the debtor on one or more unpaid loans described in subsection (c); and
(3) is not in default on any that loan.

(c) Student Loans .— The authority to make payments under subsection

(a) can be exercised for 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 that title ( 20 U.S.C. 1087a et seq.).
(3) A loan made under part E of that title ( 20 U.S.C. 1087aa et seq.).

(d) Maximum Benefit .— The months for which interest and any special allowance can be paid on behalf of a member of the armed forces under this section are any 36 consecutive months during which the member is eligible under subsection (b).

(e) Funds for Payments .— Appropriations available for the pay and allowances of military personnel is available for payments under this section.

(f) Coordination .— (1) The Secretary of Defense and, for the Coast Guard when it is not operating as a service in the Navy, the Secretary of the Department in which the Coast Guard is operating must consult with the Secretary of Education regarding the administration of the authority under this section.
(2) The Secretary concerned must transfer to the Secretary of Education the funds necessary— (A) to pay interest and special allowances on student loans under this section (under sections 428( o ), 455( l ), and 464(j) of the Higher Education Act of 1965 ( 20 U.S.C. 1078 ( o ), 1087e( l ), and 1087dd(j)); and
(B) to reimburse the Secretary of Education for any reasonable administrative costs incurred by the Secretary 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.

(g) Special Allowance Defined .— 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 ).