; and (C) any other entity that prior to July 1, 2010, made or held a loan as a beneficiary of an eligible lender trustee agreement under part B of title IV. (4) Eligible loans For the purposes of this section, eligible loans shall include any loan made, insured or guaranteed under parts B, D, and E of title IV. (c) Refinancing eligible loans Upon application of an eligible borrower, an eligible lender shall repay directly to the existing holder of each of that eligible borrower’s eligible loans with the proceeds of a Refinancing Loan in an amount equal to the sum of the unpaid principal, accrued unpaid interest, and late charges of the original eligible loans in order to discharge the eligible borrower from any remaining obligation to the existing holder with respect to the original eligible loans. (d) Interest rates (1) In general Notwithstanding the current interest rates of the eligible loans being refinanced, the interest rate for the Refinancing Loan, shall be a variable rate equal to no more than— (A) for the calendar quarter beginning on July 1, 2015, and each subsequent calendar quarter, the daily average of 1-month London Inter Bank Offered Rate (LIBOR) for United States dollars in effect for each of the days in the prior calendar quarter as compiled and released by the British Bankers Association, plus (B) 3.5 percent per annum. (2) Adjustable rate The applicable rate of interest determined under paragraph (1) for a Refinancing Loan under this section shall adjust on the first day of each calendar quarter for the period of the loan. (e) Insurance (1) Default insurance The Secretary shall provide default insurance on Refinancing Loans and shall upon presentment with a defaulted Refinancing Loan shall pay an amount, as set for below, to the eligible lender in exchange for all rights, title and interest to the Refinancing Loan. (2) Default (A) a Refinancing Loan is in default and eligible for an insurance payment, if the Refinancing Loan has, experienced at least 270 consecutive days of nonpayment