; (ii) if the borrower is in default on the loan for which a borrower defense has been asserted— (I) shall suspend collection activity on the loan until the Secretary issues a decision on the borrower’s claim; (II) shall notify the borrower of the suspension of collection activity and explain that collection activity will resume if the Secretary determines that the borrower does not qualify for a full discharge; and (III) shall notify the borrower of the option to continue making payments under a rehabilitation agreement or other repayment agreement on the defaulted loan; and (iii) shall to the extent possible, notify the institutions against which the application is filed, which notification shall include— (I) the reasons that the application has been filed; and (II) the amount of relief requested. (B) Approved application If a borrower’s application is approved in full or in part, the Secretary shall— (i) notify the borrower and the institution in writing of that determination and of the relief provided; and (ii) inform the institution of the opportunity to request a one-time reconsideration of the claim in the application if new evidence that was not previously provided can be identified. (C) Application not approved If a borrower’s application is not approved in full or in part, the Secretary— (i) shall notify the borrower and the institution of the reasons for the denial, the evidence that was relied upon, any portion of the loan that is due and payable to the Secretary, whether the Secretary will reimburse any amounts previously collected, and inform the borrower that the loan will return to its status prior to the borrower’s submission of the application