; (ii) deferment as provided for in section 435; (iii) forbearance as provided for in section 435; and (iv) discharge for disability or death of the borrower. (i) Loan discharge In the case of loans discharged under income contingent repayment, income-based repayment, or public service loan forgiveness, or for disability or death of the borrower, the Secretary shall, upon such discharge, pay to the eligible lender an amount equal to the unpaid principal and accrued interest. . (b) Conforming amendments (1) Part B Section 428C(a)(3)(B)(i) of the Higher Education Act of 1965 ( 20 U.S.C. 1078–3(a)(3)(B)(i) ) is amended— (A) in the matter preceding subclause (I)— (i) by inserting , section 138A, after An individual’s status as an eligible borrower under this section ; (ii) by striking both sections and inserting each such section ; and (iii) by inserting , a Refinancing Loan under section 138A, after upon receipt of a consolidation loan under this section ; (B) in subclause (III), by striking the semicolon and inserting ; and ; (C) in subclause (IV), by striking ; and and inserting a period; and (D) by striking subclause (V). (2) Part D Section 455 of the Higher Education Act of 1965 ( 20 U.S.C. 1087e ) is amended— (A) in subsection (a), by adding at the end the following: (4) (A) Consolidation of Refinancing Loans Notwithstanding any provisions of this part, eligible borrowers may consolidate Refinancing Loans authorized under section 138A into a Direct Consolidation Loan in the event that the interest rate on each such Refinancing Loan exceeds 6.875 percent for the quarter. (B) Eligibility period Any application for a Consolidation Loan that includes Refinancing Loans under this paragraph must be received by the Secretary by the end of a quarter during which the Refinancing Loan interest exceeds 6.875 percent.