1. Short title This Act may be cited as the Joint Consolidation Loan Separation Act . 2. Separating joint consolidation loans (a) In general Section 455(g) of the Higher Education Act of 1965 ( 20 U.S.C. 1087e(g) ) is amended— (1) by striking A borrower and inserting the following: (1) In general A borrower ; and (2) by adding at the end the following: (2) Separating joint consolidation loans (A) In general A married couple, or 2 individuals who were previously a married couple, and who received a joint consolidation loan as such married couple under subparagraph (C) of section 428C(a)(3) (as such subparagraph was in effect on or before June 30, 2006), may apply to the Secretary for each individual borrower in the married couple (or previously married couple) to receive a separate Federal Direct Consolidation Loan under this part— (i) that shall be equal to the sum of— (I) the unpaid principal and accrued unpaid interest of the percentage of the joint consolidation loan that, as of the day before such joint consolidation loan was made, was attributable to the loans of the individual borrower for whom such separate consolidation loan is being made; and (II) any other loans described in section 428C(a)(4) that such individual borrower selects for consolidation under this part; (ii) the proceeds of which shall be paid by the Secretary to the holder or holders— (I) of the joint consolidation loan for the purpose of discharging the liability on the percentage of such joint consolidation loan described in clause (i)(I); and (II) of the loans selected for consolidation under clause (i)(II) for the purpose of discharging the liability on such loans; (iii) except as otherwise provided in this paragraph, that has the same terms and conditions, and rate of interest as the joint consolidation loan