; (II) a Federal Direct PLUS loan made on behalf of a dependent student; (III) a Federal ONE Parent loan; or (IV) an excepted consolidation loan (defined in section 493C); or (ii) used the proceeds of a subsequent Federal ONE Consolidation loan to discharge the liability on a Federal ONE Consolidation loan described in clause (i). (3) Commencement of repayment Repayment of a consolidation loan shall commence within 60 days after all holders have, pursuant to subsection (a)(4), discharged the liability of the borrower on the loans selected for consolidation. (4) Interest rate A consolidation loan made under this section shall bear interest at an annual rate described in section 465(c)(4). (d) Insurance rule Any insurance premium paid by the borrower under subpart I of part A of title VII of the Public Health Service Act with respect to a loan made under that subpart and consolidated under this section shall be retained by the student loan insurance account established under section 710 of the Public Health Service Act. (e) Definitions For the purpose of this section: (1) Eligible borrower (A) In general The term eligible borrower means a borrower who— (i) is not subject to a judgment secured through litigation with respect to a loan under this title or to an order for wage garnishment under section 488A; and (ii) at the time of application for a consolidation loan— (I) is in repayment status as determined under section 466(a)(1); (II) is in a grace period preceding repayment; or (III) is a defaulted borrower who has made arrangements to repay the obligation on the defaulted loans satisfactory to the holders of the defaulted loans. (B) Termination of status as an eligible borrower An individual's status as an eligible borrower under this section terminates upon receipt of a consolidation loan under this section, except that— (i) an individual who receives eligible student loans after the date of receipt of the consolidation loan may receive a subsequent consolidation loan