; (2) consolidation loans made under such Act; and (3) any grant treated as a loan under such part D in accordance with section 258(e), section 420M(c), or section 807(d) of such Act. (c) Method of loan forgiveness To provide the loan forgiveness required under subsection (a) , the Secretary of Education is authorized to carry out a program— (1) through the holder of a loan, to assume the obligation to repay the outstanding balance of interest and principal due on loans made, insured, or guaranteed under part B of title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1071 et seq.)