; or (ii) on a determination that the borrower is continuing to incur significant qualified losses as a result of a covered emergency, increase the length of the period. (3) Loan terms (A) No payment required during emergency During the covered emergency, interest on the loan shall not accrue, and repayment of principal on the loan shall not be required. (B) Loan consolidation after emergency ends Unless the Secretary determines that the borrower requires additional time to submit documentation of qualified losses, on the date that is 60 days after the eligibility period described in paragraph (2) ends, the Secretary shall close the line of credit, and consolidate all loans made to the borrower under this section with respect to the emergency into a single loan with the following terms: (i) Grace period During the 2-year period that begins with the date the consolidated loan is made, interest on the consolidated loan shall not accrue, and repayment of principal on the consolidated loan shall not be required. (ii) Interest Interest on the consolidated loan shall accrue at a rate of 1 percent per year during the 3-year period that begins at the end of that 2-year period. (iii) Repayment period The loan shall be repayable in full by the end of the 5-year period that begins with the date the consolidated loan is made. (C) No fee or prepayment penalty The Secretary may not impose a fee or prepayment penalty with respect to any loan made under this section. (4) Forgiveness (A) In general Except as provided in subparagraph (B), if the borrower makes one or more qualified write-offs after the 1-year period that begins with the date a consolidated loan is made to the borrower under this section, the Secretary shall forgive repayment of a portion of the loan, in an amount equal to— (i) 90 percent of the first $500,000 of the total amount of the qualified write-offs; (ii) 60 percent of the next $1,000,000 of the total amount of the qualified write-offs