; or (B) the date on which the total outstanding balance of principal and interest due on the loan has been repaid. (4) Effect on default status of borrower A borrower who has defaulted on an eligible direct loan on which an institution is making payments under paragraph (1) shall be considered in default on such loan for purposes of adverse credit reporting and delinquent debt collection procedures under Federal law. (5) Recovery from borrower Any amounts recovered from the borrower of an eligible direct loan during a period in which an institution is making payments on the loan under paragraph (1) shall be subtracted from the total outstanding balance of principal and interest due on the loan. (6) Rule of construction Nothing in this subsection shall be construed to limit the remedies available under this part against the borrower of an eligible Federal student loan. (e) Reduced interest rate Notwithstanding any other provision of law, the interest rate applicable to an eligible direct loan cosigned by an institution participating in the program under this section shall be a rate determined by the Secretary that is— (1) lower than the standard rate applicable to the loan under section 455(b)