; exceeds (II) 150 percent of the poverty line applicable to the borrower’s family size as determined under section 673(2) of the Community Services Block Grant Act ( 42 U.S.C. 9902(2) ). (iii) Excepted consolidation loan The term excepted Consolidation Loan means a Federal Direct Consolidation Loan, if the proceeds of such loan were used to the discharge the liability on— (I) an excepted PLUS loan; or (II) a Federal Direct Consolidation loan, if the proceeds of such loan were used to discharge the liability on an excepted PLUS loan. (iv) Excepted plus loan The term excepted PLUS Loan has the meaning given the term in section 493C. . 223. Loan rehabilitation Section 428F(a)(5) of the Higher Education Act of 1965 ( 20 U.S.C. 1078–6(a)(5) ) is amended by striking one time and inserting two times . 224. Interest capitalization (a) Federal plus loans Section 428B(d)(2) of the Higher Education Act of 1965 ( 20 U.S.C. 1078–2(d)(2) ) is amended to read as follows: (2) No capitalization of interest Interest on loans made under this section for which payments of principal are deferred pursuant to paragraph (1) shall be paid monthly or quarterly, if agreed upon by the borrower and the lender. . (b) Federal consolidation loans deferrals Section 428C(b)(4)(C)(ii)(III) of the Higher Education Act of 1965 ( 20 U.S.C. 1078–3(b)(4)(C)(III) ) is amended by striking or capitalized, . (c) Loan limits for unsubsidized Stafford loans Section 428H(d)(5) of the Higher Education Act of 1965 ( 20 U.S.C. 1078–8(d)(5) ) is amended by inserting before the date of enactment of the College Cost Reduction Act after Interest capitalized . (d) Unsubsidized Stafford loans for middle income borrowers Section 428H(e)(2) of the Higher Education Act of 1965 ( 20 U.S.C. 1078–8(e)(2) ) is amended— (1) in subparagraph (A), in the matter before clause (i), by striking , if agreed upon by the borrower and the lender and all that follows through clause (ii)(IV) and inserting be paid monthly or quarterly, if agreed upon by the borrower and the lender.