To require the Secretary of Education to verify that individuals have made a commitment to serve in the Armed Forces or in public service, or otherwise are a borrower on an eligible loan which has been submitted to a guaranty agency for default aversion or is already in default, before such individuals obtain a consolidation loan for purposes specified under section 455(o) of the Higher Education Act of 1965.

Amends title IV (Student Assistance) of the Higher Education Act of 1965 to require the Secretary of Education to verify that individuals who are applying for Direct Consolidation loans on the following bases are in fact:

• currently eligible for income contingent repayment or income-based repayment of a loan that has been submitted to a guaranty agency for default aversion or is already in default;
• employed in a public service job and thereby eligible to participate in the public service loan forgiveness program; or
• a member of a regular or reserve component of the Armed Forces and thereby eligible to benefit from the no accrual of interest for active duty service members program.