Laws & Guidance HIGHER EDUCATION
1998 Amendments to the Higher Education Act of 1965
P.L. 105-244

TITLE IV--STUDENT ASSISTANCE

Part B--Federal Family Education Loan Program

SEC. 424. LOAN FORGIVENESS FOR TEACHERS

Section 428J (20 U.S.C. 1078-10) is amended to read as follows:

`SEC. 428J. LOAN FORGIVENESS FOR TEACHERS.

`(a) STATEMENT OF PURPOSE- It is the purpose of this section to encourage individuals to enter and continue in the teaching profession.

`(b) PROGRAM AUTHORIZED- The Secretary shall carry out a program, through the holder of the loan, of assuming the obligation to repay a qualified loan amount for a loan made under section 428 or 428H, in accordance with subsection (c), for any new borrower on or after October 1, 1998, who--

`(1) has been employed as a full-time teacher for 5 consecutive complete school years--

`(A) in a school that qualifies under section 465(a)(2)(A) for loan cancellation for Perkins loan recipients who teach in such schools;

`(B) if employed as a secondary school teacher, is teaching a subject area that is relevant to the borrower's academic major as certified by the chief administrative officer of the public or nonprofit private secondary school in which the borrower is employed; and

`(C) if employed as an elementary school teacher, has demonstrated, as certified by the chief administrative officer of the public or nonprofit private elementary school in which the borrower is employed, knowledge and teaching skills in reading, writing, mathematics, and other areas of the elementary school curriculum; and

`(2) is not in default on a loan for which the borrower seeks forgiveness.

`(c) QUALIFIED LOANS AMOUNT-

`(1) IN GENERAL- The Secretary shall repay not more than $5,000 in the aggregate of the loan obligation on a loan made under section 428 or 428H that is outstanding after the completion of the fifth complete school year of teaching described in subsection (b)(1). No borrower may receive a reduction of loan obligations under both this section and section 460.

`(2) TREATMENT OF CONSOLIDATION LOANS- A loan amount for a loan made under section 428C may be a qualified loan amount for the purposes of this subsection only to the extent that such loan amount was used to repay a Federal Direct Stafford Loan, a Federal Direct Unsubsidized Stafford Loan, or a loan made under section 428 or 428H for a borrower who meets the requirements of subsection (b), as determined in accordance with regulations prescribed by the Secretary.

`(d) REGULATIONS- The Secretary is authorized to issue such regulations as may be necessary to carry out the provisions of this section.

`(e) CONSTRUCTION- Nothing in this section shall be construed to authorize any refunding of any repayment of a loan.

`(f) LIST- If the list of schools in which a teacher may perform service pursuant to subsection (b) is not available before May 1 of any year, the Secretary may use the list for the year preceding the year for which the determination is made to make such service determination.

`(g) ADDITIONAL ELIGIBILITY PROVISIONS-

`(1) CONTINUED ELIGIBILITY- Any teacher who performs service in a school that--

`(A) meets the requirements of subsection (b)(1)(A) in any year during such service; and

`(B) in a subsequent year fails to meet the requirements of such subsection,

may continue to teach in such school and shall be eligible for loan forgiveness pursuant to subsection (b).

`(2) PREVENTION OF DOUBLE BENEFITS- No borrower may, for the same service, receive a benefit under both this subsection and subtitle D of title I of the National and Community Service Act of 1990 (42 U.S.C. 12571 et seq.).

`(h) DEFINITION- For purposes of this section, the term `year', where applied to service as a teacher, means an academic year as defined by the Secretary.'.


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[Sec. 423. Unsubsidized Loans.] [Table of Contents] [Sec. 425. Loan Forgiveness for Child Care Providers.]
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Last Modified: 09/24/2003