
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 10USC16301]

 
                         TITLE 10--ARMED FORCES
 
                     Subtitle E--Reserve Components
 
  PART IV--TRAINING FOR RESERVE COMPONENTS AND EDUCATIONAL ASSISTANCE 
                                PROGRAMS
 
             CHAPTER 1609--EDUCATION LOAN REPAYMENT PROGRAMS
 
Sec. 16301. Education loan repayment program: enlisted members 
        of Selected Reserve with critical specialties
        
    (a)(1) Subject to the provisions of this section, the Secretary of 
Defense may repay--
        (A) any loan made, insured, or guaranteed under part B of title 
    IV of the Higher Education Act of 1965 (20 U.S.C. 1071 et seq.);
        (B) any loan made under part D of such title (the William D. 
    Ford Federal Direct Loan Program, 20 U.S.C. 1087a et seq.); or
        (C) any loan made under part E of such title (20 U.S.C. 1087aa 
    et seq.).

Repayment of any such loan shall be made on the basis of each complete 
year of service performed by the borrower.
    (2) The Secretary may repay loans described in paragraph (1) in the 
case of any person for service performed as an enlisted member of the 
Selected Reserve of the Ready Reserve of an armed force in a reserve 
component and military specialty specified by the Secretary of Defense. 
The Secretary may repay such a loan only if the person to whom the loan 
was made performed such service after the loan was made.
    (b) The portion or amount of a loan that may be repaid under 
subsection (a) is 15 percent or $500, whichever is greater, for each 
year of service.
    (c) If a portion of a loan is repaid under this section for any 
year, interest on the remainder of the loan shall accrue and be paid in 
the same manner as is otherwise required.
    (d) Nothing in this section shall be construed to authorize 
refunding any repayment of a loan.
    (e) A person who transfers from service making the person eligible 
for repayment of loans under this section (as described in subsection 
(a)(2)) to service making the person eligible for repayment of loans 
under section 2171 of this title (as described in subsection (a)(2) of 
that section) during a year shall be eligible to have repaid a portion 
of such loan determined by giving appropriate fractional credit for each 
portion of the year so served, in accordance with regulations of the 
Secretary concerned.
    (f) The Secretary of Defense shall, by regulation, prescribe a 
schedule for the allocation of funds made available to carry out the 
provisions of this section and section 2171 of this title during any 
year for which funds are not sufficient to pay the sum of the amounts 
eligible for repayment under subsection (a) and section 2171(a) of this 
title.
    (g) The Secretary of Transportation may repay loans described in 
subsection (a)(1) and otherwise administer this section in the case of 
members of the Selected Reserve of the Coast Guard Reserve when the 
Coast Guard is not operating as a service in the Navy.

(Added Pub. L. 103-337, div. A, title XVI, Sec. 1663(d)(1), Oct. 5, 
1994, 108 Stat. 3008; amended Pub. L. 104-106, div. A, title X, 
Sec. 1079(b), Feb. 10, 1996, 110 Stat. 451; Pub. L. 106-65, div. A, 
title VI, Sec. 676, Oct. 5, 1999, 113 Stat. 676.)

                       References in Text

    The Higher Education Act of 1965, referred to in subsec. (a)(1), is 
Pub. L. 89-329, Nov. 8, 1965, 79 Stat. 1219, as amended. Parts B, D, and 
E of title IV of the Act are classified to parts B (Sec. 1071 et seq.), 
C (Sec. 1087a et seq.), and D (Sec. 1087aa et seq.), respectively, of 
subchapter IV of chapter 28 of Title 20, Education. For complete 
classification of this Act to the Code, see Short Title note set out 
under section 1001 of Title 20 and Tables.


                               Amendments

    1999--Subsec. (g). Pub. L. 106-65 added subsec. (g).
    1996--Subsec. (a)(1). Pub. L. 104-106 struck out ``or'' at end of 
subpar. (A), added subpar. (B), and redesignated former subpar. (B) as 
(C).


                             Effective Date

    Section effective Dec. 1, 1994, except as otherwise provided, see 
section 1691 of Pub. L. 103-337, set out as a note under section 10001 
of this title.

                  Section Referred to in Other Sections

    This section is referred to in section 2171 of this title.
