 
      CHAPTER 28--HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
 
                    SUBCHAPTER IV--STUDENT ASSISTANCE
 
              Part B--Federal Family Education Loan Program
 
Sec. 1078-10. 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 1078 or 1078-8 of this title, in accordance with 
subsection (c) of this section, 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 1087ee(a)(2)(A) 
        of this title 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 1078 or 1078-8 
    of this title that is outstanding after the completion of the fifth 
    complete school year of teaching described in subsection (b)(1) of 
    this section. No borrower may receive a reduction of loan 
    obligations under both this section and section 1087j of this title.

                (2) Treatment of consolidation loans

        A loan amount for a loan made under section 1078-3 of this title 
    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 1078 or 1078-8 of this title for a 
    borrower who meets the requirements of subsection (b) of this 
    section, 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) of this section 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) of this 
        section 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) of this section.

                  (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. 12601 et seq.).

(h) ``Year'' defined

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

(Pub. L. 89-329, title IV, Sec. 428J, as added Pub. L. 102-325, title 
IV, Sec. 422, July 23, 1992, 106 Stat. 541; amended Pub. L. 103-82, 
title I, Sec. 102(c)(2), Sept. 21, 1993, 107 Stat. 824; Pub. L. 103-208, 
Sec. 2(c)(47)-(51), Dec. 20, 1993, 107 Stat. 2467; Pub. L. 105-244, 
title IV, Sec. 424, Oct. 7, 1998, 112 Stat. 1698.)

                       References in Text

    The National and Community Service Act of 1990, referred to in 
subsec. (g)(2), is Pub. L. 101-610, Nov. 16, 1990, 104 Stat. 3127, as 
amended. Subtitle D of title I of the Act is classified generally to 
division D of subchapter I (Sec. 12601 et seq.) of chapter 129 of Title 
42, The Public Health and Welfare. For complete classification of this 
Act to the Code, see Short Title note set out under section 12501 of 
Title 42 and Tables.


                               Amendments

    1998--Pub. L. 105-244 amended section catchline and text generally. 
Prior to amendment, section authorized Secretary to carry out 
demonstration program for loan forgiveness for teachers, individuals 
performing national community service, and nurses.
    1993--Subsec. (b)(1). Pub. L. 103-208, Sec. 2(c)(47), substituted 
``section'' for ``sections'' in introductory provisions.
    Pub. L. 103-82, Sec. 102(c)(2)(A), substituted ``October 1, 1989'' 
for ``October 1, 1992'' in introductory provisions.
    Subsec. (b)(1)(B). Pub. L. 103-208, Sec. 2(c)(48), substituted 
``serves as a full-time volunteer'' for ``agrees in writing to volunteer 
for service''.
    Subsec. (c)(1). Pub. L. 103-208, Sec. 2(c)(49), substituted ``year 
of service'' for ``academic year'' wherever appearing.
    Subsec. (c)(5). Pub. L. 103-82, Sec. 102(c)(2)(B), added par. (5).
    Subsec. (d). Pub. L. 103-208, Sec. 2(c)(50), substituted ``to 
eligible'' for ``of eligibility'' in heading.
    Subsec. (e). Pub. L. 103-208, Sec. 2(c)(51), amended subsec. (e) 
generally. Prior to amendment, subsec. (e) read as follows: ``Each 
eligible individual desiring loan repayment under this section shall 
submit an application to the Secretary at such time, in such manner, and 
containing such information as the Secretary may reasonably require.''


                    Effective Date of 1998 Amendment

    Amendment by Pub. L. 105-244 effective Oct. 1, 1998, except as 
otherwise provided in Pub. L. 105-244, see section 3 of Pub. L. 105-244, 
set out as a note under section 1001 of this title.


                    Effective Date of 1993 Amendments

    Amendment by Pub. L. 103-208 effective as if included in the Higher 
Education Amendments of 1992, Pub. L. 102-325, except as otherwise 
provided, see section 5(a) of Pub. L. 103-208, set out as a note under 
section 1051 of this title.
    Amendment by Pub. L. 103-82 effective Oct. 1, 1993, see section 123 
of Pub. L. 103-82, set out as a note under section 1701 of Title 16, 
Conservation.


  Reference to Community, Migrant, Public Housing, or Homeless Health 
              Center Considered Reference to Health Center

    Reference to community health center, migrant health center, public 
housing health center, or homeless health center considered reference to 
health center, see section 4(c) of Pub. L. 104-299, set out as a note 
under section 254b of Title 42, The Public Health and Welfare.

                  Section Referred to in Other Sections

    This section is referred to in section 1087j of this title.
