(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
(1) In general The Secretary shall carry out a program of canceling the obligation to repay a qualified loan amount in accordance with subsection (c) of this section for Federal Direct Stafford Loans and Federal Direct Unsubsidized Stafford Loans made under this part for any new borrower on or after October 1, 1998, who
(A) has been employed as a full-time teacher for 5 consecutive complete
school years
(i) 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; and
(ii) if employed as an elementary
school or secondary
school teacher, is highly qualified as defined in section
7801 of this title, or meets the requirements of subsection (g)(3); and
(B) is not in default on a loan for which the borrower seeks forgiveness.
(2) Special rule No borrower may obtain a reduction of loan obligations under both this section and section
1078–10 of this title.
(c) Qualified loan amounts
(1) In general The Secretary shall cancel not more than $5,000 in the aggregate of the loan obligation on a Federal Direct Stafford Loan or a Federal Direct Unsubsidized Stafford Loan that is outstanding after the completion of the fifth complete
school year of teaching described in subsection (b)(1)(A) of this section.
(2) Treatment of consolidation loans A loan amount for a Federal Direct Consolidation Loan 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.
(3) Additional amounts for teachers in mathematics, science, or special education Notwithstanding the amount specified in paragraph (1), the aggregate amount that the Secretary shall cancel under this section shall be not more than $17,500 in the case of
(A) a secondary
school teacher
(i) who meets the requirements of subsection (b)(1) of this section; and
(ii) whose qualifying employment for purposes of such subsection is teaching mathematics or science on a full-time basis; and
(B) an elementary
school or secondary
school teacher
(i) who meets the requirements of subsection (b)(1) of this section;
(ii) whose qualifying employment for purposes of such subsection is as a special education teacher whose primary responsibility is to provide special education to children with disabilities (as those terms are defined in section
1401 of this title); and
(iii) who, as certified by the chief administrative officer of the public or non-profit private elementary
school or secondary
school in which the borrower is employed, is teaching children with disabilities that correspond with the borrowers special education training and has demonstrated knowledge and teaching skills in the content areas of the elementary
school or secondary
school curriculum that the borrower is teaching.
(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 canceled 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 cancellation pursuant to subsection (b) of this section.
(2) Prevention of double benefits No borrower may, for the same volunteer service, receive a benefit under both this section and subtitle D of title I of the National and Community Service Act of 1990 [
42 U.S.C.
12601 et seq.].
(3) Private school teachers An individual who is employed as a teacher in a private
school and is exempt from State certification requirements (unless otherwise applicable under State law), may, in lieu of the requirement of subsection (b)(1)(A)(ii), have such employment treated as qualifying employment under this section if such individual is permitted to and does satisfy rigorous subject knowledge and skills tests by taking competency tests in the applicable grade levels and subject areas. For such purposes, the competency tests taken by such a private
school teacher shall be recognized by 5 or more States for the purpose of fulfilling the highly qualified teacher requirements under section
7801 of this title, and the score achieved by such teacher on each test shall equal or exceed the average passing score of those 5 States.
(h) “Year” defined
For the purpose of this section, the term year where applied to service as a teacher means an academic year as defined by the Secretary.
