§ 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, § 428J, as added Pub. L. 102–325, title IV, § 422, July 23, 1992, 106 Stat. 541; amended Pub. L. 103–82, title I, § 102(c)(2), Sept. 21, 1993, 107 Stat. 824; Pub. L. 103–208, § 2(c)(47)–(51), Dec. 20, 1993, 107 Stat. 2467; Pub. L. 105–244, title IV, § 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 (§ 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.

     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, § 2(c)(47), substituted "section" for "sections" in introductory provisions.

     Pub. L. 103–82, § 102(c)(2)(A), substituted "October 1, 1989" for "October 1, 1992" in introductory provisions.

     Subsec. (b)(1)(B). Pub. L. 103–208, § 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, § 2(c)(49), substituted "year of service" for "academic year" wherever appearing.

     Subsec. (c)(5). Pub. L. 103–82, § 102(c)(2)(B), added par. (5).

     Subsec. (d). Pub. L. 103–208, § 2(c)(50), substituted "to eligible" for "of eligibility" in heading.

     Subsec. (e). Pub. L. 103–208, § 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."

     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.

     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 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.

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