20 U.S.C. § 1087j
It is the purpose of this section to encourage individuals to enter and continue in the teaching profession.
The Secretary shall carry out a program of canceling the obligation to repay a qualified loan amount in accordance with subsection (c) 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-
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). No borrower may receive a reduction of loan obligations under both this section and section 1078-10 of this title.
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), as determined in accordance with regulations prescribed by the Secretary.
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-
The Secretary is authorized to issue such regulations as may be necessary to carry out the provisions of this section.
Nothing in this section shall be construed to authorize any refunding of any canceled loan.
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.
Any teacher who performs service in a school that-
No borrower may, for the same voluntary service, receive a benefit under both this section and-
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)(B), 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 9101 1 of the Elementary and Secondary Education Act of 1965 [20 U.S.C. 7801], and the score achieved by such teacher on each test shall equal or exceed the average passing score of those 5 States.
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.
1 See References in Text note below.
20 U.S.C. § 1087j
EDITORIAL NOTES
REFERENCES IN TEXTSection 9101 of the Elementary and Secondary Education Act of 1965, referred to in subsecs. (b)(1)(B) and (g)(3), was amended by Pub. L. 114-95 and, as so amended, is now section 8101 of the Act and no longer defines "highly qualified". A reference in this section to the term "highly qualified" as defined in section 9101 of the Act is to be treated as a reference to such term under such section 9101 as in effect on the day before the date of enactment of Pub. L. 114-95. See section 9214(a)(1) of Pub. L. 114-95, set out as a Use of the Term "Highly Qualified" in Other Laws note under section 1070g-2 of this title. The National and Community Service Act of 1990, referred to in subsec. (g)(2)(D), is Pub. L. 101-610, 104 Stat. 3127. 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.
PRIOR PROVISIONSA prior section 1087j, Pub. L. 89-329, title IV, §459A, as added Pub. L. 102-325, §451, 106 Stat. 575, which related to funds for administrative expenses under Federal direct loan demonstration program, was omitted in the general amendment of this part by Pub. L. 103-66.
AMENDMENTS2009-Subsec. (c)(1). Pub. L. 111-39, §404(b)(4)(A), inserted at end "No borrower may receive a reduction of loan obligations under both this section and section 1078-10 of this title."Subsec. (g)(2). Pub. L. 111-39, §404(b)(4)(B), redesignated subpars. (B) to (D) as (A) to (C), respectively, substituted "12601" for "12571" in subpar. (C), and struck out former subpar. (A) which read as follows: "section 1078-10 of this title;". 2008-Subsec. (b). Pub. L. 110-315, §454(c), struck out "(1) In general" before "The Secretary shall", redesignated subpars. (A) and (B) of former par. (1) as pars. (1) and (2), respectively, and cls. (i) and (ii) of former subpar. (A) as subpars. (A) and (B), respectively, of par. (1), realigned margins, and struck out par. (2). Prior to amendment, text of par. (2) read as follows: "No borrower may obtain a reduction of loan obligations under both this section and section 1078-10 of this title." Subsec. (b)(1)(A)(i). Pub. L. 110-315, §454(a)(1), inserted "or location" after "a school" and "or locations" after "such schools". Subsec. (c)(1). Pub. L. 110-315, §454(d)(1), substituted "subsection (b)(1)" for "subsection (b)(1)(A)".Subsec. (c)(3)(A)(i), (B)(i). Pub. L. 110-315, §454(d)(2), substituted "subsection (b)" for "subsection (b)(1)".Subsec. (c)(3)(B)(iii). Pub. L. 110-315, §454(a)(2), inserted "or, in the case of a teacher who is employed by an educational service agency, as certified by the chief administrative officer of such agency," after "borrower is employed,".Subsec. (g)(2). Pub. L. 110-315, §454(b), amended par. (2) generally. Prior to amendment, text read as follows: "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. 12571 et seq.)". Subsec. (g)(3). Pub. L. 110-315, §454(d)(3), substituted "subsection (b)(1)(B)" for "subsection (b)(1)(A)(ii)". 2006-Subsec. (b)(1)(A)(ii). Pub. L. 109-171, §8013(e)(2)(A), inserted ", or meets the requirements of subsection (g)(3)" before "; and".Subsec. (g)(3). Pub. L. 109-171, §8013(e)(2)(B), added par. (3). 2004-Subsec. (b)(1)(A). Pub. L. 108-409, §3(a)(1)(B), added cl. (ii) and struck out former cls. (ii) and (iii) which read as follows:"(ii) 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 non-profit private secondary school in which the borrower is employed; and"(iii) 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". Subsec. (c)(3). Pub. L. 108-409, §3(b)(2), added par. (3).
STATUTORY NOTES AND RELATED SUBSIDIARIES
EFFECTIVE DATE OF 2009 AMENDMENT Amendment by Pub. L. 111-39 effective as if enacted on the date of enactment of Pub. L. 110-315 (Aug. 14, 2008), see section 3 of Pub. L. 111-39, set out as a note under section 1001 of this title.
EFFECTIVE DATE OF 2006 AMENDMENT Amendment by Pub. L. 109-171 effective July 1, 2006, except as otherwise provided, see section 8001(c) of Pub. L. 109-171, set out as a note under section 1002 of this title.
EFFECTIVE DATE OF 2004 AMENDMENT; TRANSITION RULEAmendment by section 3(b)(2) of Pub. L. 108-409 applicable only with respect to eligible individuals who are new borrowers (as defined in section 1003 of this title) on or after Oct. 1, 1998, see section 3(b)(3) of Pub. L. 108-409, as amended, set out as a note under section 1078-10 of this title.For transition rules relating to amendments made by section 3(a)(1)(B) of Pub. L. 108-409, see section 3(a)(2) of Pub. L. 108-409, set out as a note under section 1078-10 of this title.
EFFECTIVE DATESection effective Oct. 1, 1998, except as otherwise provided in Pub. L. 105-244, see section 3 of Pub. L. 105-244, set out as an Effective Date of 1998 Amendment note under section 1001 of this title.