(b) FUNDING.—Section 811(b) of the David L. Boren 
National Security Education Act of 1991 (50 U.S.C. 
1911(a)) is amended— 
(1) by inserting ‘‘(1)’’ after ‘‘(a) Fiscal Year 
2005.—’’; and 
(2) by adding at the end the following new 
paragraph: 
‘‘(2) In addition to amounts that may be made avail-
able to the Secretary under the Fund for a fiscal year, 
the Director of National Intelligence shall transfer to the 
Secretary from amounts appropriated for the Intelligence 
Community Management Account for each fiscal year, be-
ginning with fiscal year 2006, $6,000,000, to carry out 
the grant program for the International Flagship Lan-
guage Initiative under section 802(a)(1)(F).’’. 
(c) CONSTRUCTION.—Nothing in this section shall be 
construed as affecting any program or project carried out 
under the David L. Boren National Security Education 
Act of 1991 as in effect on the date that precedes the 
date of the enactment of this Act. 
SEC. 7. FORGIVENESS OF LOANS TO STUDENTS AT INSTITU-
TIONS OF HIGHER EDUCATION. 
(a) GUARANTEED STUDENT LOANS.—Part B of title 
IV of the Higher Education Act of 1965 is amended by
inserting after section 428K (20 U.S.C. 1078–11) the fol-
lowing: 
‘‘SEC. 428L. LOAN FORGIVENESS FOR UNDERGRADUATES IN 
CRITICAL FOREIGN LANGUAGES. 
‘‘(a) ESTABLISHMENT.—The Secretary of Education 
shall establish and implement a program to cancel the ob-
ligation of loan borrowers to pay the principal and interest 
on a loan provided under this part in order to serve as 
an incentive for students to obtain a degree in a critical 
foreign language. 
‘‘(b) PROGRAM AUTHORIZED.— 
‘‘(1) IN GENERAL.—The Secretary shall carry 
out a program, through the holder of the loan, of as-
suming the obligation to repay in accordance with 
subsection (c) the principal and interest, not to ex-
ceed a total of $10,000, on a loan made under this 
part for a borrower who— 
‘‘(A) has obtained an undergraduate de-
gree in a critical foreign language; 
‘‘(B) is employed in a full-time position— 
‘‘(i) in an elementary or secondary 
school as a teacher of a critical foreign lan-
guage; or 
‘‘(ii) in an agency of the United 
States Government in a position that regu-
larly requires the use of such critical for-
eign language; 
‘‘(C) is a United States citizen, United 
States national, permanent legal resident, or 
citizen of the Freely Associated States; and 
‘‘(D) is in repayment status on such loan 
and is not in default on a loan for which the 
borrower seeks forgiveness of principal and in-
terest payments. 
‘‘(2) APPLICATION BY BORROWERS.—The Sec-
retary shall, by regulation, establish procedures by 
which borrowers shall apply for loan repayment 
under this section. 
‘‘(c) TERMS.— 
‘‘(1) PROMISE
TO
COMPLETE
SERVICE
RE-
QUIRED FOR PAYMENT.—Any application for pay-
ment under subsection (b) shall contain an agree-
ment by the applicant that the applicant will con-
tinue in a qualifying service described in subsection 
(b)(1)(B) for not less than 5 consecutive complete 
years, or will, upon a failure to complete such 5 
years, repay the United States the amount of the 
principal and interest repaid by the Secretary under 
subsection (b), at a rate and schedule, and in ac-
cordance with regulations, prescribed by the Sec-
retary. Such regulations may provide for waiver by 
the Secretary of such repayment obligations upon 
proof of economic hardship as specified in such regu-
lations. 
‘‘(2) PAYMENT
IN
INSTALLMENTS.—After a 
borrower has obtained a bachelor’s degree in a crit-
ical foreign language, the Federal Government shall 
make payments under this section while the bor-
rower is in loan repayment status and continues in 
an employment position described in subsection 
(b)(1)(B). The Secretary shall repay a portion of a 
borrower’s outstanding loan, not to exceed a total of 
$10,000, in the following increments: 
‘‘(A) up to $1,500 or 15 percent of the 
borrower’s outstanding loan balance, whichever 
is less, at the completion of the second year of 
such service; 
‘‘(B) up to $1,500 or 15 percent of the 
borrower’s outstanding loan balance, whichever 
is less, at the completion of the third year of 
such service; 
‘‘(C) up to $2,000 or 20 percent of the 
borrower’s outstanding loan balance, whichever 
is less, at the completion of the fourth year of 
such service; and
‘‘(D) up to $5,000 or 50 percent of the 
borrower’s outstanding loan balance, whichever 
is less, at the completion of the fifth year of 
such service. 
‘‘(d) DEFINITIONS.—In this section: 
‘‘(1) CRITICAL FOREIGN LANGUAGE.—The term 
‘critical foreign language’ includes the languages of 
Arabic, Korean, Japanese, Chinese, Pashto, Persian- 
Farsi, Serbian-Croatian, Russian, Portuguese, and 
any other language identified by the Secretary of 
Education, in consultation with the Defense Lan-
guage Institute, the Foreign Service Institute, and 
the National Security Education Program, as a crit-
ical foreign language need. 
‘‘(2) AGENCY.—The term ‘agency of the United 
States Government’ means any agency, office, estab-
lishment, instrumentality, or other entity of the ex-
ecutive, legislative, or judicial branch of the Govern-
ment.’’. 
(b) DIRECT STUDENT LOANS.—Part D of title IV of 
the Higher Education Act of 1965 (20 U.S.C. 1087a et 
seq.) is amended by adding at the end the following: