to exceed a total of $17,500, in the following in-
crements: 
‘‘(i) up to $1,750, or 10 percent of 
such outstanding loan obligation, which-
ever is less, at the completion of the second 
year of such service; 
‘‘(ii) up to $2,625, or 15 percent of 
such outstanding loan obligation, which-
ever is less, at the completion of the third 
year of such service; 
‘‘(iii) up to $4,375, or 25 percent of 
such outstanding loan obligation, which-
ever is less, at the completion of the fourth 
year of such service; and 
‘‘(iv) up to $8,750, or 50 percent of 
such outstanding loan obligation, which-
ever is less, at the completion of the fifth 
year of such service. 
‘‘(C) PROMISE TO COMPLETE SERVICE RE-
QUIRED
FOR
ACCELERATED
PAYMENT.—Any 
borrower who receives accelerated payment 
under this paragraph shall enter into an agree-
ment to continue in the qualifying service for 
not less than 5 consecutive complete school 
years, or, upon a failure to complete such 5
years, to repay the United States, in accordance 
with regulations prescribed by the Secretary, 
the amount of the loans repaid by the Secretary 
under this paragraph, together with interest 
thereon and, to the extent required in such reg-
ulations, the reasonable costs of collection. Such 
regulations may provide for waiver by the Sec-
retary of such repayment obligations upon proof 
of economic hardship as specified in such regu-
lations. 
‘‘(D) HIGHER POVERTY ENROLLMENT RE-
QUIRED.—In order to qualify for an increased 
repayment amount under this paragraph, sec-
tion 465(a)(2)(A) shall, for purposes of sub-
section (b)(1)(A)(i) of this section, be applied 
by substituting ‘40 percent of the total enroll-
ment’ for ‘30 percent of the total enrollment’.’’. 
SEC. 3. IMPLEMENTING HIGHLY QUALIFIED TEACHER RE-
QUIREMENTS. 
(a) AMENDMENTS.—
(1) FFEL LOANS.—Section 428J(b)(1) of the 
Higher Education Act of 1965 (20 U.S.C. 1078–
10(b)(1)) is amended—
(A) by inserting ‘‘and’’ after the semicolon 
at the end of subparagraph (A); and
(B) by striking subparagraphs (B) and (C) 
and inserting the following: 
‘‘(B) if employed as an elementary or sec-
ondary school teacher, is highly qualified as de-
fined in section 9101(23) of the Elementary 
Secondary Education Act of 1965; and’’. 
(2) DIRECT LOANS.—Section 460(b)(1)(A) of 
such Act (20 U.S.C. 1087j(b)(1)(A)) is amended—
(A) by inserting ‘‘and’’ after the semicolon 
at the end of clause (i); and 
(B) by striking clauses (ii) and (iii) and in-
serting the following: 
‘‘(ii) if employed as an elementary or 
secondary school teacher, is highly quali-
fied as defined in section 9101(23) of the 
Elementary Secondary Education Act of 
1965; and’’. 
(b) TRANSITION RULE.—
(1) RULE.—The amendments made by sub-
section (a) of this section to sections 428J(b)(1) and 
460(b)(1)(A) of the Higher Education Act of 1965 
shall not be applied to disqualify any individual who, 
before the date of enactment of this Act, commenced 
service that met and continues to meet the require-
ments of such sections as in effect before such date 
of enactment. 
(2) RULE
NOT
APPLICABLE
TO
INCREASED 
QUALIFIED LOAN AMOUNTS.—Paragraph (1) of this 
subsection shall not apply for purposes of obtaining 
increased qualified loan amounts under sections 
428J(b)(3) and 460(b)(3) of the Higher Education 
Act of 1965 as added by section 2 of this Act. 
SEC. 4. INFORMATION ON BENEFITS TO RURAL SCHOOL 
DISTRICTS. 
The Secretary shall—
(1) notify local educational agencies eligible to 
participate in the Small Rural Achievement Program 
authorized under subpart 1 of part B of title VI of 
the Elementary and Secondary Education Act of 
1965 of the benefits available under the amendments 
made by this Act; and 
(2) encourage such agencies to notify their 
teachers of such benefits.
Æ