(1) in paragraph (1), in the matter preceding 
subparagraph (A), by inserting ‘‘or paragraph (5), 
as applicable,’’ after ‘‘paragraph (2)’’; 
(2) in paragraph (2), by striking ‘‘After’’ and 
inserting ‘‘Except as provided in paragraph (5), 
after’’; and 
(3) by adding at the end the following: 
‘‘(5) LOAN CANCELLATION FOR PARTIAL SERV-
ICE.— 
‘‘(A) IN GENERAL.—Notwithstanding para-
graph (2), beginning on the date of enactment 
of the Public Service Pays Off Act, the Sec-
retary shall cancel the obligation to repay the 
balance of principal and interest due on the eli-
gible Federal Direct Loans made to a borrower 
under this part in accordance with this para-
graph. 
‘‘(B) NEW MONTHLY PAYMENTS.—For a 
borrower of an eligible Federal Direct Loan 
who begins making qualifying monthly pay-
ments under paragraph (1) on or after the date 
of enactment of the Public Service Pays Off Act 
and who is employed in a public service job and 
submits an employment certification form de-
scribed in clause (F), the Secretary shall cancel, 
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after the conclusion of each employment period 
in such public service job, as described in clause 
(D)— 
‘‘(i) the percent specified in such sub-
clause (D) of the total amount due on the 
eligible Federal Direct Loans made to the 
borrower under this part, based on the 
length of such employment period; and 
‘‘(ii) the applicable amount of interest 
that accrued during such employment pe-
riod, in accordance with subclause (E). 
‘‘(C) PRIOR MONTHLY PAYMENTS.— 
‘‘(i) ELECTION.—A borrower of an el-
igible Federal Direct Loan who has made 
one or more monthly payments under 
paragraph (1) before the date of enact-
ment of the Public Service Pays Off Act 
and who is employed in a public service job 
may elect to have the Secretary cancel 
such eligible Federal Direct Loan through 
partial repayments after completion of 
each employment period in accordance with 
this paragraph (including submission of an 
employment certification form described in 
clause (F)), or in full after the completion 
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of the required employment period and 120 
monthly payments in accordance with 
paragraph (2). 
‘‘(ii) NO DOUBLE CANCELLATION.—A 
borrower shall not have eligible Federal Di-
rect Loans cancelled under both paragraph 
(2) and this paragraph, but a borrower 
who was determined to be ineligible for 
cancellation under paragraph (2) before 
the date of enactment of the Public Service 
Pays Off Act may submit an employment 
certification form described in clause (F) 
and request cancellation for a public serv-
ice job under this paragraph. 
‘‘(D) PERCENT AMOUNT.—The percent of 
a loan that shall be canceled under this para-
graph for an employment period is as follows: 
‘‘(i) In the case of a borrower who 
completes 2 years of employment in a pub-
lic service job, 15 percent of the total 
amount due on the eligible Federal Direct 
Loan on the date the borrower commenced 
employment in such public service job. 
‘‘(ii) In the case of a borrower who 
completes 4 years of employment in a pub-
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lic service job, 15 percent of the total 
amount due on the eligible Federal Direct 
Loan on the date the borrower commenced 
employment in such public service job. 
‘‘(iii) In the case of a borrower who 
completes 6 years of employment in a pub-
lic service job, 20 percent of the total 
amount due on the eligible Federal Direct 
Loan on the date the borrower commenced 
employment in such public service job. 
‘‘(iv) In the case of a borrower who 
completes 8 years of employment in a pub-
lic service job, 20 percent of the total 
amount due on the eligible Federal Direct 
Loan on the date the borrower commenced 
employment in such public service job. 
‘‘(v) In the case of a borrower who 
completes 10 years of employment in a 
public service job, the amount remaining of 
the total amount due on the eligible Fed-
eral Direct Loan on the date the borrower 
commenced employment in such public 
service job. 
‘‘(E) INTEREST CANCELED.—If a portion 
of a loan is canceled under this paragraph for 
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a period of employment in a public service job, 
the entire amount of interest on such loan that 
accrued during such period shall be canceled. 
‘‘(F) 
EMPLOYMENT
CERTIFICATION 
FORM.—In order to receive loan cancellation 
under this paragraph, a borrower shall submit 
to the Secretary an employment certification 
form that is developed by the Secretary and in-
cludes self-certification of employment and a 
separate part for employer certification that in-
dicates the dates of employment.’’. 
Æ 
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