‘‘(B) after each of the third or fourth years 
of such service, 20 percent of such total 
amount; and 
‘‘(C) after the fifth year of such service, 30 
percent of such total amount. 
‘‘(2) TOTAL OBLIGATION.—The Secretary shall 
repay for an individual under this section not more 
than $20,000 in the aggregate of the loan obligation 
on loans described in subsection (b)(1). 
‘‘(3) TREATMENT OF CONSOLIDATION LOANS.—
A loan amount for a loan made under section 428C 
or for a Federal Direct Consolidation Loan may be 
a qualified loan amount for the purposes of this sub-
section only to the extent that such loan amount was 
used to repay a loan described in subsection (b)(1) 
for a borrower who meets the requirements of sub-
section (b), as determined in accordance with regula-
tions prescribed by the Secretary. 
‘‘(4) CONSTRUCTION.—Nothing in this section 
shall be construed to authorize the refunding of any 
repayment of a loan made under section 428 or 
428H, a Federal Direct Stafford Loan or Federal 
Direct Unsubsidized Stafford Loan, a Federal Direct 
Loan, or a Federal Perkins Loan.
‘‘(5) INTEREST.—If a portion of a loan is re-
paid by the Secretary under this section for any 
year, the proportionate amount of interest on such 
loan that accrues for such year shall be repaid by 
the Secretary. 
‘‘(6) INELIGIBILITY
OF
NATIONAL
SERVICE 
AWARD RECIPIENTS.—No student borrower may, for 
the same 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. 12601 
et seq.). 
‘‘(7) INELIGIBILITY FOR DOUBLE BENEFITS.—
No borrower may receive a reduction of loan obliga-
tions under both this section and section 428J or 
460. 
‘‘(8) CONTINUED ELIGIBILITY.—
‘‘(A) TEACHERS.—Any teacher who per-
forms service in a school that—
‘‘(i) meets the requirements of sub-
section (b)(2)(A)(ii)(I) in any year during 
such service; and 
‘‘(ii) 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 sub-
section (b). 
‘‘(B) TEACHERS IN LOW-INCOME COMMU-
NITIES.—Any early childhood educator who per-
forms service in a community that—
‘‘(i) meets the definition of low-income 
community in any year during such serv-
ice; and 
‘‘(ii) in a subsequent year fails to 
meet such definition, 
may continue to perform service in such com-
munity and shall be eligible for loan forgiveness 
pursuant to subsection (b). 
‘‘(d) REPAYMENT
TO
ELIGIBLE
LENDERS
AND 
HOLDERS.—The Secretary shall pay to each eligible lend-
er or holder for each fiscal year an amount equal to the 
aggregate amount of the lender’s or holder’s loans that 
are subject to repayment pursuant to this section for such 
year. 
‘‘(e) APPLICATION FOR REPAYMENT.—
‘‘(1) IN GENERAL.—Each eligible individual de-
siring loan repayment under this section shall sub-
mit a complete and accurate application to the Sec-
retary at such time, in such manner, and containing 
such information as the Secretary may require. 
‘‘(2) CONDITIONS.—An eligible individual may 
apply for loan repayment under this section after 
completing each of the consecutive years of quali-
fying service described in subsection (c)(1). The bor-
rower may elect to receive forbearance while engaged 
in qualifying service described in subsection (c)(1) 
unless the borrower is in deferment while so en-
gaged. 
‘‘(3) NOTICE CONCERNING ELIGIBILITY FOR AP-
PLICATION.—The Secretary shall notify education 
agencies and other public agencies of the benefits 
available under this section, and encourage such 
agencies to notify individuals in eligible public serv-
ice positions of such benefits. 
‘‘(f) REGULATIONS.—The Secretary is authorized to 
prescribe such regulations as may be necessary to carry 
out the provisions of this section. Such regulations shall 
require the Secretary to actively inform individuals eligible 
for the provisions of this section of the loan forgiveness 
described under this section. 
‘‘(g) DEFINITIONS.—In this section: