‘‘(4) REGULATIONS.—The Secretary is author-
ized to prescribe such regulations as may be nec-
essary to carry out the provisions of this section. 
‘‘(d) LOAN REPAYMENT.—
‘‘(1) IN GENERAL.—The Secretary shall assume 
the obligation to repay—
‘‘(A) after the third consecutive year of 
employment described in subsection (c)(1)(C), 
20 percent of the total amount of all loans 
made under this part or part D (excluding 
loans made under section 428B or 428C, or 
comparable loans made under part D) for any 
new borrower after the date of enactment of 
this section; 
‘‘(B) after the fourth consecutive year of 
such employment, 30 percent of the total 
amount of such loans; and 
‘‘(C) after the fifth consecutive year of 
such employment, 50 percent of the total 
amount of such loans. 
‘‘(2) CONSTRUCTION.—Nothing in this section 
shall be construed to authorize the refunding of any 
repayment of a loan made under this part or part 
D.
‘‘(3) 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 which accrues for such year shall be repaid by 
the Secretary. 
‘‘(4) SPECIAL RULE.—In the case of a student 
borrower not participating in loan repayment pursu-
ant to this section who returns to an institution of 
higher education after graduation from an institu-
tion of higher education for the purpose of obtaining 
a degree described in subsection (c)(1)(A), the Sec-
retary is authorized to assume the obligation to 
repay the total amount of loans made under this 
part or part D incurred for a maximum of 2 aca-
demic years in returning to an institution of higher 
education for the purpose of obtaining such a de-
gree. Such loans shall only be repaid for borrowers 
who qualify for loan repayment pursuant to the pro-
visions of this section, and shall be repaid in accord-
ance with the provisions of paragraph (1). 
‘‘(5) 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.). 
‘‘(e) REPAYMENT TO ELIGIBLE LENDERS.—The Sec-
retary shall pay to each eligible lender or holder for each 
fiscal year an amount equal to the aggregate amount of 
loans which are subject to repayment pursuant to this sec-
tion for such year. 
‘‘(f) 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 year of qualifying employment. The 
borrower shall receive forbearance while engaged in 
qualifying employment unless the borrower is in 
deferment while so engaged. 
‘‘(g) EVALUATION.—
‘‘(1) IN GENERAL.—The Secretary shall con-
duct, by grant or contract, an independent national 
evaluation of the impact of the demonstration pro-
gram assisted under this section on the field of child 
welfare services.
‘‘(2) COMPETITIVE BASIS.—The grant or con-
tract described in paragraph (1) shall be awarded on 
a competitive basis. 
‘‘(3) CONTENTS.—The evaluation described in 
this subsection shall determine—
‘‘(A) whether the loan forgiveness program 
has increased child welfare workers’ education 
in the areas covered by loan forgiveness; 
‘‘(B) whether the loan forgiveness program 
has contributed to increased time on the job for 
child welfare workers as measured by—
‘‘(i) the length of time child welfare 
workers receiving loan forgiveness have 
worked in the child welfare field; and 
‘‘(ii) the length of time such workers 
continue to work in such field after the 
workers meet the requirements for loan 
forgiveness under this section; and 
‘‘(C) whether the loan forgiveness program 
has increased the experience and the quality of 
child welfare workers and has contributed to in-
creased performance in the outcomes of child 
welfare services in terms of child well-being, 
permanency, and safety, as determined after
consultation with the Secretary of Health and 
Human Services. 
‘‘(4) INTERIM
AND
FINAL
EVALUATION
RE-
PORTS.—The Secretary shall prepare and submit to 
the President and Congress such interim reports re-
garding the evaluation described in this subsection 
as the Secretary determines appropriate, and shall 
prepare and so submit a final report regarding the 
evaluation by September 30, 2005. 
‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated to carry out this section 
$20,000,000 for fiscal year 2003, and such sums as may 
be necessary for each of the 4 succeeding fiscal years.’’.
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