(ii) by striking subparagraphs (B) and 
(C) and inserting the following: 
‘‘(B) if employed as an elementary school 
or secondary school teacher, is highly qualified 
as defined in section 9101 of the Elementary 
Secondary Education Act of 1965; and’’. 
(B) DIRECT LOANS.—Section 460(b)(1)(A) 
of such Act (20 U.S.C. 1087j(b)(1)(A)) is 
amended—
(i) in clause (i), by inserting ‘‘and’’ 
after the semicolon; and 
(ii) by striking clauses (ii) and (iii) 
and inserting the following: 
‘‘(ii) if employed as an elementary 
school or secondary school teacher, is high-
ly qualified as defined in section 9101 of 
the Elementary and Secondary Education 
Act of 1965; and’’. 
(2) TRANSITION RULE.—
(A) RULE.—The amendments made by 
paragraph (1) of this subsection 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 requirements of 
such sections as such sections were in effect on 
the day before the date of enactment of this 
Act. 
(B) RULE NOT APPLICABLE TO INCREASED 
QUALIFIED
LOAN
AMOUNTS.—Subparagraph 
(A) of this paragraph shall not apply for pur-
poses of obtaining increased qualified loan 
amounts 
under 
sections 
428J(c)(3) 
and 
460(c)(3) of the Higher Education Act of 1965 
as added by subsection (b) of this section. 
(b) ADDITIONAL AMOUNTS ELIGIBLE TO BE RE-
PAID.—
(1) FFEL LOANS.—Section 428J(c) of the 
Higher Education Act of 1965 (20 U.S.C. 1078–
10(c)) is amended by adding at the end the fol-
lowing: 
‘‘(3) ADDITIONAL AMOUNTS FOR TEACHERS IN 
MATHEMATICS, SCIENCE, OR SPECIAL EDUCATION.—
Notwithstanding the amount specified in paragraph 
(1), the aggregate amount that the Secretary shall 
repay under this section shall be not more than 
$17,500 in the case of—
‘‘(A) a secondary school teacher—
‘‘(i) who meets the requirements of 
subsection (b); and 
‘‘(ii) whose qualifying employment for 
purposes of such subsection is teaching 
mathematics or science on a full-time 
basis; and 
‘‘(B) an elementary school or secondary 
school teacher—
‘‘(i) who meets the requirements of 
subsection (b); 
‘‘(ii) whose qualifying employment for 
purposes of such subsection is as a special 
education teacher whose primary responsi-
bility is to provide special education to 
children with disabilities (as those terms 
are defined in section 602 of the Individ-
uals with Disabilities Education Act); and 
‘‘(iii) who, as certified by the chief ad-
ministrative officer of the public or non-
profit private elementary school or sec-
ondary school in which the borrower is em-
ployed, is teaching children with disabilities 
that correspond with the borrower’s special 
education training and has demonstrated 
knowledge and teaching skills in the con-
tent areas of the elementary school or sec-
ondary school curriculum that the bor-
rower is teaching.’’. 
(2) DIRECT
LOANS.—Section 460(c) of the 
Higher Education Act of 1965 (20 U.S.C. 1087j(c)) 
is amended by adding at the end the following: 
‘‘(3) ADDITIONAL AMOUNTS FOR TEACHERS IN 
MATHEMATICS, SCIENCE, OR SPECIAL EDUCATION.—
Notwithstanding the amount specified in paragraph 
(1), the aggregate amount that the Secretary shall 
cancel under this section shall be not more than 
$17,500 in the case of—
‘‘(A) a secondary school teacher—
‘‘(i) who meets the requirements of 
subsection (b)(1); and 
‘‘(ii) whose qualifying employment for 
purposes of such subsection is teaching 
mathematics or science on a full-time 
basis; and 
‘‘(B) an elementary school or secondary 
school teacher—
‘‘(i) who meets the requirements of 
subsection (b)(1); 
‘‘(ii) whose qualifying employment for 
purposes of such subsection is as a special
education teacher whose primary responsi-
bility is to provide special education to 
children with disabilities (as those terms 
are defined in section 602 of the Individ-
uals with Disabilities Education Act); and 
‘‘(iii) who, as certified by the chief ad-
ministrative officer of the public or non-
profit private elementary school or sec-
ondary school in which the borrower is em-
ployed, is teaching children with disabilities 
that correspond with the borrower’s special 
education training and has demonstrated 
knowledge and teaching skills in the con-
tent areas of the elementary school or sec-
ondary school curriculum that the bor-
rower is teaching.’’. 
(3) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply only with respect to el-
igible individuals who are new borrowers (as such 
term is defined in 103 of the Higher Education Act 
of 1965 (20 U.S.C. 1003)) on or after October 1, 
1998, and before August 16, 2005.
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