The term “child care facility” means a facility, including a home, that—

The term “child care services” means activities and services provided for the education and care of children from birth through age 5 by an individual who has a degree in early childhood education.

The term “degree” means an associate’s or bachelor’s degree awarded by an institution of higher education.

The term “early childhood education” means education in the areas of early child education, child care, or any other educational area related to child care that the Secretary determines appropriate.

Notwithstanding section 1002 of this title, the term “institution of higher education” has the meaning given the term in section 1001 of this title.

The Secretary may carry out a demonstration program of assuming the obligation to repay, pursuant to subsection (d) of this section, a loan made, insured, or guaranteed under this part or part C of this subchapter (excluding loans made under sections 1078–2 and 1078–3 of this title or comparable loans made under part C of this subchapter) for any new borrower after October 7, 1998, who—

For the purposes of this subsection, the term “low-income community” means a community in which 70 percent of households within the community earn less than 85 percent of the State median household income.

The Secretary is authorized to prescribe such regulations as may be necessary to carry out the provisions of this section.

The Secretary shall assume the obligation to repay—

Nothing in this section shall be construed to authorize the refunding of any repayment of a loan made under this part or part C of this subchapter.

If a portion of a loan is repaid 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.

In the case where a student borrower who is not participating in loan repayment pursuant to this section returns to an institution of higher education after graduation from an institution of higher education for the purpose of obtaining a degree in early childhood education, the Secretary is authorized to assume the obligation to repay the total amount of loans made under this part or part C of this subchapter incurred for a maximum of two academic years in returning to an institution of higher education for the purpose of obtaining a degree in early childhood education. Such loans shall only be repaid for borrowers who qualify for loan repayment pursuant to the provisions of this section, and shall be repaid in accordance with the provisions of paragraph (1).

No student borrower may, for the same volunteer 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.).

Each eligible individual desiring loan repayment under this section shall submit a complete and accurate application to the Secretary at such time, in such manner, and containing such information as the Secretary may require.

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.

The Secretary shall conduct, by grant or contract, an independent national evaluation of the impact of the demonstration program assisted under this section on the field of early childhood education.

The grant or contract described in subsection (b) ^[1] of this section shall be awarded on a competitive basis.

The evaluation described in this subsection shall—

The Secretary shall prepare and submit to the President and the Congress such interim reports regarding the evaluation described in this subsection as the Secretary deems appropriate, and shall prepare and so submit a final report regarding the evaluation by January 1, 2002.