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§ 1087j. Loan cancellation for teachers
(a)
Statement of purpose
It is the purpose of this section to encourage individuals to enter and continue in the teaching profession.
(b)
Program authorized
(1)
In general
The Secretary shall carry out a program of canceling the obligation to repay a qualified loan amount in accordance with subsection (c) of this section for Federal Direct Stafford Loans and Federal Direct Unsubsidized Stafford Loans made under this part for any new borrower on or after October 1, 1998, who—
(A)
has been employed as a full-time teacher for 5 consecutive complete school years—
(i)
in a school that qualifies under section
1087ee
(a)(2)(A) of this title for loan cancellation for Perkins loan recipients who teach in such schools; and
(ii)
if employed as an elementary school or secondary school teacher, is highly qualified as defined in section
7801 of this title; and
(2)
Special rule
No borrower may obtain a reduction of loan obligations under both this section and section
1078–10 of this title.
(c)
Qualified loan amounts
(1)
In general
The Secretary shall cancel not more than $5,000 in the aggregate of the loan obligation on a Federal Direct Stafford Loan or a Federal Direct Unsubsidized Stafford Loan that is outstanding after the completion of the fifth complete school year of teaching described in subsection (b)(1)(A) of this section.
(2)
Treatment of consolidation loans
A loan amount for a Federal Direct Consolidation Loan may be a qualified loan amount for the purposes of this subsection only to the extent that such loan amount was used to repay a Federal Direct Stafford Loan, a Federal Direct Unsubsidized Stafford Loan, or a loan made under section
1078 or
1078–8 of this title, for a borrower who meets the requirements of subsection (b) of this section, as determined in accordance with regulations prescribed by the Secretary.
(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—
(B)
an elementary school or secondary school teacher—
(ii)
whose qualifying employment for purposes of such subsection is as a special education teacher whose primary responsibility is to provide special education to children with disabilities (as those terms are defined in section
1401 of this title); and
(iii)
who, as certified by the chief administrative officer of the public or non-profit private elementary school or secondary school in which the borrower is employed, is teaching children with disabilities that correspond with the borrower’s special education training and has demonstrated knowledge and teaching skills in the content areas of the elementary school or secondary school curriculum that the borrower is teaching.
(d)
Regulations
The Secretary is authorized to issue such regulations as may be necessary to carry out the provisions of this section.
(e)
Construction
Nothing in this section shall be construed to authorize any refunding of any canceled loan.
(f)
List
If the list of schools in which a teacher may perform service pursuant to subsection (b) of this section is not available before May 1 of any year, the Secretary may use the list for the year preceding the year for which the determination is made to make such service determination.
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