112 STAT. 1698 PUBLIC LAW 105-244 —OCT. 7, 1998 428(b)(l)(M) shall, if agreed upon by the borrower and the lender— "(i) be paid monthly or quarterly; or "(ii) be added to the principal amount of the loan by the lender only— "(I) when the loan enters repayment; "(11) at the expiration of a grace period, in the case of a loan that qualiHes for a grace period; "(III) at the expiration of a period of deferment or forbearance; or "(IV) when the borrower defaults. "(B) The capitalization of interest described in subparagraph (A) shall not be deemed to exceed the annual insurable limit on account of the student.". (d) EXTENDED REPAYMENT PLAN.— Section 428H(e)(6) is 20 USC 1078-8. amended by striking "10 year repayment period under section 428(b)(l)(D) and inserting "repayment period under section 428(b)(9). (e) QUALIFICATION.— Section 428H(e) is amended by adding at the end the following: "(7) QUALIFICATION FOR FORBEARANCE. —A lender may grant the borrower of a loan under this section a forbearance for a period not to exceed 60 days if the lender reasonably determines that such a forbearance from collection activity is warranted following a borrower's request for forbearance, deferment, or a change in repayment plan, or a request to consolidate loans in order to collect or process appropriate supporting documentation related to the request. During any such period, interest on the loan shall accrue but not be capitalized.. (f) REPEAL. — Subsection (f) of section 428H is repealed. SEC. 424. LOAN FORGIVENESS FOR TEACHERS. Section 428J (20 U.S.C. 1078-10) is amended to read as follows: SEC 428J. LOAN FORGIVENESS 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.—The Secretary shall carry out a program, through the holder of the loan, of assuming the obligation to repay a qusuified loan amount for a loan made under section 428 or 428H, in accordance with subsection (c), for any new borrower on or after October 1, 1998, who— "(1) has been employed as a full-time teacher for 5 consecutive complete school years— "(A) in a school that qualiHes under section 465(a)(2)(A) for loan cancellation for Perkins loan recipients who teach in such schools; "(B) if employed as a secondary school teacher, is teaching a subject area that is relevant to the borrower's academic major as certified by the chief administrative officer of the public or nonprofit private secondary school in which the borrower is employed; and "(C) if employed as an elementary school teacher, has demonstrated, as certified by the chief administrative officer of the public or nonprofit private elementary school in which the borrower is employed, knowledge and teaching
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