PUBLIC LAW 105-244—OCT. 7, 1998 112 STAT. 1719 of a loan made under this part as the Secretary determines appropriate to encourage on-time repayment in accordance with section 455(b)(7). Such reductions may be offered only if the Secretary determines the reductions are in the best financial interests of the Federal Government.". SEC. 456. LOAN CANCELXATION FOR TEACHERS. Part D of title IV (20 U.S.C. 1087a et seq.) is further amended by adding after section 459 (as added by section 455) the following: "SEC. 460. LOAN CANCELLATION FOR TEACHERS. 20 USC 1087j. "(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) 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 465(a)(2)(A) for loan cancellation for Perkins loan recipients who teach in such schools; "(ii) 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 non-profit private secondary school in which the borrower is employed; and "(iii) 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 skills in reading, writing, mathematics and other areas of the elementary school curriculum; and "(B) is not in default on a loan for which the borrower seeks forgiveness. "(2) SPECIAL RULE.— No borrower may obtain a reduction of loan obligations under both this section and section 428J. "(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). "(2) TREATMENT OF CONSOLIDATION LOANS.— A loan amount Regulations, 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 428 or 428H, for a borrower who meets the requirements of subsection (b), as determined in accordance with regulations prescribed by the Secretary.
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