Sec. 401. Extension of loan cancellation for borrowers employed in public service jobs for 5 years
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Section 455(m) of the Higher Education Act of 1965 ( 20 U.S.C. 1087e(m) ) is amended— by redesignating paragraphs
(3)and
(4)as paragraphs
(4)and (5), respectively; and by inserting after paragraph (2), the following: The Secretary shall— after the conclusion of the employment period described in subparagraph (B)(ii) for an eligible borrower, cancel the obligation to repay 10 percent of the balance of interest and principal due, as of the time of such cancellation, on the eligible Federal Direct Loans made to the borrower under this part; and after the loan cancellation under clause (i), carry out such loan cancellation for each year in which the borrower makes 12 monthly payments on the eligible Federal Direct Loans pursuant to any one or a combination of the repayment plans described in subclauses
(I)through
(IV)of subparagraph (B)(i) and is employed in a public service job during the period in which the borrower makes each of such payments, except that once the borrower is eligible for the loan cancellation under paragraph
(2)the Secretary shall carry out the loan cancellation under paragraph
(2)in lieu of the loan cancellation under this clause. In this paragraph, an eligible borrower is a borrower who— has made 60 monthly payments on the eligible Federal Direct Loan after October 1, 2015, pursuant to any one or a combination of the following— payments under an income-based repayment plan under section 493C; payments under a standard repayment plan under subsection (d)(1)(A), based on a 10-year repayment period; monthly payments under a repayment plan under subsection (d)(1) or
(g)of not less than the monthly amount calculated under subsection (d)(1)(A), based on a 10-year repayment period; or payments under an income contingent repayment plan under subsection (d)(1)(D); and has been employed in a public service job during the period in which the borrower makes each of the 60 payments described in clause (i). .
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Sec. 401
Extension of loan cancellation for borrowers employed in public service jobs for 5 years
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