Sec. 4. Loan deferment and loan forgiveness
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Section 455(f)(2) of the Higher Education Act of 1965 ( 20 U.S.C. 1087e ) is amended— in subparagraph (C), by striking or at the end; in subparagraph (D), by striking the period at the end and inserting ; or ; and by adding at the end the following: during which the borrower is serving as a TechCorps member under section 122(a)(6) of the National and Community Service Act of 1990 ( 42 U.S.C. 12572(a)(6) ). . Part D of title IV of the Higher Education Act of 1965 is amended by adding at the end the following: The Secretary shall carry out a program of canceling the obligation to repay a qualified loan amount in accordance with subsection
(b)for loans made under this part to any borrower— who has served as a TechCorps member under section 122(a)(6) of the National and Community Service Act of 1990 ( 42 U.S.C. 12572(a)(6) ) for not less than a 2-year period; and is not in default on any loans for which the borrower seeks forgiveness. The Secretary shall cancel an amount equal to 50 percent of the loan obligation on any loans made under this part to a borrower described in subsection
(a)that are outstanding after the borrower’s completion of 2 years of service as TechCorps member. With respect to a borrower who receives the loan cancellation under paragraph (1), and serves an additional year or two additional years as TechCorps member upon the completion of such 2-year service, the Secretary shall cancel an amount equal to 25 percent of the loan obligation on any loans made under this part to the borrower that are outstanding after the borrower’s completion of each such additional year of service. The aggregate loan obligation of a borrower that may be cancelled under this section may not exceed the amount equal to the maximum aggregate amount of Federal Direct Stafford Loans and Federal Direct Unsubsidized Stafford Loans that may be awarded to a dependent student under this part. The amount of a loan, and interest on a loan, which is canceled under this section shall not be considered income for purposes of the Internal Revenue Code of 1986. No borrower may, for the same voluntary service, receive a benefit under both this section and— section 428K; section 455(m); or subtitle D of title I of the National and Community Service Act of 1990 ( 42 U.S.C. 12601 et seq. ). .
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