Sec. 2. Loan Forgiveness for STEM teachers
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Part G of title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1088 et seq.) is amended by adding at the end the following: The Secretary shall forgive, in accordance with this section, the qualified loan amount described in subsection
(c)of the student loan obligation of a borrower who— is employed as a full-time STEM teacher for service in an academic year (including such a STEM teacher employed by an educational service agency)— in a public or other nonprofit private elementary school or secondary school, which, for the purpose of this paragraph and for that year— has been determined by the Secretary (pursuant to regulations of the Secretary and after consultation with the State educational agency of the State in which the school is located) to be a school in which the number of children meeting a measure of poverty under section 1113(a)(5) of the Elementary and Secondary Education Act of 1965, exceeds 30 percent of the total number of children enrolled in such school; and is in the school district of a local educational agency which is eligible in such year for assistance pursuant to part A of title I of the Elementary and Secondary Education Act of 1965; or in one or more public, or nonprofit private, elementary schools or secondary schools or locations operated by an educational service agency that have been determined by the Secretary (pursuant to regulations of the Secretary and after consultation with the State educational agency of the State in which the educational service agency operates) to be a school or location at which the number of children taught who meet a measure of poverty under section 1113(a)(5) of the Elementary and Secondary Education Act of 1965, exceeds 30 percent of the total number of children taught at such school or location; and is not in default on a loan for which the borrower seeks forgiveness. To provide loan forgiveness under subsection
(a), the Secretary shall carry out a program— through the holder of the loan, to assume the obligation to repay a qualified loan amount for a loan made, insured, or guaranteed under part B (other than an excepted PLUS loan or an excepted consolidation loan (as such terms are defined in section 493C(a))); and to cancel a qualified loan amount for a loan made under part D (other than an excepted PLUS loan or an excepted consolidation loan). For each complete year of service by a borrower as a STEM teacher in accordance with this section after the date of enactment of the STEM K to Career Act , the Secretary shall forgive the student loan obligation of the borrower at the rate of 15 percent of such obligation for the first or second year of such service, 20 percent of such obligation for the third or fourth year of such service, and 30 percent of such obligation for the fifth year of such service. If a portion of a loan is forgiven under this section for any year, the entire amount of interest on such loan which accrues for such year shall be forgiven. If the list of schools in which a STEM teacher may perform service pursuant to subsection (a)(1) 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. Any teacher who performs service in a school which— meets the requirements of subsection (a)(1) in any year; and in a subsequent year fails to meet the requirements of such subsection, may continue to teach in such school and shall be eligible for loan forgiveness pursuant to this section such subsequent years. An individual with an outstanding student loan obligation who performs service described in subsection (a)(1) in accordance with this section shall be eligible for forgiveness under this section for such service notwithstanding any contrary provision of the promissory note under which the loan or loans were made. The amount of a loan, and interest on a loan, which is forgiven under this section shall not be considered income for purposes of the Internal Revenue Code of 1986. Nothing in this subsection shall be construed to authorize refunding of any repayment of a loan. No borrower may, for the same service, receive a benefit under both this section and subtitle D of title I of the National and Community Service Act of 1990 ( 42 U.S.C. 12601 et seq.). The Secretary is authorized to issue such regulations as may be necessary to carry out this section. For the purposes of this section— the term year where applied to service as a STEM teacher means academic year as defined by the Secretary; and the term STEM teacher means a teacher of science, technology, engineering, or mathematics. .
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