14 U.S.C. § 472 : US Code - Section 472: Education loan repayment program

Search 14 U.S.C. § 472 : US Code - Section 472: Education loan repayment program

(a)(1) Subject to the provisions of this section, the Secretary
may repay -
(A) any loan made, insured, or guaranteed under part B of title
IV of the Higher Education Act of 1965 (20 U.S.C. 1071 et seq.);
(B) any loan made under part D of such title (the William D.
Ford Federal Direct Loan Program, 20 U.S.C. 1087a et seq.); or
(C) any loan made under part E of such title (20 U.S.C. 1087aa
et seq.).
Repayment of any such loan shall be made on the basis of each
complete year of service performed by the borrower.
(2) The Secretary may repay loans described in paragraph (1) in
the case of any person for service performed on active duty as an
enlisted member of the Coast Guard in a specialty specified by the
Secretary.
(b) The portion or amount of a loan that may be repaid under
subsection (a) is 33 1/3 percent or $1,500, whichever is greater,
for each year of service.
(c) If a portion of a loan is repaid under this section for any
year, interest on the remainder of such loan shall accrue and be
paid in the same manner as is otherwise required.
(d) Nothing in this section shall be construed to authorize
refunding any repayment of a loan.
(e) The Secretary shall, by regulation, prescribe a schedule for
the allocation of funds made available to carry out this section
during any year for which funds are not sufficient to pay the sum
of the amounts eligible for repayment under subsection (a).