Peace Corps and AmeriCorps Student Loan Forgiveness Act

Section 455(m) of the Higher Education Act of 1965 (20 U.S.C. 1087e(m)) is amended—

(1) by redesignating paragraphs (2) through (4) as paragraphs (3) through (5), respectively;

(2) in paragraph (1), in the matter preceding subparagraph (A), by striking paragraph (2) and inserting paragraph (3); and

(3) by inserting after paragraph (1) the following:

Notwithstanding any other provision of this subsection, each month of a period described in subparagraph (B) with respect to a borrower of an eligible Federal Direct Loan shall be treated as if the borrower made a qualifying payment under paragraph (1)(A) on such loan.

A period described in this subparagraph is any period after October 1, 2007, during which a borrower—

(i) owes an outstanding balance on an eligible Federal Direct Loan;

(ii) is in an authorized period of deferment or forbearance; and

(iii) serves—

(I) as a Peace Corps volunteer or volunteer leader (as referred to in the Peace Corps Act (22 U.S.C. 2501 et seq.)); or

(II) in an approved national service position (as defined in section 101 of the National and Community Service Act of 1990 (42 U.S.C. 12511)).

In implementing section 455(m)(2) of the Higher Education Act of 1965 (20 U.S.C. 1087e(m)(2)) (as amended by subsection (a) of this section) the Secretary of Education shall consult with—

(1) the Director of the Peace Corps;

(2) the Chief Executive Officer of the Corporation for National and Community Service; and

(3) borrowers who may be affected by the implementation of such section, including current and former volunteers of the Peace Corps and current and former AmeriCorps members.