Deferment for public school teachers

(a) Federal direct loans Section 455(f) of the Higher Education Act of 1965 (20 U.S.C. 1087e(f)) is amended— (1) by redesignating paragraphs (6) and (7) as paragraphs (7) and (8), respectively; and (2) by inserting after paragraph (5) the following: (6) Deferment for borrowers while serving as a public school teacher (A) Effect on principal and interest A borrower of a loan made under this part who meets the requirements of subparagraph (B) shall be eligible for a deferment, during which periodic installments of principal need not be paid, and interest shall not accrue. (B) Eligibility A borrower of a loan made under this part shall be eligible for a deferment during— (i) any period in which such borrower is serving as a public school teacher (as defined in section 494A); and (ii) the 6 months after such period. (C) Applicability This paragraph shall apply with respect to loans— (i) made on or after the date of the enactment of this paragraph; or (ii) in repayment on the date of the enactment of this paragraph.. (b) FFEL Loans (1) Section 427(a)(2)(C) of the Higher Education Act of 1965 (20 U.S.C. 1077(a)(2)(C)) is amended— (A) in clause (iii), by striking or at the end; (B) in clause (iv), by striking the period at the end and inserting; or; and (C) by inserting after clause (iv), as so amended, the following: (v) during which the borrower is serving as a public school teacher (as defined in section 494A) and the 6 months after such period;. (2) Section 428(b)(1)(M) of the Higher Education Act of 1965 (20 U.S.C. 1077(b)(1)(M)) is amended— (A) in clause (iv), by striking or at the end; (B) in clause (v), by inserting or at the end; and (C) by adding at the end the following: (vi) during which the borrower is serving as a public school teacher (as defined in section 494A) and the 6 months after such period;. (c) Perkins Loans Section 464(c)(2)(A) of the Higher Education Act of 1965 (20 U.S.C. 1087dd(c)(2)(A))— (1) in clause (v), by striking or at the end; (2) in clause (vi), by adding or at the end; and (3) by inserting after clause (vi), as so amended, the following: (vii) during which the borrower is serving as a public school teacher (as defined in section 494A) and the 6 months after such period;.