TERMS AND CONDITIONS OF LOANS.

SEC. 451. TERMS AND CONDITIONS OF LOANS.(a) Income-Based Repayment.—Section 455(d)(1) (20 U.S.C. 1087e(d)(1)) is amended—(1) in subparagraph (C), by striking “and” after the semicolon;(2) in subparagraph (D), by striking the period at the end and inserting “; and”; and(3) by adding at the end the following:“(E) beginning on July 1, 2009, an income-based repayment plan that enables borrowers who have a partial financial hardship to make a lower monthly payment in accordance with section 493C, except that the plan described in this subparagraph shall not be available to the borrower of a Federal Direct PLUS Loan made on behalf of a dependent student or a Federal Direct Consolidation Loan, if the proceeds of such loan were used to discharge the liability on such Federal Direct PLUS Loan or a loan 122 STAT. 3262 under section 428B made on behalf of a dependent student.”.(b) Public Service Job Definition.—(1) In general.—Section 455(m)(3)(B) (20 U.S.C. 1087e(m)(3)(B)) is amended to read as follows:“(B) Public service job.—The term ‘public service job’ means—“(i) a full-time job in emergency management, government (excluding time served as a member of Congress), military service, public safety, law enforcement, public health (including nurses, nurse practitioners, nurses in a clinical setting, and full-time professionals engaged in health care practitioner occupations and health care support occupations, as such terms are defined by the Bureau of Labor Statistics), public education, social work in a public child or family service agency, public interest law services (including prosecution or public defense or legal advocacy on behalf of low-income communities at a nonprofit organization), early childhood education (including licensed or regulated childcare, Head Start, and State funded prekindergarten), public service for individuals with disabilities, public service for the elderly, public library sciences, school-based library sciences and other school-based services, or at an organization that is described in section 501(c)(3) of the Internal Revenue Code of 1986 and exempt from taxation under section 501(a) of such Code; or“(ii) teaching as a full-time faculty member at a Tribal College or University as defined in section 316(b) and other faculty teaching in high-needs subject areas or areas of shortage (including nurse faculty, foreign language faculty, and part-time faculty at community colleges), as determined by the Secretary.”.(2) Ineligibility for double benefits.—Section 455(m) (20 U.S.C. 1087e(m)) is further amended by adding at the end the following:“(4) Ineligibility for double benefits.—No borrower may, for the same service, receive a reduction of loan obligations under both this subsection and section 428J, 428K, 428L, or 460.”.(c) Identity Fraud Protection.—Section 455 (as amended by this section) (20 U.S.C. 1087e) is amended by adding at the end the following:“(n) Identity Fraud Protection.—The Secretary shall take such steps as may be necessary to ensure that monthly Federal Direct Loan statements and other publications of the Department do not contain more than four digits of the Social Security number of any individual.”.(d) No Accrual of Interest for Active Duty Service Members.—Section 455 (as amended by this section) (20 U.S.C. 1087e) is further amended by adding at the end the following:“(o) No Accrual of Interest for Active Duty Service Members.—“(1) In general.—Notwithstanding any other provision of this part and in accordance with paragraphs (2) and (4), interest shall not accrue for an eligible military borrower on a loan 122 STAT. 3263 made under this part for which the first disbursement is made on or after October 1, 2008.“(2) Consolidation loans.—In the case of any consolidation loan made under this part that is disbursed on or after October 1, 2008, interest shall not accrue pursuant to this subsection only on such portion of such loan as was used to repay a loan made under this part for which the first disbursement is made on or after October 1, 2008.“(3) Eligible military borrower.—In this subsection, the term ‘eligible military borrower’ means an individual who—“(A)(i) is serving on active duty during a war or other military operation or national emergency; or“(ii) is performing qualifying National Guard duty during a war or other military operation or national emergency; and“(B) is serving in an area of hostilities in which service qualifies for special pay under section 310 of title 37, United States Code.“(4) Limitation.—An individual who qualifies as an eligible military borrower under this subsection may receive the benefit of this subsection for not more than 60 months.”.(e) Disclosures.—Section 455 (as amended by this section) (20 U.S.C. 1087e) is further amended by adding at the end the following:“(p) Disclosures.—Each institution of higher education with which the Secretary has an agreement under section 453, and each contractor with which the Secretary has a contract under section 456, shall, with respect to loans under this part and in accordance with such regulations as the Secretary shall prescribe, comply with each of the requirements under section 433 that apply to a lender with respect to a loan under part B.”.