Page:United States Statutes at Large Volume 120.djvu/191

 120 STAT. 160

PUBLIC LAW 109–171—FEB. 8, 2006 ‘‘(aa) the applicable interest rate minus the special allowance support level determined under this subparagraph; multiplied by ‘‘(bb) the average daily principal balance of the loan (not including unearned interest added to principal) during such calendar quarter; divided by ‘‘(cc) four. ‘‘(III) SPECIAL ALLOWANCE SUPPORT LEVEL.— For purposes of this clause, the term ‘special allowance support level’ means, for any loan, a number expressed as a percentage equal to the sum of the rates determined under subclauses (I) and (III) of clause (i), and applying any substitution rules applicable to such loan under clauses (ii), (iii), and (iv) in determining such sum.’’. (2) EFFECTIVE DATE.—The amendments made by this subsection shall not apply with respect to any special allowance payment made under section 438 of the Higher Education Act of 1965 (20 U.S.C. 1087–1) before April 1, 2006.

20 USC 1087–1 note.

SEC. 8007. DEFERMENT OF STUDENT LOANS FOR MILITARY SERVICE.

(a) FEDERAL FAMILY EDUCATION LOANS.—Section 428(b)(1)(M) (20 U.S.C. 1078(b)(1)(M)) is amended— (1) by striking ‘‘or’’ at the end of clause (ii); (2) by redesignating clause (iii) as clause (iv); and (3) by inserting after clause (ii) the following new clause: ‘‘(iii) not in excess of 3 years during which the borrower— ‘‘(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; or’’. (b) DIRECT LOANS.—Section 455(f)(2) (20 U.S.C. 1087e(f)(2)) is amended— (1) by redesignating subparagraph (C) as subparagraph (D); and (2) by inserting after subparagraph (B) the following new subparagraph: ‘‘(C) not in excess of 3 years during which the borrower— ‘‘(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; or’’. (c) PERKINS LOANS.—Section 464(c)(2)(A) (20 U.S.C. 1087dd(c)(2)(A)) is amended— (1) by redesignating clauses (iii) and (iv) as clauses (iv) and (v), respectively; and (2) by inserting after clause (ii) the following new clause: ‘‘(iii) not in excess of 3 years during which the borrower—

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