Makes eligible for such student loan forgiveness any new borrower on or after October 1, 1998, who is: (1) employed as a full-time teacher in a public elementary or secondary school in an economically disadvantaged or depressed and underserved rural area; (2) State-certified or State-licensed to teach, and in compliance with State or local accountability standards; and (3) not in default on the loan.
Directs the Secretary to establish a formula that ensures fairness and equality for applicants in the selection of borrowers for such loan repayment under this section, based on the amount available.
Limits the portion of the outstanding loan obligation which the Secretary may repay to 15 percent for the first or second year of such service, 20 percent for the third or fourth year, and 30 percent for the fifth year.