PUBLIC LAW 107-314—DEC. 2, 2002 116 STAT. 2579 Guard is operating shall consult with the Secretary of Education regarding the administration of the authority under this section. "(2) The Secretary concerned shall transfer to the Secretary of Education the funds necessary— "(A) to pay interest and special allowances on student loans under this section (in accordance with sections 428(o), 455(1), and 464(j) of the Higher Education Act of 1965 (20 U.S.C. 1078(o), 1087e(l), and 1087dd(j)); and "(B) to reimburse the Secretary of Education for any reasonable administrative costs incurred by the Secretary in coordinating the program under this section with the administration of the student loan programs under parts B, D, and E of title IV of the Higher Education Act of 1965. "(g) SPECIAL ALLOWANCE DEFINED. —In this section, the term 'special allowance' means a special allowance that is payable under section 438 of the Higher Education Act of 1965 (20 U.S.C. 1087- 1). ". (2) The table of sections at the beginning of such chapter is amended by adding at the end the following new item: "2174. Interest payment program: members on active duty.". (b) FEDERAL FAMILY EDUCATION LOANS AND DIRECT LOANS.— (1) Subsection (c)(3) of section 428 of the Higher Education Act of 1965 (20 U.S.C. 1078) is amended— (A) in clause (i) of subparagraph (A)— (i) by striking "or" at the end of subclause (II); (ii) by inserting "or" at the end of subclause (III); and (iii) by adding at the end the following new subclause: "(IV) is eligible for interest payments to be made on such loan for service in the Armed Forces under section 2174 of title 10, United States Code, and, pursuant to that eligibility, the interest is being paid on such loan under subsection (o);"; (B) in clause (ii)(II) of subparagraph (A), by inserting "or (IV)" after "clause (i)(II)"; and (C) by striking subparagraph (C) and inserting the following: "(C) shall contain provisions that specify that— "(i) the form of forbearance granted by the lender pursuant to this paragraph, other than subparagraph (A)(i)(IV), shall be temporary cessation of payments, unless the borrower selects forbearance in the form of an extension of time for making payments, or smaller payments than were previously scheduled; and "(ii) the form of forbearance granted by the lender pursuant to subparagraph (A)(i)(IV) shall be the temporary cessation of all payments on the loan other than pa5anents of interest on the loan that are made under subsection (o); and". (2) Section 428 of such Act is further amended by adding at the end the following new subsection: "(o) ARMED FORCES STUDENT LOAN INTEREST PAYMENT PRO- GRAM. — "(1) AUTHORITY. —Using funds received by transfer to the Secretary under section 2174 of title 10, United States Code, for the payment of interest and any special allowance on a
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