(a) Eligibility. The Corporation will pay interest that accrues on an individual's qualified student loan, subject to the limitation on amount in paragraph (b) of this section, if—

(1) The individual successfully completes a term of service in an approved AmeriCorps position or approved Silver Scholar position; and

(2) The holder of the loan approves the individual's request for forbearance during the term of service.

(b) Amount. The percentage of accrued interest that the Corporation will pay is the lesser of—

(1) The product of—

(i) The number of hours of service completed divided by the number of days for which forbearance was granted; and

(ii) 365 divided by 17; and (2) 100.

(c) Supplemental to education award. A payment of accrued interest under this part is supplemental to an education award received by an individual under parts 2526 through 2528 of this chapter.

(d) Limitation. The Corporation is not responsible for the repayment of any accrued interest in excess of the amount determined in accordance with paragraph (b) of this section.

(e) Suspended service. The Corporation will not pay any interest expenses that accrue on an individual's qualified student loan during a period of suspended service.

[64 FR 37417, July 12, 1999, as amended at 75 FR 51413, Aug. 20, 2010]