; and (3) contains, or is accompanied by, a plain-language disclosure form developed by the Secretary that clearly describes the nature of the TEACH Grant award, the service obligation, and the loan repayment requirements that are the consequence of the failure to complete the service obligation. (c) Repayment for failure To complete service (1) In general If any recipient of a grant under this subpart fails or refuses to comply with some or all of the service obligation in the agreement under subsection (b)— (A) the Secretary shall determine the proportion of the total amount of time of the service obligation that the recipient has failed or refused to complete; and (B) the Secretary shall determine, on a pro-rated basis and based on the proportion described in subparagraph (A), the amounts of any TEACH Grants received by such recipient that shall, upon a determination of such a failure or refusal in such service obligation, be treated as a Federal Direct Stafford Loan under part D of title IV (except that such loan shall have an interest rate of 0 percent) and shall ensure that those amounts are subject to repayment, in accordance with terms and conditions specified by the Secretary in regulations under this subpart. (2) Loan deferment In the case of a TEACH grant recipient whose grant has been converted to a Federal Direct loan under part D in accordance with paragraph (1) and who is, at the time of such conversion, teaching in an elementary or secondary school that is not a school described in section 465(a)(2)(A), the Secretary shall— (A) issue that recipient a deferment for a period of not more than 3 years, during which time periodic installments on such loan need not be paid