1. Short title This Act may be cited as the Peace Corps and AmeriCorps Student Loan Forgiveness Act . 2. Deferment periods for Peace Corps volunteers and AmeriCorps members counted toward public service loan forgiveness (a) In general Section 455(m) of the Higher Education Act of 1965 ( 20 U.S.C. 1087e(m) ) is amended— (1) by redesignating paragraphs (2) through (4) as paragraphs (3) through (5), respectively; (2) in paragraph (1), in the matter preceding subparagraph (A), by striking paragraph (2) and inserting paragraph (3) ; and (3) by inserting after paragraph (1) the following: (2) Treatment of certain periods of deferment or forbearance (A) In general Notwithstanding any other provision of this subsection, each month of a period described in subparagraph (B) with respect to a borrower of an eligible Federal Direct Loan shall be treated as if the borrower made a qualifying payment under paragraph (1)(A) on such loan. (B) Period described A period described in this subparagraph is any period after October 1, 2007, during which a borrower— (i) owes an outstanding balance on an eligible Federal Direct Loan; (ii) is in an authorized period of deferment or forbearance; and (iii) serves— (I) as a Peace Corps volunteer or volunteer leader (as referred to in the Peace Corps Act ( 22 U.S.C. 2501 et seq. )); or (II) in an approved national service position (as defined in section 101 of the National and Community Service Act of 1990 ( 42 U.S.C. 12511 )). . (b) Consultation requirement In implementing section 455(m)(2) of the Higher Education Act of 1965 ( 20 U.S.C. 1087e(m)(2) ) (as amended by subsection (a) of this section) the Secretary of Education shall consult with— (1) the Director of the Peace Corps; (2) the Chief Executive Officer of the Corporation for National and Community Service; and (3) borrowers who may be affected by the implementation of such section, including current and former volunteers of the Peace Corps and current and former AmeriCorps members.