; or (B) subject to a deferment or forbearance under the Higher Education Act of 1965, as if the borrower of the loan had made a payment for the purpose of any loan forgiveness program or loan rehabilitation program authorized under part B or D of title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1071 et seq. and 1087a et seq.) for which the borrower would have otherwise qualified. . (f) Nontaxable status for readjustment allowances Notwithstanding any other provision of the Internal Revenue Code of 1986, a readjustment allowance received pursuant to section 5(c) of the Peace Corps Act ( 22 U.S.C. 2504(c) ), as amended by subsection (e)(2) of this section, shall not be subject to taxation under chapter 1 of such Code. 3. Expanded benefits for AmeriCorps volunteers (a) Increase in national service positions Notwithstanding any provision of the national service laws, on or after the date of enactment of this Act, not fewer than 500,000 national service positions shall be available under the national service programs authorized under such laws. (b) Increase in living allowance Notwithstanding section 140 of the National and Community Service Act of 1990 ( 42 U.S.C. 12594 ) or any other provision of the national service laws, any individual serving in a national service program authorized under a national service law shall receive a living allowance that is not less than 200 percent of the poverty line (as defined in section 673(2) of the Community Services Block Grant Act ( 42 U.S.C. 9902(2) ) and adjusted by the Corporation for National and Community Service in the manner described in such section. (c) Extended non-Competitive eligibility Notwithstanding any other law, rule, or regulation, the head of any agency in the Executive branch may noncompetitively appoint, to a competitive service position at such agency, any individual who is certified by the Corporation for National and Community Service as having satisfactorily completed service in a national service program authorized under a national service