A bill to amend the Higher Education Act of 1965 to provide reduced rates of interest under the Guaranteed Student Loan Program to individuals who enter the teaching profession.

Amends the Higher Education Act of 1965 to apply an interest rate of four percent (the current minimum rate is seven percent) on the unpaid balance of a guaranteed student loan of any borrower who has a deferment to serve as a full-time elementary or secondary teacher in a teacher shortage area. Applies this reduced rate from the end of such deferment until the end of the loan repayment period or until the person ceases full-time teaching, whichever occurs first.

Excludes supplemental loans, PLUS loans, and consolidation loans from such treatment.