A bill to amend the Higher Education Act of 1965 to extend loan forgiveness for certain loans to certified or licensed teachers, to provide for grants that promote teacher certification and licensing, and for other purposes.

Summary: Loan Forgiveness for Certified Teachers Act of 2003 - Amends the Higher Education Act of 1965 (HEA) to increase from $5,000 to $10,000 the maximum amount of student loan cancellation for certified or licensed teachers who teach for five years at low-income elementary or secondary schools.Establishes a HEA grants program for promoting teacher certification and licensing. Authorizes the Secretary of Education to make such grants to institutions of higher education for programs, projects, and activities to encourage professionals and other interested persons to become certified or licensed teachers. Includes among authorized activities developing curricula and support programs and recruitment strategies.

SECTION 1. SHORT TITLE.

    This section may be cited as the ``Loan Forgiveness for Certified 
Teachers Act of 2003''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) effective elementary schools and secondary schools 
        require competent teachers and strong leadership;
            (2) local educational agencies would benefit greatly by 
        increasing the pool of qualified individuals from which to 
        recruit teachers;
            (3) many talented professionals who have demonstrated a 
        high level of subject matter knowledge outside the education 
        profession may wish to pursue careers in education, but have 
        not fulfilled the requirements to be certified or licensed as 
        teachers; and
            (4) loan forgiveness programs and other programs that 
        encourage such professionals and other interested persons to 
        become certified or licensed teachers would allow local 
        educational agencies to utilize the expertise of such 
        professionals and interested persons, and improve the pool of 
        qualified individuals available to local educational agencies.

SEC. 3. PURPOSE.

    The purpose of this Act is to improve the supply of well-qualified 
elementary school and secondary school teachers by encouraging and 
assisting interested persons in completing the teacher certification or 
licensing requirements in their States.

SEC. 4. LOAN FORGIVENESS FOR CERTIFIED TEACHERS.

    (a) Federal Family Education Loan Forgiveness.--Section 428J of the 
Higher Education Act of 1965 (20 U.S.C. 1078-10) is amended--
            (1) in subsection (b), by striking paragraphs (1) and (2) 
        and inserting the following:
            ``(1)(A)(i) has been employed as a full-time teacher for 5 
        consecutive complete school years in a school that qualifies 
        under section 465(a)(2)(A) for loan cancellation for Perkins 
        loan recipients who teach in such a school; and
            ``(ii)(I) if employed as a secondary school teacher, is 
        teaching a subject that is relevant to the borrower's academic 
        major, as certified by the chief administrative officer of the 
        public or nonprofit private secondary school in which the 
        borrower is employed; and
            ``(II) if employed as an elementary school teacher, has 
        demonstrated, as certified by the chief administrative officer 
        of the public or nonprofit private elementary school in which 
        the borrower is employed, knowledge and teaching skills in 
        reading, writing, mathematics, and other areas of the 
        elementary school curriculum; and
            ``(B) is not in default on the loan for which the borrower 
        seeks forgiveness; or
            ``(2) not later than September 1, 2006--
                    ``(A)(i) has been employed as a full-time teacher 
                for 5 consecutive complete school years in a school 
                that qualifies under section 465(a)(2)(A) for loan 
                cancellation for Perkins loan recipients who teach in 
                such a school;
                    ``(ii)(I) if employed as a secondary school 
                teacher, meets the standards described in section 
                9101(23)(B)(ii) of the Elementary and Secondary 
                Education Act of 1965 (20 U.S.C. 7801(23)(B)(ii)); and
                    ``(II) if employed as an elementary school teacher, 
                meets the standards described in section 9101(23)(B)(i) 
                of the Elementary and Secondary Education Act of 1965 
                (20 U.S.C. 7801(23)(B)(i)); and
                    ``(iii) meets the standards described in section 
                9101(23)(A) of the Elementary and Secondary Education 
                Act of 1965 (20 U.S.C. 7801(23)(A)), or has obtained a 
                5th year teacher certificate (or the equivalent); and
                    ``(B) is not in default on the loan for which the 
                borrower seeks forgiveness.'';
            (2) in subsection (c)(1)--
                    (A) by striking ``$5,000'' and inserting ``$5,000 
                (for a borrower described in subsection (b)(1)) or 
                $10,000 (for a borrower described in subsection 
                (b)(2))''; and
                    (B) by striking ``(b)(1)'' and inserting ``(b)'';
            (3) in subsection (g)(1)(A)--
                    (A) by striking ``Any teacher'' and inserting 
                ``Subject to subsection (j), any teacher''; and
                    (B) by striking ``subsection (b)(1)(A)'' and 
                inserting ``paragraph (1)(A)(i) or (2)(A)(i) of 
                subsection (b)''; and
            (4) by adding at the end the following:
    ``(i) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary for fiscal years 2004 
through 2006 to carry out loan repayment under this section for 
borrowers described in subsection (b)(2).
    ``(j) Termination of Authority.--The authority provided by 
subsection (b)(2) terminates effective October 1, 2006.''.
    (b) Direct Student Loan Cancellation.--Section 460 of the Higher 
Education Act of 1965 (20 U.S.C. 1087j) is amended--
            (1) in subsection (b)(1), by striking subparagraphs (A) and 
        (B) and inserting the following:
            ``(A)(i)(I) has been employed as a full-time teacher for 5 
        consecutive complete school years in a school that qualifies 
        under section 465(a)(2)(A) for loan cancellation for Perkins 
        loan recipients who teach in such a school; and
            ``(II)(aa) if employed as a secondary school teacher, is 
        teaching a subject that is relevant to the borrower's academic 
        major, as certified by the chief administrative officer of the 
        public or nonprofit private secondary school in which the 
        borrower is employed; and
            ``(bb) if employed as an elementary school teacher, has 
        demonstrated, as certified by the chief administrative officer 
        of the public or nonprofit private elementary school in which 
        the borrower is employed, knowledge and teaching skills in 
        reading, writing, mathematics, and other areas of the 
        elementary school curriculum; and
            ``(ii) is not in default on the loan for which the borrower 
        seeks forgiveness; or
            ``(B) not later than September 1, 2006--
                    ``(i)(I) has been employed as a full-time teacher 
                for 5 consecutive complete school years in a school 
                that qualifies under section 465(a)(2)(A) for loan 
                cancellation for Perkins loan recipients who teach in 
                such a school;
                    ``(II)(aa) if employed as a secondary school 
                teacher, meets the standards described in section 
                9101(23)(B)(ii) of the Elementary and Secondary 
                Education Act of 1965 (20 U.S.C. 7801(23)(B)(ii)); and
                    ``(bb) if employed as an elementary school teacher, 
                meets the standards described in section 9101(23)(B)(i) 
                of the Elementary and Secondary Education Act of 1965 
                (20 U.S.C. 7801(23)(B)(i)); and
                    ``(III) meets the standards described in section 
                9101(23)(A) of the Elementary and Secondary Education 
                Act of 1965 (20 U.S.C. 7801(23)(A)), or has obtained a 
                5th year teacher certificate (or the equivalent); and
                    ``(ii) is not in default on the loan for which the 
                borrower seeks forgiveness.'';
            (2) in subsection (c)(1)--
                    (A) by striking ``$5,000'' and inserting ``$5,000 
                (for a borrower described in subsection (b)(1)(A)) or 
                $10,000 (for a borrower described in subsection 
                (b)(1)(B))''; and
                    (B) by striking ``(b)(1)(A)'' and inserting 
                ``(b)(1)'';
            (3) in subsection (g)(1)(A)--
                    (A) by striking ``Any teacher'' and inserting 
                ``Subject to subsection (j), any teacher''; and
                    (B) by striking ``subsection (b)(1)(A)'' and 
                inserting ``subparagraph (A)(i)(I) or (B)(i)(I) of 
                subsection (b)(1)''; and
            (4) by adding at the end the following:
    ``(i) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary for fiscal years 2004 
through 2006 to carry out loan repayment under this section for 
borrowers described in subsection (b)(1)(B).
    ``(j) Termination of Authority.--The authority provided by 
subsection (b)(1)(B) terminates effective October 1, 2006.''.
    (c) No Interference With Existing Provisions.--The Secretary of 
Education shall ensure that the implementation of the amendments made 
by this section shall not interfere with, and shall be coordinated 
with, the implementation of student loan forgiveness provisions 
administered by the States and in existence on the date of enactment of 
this Act.

SEC. 5. GRANTS TO PROMOTE TEACHER CERTIFICATION AND LICENSING.

    Title II of the Higher Education Act of 1965 (20 U.S.C. 1021 et 
seq.) is amended by adding at the end the following:

        ``PART C--PROMOTING TEACHER CERTIFICATION AND LICENSING

``SEC. 231. GRANTS.

    ``The Secretary may make grants to institutions of higher education 
to enable the institutions to carry out programs, projects, and 
activities to encourage professionals and other interested persons to 
become certified or licensed teachers.

``SEC. 232. APPLICATIONS.

    ``(a) In General.--An institution of higher education desiring to 
receive a grant under this part shall submit an application to the 
Secretary at such time, in such manner, and containing such information 
as the Secretary may reasonably require.
    ``(b) Requirements.--The application shall contain--
            ``(1) a description of the programs, projects, and 
        activities to be undertaken by the institution with funds made 
        available through the grant; and
            ``(2) such assurances as the Secretary considers to be 
        necessary, including assurances that--
                    ``(A) funds made available to the institution under 
                this part will be used to develop appropriate curricula 
                and support programs for students entering teacher 
                preparation programs that lead to a teaching 
                certificate or license; and
                    ``(B) the institution will submit to the Secretary, 
                at such time as the Secretary may specify, a final 
                report describing the programs, projects, and 
                activities carried out with the funds, and the results 
                achieved through the programs, projects, and 
                activities.
    ``(c) Preference.--In awarding grants under this part, the 
Secretary shall give preference to an institution that submits an 
application containing a plan to develop appropriate curricula and 
support programs to address the needs of underserved communities (as 
such needs are determined by the State educational agency in the State 
in which the institution is located, in conjunction with the 
institution).

``SEC. 233. USE OF FUNDS.

    ``(a) Permitted Uses.--An institution of higher education that 
receives a grant under this part may use the funds made available 
through the grant for programs, projects, and activities to develop and 
implement new, or expand and improve existing, programs that enable 
individuals to make progress toward meeting teacher certification or 
licensing requirements, including--
            ``(1) developing appropriate curricula and support programs 
        for students entering teacher certification or licensing 
        programs;
            ``(2) developing recruitment strategies necessary to 
        encourage more individuals to become certified or licensed 
        teachers; and
            ``(3) carrying out other appropriate programs, projects, 
        and activities designed to meet the objectives of this part.
    ``(b) Prohibited Uses.--The institution may not use the funds made 
available through the grant for construction.

``SEC. 234. NOTIFICATION REQUIREMENT.

    ``(a) State Educational Agencies and Local Educational Agencies.--
            ``(1) State educational agencies.--Each institution 
        receiving a grant under this part shall provide notice of the 
        programs, projects, and activities funded with such grant to 
        the State educational agency in the State in which the 
        institution is located.
            ``(2) Local educational agencies.--Each State educational 
        agency receiving the notification described in paragraph (1) 
        shall transmit the information received in such notification to 
        the appropriate local educational agencies.
    ``(b) Students.--Each institution receiving a grant under this part 
shall provide notice of the programs, projects, and activities funded 
with such grant to the students of such institution.

``SEC. 235. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this part 
such sums as may be necessary for each of fiscal years 2004 through 
2008.''.