A bill to expand the teacher loan forgiveness programs under the guaranteed and direct student loan programs for highly qualified teachers of mathematics, science, and special education, and for other purposes.

Summary: Mathematics, Science, and Special Education Teacher Recruitment Act of 2002 - Amends the Higher Education Act of 1965 to establish new programs of student guaranteed and direct loan forgiveness for highly qualified mathematics, science, and special education teachers in high-need schools.Requires for eligibility: (1) at least five consecutive complete school years of such teaching; and (2) an undergraduate or graduate degree in mathematics, life or physical sciences, technology, engineering, or special education, as certified by the chief administrative officer of the public or nonprofit private school where the borrower is employed. Requires that the teaching service be at a high-need school, defined under the Elementary and Secondary Education Act of 1965 as a public elementary, secondary, or charter school where: (1) at least half of the students are from low-income families; or (2) a large percentage of students qualify for assistance under the Individuals with Disabilities Education Act.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Mathematics, Science, and Special 
Education Teacher Recruitment Act of 2002''.

SEC. 2. REVISION OF TEACHER LOAN FORGIVENESS PROGRAMS.

    (a) Guaranteed Student Loans.--Part B of title IV of the Higher 
Education Act of 1965 (20 U.S.C. 1071 et seq.) is amended by inserting 
after section 428K the following:

``SEC. 428L. EXPANDED LOAN FORGIVENESS FOR HIGHLY QUALIFIED TEACHERS OF 
              MATHEMATICS, SCIENCE, AND SPECIAL EDUCATION.

    ``(a) Purpose.--It is the purpose of this section to--
            ``(1) expand, subject to the availability of 
        appropriations, the eligibility of certain highly qualified 
        teachers to qualify for loan forgiveness beyond that available 
        under section 428J; and
            ``(2) provide additional incentives for highly qualified 
        teachers of mathematics, science, and special education in 
        high-need schools to enter and continue in the teaching 
        profession.
    ``(b) Program Authorized.--
            ``(1) In general.--The Secretary is authorized to carry out 
        a program, through the holder of the loan, of assuming the 
        obligation to repay a qualified loan amount for a loan made 
        under section 428 or 428H, in accordance with subsection (c), 
        for any borrower who--
                    ``(A) is a highly qualified, full-time teacher of 
                mathematics, science, or special education at a high-
                need school, and has been so employed for not less than 
                5 consecutive complete school years;
                    ``(B) had mathematics, life or physical sciences, 
                technology, engineering, or special education as an 
                undergraduate academic major or minor, or has a 
                graduate degree in any such field, as certified by the 
                chief administrative officer of the public or nonprofit 
                private school in which the borrower is employed; and
                    ``(C) is not in default on a loan for which the 
                borrower seeks forgiveness.
            ``(2) Selection of recipients.--The Secretary shall 
        promulgate regulations to ensure fairness and equality for 
        applicants in the selection of borrowers for loan repayment 
        under this section, based on the amount appropriated to carry 
        out this section.
    ``(c) Qualified Loan Amounts.--
            ``(1) In general.--The Secretary is authorized to repay not 
        more than $17,500 in the aggregate of the loan obligation on 1 
        or more loans made under section 428 or 428H that are 
        outstanding after the completion of the fifth complete school 
        year of teaching described in subsection (b)(1)(A).
            ``(2) Treatment of consolidation loans.--A loan amount for 
        a loan made under section 428C may be a qualified loan amount 
        for the purposes of this subsection only to the extent that 
        such loan amount was used to repay a Federal Direct Stafford 
        Loan, a Federal Direct Unsubsidized Stafford Loan, or a loan 
        made under section 428 or 428H for a borrower who meets the 
        requirements of subsection (b), as determined in accordance 
        with regulations prescribed by the Secretary.
    ``(d) Regulations.--The Secretary is authorized to issue such 
regulations as may be necessary to carry out the provisions of this 
section.
    ``(e) Construction.--Nothing in this section shall be construed to 
authorize any refunding of any repayment of a loan.
    ``(f) Additional Eligibility Provisions.--
            ``(1) Continued eligibility.--A highly qualified teacher 
        shall be eligible for loan forgiveness pursuant to subsection 
        (b), if the teacher performs service in a school that--
                    ``(A) meets the definition of a high-need school 
                under subsection (g) in any year during such service; 
                and
                    ``(B) in a subsequent year, fails to meet the 
                definition of a high-need school under subsection (g).
            ``(2) Prevention of double benefits.--
                    ``(A) National service positions.--No borrower may, 
                for the same service, receive a benefit under both this 
                section and subtitle D of title I of the National and 
                Community Service Act of 1990 (42 U.S.C. 12601 et 
                seq.).
                    ``(B) Loan forgiveness and cancellation provisions 
                for teachers.--
                            ``(i) Forgiveness.--No borrower may receive 
                        a reduction of loan obligations under both this 
                        section and section 428J.
                            ``(ii) Cancellation.--No borrower may 
                        receive loan forgiveness under this section and 
                        loan cancellation under section 460 or section 
                        460A that exceeds, in the aggregate, $17,500.
    ``(g) Definitions.--In this section:
            ``(1) Highly qualified.--The term `highly qualified' has 
        the meaning given the term in section 9101 of the Elementary 
and Secondary Education Act of 1965 (Public Law 107-110).
            ``(2) High-need school.--The term `high-need school' has 
        the meaning given the term in section 2304(d) of the Elementary 
        and Secondary Education Act of 1965 (Public Law 107-110).
            ``(3) Year.--The term `year', where applied to service as a 
        teacher, means an academic year as defined by the Secretary.
    ``(h) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section such sums as may be necessary 
for the period of fiscal years 2003 through 2008.''.
    (b) Direct Student Loans.--Part D of title IV of the Higher 
Education Act of 1965 (20 U.S.C. 1087a) is amended by inserting after 
section 460 the following:

``SEC. 460A. EXPANDED LOAN CANCELLATION FOR HIGHLY QUALIFIED TEACHERS 
              OF MATHEMATICS, SCIENCE, AND SPECIAL EDUCATION.

    ``(a) Purpose.--It is the purpose of this section to--
            ``(1) expand, subject to the availability of 
        appropriations, the eligibility of certain highly qualified 
        teachers to qualify for loan cancellation beyond that available 
        under section 460; and
            ``(2) provide additional incentives for highly qualified 
        teachers of mathematics, science, and special education in 
        high-need schools to enter and continue in the teaching 
        profession.
    ``(b) Program Authorized.--
            ``(1) In general.--The Secretary is authorized to cancel 
        the obligation to repay a qualified loan amount in accordance 
        with subsection (c) for Federal Direct Stafford Loans and 
        Federal Direct Unsubsidized Stafford Loans made under this part 
        for any borrower who--
                    ``(A) is a highly qualified, full-time teacher of 
                mathematics, science, or special education at a high-
                need school, and has been so employed for not less than 
                5 consecutive complete school years;
                    ``(B) had mathematics, life or physical sciences, 
                technology, engineering, or special education as an 
                undergraduate academic major or minor, or has a 
                graduate degree in any such field, as certified by the 
                chief administrative officer of the public or nonprofit 
                private school in which the borrower is employed; and
                    ``(C) is not in default on a loan for which the 
                borrower seeks forgiveness.
            ``(2) Selection of recipients.--The Secretary shall 
        promulgate regulations to ensure fairness and equality for 
        applicants in the selection of borrowers for loan cancellation 
        under this section, based on the amount appropriated to carry 
        out this section.
    ``(c) Qualified Loan Amounts.--
            ``(1) In general.--The Secretary is authorized to cancel 
        not more than $17,500 in the aggregate of the loan obligation 
        on 1 or more Federal Direct Stafford Loans or 1 or more Federal 
        Direct Unsubsidized Stafford Loans that are outstanding after 
        the completion of the fifth complete school year of teaching 
        described in subsection (b)(1)(A).
            ``(2) Treatment of consolidation loans.--A loan amount for 
        a Federal Direct Consolidation Loan may be a qualified loan 
        amount for the purposes of this subsection only to the extent 
        that such loan amount was used to repay a Federal Direct 
        Stafford Loan, a Federal Direct Unsubsidized Stafford Loan, or 
        a loan made under section 428 or 428H for a borrower who meets 
        the requirements of subsection (b), as determined in accordance 
        with regulations prescribed by the Secretary.
    ``(d) Regulations.--The Secretary is authorized to issue such 
regulations as may be necessary to carry out the provisions of this 
section.
    ``(e) Construction.--Nothing in this section shall be construed to 
authorize any refunding of any canceled loan.
    ``(f) Additional Eligibility Provisions.--
            ``(1) Continued eligibility.--A highly qualified teacher 
        shall be eligible for loan forgiveness pursuant to subsection 
        (b), if the teacher performs service in a school that--
                    ``(A) meets the definition of a high-need school 
                under subsection (g) in any year during such service; 
                and
                    ``(B) in a subsequent year, fails to meet the 
                definition of a high-need school under subsection (g).
            ``(2) Prevention of double benefits.--
                    ``(A) National service positions.--No borrower may, 
                for the same service, receive a benefit under both this 
                section and subtitle D of title I of the National and 
                Community Service Act of 1990 (42 U.S.C. 12601 et 
                seq.).
                    ``(B) Loan forgiveness and cancellation provisions 
                for teachers.--
                            ``(i) Cancellation.--No borrower may 
                        receive a reduction of loan obligations under 
                        both this section and section 460.
                            ``(ii) Forgiveness.--No borrower may 
                        receive loan cancellation under this section 
                        and loan forgiveness under section 428J or 
                        section 428L that exceeds, in the aggregate, 
                        $17,500.
    ``(g) Definitions.--In this section:
            ``(1) Highly qualified.--The term `highly qualified' has 
        the meaning given the term in section 9101 of the Elementary 
        and Secondary Education Act of 1965 (Public Law 107-110).
            ``(2) High-need school.--The term `high-need school' has 
        the meaning given the term in section 2304(d) of the Elementary 
        and Secondary Education Act of 1965 (Public Law 107-110).
            ``(3) Year.--The term `year', where applied to service as a 
        teacher, means an academic year as defined by the Secretary.
    ``(h) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section such sums as may be necessary 
for the period of fiscal years 2003 through 2008.''.