A bill to preserve mathematics- and science-based industries in the United States.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Math and Science Incentive Act of 
2005''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) The United States can have a secure and prosperous 
        future only by having a robust and inventive scientific and 
        technical enterprise.
            (2) Such an enterprise will require the United States to 
        produce more scientists and engineers.
            (3) The United States education system must do more to 
        encourage students at every level to study science and 
        mathematics and to pursue careers related to those fields.
            (4) The current performance of United States students in 
        science and mathematics lags behind their international peers, 
        and not enough students are pursuing science and mathematics.
            (5) The United States is still reaping the benefits of past 
        investments in research and development and education, but we 
        are drawing down that capital.
            (6) The United States needs to recommit itself to 
        leadership in science, mathematics, and engineering, especially 
        as advances are being made in such areas as nanotechnology.
            (7) A program of loan forgiveness designed to attract 
        students to careers in science, mathematics, engineering, and 
        technology, including teaching careers, can help the United 
        States maintain its technological leadership.

SEC. 3. ESTABLISHMENT OF PROGRAM.

    (a) Program.--
            (1) In general.--The Secretary shall carry out a program of 
        assuming the obligation to pay, pursuant to the provisions of 
        this Act, the interest on a loan made, insured, or guaranteed 
        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.).
            (2) Eligibility.--The Secretary may assume interest 
        payments under paragraph (1) only for a borrower who--
                    (A) has submitted an application in compliance with 
                subsection (d);
                    (B) obtained 1 or more loans described in paragraph 
                (1) as an undergraduate student;
                    (C) is a new borrower (within the meaning of 
                section 103(7) of the Higher Education Act of 1965 (20 
                U.S.C. 1003(7)) on or after the date of enactment of 
                this Act;
                    (D) is a teacher of science, technology, 
                engineering, or mathematics at an elementary school or 
                secondary school, or is a mathematics, science, or 
                engineering professional; and
                    (E) enters into an agreement with the Secretary to 
                complete 5 consecutive years of service in a position 
                described in subparagraph (D), starting on the date of 
                the agreement.
            (3) Prior interest limitations.--The Secretary shall not 
        make any payments for interest that--
                    (A) accrues prior to the beginning of the repayment 
                period on a loan in the case of a loan made under 
                section 428H of the Higher Education Act of 1965 (20 
                U.S.C. 1078-8) or a Federal Direct Unsubsidized 
                Stafford Loan; or
                    (B) has accrued prior to the signing of an 
                agreement under paragraph (2)(E).
            (4) Initial selection.--In selecting participants for the 
        program under this Act, the Secretary--
                    (A) shall choose among eligible applicants on the 
                basis of--
                            (i) the national security, homeland 
                        security, and economic security needs of the 
                        United States, as determined by the Secretary, 
                        in consultation with other Federal agencies, 
                        including the Departments of Labor, Defense, 
                        Homeland Security, Commerce, and Energy, the 
                        Central Intelligence Agency, and the National 
                        Science Foundation; and
                            (ii) the academic record or job performance 
                        of the applicant; and
                    (B) may choose among eligible applicants on the 
                basis of--
                            (i) the likelihood of the applicant to 
                        complete the 5-year service obligation;
                            (ii) the likelihood of the applicant to 
                        remain in science, mathematics, or engineering 
                        after the completion of the service 
                        requirement; or
                            (iii) other relevant criteria determined by 
                        the Secretary.
            (5) Availability subject to appropriations.--Loan interest 
        payments under this Act shall be subject to the availability of 
        appropriations. If the amount appropriated for any fiscal year 
        is not sufficient to provide interest payments on behalf of all 
        qualified applicants, the Secretary shall give priority to 
        those individuals on whose behalf interest payments were made 
        during the preceding fiscal year.
            (6) Regulations.--The Secretary is authorized to prescribe 
        such regulations as may be necessary to carry out the 
        provisions of this section.
    (b) Duration and Amount of Interest Payments.--The period during 
which the Secretary shall pay interest on behalf of a student borrower 
who is selected under subsection (a) is the period that begins on the 
effective date of the agreement under subsection (a)(2)(E), continues 
after successful completion of the service obligation, and ends on the 
earlier of--
            (1) the completion of the repayment period of the loan;
            (2) payment by the Secretary of a total of $10,000 on 
        behalf of the borrower;
            (3) if the borrower ceases to fulfill the service 
        obligation under such agreement prior to the end of the 5-year 
        period, as soon as the borrower is determined to have ceased to 
        fulfill such obligation in accordance with regulations of the 
        Secretary; or
            (4) 6 months after the end of any calendar year in which 
        the borrower's gross income equals or exceeds 4 times the 
        national per capita disposable personal income (current 
        dollars) for such calendar year, as determined on the basis of 
        the National Income and Product Accounts Tables of the Bureau 
        of Economic Analysis of the Department of Commerce, as 
        determined in accordance with regulations prescribed by the 
        Secretary.
    (c) Repayment to Eligible Lenders.--Subject to the regulations 
prescribed by the Secretary pursuant to subsection (a)(6), the 
Secretary shall pay to each eligible lender or holder for each payment 
period the amount of the interest that accrues on a loan of a student 
borrower who is selected under subsection (a).
    (d) Application for Repayment.--
            (1) In general.--Each eligible individual desiring loan 
        interest payment under this section shall submit a complete and 
        accurate application to the Secretary at such time, in such 
        manner, and containing such information as the Secretary may 
        require.
            (2) Failure to complete service agreement.--Such 
        application shall contain an agreement by the individual that, 
        if the individual fails to complete the 5 consecutive years of 
        service required by subsection (a)(2)(E), the individual agrees 
        to repay the Secretary the amount of any interest paid by the 
        Secretary on behalf of the individual.
    (e) Treatment of Consolidation Loans.--A consolidation loan made 
under section 428C of the Higher Education Act of 1965 (20 U.S.C. 1078-
3), or a Federal Direct Consolidation Loan made under part D of title 
IV of such Act (20 U.S.C. 1087a et seq.), may be a loan for which 
interest is paid pursuant to this section only to the extent that such 
loan amount was used by a borrower who otherwise meets the requirements 
of this section to repay--
            (1) a loan made under section 428 or 428H of such Act (20 
        U.S.C. 1078 and 1078-8); or
            (2) a Federal Direct Stafford Loan, or a Federal Direct 
        Unsubsidized Stafford Loan, made under part D of title IV of 
        such Act (20 U.S.C. 1087a et seq.).
    (f) Prevention of Double Benefits.--No borrower may, for the same 
service, receive a benefit under both this section and--
            (1) any loan forgiveness program under title IV of the 
        Higher Education Act of 1965 (20 U.S.C. 1070 et seq.); or
            (2) subtitle D of title I of the National and Community 
        Service Act of 1990 (42 U.S.C. 12571 et seq.).

SEC. 4. DEFINITIONS.

    As used in this Act--
            (1) the term ``Secretary'' means the Secretary of 
        Education; and
            (2) the term ``mathematics, science, or engineering 
        professional'' means a person who--
                    (A) holds a baccalaureate, masters, or doctoral 
                degree (or a combination thereof) in science, 
                mathematics, or engineering; and
                    (B) works in a field the Secretary determines is 
                closely related to that degree, which shall include 
                working as a professor at a 2- or 4-year institution of 
                higher education.

SEC. 5. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to carry out this Act such 
sums as may be necessary for fiscal year 2006 and for each of the 5 
succeeding fiscal years.

Summary: Math and Science Incentive Act of 2005 - Directs the Secretary of Education to carry out a program of assuming the obligation to pay up to $10,000 of interest on certain student loans under the Higher Education Act of 1965, for certain borrowers who agree to serve for five years as: (1) teachers of science, technology, engineering or mathematics at an elementary or secondary school. Or (2) mathematics, science or engineering professionals. Requires that selection of program participants from among eligible applicants be based on: (1) US national security, homeland security, and economic security needs. And (2) the applicant's academic record or job performance. Allows other factors to be considered in such selection.