A bill to amend the Higher Education Act of 1965 in order to provide funding for student loan repayment for civil legal assistance attorneys.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Civil Legal Assistance Attorney Loan 
Repayment Act''.

SEC. 2. LOAN REPAYMENT FOR CIVIL LEGAL ASSISTANCE ATTORNEYS.

    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. LOAN REPAYMENT FOR CIVIL LEGAL ASSISTANCE ATTORNEYS.

    ``(a) Purpose.--The purpose of this section is to encourage 
qualified individuals to enter and continue employment as civil legal 
assistance attorneys.
    ``(b) Definitions.--In this section:
            ``(1) Civil legal assistance attorney.--The term `civil 
        legal assistance attorney' means an attorney who--
                    ``(A) is a full-time employee of a nonprofit 
                organization that provides legal assistance with 
                respect to civil matters to low-income individuals 
                without a fee;
                    ``(B) as such employee, provides civil legal 
                assistance as described in subparagraph (A) on a full-
                time basis; and
                    ``(C) is continually licensed to practice law.
            ``(2) Student loan.--The term `student loan' means--
                    ``(A) subject to subparagraph (B), a loan made, 
                insured, or guaranteed under part B, D, or E of this 
                title; and
                    ``(B) a loan made under section 428C or 455(g), to 
                the extent that such loan was used to repay--
                            ``(i) a Federal Direct Stafford Loan, a 
                        Federal Direct Unsubsidized Stafford Loan, or a 
                        Federal Direct PLUS Loan;
                            ``(ii) a loan made under section 428, 428B, 
                        or 428H; or
                            ``(iii) a loan made under part E.
    ``(c) Program Authorized.--The Secretary shall carry out a program 
of assuming the obligation to repay a student loan, by direct payments 
on behalf of a borrower to the holder of such loan, in accordance with 
subsection (d), for any borrower who--
            ``(1) is employed as a civil legal assistance attorney; and
            ``(2) is not in default on a loan for which the borrower 
        seeks repayment.
    ``(d) Terms of Agreement.--
            ``(1) In general.--To be eligible to receive repayment 
        benefits under subsection (c), a borrower shall enter into a 
        written agreement with the Secretary that specifies that--
                    ``(A) the borrower will remain employed as a civil 
                legal assistance attorney for a required period of 
                service of not less than 3 years, unless involuntarily 
                separated from that employment;
                    ``(B) if the borrower is involuntarily separated 
                from employment on account of misconduct, or 
                voluntarily separates from employment, before the end 
                of the period specified in the agreement, the borrower 
                will repay the Secretary the amount of any benefits 
                received by such employee under this agreement;
                    ``(C) if the borrower is required to repay an 
                amount to the Secretary under subparagraph (B) and 
                fails to repay such amount, a sum equal to that amount 
                shall be recoverable by the Federal Government from the 
                employee by such methods as are provided by law for the 
                recovery of amounts owed to the Federal Government;
                    ``(D) the Secretary may waive, in whole or in part, 
                a right of recovery under this subsection if it is 
                shown that recovery would be against equity and good 
                conscience or against the public interest; and
                    ``(E) the Secretary shall make student loan 
                payments under this section for the period of the 
                agreement, subject to the availability of 
                appropriations.
            ``(2) Repayments.--
                    ``(A) In general.--Any amount repaid by, or 
                recovered from, an individual under this subsection 
                shall be credited to the appropriation account from 
                which the amount involved was originally paid.
                    ``(B) Merger.--Any amount credited under 
                subparagraph (A) shall be merged with other sums in 
                such account and shall be available for the same 
                purposes and period, and subject to the same 
                limitations, if any, as the sums with which the amount 
                was merged.
            ``(3) Limitations.--
                    ``(A) Student loan payment amount.--Student loan 
                repayments made by the Secretary under this section 
                shall be made subject to such terms, limitations, or 
                conditions as may be mutually agreed upon by the 
                borrower and the Secretary in an agreement under 
                paragraph (1), except that the amount paid by the 
                Secretary under this section shall not exceed--
                            ``(i) $6,000 for any borrower in any 
                        calendar year; or
                            ``(ii) an aggregate total of $40,000 in the 
                        case of any borrower.
                    ``(B) Beginning of payments.--Nothing in this 
                section shall authorize the Secretary to pay any amount 
                to reimburse a borrower for any repayments made by such 
                borrower prior to the date on which the Secretary 
                entered into an agreement with the borrower under this 
                subsection.
    ``(e) Additional Agreements.--
            ``(1) In general.--On completion of the required period of 
        service under an agreement under subsection (d), the borrower 
        and the Secretary may, subject to paragraph (2), enter into an 
        additional agreement in accordance with subsection (d).
            ``(2) Term.--An agreement entered into under paragraph (1) 
        may require the borrower to remain employed as a civil legal 
        assistance attorney for less than 3 years.
    ``(f) Award Basis; Priority.--
            ``(1) Award basis.--Subject to paragraph (2), the Secretary 
        shall provide repayment benefits under this section on a first-
        come, first-served basis, and subject to the availability of 
        appropriations.
            ``(2) Priority.--The Secretary shall give priority in 
        providing repayment benefits under this section in any fiscal 
        year to a borrower who--
                    ``(A) has practiced law for 5 years or less and, 
                for at least 90 percent of the time in such practice, 
                has served as a civil legal assistance attorney;
                    ``(B) received repayment benefits under this 
                section during the preceding fiscal year; and
                    ``(C) has completed less than 3 years of the first 
                required period of service specified for the borrower 
                in an agreement entered into under subsection (d).
    ``(g) Regulations.--The Secretary is authorized to issue such 
regulations as may be necessary to carry out the provisions of this 
section.
    ``(h) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $10,000,000 for fiscal year 2008 
and such sums as may be necessary for each succeeding fiscal year.''.

Summary: Civil Legal Assistance Attorney Loan Repayment Act - Amends the Higher Education Act of 1965 to direct the Secretary of Education to make payments to holders of student loans under the Federal Family Education Loan, Direct Loan, and Perkins Loan programs on behalf of civil legal assistance attorneys for the duration of agreements between the Secretary and such attorneys that require their continued employment in such capacity for at least three years. Authorizes the Secretary to enter into additional agreements with civil legal assistance attorneys who have completed their service obligation.