A bill to amend the Higher Education Act of 1965 to improve the loan forgiveness program for child care providers, including preschool teachers, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Paul Wellstone Early Educator Loan 
Forgiveness Act''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1)(A) The first 5 years of a child's life are a time of 
        momentous change.
            (B) Research shows that a child's brain size doubles 
        between birth and age 3.
            (2) New scientific research shows that the electrical 
        activity of the brain cells actually changes the physical 
        structure of the brain, and that without a stimulating 
        environment, a baby's brain suffers.
            (3) Research also indicates that there is a connection 
        between the cognitive, social, emotional, and physical 
        stimulation young children receive from their early childhood 
        teachers and caregivers and success in learning, school 
        readiness, and intellectual growth. There are important short- 
        and long-term effects of that stimulation on cognition and 
        social development.
            (4) High quality early childhood education correlates with 
        better language development, mathematics abilities, and social 
        skills.
            (5) 11,900,000 children younger than age 5 spend part of 
        their time with a child care provider other than a parent. By 
        2000, 64 percent of 3- to 5-year-olds were enrolled in some 
        type of preschool program. Demand for child care is growing as 
        more mothers enter the workforce.
            (6) Good quality child care, in a healthy and safe 
        environment, with trained, caring providers who provide age-
        appropriate, developmentally appropriate, and effective 
        activities, helps children grow and thrive. Recent research 
        shows that most child care needs significant improvement.
            (7) Good quality child care depends largely on the 
        provider, yet providers of child care earn on average $7.86 per 
        hour, or $16,350 per year. Such earnings cause high annual 
        turnover, up to 31 percent of the staff in some child care 
        programs. High turnover affects the overall quality of a child 
        care program and causes anxiety for children.
            (8) Children attending lower quality child care programs 
        and child care programs with high staff turnover are less 
        competent in language and social development than other 
        children.
            (9) The quality of child care is primarily related to high 
        staff-to-child ratios, staff education, professional 
        development, and administrators' prior experience. In addition, 
        certain characteristics distinguish poor, mediocre, and good 
        quality child care programs, the most important of which are 
        teacher wages, education, and specialized training.
            (10) Each State requires kindergarten teachers to hold at 
        least a bachelor's degree and certificate in early childhood 
        education. Only 20 States and the District of Columbia require 
        teachers in prekindergarten programs to satisfy those 
        requirements. Thirty States allow caregivers with no previous 
        training to work in child care programs.

SEC. 3. LOAN FORGIVENESS FOR CHILD CARE PROVIDERS.

    Section 428K of the Higher Education Act of 1965 (20 U.S.C. 1078-
11) is amended to read as follows:

``SEC. 428K. LOAN FORGIVENESS FOR CHILD CARE PROVIDERS.

    ``(a) Purposes.--The purposes of this section are--
            ``(1) to bring more highly trained individuals into the 
        early child care profession; and
            ``(2) to keep more highly trained child care providers in 
        the early child care field for longer periods of time.
    ``(b) Definitions.--In this section:
            ``(1) Child care facility.--The term `child care facility' 
        means a facility, including a home, that--
                    ``(A) provides child care services; and
                    ``(B) meets applicable State or local government 
                licensing, certification, approval, or registration 
                requirements, if any.
            ``(2) Child care services.--The term `child care services' 
        means activities and services provided for the education and 
care of children from birth through age 5 by an individual who has a 
degree in early childhood education, including a preschool teacher.
            ``(3) Degree.--The term `degree' means an associate's or 
        bachelor's degree awarded by an institution of higher 
        education.
            ``(4) Early childhood education.--The term `early childhood 
        education' means education in the area of early child 
        development and education, or any other educational area 
        related to early child development and education or child care, 
        that the Secretary determines to be appropriate.
            ``(5) Eligible preschool program provider.--The term 
        `eligible preschool program provider' means a preschool program 
        provider serving children younger than the age of compulsory 
        school attendance in the State that is--
                    ``(A) a public or private school;
                    ``(B) a provider that is supported, sponsored, 
                supervised, or administered by a local educational 
                agency;
                    ``(C) a Head Start agency designated under the Head 
                Start Act (42 U.S.C. 9831 et seq.);
                    ``(D) a nonprofit or community-based organization; 
                or
                    ``(E) a licensed child care center or family child 
                care provider.
            ``(6) Institution of higher education.--Notwithstanding 
        section 102, the term `institution of higher education' has the 
        meaning given the term in section 101.
            ``(7) Preschool teacher.--The term `preschool teacher' 
        means an individual--
                    ``(A) who has received at least an associate's 
                degree in early childhood education and who is working 
                toward or who has already received a bachelor's degree 
                in early childhood education; and
                    ``(B) who works for an eligible preschool program 
                provider supporting the children's cognitive, social, 
                emotional, and physical development to prepare the 
                children for the transition to kindergarten.
    ``(c) Loan Forgiveness.--
            ``(1) In general.--The Secretary may carry out a program of 
        assuming the obligation to repay, pursuant to subsection (d), a 
        loan made, insured, or guaranteed under this part, part D 
        (excluding loans made under sections 428B and 428C or 
        comparable loans made under part D), or part E for any new 
        borrower after the date of enactment of the Higher Education 
        Amendments of 1998, who--
                    ``(A) receives a degree in early childhood 
                education;
                    ``(B) obtains employment in a child care facility, 
                such as employment as a preschool teacher; and
                    ``(C) has been employed full time, for the 2 
                consecutive years preceding the year for which the 
                determination is made, as a provider of child care 
                services in a child care facility in a low-income 
                community.
            ``(2) Low-income community.--In this subsection, the term 
        `low-income community' means a community in which 70 percent of 
        households earn less than 85 percent of the State median 
        household income.
            ``(3) Award basis; priority.--
                    ``(A) Award basis.--Subject to subparagraph (B), 
                loan repayment under this section shall be on a first-
                come, first-served basis and subject to the 
                availability of appropriations.
                    ``(B) Priority.--The Secretary shall give priority 
                in providing loan repayment under this section for a 
                fiscal year to student borrowers who received loan 
                repayment under this section for the preceding fiscal 
                year.
            ``(4) Regulations.--The Secretary is authorized to 
        prescribe such regulations as may be necessary to carry out the 
        provisions of this section.
    ``(d) Loan Repayment.--
            ``(1) In general.--The Secretary shall assume the 
        obligation to repay--
                    ``(A) after the second consecutive year of 
                employment described in subparagraphs (B) and (C) of 
                subsection (c)(1), 20 percent of the total amount of 
                all loans described in subsection (c)(1) and made after 
                the date of enactment of the Higher Education 
                Amendments of 1998, to a student;
                    ``(B) after the third consecutive year of such 
                employment, 20 percent of the total amount of all such 
                loans; and
                    ``(C) after each of the fourth and fifth 
                consecutive years of such employment, 30 percent of the 
                total amount of all such loans.
            ``(2) Construction.--Nothing in this section shall be 
        construed to authorize the refunding of any repayment of a loan 
        made, insured, or guaranteed under this part, part D, or part 
        E.
            ``(3) Interest.--If a portion of a loan is repaid by the 
        Secretary under this section for any year, the proportionate 
        amount of interest on such loan that accrues for such year 
        shall be repaid by the Secretary.
            ``(4) Special rule.--In the case in which a student 
        borrower who is not participating in loan repayment pursuant to 
        this section returns to an institution of higher education 
        after graduation from an institution of higher education for 
        the purpose of obtaining a degree in early childhood education, 
        the Secretary is authorized to assume the obligation to repay 
        the total amount of loans described in subsection (c)(1) and 
        incurred for a maximum of 2 academic years in returning to the 
        institution of higher education for the purpose of obtaining 
        the degree in early childhood education. Such loans shall only 
        be repaid for borrowers who qualify for loan repayment pursuant 
        to the provisions of this section, and shall be repaid in 
        accordance with the provisions of paragraph (1).
            ``(5) Ineligibility of national service award recipients.--
        No student 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.).
    ``(e) Repayment to Eligible Lenders and Holders.--The Secretary 
shall pay to each eligible lender or holder for each fiscal year an 
amount equal to the aggregate amount of the lender's or holder's loans 
that are subject to repayment pursuant to this section for such year.
    ``(f) Application for Repayment.--
            ``(1) In general.--Each eligible individual desiring loan 
        repayment 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) Conditions.--An eligible individual may apply for 
        loan repayment under this section after completing each of the 
        second through the fifth consecutive years of qualifying 
        employment described in subsection (d)(1). The borrower shall 
        receive forbearance while engaged in qualifying employment 
        described in subsection (d)(1) unless the borrower is in 
        deferment while so engaged.
    ``(g) Evaluation.--
            ``(1) In general.--The Secretary shall conduct, by grant or 
        contract, an independent national evaluation of the impact of 
        the program assisted under this section on the field of early 
        childhood education.
            ``(2) Competitive basis.--The grant or contract described 
        in paragraph (1) shall be awarded on a competitive basis.
            ``(3) Contents.--The evaluation described in this 
        subsection shall--
                    ``(A) determine the number of individuals who were 
                encouraged by the program assisted under this section 
                to pursue early childhood education;
                    ``(B) determine the number of individuals who 
                remain employed in a child care facility as a result of 
                participation in the program;
                    ``(C) identify the barriers to the effectiveness of 
                the program;
                    ``(D) assess the cost-effectiveness of the program 
                in improving the quality of--
                            ``(i) early childhood education; and
                            ``(ii) child care services;
                    ``(E) identify the reasons why participants in the 
                program have chosen to take part in the program;
                    ``(F) identify the number of individuals 
                participating in the program who received an 
                associate's degree and the number of such individuals 
                who received a bachelor's degree; and
                    ``(G) identify the number of years each individual 
                participated in the program.
            ``(4) Interim and final evaluation reports.--The Secretary 
        shall prepare and submit to the President and Congress such 
        interim reports regarding the evaluation described in this 
        subsection as the Secretary determines to be appropriate, and 
        shall prepare and so submit a final report regarding the 
        evaluation by January 1, 2007.
    ``(h) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $25,000,000 for fiscal year 
2004, and such sums as may be necessary for each of the 4 succeeding 
fiscal years.''.

Summary: Paul Wellstone Early Educator Loan Forgiveness Act - Amends the Higher Education Act of 1965 to revise the student loan forgiveness program for child care providers to include preschool teachers. Requires such teachers to: (1) have received at least an associate's degree, and be working toward or have already received a bachelor's degree, in early childhood education. And (2) work for an eligible preschool program provider to prepare the children for transition to kindergarten.