To increase the amount of student loan forgiveness available to qualified teachers, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Canceling Loans to Allow School 
Systems to Attract Classroom Teachers Act''.

SEC. 2. ADDITIONAL QUALIFIED LOAN AMOUNTS FOR STUDENT LOAN FORGIVENESS.

    (a) FFEL Loans.--Section 428J(c) of the Higher Education Act of 
1965 (20 U.S.C. 1078-10(c)) is amended by adding at the end the 
following new paragraph:
            ``(3) Additional amounts; priority.--
                    ``(A) Larger amounts from appropriated funds.--
                Notwithstanding the amount specified in paragraph (1), 
                the aggregate amount that the Secretary may, from funds 
                appropriated under subparagraph (C), repay under this 
                section is a total amount equal to not more than 
                $17,500.
                    ``(B) Award basis; priority.--The Secretary shall 
                make payments under this paragraph to elementary or 
                secondary school teachers who meet the requirements of 
                subsection (b) on a first-come first-served basis, 
                subject to the availability of appropriations, but 
                shall give priority in providing loan repayment under 
                this paragraph for a fiscal year to teachers who--
                            ``(i)(I) are employed as special education 
                        teachers whose primary responsibility is to 
                        teach or support children with disabilities (as 
                        defined in section 602 of the Individuals with 
                        Disabilities Act); and
                            ``(II) as certified by the chief 
                        administrative officer of the public or 
                        nonprofit private elementary or secondary 
                        school in which the borrower is employed, are 
                        teaching children with disabilities that 
                        correspond with the borrower's training and 
                        have demonstrated knowledge and teaching skills 
                        in the content areas of the elementary or 
                        secondary school curriculum that the borrower 
                        is teaching;
                            ``(ii) are employed as teachers in local 
                        educational agencies that are determined by a 
                        State educational agency under section 2141 of 
                        the Elementary and Secondary Education Act of 
                        1965 to have failed to make progress toward 
                        meeting the annual measurable objectives 
                        described in section 1119(a)(2) of such Act for 
                        2 consecutive years; or
                            ``(iii) are employed as teachers of 
                        mathematics or science.
                    ``(C) Authorization of appropriations.--There are 
                authorized to be appropriated to carry out this 
                paragraph such sums as may be necessary for fiscal year 
                2003 and for each of the 4 succeeding fiscal years.''.
    (b) Direct Loans.--Section 460(c) of the Higher Education Act of 
1965 (20 U.S.C. 1087j(c)) is amended by adding at the end the following 
new paragraph:
            ``(3) Additional amounts; priority.--
                    ``(A) Larger amounts from appropriated funds.--
                Notwithstanding the amount specified in paragraph (1), 
                the aggregate amount that the Secretary may, from funds 
                appropriated under subparagraph (C), repay under this 
                section is a total amount equal to not more than 
                $17,500.
                    ``(B) Award basis; priority.--The Secretary shall 
                make payments under this paragraph to elementary or 
                secondary school teachers who meet the requirements of 
                subsection (b) on a first-come first-served basis, 
                subject to the availability of appropriations, but 
                shall give priority in providing loan repayment under 
                this paragraph for a fiscal year to teachers who--
                            ``(i)(I) are employed as special education 
                        teachers whose primary responsibility is to 
                        teach or support children with disabilities (as 
                        defined in section 602 of the Individuals with 
                        Disabilities Act); and
                            ``(II) as certified by the chief 
                        administrative officer of the public or 
                        nonprofit private elementary or secondary 
                        school in which the borrower is employed, are 
                        teaching children with disabilities that 
                        correspond with the borrower's training and 
                        have demonstrated knowledge and teaching skills 
                        in the content areas of the elementary or 
                        secondary school curriculum that the borrower 
                        is teaching;
                            ``(ii) are employed as teachers in local 
                        educational agencies that are determined by a 
                        State educational agency under section 2141 of 
                        the Elementary and Secondary Education Act of 
                        1965 to have failed to make progress toward 
                        meeting the annual measurable objectives 
                        described in section 1119(a)(2) of such Act for 
                        2 consecutive years; or
                            ``(iii) are employed as teachers of 
                        mathematics or science.
                    ``(C) Authorization of appropriations.--There are 
                authorized to be appropriated to carry out this 
                paragraph such sums as may be necessary for fiscal year 
                2003 and for each of the 4 succeeding fiscal years.''.

SEC. 3. CANCELLATION OF STUDENT LOAN INDEBTEDNESS FOR SPOUSES, 
              SURVIVING JOINT DEBTORS, AND PARENTS.

    (a) Definitions.--For purposes of this section:
            (1) Eligible public servant.--The term ``eligible public 
        servant'' means an individual who--
                    (A) served as a police officer, firefighter, other 
                safety or rescue personnel, or as a member of the Armed 
                Forces; and
                    (B) died (or dies) or became (or becomes) 
                permanently and totally disabled due to injuries 
                suffered in the terrorist attack on September 11, 2001;
        as determined in accordance with regulations of the Secretary.
            (2) Eligible victim.--The term ``eligible victim'' means an 
        individual who died (or dies) or became (or becomes) 
        permanently and totally disabled due to injuries suffered in 
        the terrorist attack on September 11, 2001, as determined in 
        accordance with regulations of the Secretary.
            (3) Eligible spouse.--The term ``eligible spouse'' means 
        the spouse of an eligible public servant, as determined in 
        accordance with regulations of the Secretary.
            (4) Eligible surviving debtor.--The term ``eligible 
        surviving debtor'' means an individual who owes a Federal 
        student loan that is a consolidation loan that was used, 
        jointly by that individual and an eligible victim, to repay the 
        Federal student loans of that individual and of such eligible 
        victim.
            (5) Eligible parent.--The term ``eligible parent'' means 
        the parent of an eligible victim if--
                    ``(A) the parent owes a Federal student loan that 
                is a consolidation loan that was used to repay a PLUS 
                loan incurred on behalf of such eligible victim; or
                    ``(B) the parent owes a Federal student loan that 
                is a PLUS loan incurred on behalf of an eligible victim 
                who became (or becomes) permanently and totally 
                disabled due to injuries suffered in the terrorist 
                attack on September 11, 2001.
            (6) Secretary.--The term ``Secretary'' means the Secretary 
        of Education.
            (7) Federal student loan.--The term ``Federal student 
        loan'' means any loan made, insured, or guaranteed under part 
        B, D, or E of title IV of the Higher Education Act of 1965.
    (b) Relief From Indebtedness.--
            (1) In general.--The Secretary shall provide for the 
        discharge or cancellation of--
                    (A) the Federal student loan indebtedness of an 
                eligible spouse;
                    (B) the consolidation loan indebtedness of an 
                eligible surviving debtor;
                    (C) the portion of the consolidation loan 
                indebtedness of an eligible parent that was incurred on 
                behalf of an eligible victim, if the amount of such 
                indebtedness with respect to such eligible victim may 
                be reliably determined on the basis of records 
                available to the lender; and
                    (D) the PLUS loan indebtedness of an eligible 
                parent that was incurred on behalf of an eligible 
                victim described in subsection (a)(5)(B).
            (2) Method of discharge or cancellation.--A loan required 
        to be discharged or canceled under paragraph (1) shall be 
        discharged or canceled by the method used under section 437(a), 
        455(a)(1), or 464(c)(1)(F) of the Higher Education Act of 1965 
        (20 U.S.C. 1087(a), 1087e(a)(1), 1087dd(c)(1)(F)), whichever is 
        applicable to such loan.
    (c) Facilitation of Claims.--The Secretary shall--
            (1) establish procedures for the filing of applications for 
        discharge or cancellation under this section by regulations 
        that shall be prescribed and published within 90 days after the 
        date of enactment of this Act and without regard to the 
        requirements of section 553 of title 5, United States Code; and
            (2) take such actions as may be necessary to publicize the 
        availability of discharge or cancellation of Federal student 
        loan indebtedness for eligible spouses, eligible surviving 
        debtors, and eligible parents under this section.
    (d) Availability of Funds for Payments.--Funds available for the 
purposes of making payments to lenders in accordance with section 
437(a) for the discharge of indebtedness of deceased or disabled 
individuals shall be available for making payments under section 437(a) 
to lenders of loans to the eligible spouses, eligible surviving 
debtors, and eligible parents as required by this section.
    (e) Applicable to Outstanding Debt.--The provisions of this section 
shall be applied to discharge or cancel only Federal student loans 
(including consolidation loans) on which amounts were owed on September 
11, 2001.

SEC. 4. INFORMATION ON BENEFITS TO RURAL SCHOOL DISTRICTS.

    The Secretary shall--
            (1) notify local educational agencies eligible to 
        participate in the Small Rural Achievement Program authorized 
        under subpart 1 of part B of Title VI of the Elementary and 
        Secondary Education of 1965 of the benefits available under the 
        amendments made by section 2 of this Act to the teachers in the 
        rural schools of such agencies; and
            (2) encourage such agencies to notify their teachers of 
        such benefits.

            Passed the House of Representatives October 1, 2002.

            Attest:

                                                 JEFF TRANDAHL,

                                                                 Clerk.

Summary: Canceling Loans to Allow School Systems to Attract Classroom Teachers Act - Amends the Higher Education Act of 1965 (HEA) to provide for additional amounts of student loan forgiveness for certain elementary and secondary school teachers. Directs the Secretary of Education, in making such additional repayments, to give priority to teachers of: (1) special education for children with disabilities, if they are certified as having knowledge and skills in their content areas and are employed by local educational agencies that have failed to make progress toward meeting certain objectives. Or (2) mathematics or science. Directs the Secretary of Education to discharge or cancel the Federal student loan indebtedness, under HEA, of spouses, surviving joint debtors, and parents of public servants and other individuals who died or who became permanently and totally disabled from injuries suffered in the terrorist attacks on September 11, 2001. Requires the Secretary to notify local educational agencies eligible for the Small Rural Achievement Program, under the Elementary and Secondary Education of 1965, of this Act's making available additional amounts of student loan forgiveness to teachers in their rural schools, and to encourage such agencies to notify their teachers of such benefits.