59–010 

Calendar No. 111 

110TH CONGRESS REPORT " ! SENATE 1st Session 110–46 

RECRUITING AND RETAINING MORE QUALIFIED INDIVIDUALS TO TEACH IN TRIBAL COLLEGES OR UNIVERSITIES 

APRIL 10, 2007.—Ordered to be printed 

Mr. DORGAN, from the Committee on Indian Affairs, 

submitted the following 

R E P O R T 

[To accompany S. 481] 

The Committee on Indian Affairs, to which was referred the bill 

(S. 481), to recruit and retain more qualified individuals to teach 

in tribal colleges or universities, having considered the same, reports favorably thereon and recommends that the bill do pass. 

PURPOSE

The purpose of S. 481 is to provide recruitment and retention incentives by authorizing forgiveness for up to five years on a graduated basis of certain Federal student loans for qualified faculty 

members who teach at tribal colleges or universities. 

BACKGROUND

Tribal Colleges and Universities. In 1968, the Navajo Nation created the first tribally controlled college. In response to the need for 

higher education opportunities by tribal members and the local 

communities, several other Indian tribes followed suit. Today, there 

are 35 tribal colleges and universities located in 13 states. Tribal 

colleges and universities provide higher education and other supporting courses to prepare students for their academic progressions, such as high school completion courses, basic remediation 

courses, job training and college preparatory courses and adult education programs. They also serve other community needs, such as 

language and cultural preservation. 

Despite many challenges, tribal colleges and universities have 

had tremendous success. It is estimated that approximately 30,000 

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1Testimony of the American Indian Higher Education Consortium before the Senate Committee on Indian Affairs, June 16, 2005. 2Status and Trends in the Education of American Indians and Alaska Natives, National Center for Education Statistics, Department of Education, 2005. 3 Building Strong Communities: Tribal Colleges as Engaged Institutions. Prepared by: American Indian Higher Education Consortium & the Institute for Higher Education Policy, April 

2001. 4 Integrated Post-secondary Education Data, Faculty Salaries Survey & Employees by Assigned Position, Department of Education, 2004. (Analysis prepared by the American Indian 

Higher Education Consortium.) 5 Integrated Post-secondary Education Data, Fall Staff, Department of Education, 2004. (Analysis prepared by the American Indian Higher Education Consortium). 

students representing 250 Federally recognized tribes are enrolled 

at tribal colleges and universities.1 Total enrollment at tribal colleges and universities grew by 17 percent from 1997 to 2002.2

Funding. The Federal government has repeatedly recognized the 

unique relationship between the United States and Indian tribes 

through treaties, executive orders, laws, and court decisions. As a 

result of this unique relationship, the Federal government provides 

funding to tribal colleges and universities. In fact, the majority of 

funding for tribal colleges and universities is derived from the Federal government. 

Federal funding for tribal colleges and universities is distributed 

on a grant basis. Although basic operating funding is calculated on 

the number of full-time Indian students, some funding is distributed evenly on a per institution basis. Non-Indian students also attend tribal colleges and universities; however, these students are 

not included in the calculation of basic operating funds provided by 

the Federal government. Despite the attendance by non-Indian students at tribal colleges and universities, most states do not provide 

funding to tribal colleges and universities for those students, even 

though such funding would be available to state schools if those 

same students attended state schools. Tribal colleges and universities have reported to the Committee that when states do provide 

funding, it is often minimal. Many of the tribal colleges and universities are located in tribal communities that do not have sufficient 

resources to fund government operations as well as support tribal 

colleges. 

Unique Challenges. Funding educational services is not the only 

challenge facing tribal colleges and universities. These schools also 

experience difficulties in recruiting and retaining qualified faculty. 

Lower than average salaries at tribal colleges and universities do 

not contribute to a favorable recruiting environment. For example, 

in academic year 1997–1998, it was reported that the average sal- ary at tribal colleges was $30,241, whereas the average salary was 

$45,919 at other public two-year institutions.3 The most recent 

data indicate that the average faculty staff size at tribal colleges 

and universities is 46, with an average annual salary of approximately $33,500.4

Tribal colleges and universities also face frequent turnover 

among faculty. Data collected by the American Indian Higher Education Consortium reveal that in 2000–2001, 56 percent of tribal 

college and university faculty served for 5 years or less. In 2004, 

tribal colleges and universities averaged 11.2 new staff, of which 

5.4 were newly hired faculty.5 With the smaller staff sizes, the 

turnover rates magnify the challenges. While no uniform model for 

studying faculty turnover rates among mainstream colleges and 

universities across the country exists, some researchers have specumstockstill on PROD1PC66 with HEARING

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6Faculty Turnover at the University of Tennessee. Don Scroggins, Office of Institutional Research and Assessment, January, 2004. 

lated that, on average, a 3.3 percent per year turnover rate is likely, which over five years means a loss of approximately 16.5 percent of faculty.6

Tribal colleges and universities are often located in rural, remote 

areas, which also impacts the recruitment and retention efforts. 

Three tribal colleges or universities are located in 3 of the 5 poorest 

counties in the United States. In addition to the lower salaries, 

high turnover and remoteness, tribal colleges and universities have 

identified other barriers to recruiting and retaining faculty, including inadequate housing, high workloads, multiple and fluctuating 

job responsibilities, and limited faculty development. 

Recruitment and Retention Incentives in S. 481. These challenges 

indicate that recruitment and retention incentives are needed for 

tribal colleges and universities. Existing law authorizes Federal 

Perkins student loans to be canceled on a graduated basis for certain full-time teachers, including teachers at public or other nonprofit private elementary and secondary schools; at certain Head 

Start programs; and at public or other nonprofit elementary and 

secondary schools which provide special education or other early 

intervention services. Moreover, full-time nurses or medical technicians providing health care services and certain other individuals 

are also eligible for a graduated waiver of student loans. S. 481 extends this program to full-time faculty members at tribal colleges 

and universities. 

The Federal Family Education Loan Program (FFEL) governs 

the Federal Stafford Loan Program, the Federal Parent Loans for 

Undergraduate Students Program, and the Federal Consolidated 

Loan Program. Under this program, certain teachers may be eligible for a portion of their FFEL loans to be forgiven. Similarly, this 

bill would authorize the Secretary of the Department of Education 

to forgive, on a graduated basis, certain FFEL loans made to students who become full-time faculty members at tribal colleges and 

universities. 

Finally, existing law also authorizes a graduated cancellation of 

student loans for individuals who have received college degrees in 

nursing and who agree to serve as a nurse for not less than 2 years 

at a health care facility with a critical shortage of nurses. This bill 

would authorize nurses who agree to teach as a nursing instructor 

at a tribal college or university to also be eligible for student loan 

cancellation on a graduated basis. 

SECTION-BY-SECTION ANALYSIS

Section 1. Short title 

This section provides the short title of the bill as the ‘‘Tribal Colleges and Universities Faculty Loan Forgiveness Act.’’

Section 2. Loan repayment or cancellation for individuals who teach 

in tribal colleges or universities 

Subsection (a) authorizes full-time faculty members at tribal colleges or universities to be eligible for the existing Perkins loan repayment program in the Higher Education Act as of academic year 

2005–2006. 

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Subsection (b) authorizes the Secretary of the Department of 

Education to assume or cancel FFEL or Direct Loans qualified loan 

amounts on a graduated scale for any new borrowers after the date 

of enactment of this Act if the borrower is employed as full-time 

faculty at a tribal college or university and is not in default on the 

loan to be repaid or canceled. Qualified loan amounts are defined 

as 15 percent of the total amount of all loans made, insured, or 

guaranteed after the date of enactment of this Act for the first or 

second year of employment; 20 percent of the total amount of all 

loans made, insured, or guaranteed after the date of enactment of 

the Act for the third or fourth years; and 30 percent of such total 

amount for the fifth year of employment. The Secretary may not, 

however, repay or cancel more than $15,000 in the aggregate of 

such total amount for any student. 

For consolidated loans, only that portion that was used to repay 

a FFEL or Direct Loan shall be eligible for repayment or cancellation. The Secretary is authorized to issue any necessary regulations. In addition, this section shall not be construed as authorizing 

the refunding of any repayments already made. No borrower may, 

for the same service, receive a benefit under Section 2 or subtitle 

D of title I of the National and Community Service Act of 1990. 

Section 3. Loan repayment for nursing instructors at tribal colleges 

or universities 

This section authorizes nursing instructors at tribal colleges or 

universities to be eligible for the existing loan repayment program 

under the Public Health Service Act. 

Section 4. Amounts forgiven not treated as gross income 

Any amounts assumed or canceled pursuant to this Act shall not 

be treated as gross income for Federal income tax purposes. 

LEGISLATIVE HISTORY

Similar legislation was first introduced in the 106th Congress. At 

that time, S. 2978 was introduced on July 27, 2000 by Senator 

Daschle, for himself, and for Senators Akaka, Baucus, Bingaman, 

Conrad, Dodd, Johnson, Kennedy, Kerrey, Kohl, and Reid. Senators 

Leahy and Lieberman became cosponsors on September 6, 2000. 

The bill was referred to the Committee on Indian Affairs. 

Other than adding a section regarding forgiven amounts not 

treated as gross income, an identical bill was introduced during the 

107th Congress. S. 340 was introduced on February 15, 2001 by 

Senator Daschle, for himself, and for Senators Akaka, Baucus, 

Bingaman, Conrad, Dodd, Johnson, Kennedy, Leahy, and Reid. 

Senator Kohl became a cosponsor on March 1, 2001 and Senator 

Wellstone became a cosponsor on June 5, 2001. The bill was referred to the Committee on Indian Affairs. 

During the 108th Congress, S. 378 was introduced on February 

12, 2003, by Senator Daschle for himself, and for Senators Baucus, 

Bingaman, Conrad, Dorgan and Kohl. Senators Johnson and Kohl 

became cosponsors on February 12, 2003, Senator Akaka became a 

cosponsor on February 24, 2003, and Senator Dorgan became a cosponsor on March 4, 2003. The bill was referred to the Committee 

on Indian Affairs. 

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During the 109th Congress, S. 731 was introduced on April 6, 

2005 by Senator Conrad, for himself, and for Senators Bingaman, 

Burns, Domenici, Dorgan, Johnson, Kohl, and Thune and referred 

to the Committee on Indian Affairs. Senator McCain became a cosponsor on June 28, 2005. The Committee on Indian Affairs ordered the bill to be reported with an amendment on June 29, 2005, 

but the Senate did not act on the measure. 

S. 481 was introduced on February 1, 2007, by Senators Conrad, 

for himself, and for Senators Domenici, Dorgan, McCain, Bingaman, Kohl, and Thune and referred to the Committee on Indian Affairs. Senator Tester became a cosponsor on February 7, 2007, and 

Senator Johnson became a cosponsor on March 5, 2007. On February 8, 2007, the Indian Affairs Committee ordered the bill to be 

favorably reported to the Senate. 

COMMITTEE RECOMMENDATIONS AND TABULATION OF VOTE

On February 8, 2007, in an open business meeting, the Committee ordered the bill to be favorably reported to the Senate. 

COST AND BUDGETARY CONSIDERATIONS

The cost estimate of the Congressional Budget Office on S. 481 

is set forth below: 

S. 481—Tribal Colleges and Universities Faculty Loan Forgiveness 

Act 

S. 481 would authorize student loan forgiveness for faculty at 

tribal colleges and universities. For teachers at these institutions, 

the bill would specify that the Secretary of Education repay or cancel a certain percentage of their outstanding student loans for each 

year of teaching (up to five years) with a $15,000 limit on the total 

amount of forgiveness. It also would exclude the amounts paid or 

canceled under this program from gross income for federal income 

tax purposes. CBO estimates that enacting the bill would result in 

a negligible amount of direct spending annually through 2017. We 

also estimate that spending subject to appropriation for implementing S. 481—for costs of new Perkins loans—would be less than 

$500,000 annually for the entire 2008–2017 period. Finally, the 

Joint Committee on Taxation (JCT) estimates the bill would have 

a negligible impact on revenues. 

The bill would authorize the Secretary of Education to repay or 

cancel 15 percent of the faculty members’ loans in each of the first 

and second full years of teaching, 20 percent in each of the third 

and fourth years, and 30 percent in the fifth year. The forgiveness 

would apply to loans under the Federal Family Education Loan 

program, the William D. Ford Direct Loan program, and the Perkins Loan program. These provisions would apply prospectively; 

only students who take out their first loans after the bill’s enactment could potentially take advantage of the program. Based on 

data on the number of new faculty at tribal colleges and on the borrowing history for new teachers, CBO estimates that over the next 

decade about 100 new teachers would become eligible under this 

program. This change would raise the subsidy cost of new loans 

made or guaranteed by the Department of Education, but the 

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change in subsidy costs and the resulting change in outlays would 

be negligible. Those costs are recorded as direct spending. 

CBO has reviewed the nontax provisions of the bill—sections 1, 

2, and 3—for mandates and has determined that they contain no 

intergovernmental or private-sector mandates as defined by the 

Unfunded Mandates Reform Act; JCT reports that section 4 (the 

portion of the bill that relates to the income tax treatment of the 

loan forgiveness) also does not contain any mandates. The bill 

would impose no costs on state, local, or tribal governments. 

The CBO staff contact for this estimate is Deborah Kalcevic. This 

estimate was approved by Peter H. Fontaine, Deputy Assistant Director for Budget Analysis. 

EXECUTIVE COMMUNICATIONS

The Committee has not received any executive communications 

on S. 481. 

REGULATORY AND PAPERWORK IMPACT

Paragraph 11(b) of rule XXVI of the Standing Rules of the Senate require each report accompanying a bill to evaluate the regulatory and paperwork impact that would be incurred in carrying 

out the bill. The Committee believes that S. 481 will have a minimal impact on regulatory or paperwork requirements. 

CHANGES IN EXISTING LAW

In compliance with subsection 12 of rule XXVI of the Standing 

Rules of the Senate, the Committee notes the following changes in 

existing law made by the bill S. 481, as amended, are shown as follows (existing law proposed to be omitted is enclosed in black 

brackets and new text is printed in italic): 

20 U.S.C. Sec. 1087ee(a)(2) is amended as follows: 

Loans shall be canceled under paragraph (1) for service—(H) as 

a full-time nurse or medical technician providing health care services; øor¿ (I) as a full-time employee of a public or private nonprofit 

child or family service agency who is providing, or supervising the 

provision of, services to high-risk children who are from low-income 

communities and the families of such children—or as a full-time 

faculty member at a Tribal College or University as defined in section 316(b). 

20 U.S.C. Sec. 1087ee(a)(3) is amended as follows: 

(A) The percent of a loan which shall be canceled under paragraph (1) of this subsection is—(i) in the case of service described 

in subparagraph (A), (C), (F), (G), (H), øor (I)¿ (I) or (J) of paragraph (2), at the rate of 15 percent for the first or second year of 

such service, 20 percent for the third or fourth year of such service, 

and 30 percent for the fifth year of such service; 

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20 U.S.C. Sec. 1088 et seq. is amended by adding at the end of 

Title IV, Part G the following: 

SEC. 493C. LOAN REPAYMENT OR CANCELLATION FOR INDIVIDUALS 

WHO TEACH IN TRIBAL COLLEGES OR UNIVERSITIES. 

(a) PROGRAM AUTHORIZED.—The Secretary shall carry out a program, through the holder of a loan, of assuming or canceling the 

obligation to repay a qualified loan amount, in accordance with 

subsection (b), for any new borrower on or after the date of enactment of the Tribal Colleges and Universities Faculty Loan Forgiveness Act, who— (1) has been employed as a full-time faculty member at a 

Tribal College or University as defined in section 316(b); and 

(2) is not in default on a loan for which the borrower seeks 

repayment or cancellation. 

(b) QUALIFIED LOAN AMOUNTS.— (1) PERCENTAGES.—Subject to paragraph (2), the Secretary 

shall assume or cancel the obligation to repay under this section— (A) 15 percent of the amount of all loans made, insured, 

or guaranteed after the date of enactment of the Tribal Colleges and Universities Faculty Loan Forgiveness Act to a 

student under part B or D, for the first or second year of 

employment described in subsection (a)(1); 

(B) 20 percent of such total amount, for the third or 

fourth year of such employment; and 

(C) 30 percent of such total amount, for the fifth year of 

such employment. 

(2) MAXIMUM.—The Secretary shall not repay or cancel under this section more than $15,000 in the aggregate of loans made, 

insured, or guaranteed under parts B and D for any student. 

(3) 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 loan made, insured, 

or guaranteed under part B or D for a borrower who meets the 

requirements of subsection (a), as determined in accordance 

with regulations prescribed by the Secretary. 

(c) REGULATIONS.—The Secretary is authorized to issue such regulations as may be necessary to carry out the provisions of this section. 

(d) EFFECT ON SECTION.—Nothing in this section shall be construed to authorize any refunding of any repayment of a loan. 

(e) PREVENTION OF DOUBLE BENEFITS.—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.). 

(f) DEFINITION.—For purposes of this section, the term ‘‘year’’, 

when applied to employment as a faculty member means an academic year as defined by the Secretary. 

42 U.S.C. Sec. 297n(a)(3) is amended as follows: 

(a) IN GENERAL.—In the case of any individual—ø(3)¿ (3)(A) who 

enters into an agreement with the Secretary to serve as nurse for 

a period of not less than two years at a health care facility with 

a critical shortage of nurses; or (B) who is a nursing instructor at 

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a tribally controlled college or university (as such term is defined 

in section 2 of the Tribally Controlled College or University Assistance Act of 1978 (25 U.S.C. 1801), or any institution listed in section 532 of the Equity in Educational Land-Grant Status Act of 

1994 (7 U.S.C. 301 note)); 

Æ 

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