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[Senate Report 110-46]
[From the U.S. Government Publishing Office]

                                                       Calendar No. 111
110th Congress                                                   Report
                                 SENATE
 1st Session                                                     110-46

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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 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\
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    \1\ Testimony of the American Indian Higher Education Consortium 
before the Senate Committee on Indian Affairs, June 16, 2005.
    \2\ Status and Trends in the Education of American Indians and 
Alaska Natives, National Center for Education Statistics, Department of 
Education, 2005.
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    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 salary 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\
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    \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.)
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    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 
speculated 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\
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    \5\ Integrated Post-secondary Education Data, Fall Staff, 
Department of Education, 2004. (Analysis prepared by the American 
Indian Higher Education Consortium).
    \6\ Faculty Turnover at the University of Tennessee. Don Scroggins, 
Office of Institutional Research and Assessment, January, 2004.
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    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.
    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.
    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 
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; [or] (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), [or (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;

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--[(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 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));

                                  
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