I 

108TH CONGRESS 

1ST SESSION H. R. 365

To recruit and retain more qualified individuals to teach in Tribal Colleges 

or Universities. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 27, 2003

Ms. HOOLEY of Oregon (for herself, Mr. BACA, Mr. FALEOMAVAEGA, Mr. FILNER, Mr. HASTINGS of Florida, Mr. MCDERMOTT, Mr. PALLONE, Mr. 

POMEROY, Mr. UDALL of Colorado, Mr. UDALL of New Mexico, Mr. 

FRANK of Massachusetts, Ms. MCCOLLUM, Mr. TOWNS, Mr. KILDEE, Mr. 

ABERCROMBIE, and Mr. BEREUTER) introduced the following bill; which 

was referred to the Committee on Education and the Workforce, and in 

addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such 

provisions as fall within the jurisdiction of the committee concerned 

A BILL

To recruit and retain more qualified individuals to teach 

in Tribal Colleges or Universities.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. LOAN REPAYMENT OR CANCELLATION FOR IN2 DIVIDUALS WHO TEACH IN TRIBAL COL3 LEGES OR UNIVERSITIES. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Tribal College or University Teacher Loan Forgiveness 

6 Act’’. 

7 (b) PERKINS LOANS.—

8 (1) AMENDMENT.—Section 465(a) of the High9 er Education Act of 1965 (20 U.S.C. 1087ee(a)) is 

10 amended—

11 (A) in paragraph (2)—

12 (i) in subparagraph (H), by striking 

13 ‘‘or’’ after the semicolon; 

14 (ii) in subparagraph (I), by striking 

15 the period and inserting ‘‘; or’’; and 

16 (iii) by adding at the end the fol17 lowing: 

18 ‘‘(J) as a full-time teacher at a tribal College or 

19 University as defined in section 316(b).’’; and 

20 (B) in paragraph (3)(A)(i), by striking ‘‘or 

21 (I)’’ and inserting ‘‘(I), or (J)’’. 

22 (2) EFFECTIVE DATE.—The amendments made 

23 by paragraph (1) shall be effective for service per24 formed during academic year 1998–1999 and suc25 ceeding academic years, notwithstanding any con26 trary provision of the promissory note under which 
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1 a loan under part E of title IV of the Higher Edu2 cation Act of 1965 (20 U.S.C. 1087aa et seq.) was 

3 made. 

4 (c) FFEL AND DIRECT LOANS.—Part G of title IV 

5 of the Higher Education Act of 1965 (20 U.S.C. 1088 

6 et seq.) is amended by adding at the end the following: 

7 ‘‘SEC. 493C. LOAN REPAYMENT OR CANCELLATION FOR IN8 DIVIDUALS WHO TEACH IN TRIBAL COL9 LEGES OR UNIVERSITIES. 

10 ‘‘(a) PROGRAM AUTHORIZED.—The Secretary shall 

11 carry out a program, through the holder of a loan, of as12 suming or canceling the obligation to repay a qualified 

13 loan amount, in accordance with subsection (b), for any 

14 new borrower on or after the date of enactment of the 

15 Tribal College or University Teacher Loan Forgiveness 

16 Act, who—

17 ‘‘(1) has been employed as a full-time teacher 

18 at a Tribal College or University as defined in sec19 tion 316(b); and 

20 ‘‘(2) is not in default on a loan for which the 

21 borrower seeks repayment or cancellation. 

22 ‘‘(b) QUALIFIED LOAN AMOUNTS.—

23 ‘‘(1) PERCENTAGES.—Subject to paragraph (2), 

24 the Secretary shall assume or cancel the obligation 

25 to repay under this section—
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1 ‘‘(A) 15 percent of the amount of all loans 

2 made, insured, or guaranteed after the date of 

3 enactment of the Tribal College or University 

4 Teacher Loan Forgiveness Act to a student 

5 under part B or D, for the first or second year 

6 of employment described in subsection (a)(1); 

7 ‘‘(B) 20 percent of such total amount, for 

8 the third or fourth year of such employment; 

9 and 

10 ‘‘(C) 30 percent of such total amount, for 

11 the fifth year of such employment. 

12 ‘‘(2) MAXIMUM.—The Secretary shall not repay 

13 or cancel under this section more than $15,000 in 

14 the aggregate of loans made, insured, or guaranteed 

15 under parts B and D for any student. 

16 ‘‘(3) TREATMENT OF CONSOLIDATION LOANS.—

17 A loan amount for a loan made under section 428C 

18 may be a qualified loan amount for the purposes of 

19 this subsection only to the extent that such loan 

20 amount was used to repay a loan made, insured, or 

21 guaranteed under part B or D for a borrower who 

22 meets the requirements of subsection (a), as deter23 mined in accordance with regulations prescribed by 

24 the Secretary. 
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1 ‘‘(c) REGULATIONS.—The Secretary is authorized to 

2 issue such regulations as may be necessary to carry out 

3 the provisions of this section. 

4 ‘‘(d) CONSTRUCTION.—Nothing in this section shall 

5 be construed to authorize any refunding of any repayment 

6 of a loan. 

7 ‘‘(e) PREVENTION OF DOUBLE BENEFITS.—No bor8 rower may, for the same service, receive a benefit under 

9 both this section and subtitle D of title I of the National 

10 and Community Service Act of 1990 (42 U.S.C. 12571 

11 et seq.). 

12 ‘‘(f) DEFINITION.—For purposes of this section, the 

13 term ‘year’, when applied to employment as a teacher, 

14 means an academic year as defined by the Secretary.’’. 

15 SEC. 2. AMOUNTS FORGIVEN NOT TREATED AS GROSS IN16 COME. 

17 The amount of any loan that is assumed or canceled 

18 under an amendment made by this Act shall not, con19 sistent with section 108(f) of the Internal Revenue Code 

20 of 1986, be treated as gross income for Federal income 

21 tax purposes.

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