I

106TH CONGRESS

2D SESSION H. R. 5034

To expand loan forgiveness for teachers, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

JULY 27, 2000

Mr. GRAHAM (for himself, Mr. DEMINT, Mr. MCKEON, Mr. BURR of North

Carolina, Mr. SPENCE, Mr. GREEN of Texas, Mr. PETERSON of Pennsylvania, Mr. HILLEARY, Mr. ROGERS, Mr. FLETCHER, Mrs. EMERSON, Mr.

MCDERMOTT, Mr. MCHUGH, Mr. FROST, and Mr. HASTINGS of Washington) introduced the following bill; which was referred to the Committee

on Education and the Workforce

A BILL

To expand loan forgiveness for teachers, and for other

purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Quality Teacher Re5 cruitment and Retention Act of 2000’’.

6 SEC. 2. FINDINGS AND PURPOSE.

7 (a) FINDINGS.—Congress makes the following find8 ings:
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1 (1) Over the next 10 years, a large percentage

2 of teachers will retire, leaving American classrooms,

3 particularly urban and rural classrooms, facing a se4 rious teacher shortage.

5 (2) The Nation will need 2,000,000 new teach6 ers over the next 10 years. Unfortunately, in the

7 past this need has been met by admitting some un8 qualified teachers to the classroom.

9 (3) There is also a chronic shortage of fully cer10 tified special education teachers, averaging about

11 27,000 per year. While the demand is ever present,

12 institutes of higher education are graduating fewer

13 teachers qualified in special education.

14 (4) High quality teachers are the first vital step

15 in ensuring students receive a high quality edu16 cation.

17 (5) Potentially valuable teacher candidates are

18 often lured into different careers by higher com19 pensation.

20 (6) Moreover, the burdensome paperwork and

21 legal requirements are factors which lead special

22 education teachers to leave the profession. More spe23 cial education teachers move into the general edu24 cation realm than vice versa.
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1 (7) High-quality prospective teachers need to be

2 identified and recruited by presenting to them a ca3 reer that is respected by their peers, is financially

4 and intellectually rewarding, and contains sufficient

5 opportunities for advancement.

6 (8) Teacher loan forgiveness gives high-poverty

7 schools an effective incentive for recruiting and re8 taining much-needed high quality teachers.

9 (9) Loan forgiveness for high-need teachers, in10 cluding special education teachers, can be a critical

11 link in increasing the supply of these essential edu12 cators.

13 (b) PURPOSE.—The purpose of this Act is to encour14 age individuals to enter and continue in the teaching pro15 fession in order to ensure that high quality teachers are

16 recruited and retained in areas where they are most need17 ed so students attending school in such areas receive a

18 quality education.

19 SEC. 3. EXPANDED LOAN FORGIVENESS PROGRAM FOR

20 TEACHERS.

21 (a) PROGRAM.—

22 (1) IN GENERAL.—The Secretary of Education

23 (in this section referred to as the ‘‘Secretary’’) shall

24 carry out a program of assuming the obligation to

25 repay, pursuant to subsection (c), a loan made, in-
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1 sured, or guaranteed under part B of title IV of the

2 Higher Education Act of 1965 or part D of such

3 title (excluding loans made under sections 428B and

4 428C of such Act or comparable loans made under

5 part D of such title) for any borrower who—

6 (A) is a new teacher;

7 (B)(i) is employed, for 3 consecutive com8 plete school years, as a full-time teacher in a

9 school that qualifies under section 465(a)(2)(A)

10 of the Higher Education Act of 1965 (20

11 U.S.C. 1087ee(a)(2)(A)) for loan cancellation

12 for a recipient of a loan under part E of title

13 IV of such Act who teaches in such schools; or

14 (ii) is employed, for 3 consecutive complete

15 school years, as a full-time special education

16 teacher, or as a full-time teacher of special

17 needs children;

18 (C) satisfies the requirements of subsection

19 (d); and

20 (D) is not in default on a loan for which

21 the borrower seeks forgiveness.

22 (2) AWARD BASIS; PRIORITY.—

23 (A) AWARD BASIS.—Subject to subpara24 graph (B), loan repayment under this section
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1 shall be on a first-come, first-serve basis and

2 subject to the availability of appropriations.

3 (B) PRIORITY.—The Secretary shall give

4 priority in providing loan repayment under this

5 section for a fiscal year to student borrowers

6 who received loan repayment under this section

7 for the preceding fiscal year.

8 (3) REGULATIONS.—The Secretary is author9 ized to prescribe such regulations as may be nec10 essary to carry out the provisions of this section.

11 (b) LOAN REPAYMENT.—

12 (1) ELIGIBLE AMOUNT.—The amount the Sec13 retary may repay on behalf of any individual under

14 this section shall not exceed—

15 (A) the sum of the principal amounts out16 standing (not to exceed $5,000) of the individ17 ual’s qualifying loans at the end of 3 consecu18 tive complete school years of service described

19 in subsection (a)(1)(B);

20 (B) an additional portion of such sum (not

21 to exceed $7,500) at the end of each of the next

22 2 consecutive complete school years of such

23 service; and

24 (C) a total of not more than $20,000.
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1 (2) CONSTRUCTION.—Nothing in this section

2 shall be construed to authorize the refunding of any

3 repayment of a loan made under part B or D of title

4 IV of the Higher Education Act of 1965.

5 (3) INTEREST.—If a portion of a loan is repaid

6 by the Secretary under this section for any year, the

7 proportionate amount of interest on such loan which

8 accrues for such year shall be repaid by the Sec9 retary.

10 (c) REPAYMENT TO ELIGIBLE LENDERS.—The Sec11 retary shall pay to each eligible lender or holder for each

12 fiscal year an amount equal to the aggregate amount of

13 loans which are subject to repayment pursuant to this sec14 tion for such year.

15 (d) APPLICATION FOR REPAYMENT.—

16 (1) IN GENERAL.—Each eligible individual de17 siring loan repayment under this section shall sub18 mit a complete and accurate application to the Sec19 retary at such time, in such manner, and containing

20 such information as the Secretary may require.

21 (2) YEARS OF SERVICE.—An eligible individual

22 may apply for loan repayment under this section

23 after completing the required number of years of

24 qualifying employment.
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1 (3) FULLY QUALIFIED TEACHERS IN PUBLIC

2 ELEMENTARY OR SECONDARY SCHOOLS.—An appli3 cation for loan repayment under this section shall

4 include such information as is necessary to dem5 onstrate that the applicant—

6 (A) if teaching in a public elementary,

7 middle, or secondary school (other than as a

8 teacher in a public charter school), has obtained

9 State certification as a teacher (including cer10 tification obtained through alternative routes to

11 certification) or passed the State teacher licens12 ing exam and holds a license to teach in such

13 State; and

14 (B) if teaching in—

15 (i) a public elementary school, holds a

16 bachelor’s degree and demonstrates knowl17 edge and teaching skills in each of the sub18 ject areas in which he or she provides in19 struction; or

20 (ii) a public middle or secondary

21 school, holds a bachelor’s degree and dem22 onstrates a high level of competency in all

23 subject areas in which he or she teaches

24 through—
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1 (I) a high level of performance on

2 a rigorous State or local academic

3 subject areas test; or

4 (II) completion of an academic

5 major in each of the subject areas in

6 which he or she provides instruction.

7 (4) TEACHERS IN NONPROFIT PRIVATE ELE8 MENTARY OR SECONDARY SCHOOLS OR CHARTER

9 SCHOOLS.—In the case of an applicant who is teach10 ing in a nonprofit private elementary or secondary

11 school, or in a public charter school, an application

12 for loan repayment under this section shall include

13 such information as is necessary to demonstrate that

14 the applicant has knowledge and teaching skills in

15 each of the subject areas in which he or she provides

16 instruction, as certified by the chief administrative

17 officer of the school.

18 (e) TREATMENT OF CONSOLIDATION LOANS.—A loan

19 amount for a consolidation loan made under section 428C

20 of the Higher Education Act of 1965, or a Federal Direct

21 Consolidation Loan made under part D of title IV of such

22 Act, may be a qualified loan amount for the purpose of

23 this section only to the extent that such loan amount was

24 used by a borrower who otherwise meets the requirements

25 of this section to repay—
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1 (1) a loan made under section 428 or 428H of

2 such Act; or

3 (2) a Federal Direct Stafford Loan, or a Fed4 eral Direct Unsubsidized Stafford Loan, made under

5 part D of title IV of such Act.

6 (f) ADDITIONAL ELIGIBILITY PROVISIONS.—

7 (1) CONTINUED ELIGIBILITY.—Any teacher

8 who performs service in a school that—

9 (A) meets the requirements of subsection

10 (a)(1)(B) in any year during such service; and

11 (B) in a subsequent year fails to meet the

12 requirements of such subsection,

13 may continue to teach in such school and shall be

14 eligible for loan forgiveness pursuant to subsection

15 (a).

16 (2) PREVENTION OF DOUBLE BENEFITS.—No

17 borrower may, for the same service, receive a benefit

18 under both this section and subtitle D of title I of

19 the National and Community Service Act of 1990

20 (42 U.S.C. 12571 et seq.).

21 (3) DEFINITION OF NEW TEACHER.—The term

22 ‘‘new teacher’’ means an individual who has not pre23 viously been employed as a teacher in an elementary

24 or secondary school prior to August 1, 2001, exclud25 ing employment while engaged in student teaching
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1 service or comparable activity that is part of a

2 preservice education program.

3 SEC. 3. AUTHORIZATION OF APPROPRIATIONS.

4 There are authorized to be appropriated to carry out

5 this Act such sums as may be necessary for fiscal year

6 2001 and for each of the 4 succeeding fiscal years.

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