106TH CONGRESS

2D SESSION H. R. 5034

AN ACT

To expand loan forgiveness for teachers, and for

other purposes.

106TH CONGRESS

2D SESSION H. R. 5034

AN ACT

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,
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1 SECTION 1. SHORT TITLE.

2 This Act may be cited as the ‘‘Quality Teacher Re3 cruitment and Retention Act of 2000’’.

4 SEC. 2. FINDINGS AND PURPOSE.

5 (a) FINDINGS.—Congress makes the following find6 ings:

7 (1) Over the next 10 years, a large percentage

8 of teachers will retire, leaving American classrooms,

9 particularly urban and rural classrooms, facing a se10 rious teacher shortage.

11 (2) The Nation will need 2,000,000 new teach12 ers over the next 10 years. Unfortunately, in the

13 past this need has been met by admitting some un14 qualified teachers to the classroom.

15 (3) There is also a chronic shortage of fully cer16 tified special education teachers, averaging about

17 27,000 per year. While the demand is ever present,

18 institutes of higher education are graduating fewer

19 teachers qualified in special education.

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

21 in ensuring students receive a high quality edu22 cation.

23 (5) Potentially valuable teacher candidates are

24 often lured into different careers by higher com25 pensation.
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1 (6) Moreover, the burdensome paperwork and

2 legal requirements are factors which lead special

3 education teachers to leave the profession. More spe4 cial education teachers move into the general edu5 cation realm than vice versa.

6 (7) High-quality prospective teachers need to be

7 identified and recruited by presenting to them a ca8 reer that is respected by their peers, is financially

9 and intellectually rewarding, and contains sufficient

10 opportunities for advancement.

11 (8) Teacher loan forgiveness gives high-poverty

12 schools an effective incentive for recruiting and re13 taining much-needed high quality teachers.

14 (9) Loan forgiveness for high-need teachers, in15 cluding special education teachers, can be a critical

16 link in increasing the supply of these essential edu17 cators.

18 (b) PURPOSE.—The purpose of this Act is to encour19 age individuals to enter and continue in the teaching pro20 fession in order to ensure that high quality teachers are

21 recruited and retained in areas where they are most need22 ed so students attending school in such areas receive a

23 quality education.
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1 SEC. 3. EXPANDED LOAN FORGIVENESS PROGRAM FOR

2 TEACHERS.

3 (a) PROGRAM.—

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

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

6 carry out a program of assuming the obligation to

7 repay, pursuant to subsection (c), a loan made, in8 sured, or guaranteed under part B of title IV of the

9 Higher Education Act of 1965 or part D of such

10 title (excluding loans made under sections 428B and

11 428C of such Act or comparable loans made under

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

13 (A) is a new teacher;

14 (B)(i) is employed, for 3 consecutive com15 plete school years, as a full-time teacher in a

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

17 of the Higher Education Act of 1965 (20

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

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

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

21 (ii) is employed, for 3 consecutive complete

22 school years, as a full-time special education

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

24 needs children;

25 (C) satisfies the requirements of subsection

26 (d); and
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1 (D) is not in default on a loan for which

2 the borrower seeks forgiveness.

3 (2) AWARD BASIS; PRIORITY.—

4 (A) AWARD BASIS.—Subject to subpara5 graph (B), loan repayment under this section

6 shall be on a first-come, first-serve basis and

7 subject to the availability of appropriations.

8 (B) PRIORITY.—The Secretary shall give

9 priority in providing loan repayment under this

10 section for a fiscal year to student borrowers

11 who received loan repayment under this section

12 for the preceding fiscal year.

13 (3) REGULATIONS.—The Secretary is author14 ized to prescribe such regulations as may be nec15 essary to carry out the provisions of this section.

16 (b) LOAN REPAYMENT.—

17 (1) ELIGIBLE AMOUNT.—The amount the Sec18 retary may repay on behalf of any individual under

19 this section shall not exceed—

20 (A) the sum of the principal amounts out21 standing (not to exceed $5,000) of the individ22 ual’s qualifying loans at the end of 3 consecu23 tive complete school years of service described

24 in subsection (a)(1)(B);
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1 (B) an additional portion of such sum (not

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

3 2 consecutive complete school years of such

4 service; and

5 (C) a total of not more than $20,000.

6 (2) CONSTRUCTION.—Nothing in this section

7 shall be construed to authorize the refunding of any

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

9 IV of the Higher Education Act of 1965.

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

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

12 proportionate amount of interest on such loan which

13 accrues for such year shall be repaid by the Sec14 retary.

15 (c) REPAYMENT TO ELIGIBLE LENDERS.—The Sec16 retary shall pay to each eligible lender or holder for each

17 fiscal year an amount equal to the aggregate amount of

18 loans which are subject to repayment pursuant to this sec19 tion for such year.

20 (d) APPLICATION FOR REPAYMENT.—

21 (1) IN GENERAL.—Each eligible individual de22 siring loan repayment under this section shall sub23 mit a complete and accurate application to the Sec24 retary at such time, in such manner, and containing

25 such information as the Secretary may require.
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1 (2) YEARS OF SERVICE.—An eligible individual

2 may apply for loan repayment under this section

3 after completing the required number of years of

4 qualifying employment.

5 (3) FULLY QUALIFIED TEACHERS IN PUBLIC

6 ELEMENTARY OR SECONDARY SCHOOLS.—An appli7 cation for loan repayment under this section shall

8 include such information as is necessary to dem9 onstrate that the applicant—

10 (A) if teaching in a public elementary,

11 middle, or secondary school (other than as a

12 teacher in a public charter school), has obtained

13 State certification as a teacher (including cer14 tification obtained through alternative routes to

15 certification) or passed the State teacher licens16 ing exam and holds a license to teach in such

17 State; and

18 (B) if teaching in—

19 (i) a public elementary school, holds a

20 bachelor’s degree and demonstrates knowl21 edge and teaching skills in each of the sub22 ject areas in which he or she provides in23 struction; or

24 (ii) a public middle or secondary

25 school, holds a bachelor’s degree and dem-
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1 onstrates a high level of competency in all

2 subject areas in which he or she teaches

3 through—

4 (I) a high level of performance on

5 a rigorous State or local academic

6 subject areas test; or

7 (II) completion of an academic

8 major in each of the subject areas in

9 which he or she provides instruction.

10 (4) TEACHERS IN NONPROFIT PRIVATE ELE11 MENTARY OR SECONDARY SCHOOLS OR CHARTER

12 SCHOOLS.—In the case of an applicant who is teach13 ing in a nonprofit private elementary or secondary

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

15 for loan repayment under this section shall include

16 such information as is necessary to demonstrate that

17 the applicant has knowledge and teaching skills in

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

19 instruction, as certified by the chief administrative

20 officer of the school.

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

22 amount for a consolidation loan made under section 428C

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

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

25 Act, may be a qualified loan amount for the purpose of
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1 this section only to the extent that such loan amount was

2 used by a borrower who otherwise meets the requirements

3 of this section to repay—

4 (1) a loan made under section 428 or 428H of

5 such Act; or

6 (2) a Federal Direct Stafford Loan, or a Fed7 eral Direct Unsubsidized Stafford Loan, made under

8 part D of title IV of such Act.

9 (f) ADDITIONAL ELIGIBILITY PROVISIONS.—

10 (1) CONTINUED ELIGIBILITY.—Any teacher

11 who performs service in a school that—

12 (A) meets the requirements of subsection

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

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

15 requirements of such subsection,

16 may continue to teach in such school and shall be

17 eligible for loan forgiveness pursuant to subsection

18 (a).

19 (2) PREVENTION OF DOUBLE BENEFITS.—No

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

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

22 the National and Community Service Act of 1990

23 (42 U.S.C. 12571 et seq.).

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

25 ‘‘new teacher’’ means an individual who has not pre-
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1 viously been employed as a teacher in an elementary

2 or secondary school prior to August 1, 2001, exclud3 ing employment while engaged in student teaching

4 service or comparable activity that is part of a

5 preservice education program.

6 SEC. 3. AUTHORIZATION OF APPROPRIATIONS.

7 There are authorized to be appropriated to carry out

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

9 2001 and for each of the 4 succeeding fiscal years.

Passed the House of Representatives September 26,

2000.

Attest:

Clerk.