```

[Senate Report 109-205]
[From the U.S. Government Publishing Office]

                                                     Calendar No. 323
109th Congress                                         
                                 SENATE
 1st Session                                         Senate 109-205
======================================================================
 
RECRUITING AND RETAINING MORE QUALIFIED INDIVIDUALS TO TEACH IN TRIBAL 
                        COLLEGES OR UNIVERSITIES

                                _______
                                

               December 12, 2005.--Ordered to be printed

                                _______
                                

    Mr. McCain, from the Committee on Indian Affairs, submitted the 
                               following

                              R E P O R T

                         [To accompany S. 731]

    The Committee on Indian Affairs, to which was referred the 
bill (S. 731), 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 as amended do pass.

                                Purpose

    The purpose of S. 731 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 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 more than just higher education, they also 
provide high school completion courses, basic remediation 
courses, job training, college preparatory courses and adult 
education programs. They also serve other community needs, such 
as language and cultural preservation.
    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 
Federalgovernment 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, and 
some funding is distributed evenly on a per institution basis. 
Even though non-Indian students attend tribal colleges and 
universities, these students are not included in the 
calculation of operating funds provided by the Federal 
government. In addition, despite the attendance by non-Indian 
students, 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. For academic year 1997-1998, it 
was reported that the average salary at tribal colleges was 
$30,241, whereas it was $45,919 at other public two-year 
institutions.\1\ The most recent data indicates that the 
average faculty staff size at tribal colleges and universities 
is 46 with an average annual salary of approximately 
$33,500.\2\
---------------------------------------------------------------------------
    \1\ Building Strong Communities Tribal Colleges as Engaged 
Institutions. Prepared by: American Indian Higher Education Consortium 
& the Institute for Higher Education Policy, April 2001.
    \2\ 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.)
---------------------------------------------------------------------------
    Even for the small staff sizes, tribal colleges and 
universities face frequent turnover among faculty. Data 
collected by the American Indian Higher Education Consortium 
reveals that in 2000-2001, 56% 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.\3\
---------------------------------------------------------------------------
    \3\ Integrated Post-secondary Education Data, Fall Staff, 
Department of Education, 2004. (Analysis prepared by the American 
Indian Higher Education Consortium).
---------------------------------------------------------------------------
    Tribal colleges and universities are often located in 
rural, remote areas which impact 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 and high turnover, tribal colleges and 
universities have identified other barriers to recruiting and 
retaining faculty, including the geographic isolation of 
reservation communities, the conditions of the reservation such 
as high poverty and inadequate housing, high workloads, 
multiple and fluctuating job responsibilities, and limited 
faculty development.
    Despite these 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.\4\ Total 
enrollment at tribal colleges and universities grew by 17 
percent from 1997 to 2002.\5\
---------------------------------------------------------------------------
    \4\ Testimony of the American Indian Higher Education Consortium 
before the Senate Committee on Indian Affairs, June 16, 2005.
    \5\ Status and Trends in the Education of American Indians and 
Alaska Natives, National Center for Education Statistics, Department of 
Education, 2005.
---------------------------------------------------------------------------
    Recruitment and Retention Incentives in S. 731. 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. 
731 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 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 oruniversities to be eligible for the existing 
Perkins loan repayment program in the Higher Education Act as of 
academic year 2003-2004.
    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 is defined as 15% 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% 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% 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 of 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. It was 
referred to the Committee on Indian Affairs. 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.
    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.

            Committee Recommendations and Tabulation of Vote

    On June 29, 2005, in an open business meeting, the 
Committee ordered the bill to be favorably reported with an 
amendment to the Senate.

                   Cost and Budgetary Considerations

    The cost estimate of the Congressional Budget Office on S. 
731 is set forth below:

S. 731--Tribal Colleges and Universities Teacher Loan Forgiveness Act

    S. 731 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 until 2015 when the costs 
would reach $1 million; spending subject to appropriation would 
be less than $500,000 annually for the entire 2006-2015 period. 
The Joint Committee on Taxation (JCT) estimates the bill would 
have no 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.
    CBO has reviewed sections 1, 2, and 3 of S. 731 and 
determined that they contain no intergovernmental or private-
sector mandates as defined in 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. 731.

                    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. 731 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. 731, 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));

                                  

```