99–006

107TH CONGRESS REPORT " HOUSE OF REPRESENTATIVES ! 2d Session 107–655

CANCELING LOANS TO ALLOW SCHOOL SYSTEMS TO 

ATTRACT CLASSROOM TEACHERS ACT

SEPTEMBER 12, 2002.—Committed to the Committee of the Whole House on the 

State of the Union and ordered to be printed 

Mr. BOEHNER, from the Committee on Education and the 

Workforce, submitted the following 

R E P O R T 

together with 

ADDITIONAL VIEWS 

[To accompany H.R. 5091] 

[Including cost estimate of the Congressional Budget Office]

The Committee on Education and the Workforce, to whom was 

referred the bill (H.R. 5091) to increase the amount of student loan 

forgiveness available to qualified teachers, with an emphasis on 

special education teachers, having considered the same, report favorably thereon with an amendment and recommend that the bill 

as amended do pass. 

The amendment is as follows: 

Strike all after the enacting clause and insert the following:

SECTION 1. SHORT TITLE. 

This Act may be cited as the ‘‘Canceling Loans to Allow School Systems to Attract 

Classroom Teachers Act’’.

SEC. 2. ADDITIONAL QUALIFIED LOAN AMOUNTS FOR STUDENT LOAN FORGIVENESS. 

(a) FFEL LOANS.—Section 428J(c) of the Higher Education Act of 1965 (20 U.S.C. 

1078–10(c)) is amended by adding at the end the following new paragraph: 

‘‘(3) ADDITIONAL AMOUNTS; PRIORITY.—

‘‘(A) LARGER AMOUNTS FROM APPROPRIATED FUNDS.—Notwithstanding the 

amount specified in paragraph (1), the aggregate amount that the Secretary 

may, from funds appropriated under subparagraph (C), repay under this 

section is a total amount equal to not more than $17,500. 

‘‘(B) AWARD BASIS; PRIORITY.—The Secretary shall make payments under 

this paragraph to elementary or secondary school teachers who meet the requirements of subsection (b) on a first-come first-served basis, subject to the 

availability of appropriations, but shall give priority in providing loan repayment under this paragraph for a fiscal year to teachers who—

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‘‘(i)(I) are employed as special education teachers whose primary responsibility is to teach or support children with disabilities (as defined 

in section 602 of the Individuals with Disabilities Act); and ‘‘(II) as certified by the chief administrative officer of the public or 

nonprofit private elementary or secondary school in which the borrower 

is employed, are teaching children with disabilities that correspond 

with the borrower’s training and have demonstrated knowledge and 

teaching skills in the content areas of the elementary or secondary 

school curriculum that the borrower is teaching; ‘‘(ii) are employed as teachers in local educational agencies that are 

determined by a State educational agency under section 2141 of the Elementary and Secondary Education Act of 1965 to have failed to make 

progress toward meeting the annual measurable objectives described in 

section 1119(a)(2) of such Act for 2 consecutive years; or ‘‘(iii) are employed as teachers of mathematics or science. ‘‘(C) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated to carry out this paragraph such sums as may be necessary for 

fiscal year 2003 and for each of the 4 succeeding fiscal years.’’. (b) DIRECT LOANS.—Section 460(c) of the Higher Education Act of 1965 (20 U.S.C. 

1087j(c)) is amended by adding at the end the following new paragraph: ‘‘(3) ADDITIONAL AMOUNTS; PRIORITY.— ‘‘(A) LARGER AMOUNTS FROM APPROPRIATED FUNDS.—Notwithstanding the 

amount specified in paragraph (1), the aggregate amount that the Secretary 

may, from funds appropriated under subparagraph (C), repay under this 

section is a total amount equal to not more than $17,500. ‘‘(B) AWARD BASIS; PRIORITY.—The Secretary shall make payments under 

this paragraph to elementary or secondary school teachers who meet the requirements of subsection (b) on a first-come first-served basis, subject to the 

availability of appropriations, but shall give priority in providing loan repayment under this paragraph for a fiscal year to teachers who— ‘‘(i)(I) are employed as special education teachers whose primary responsibility is to teach or support children with disabilities (as defined 

in section 602 of the Individuals with Disabilities Act); and ‘‘(II) as certified by the chief administrative officer of the public or 

nonprofit private elementary or secondary school in which the borrower 

is employed, are teaching children with disabilities that correspond 

with the borrower’s training and have demonstrated knowledge and 

teaching skills in the content areas of the elementary or secondary 

school curriculum that the borrower is teaching; ‘‘(ii) are employed as teachers in local educational agencies that are 

determined by a State educational agency under section 2141 of the Elementary and Secondary Education Act of 1965 to have failed to make 

progress toward meeting the annual measurable objectives described in 

section 1119(a)(2) of such Act for 2 consecutive years; or ‘‘(iii) are employed as teachers of mathematics or science. ‘‘(C) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated to carry out this paragraph such sums as may be necessary for 

fiscal year 2003 and for each of the 4 succeeding fiscal years.’’.

SEC. 3. CANCELLATION OF STUDENT LOAN INDEBTEDNESS FOR SPOUSES, SURVIVING JOINT 

DEBTORS, AND PARENTS. 

(a) DEFINITIONS.—For purposes of this section: 

(1) ELIGIBLE PUBLIC SERVANT.—The term ‘‘eligible public servant’’ means an individual who— (A) served as a police officer, firefighter, other safety or rescue personnel, 

or as a member of the Armed Forces; and 

(B) died (or dies) or became (or becomes) permanently and totally disabled due to injuries suffered in the terrorist attack on September 11, 2001; 

as determined in accordance with regulations of the Secretary. 

(2) ELIGIBLE VICTIM.—The term ‘‘eligible victim’’ means an individual who 

died (or dies) or became (or becomes) permanently and totally disabled due to 

injuries suffered in the terrorist attack on September 11, 2001, as determined 

in accordance with regulations of the Secretary. 

(3) ELIGIBLE SPOUSE.—The term ‘‘eligible spouse’’ means the spouse of an eligible public servant, as determined in accordance with regulations of the Secretary. 

(4) ELIGIBLE SURVIVING DEBTOR.—The term ‘‘eligible surviving debtor’’ means 

an individual who owes a Federal student loan that is a consolidation loan that 

was used, jointly by that individual and an eligible victim, to repay the Federal 

student loans of that individual and of such eligible victim. 

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(5) ELIGIBLE PARENT.—The term ‘‘eligible parent’’ means the parent of an eligible victim if— ‘‘(A) the parent owes a Federal student loan that is a consolidation loan 

that was used to repay a PLUS loan incurred on behalf of such eligible victim; or ‘‘(B) the parent owes a Federal student loan that is a PLUS loan incurred 

on behalf of an eligible victim who became (or becomes) permanently and 

totally disabled due to injuries suffered in the terrorist attack on September 

11, 2001. 

(6) SECRETARY.—The term ‘‘Secretary’’ means the Secretary of Education. 

(7) FEDERAL STUDENT LOAN.—The term ‘‘Federal student loan’’ means any 

loan made, insured, or guaranteed under part B, D, or E of title IV of the Higher Education Act of 1965. 

(b) RELIEF FROM INDEBTEDNESS.— (1) IN GENERAL.—The Secretary shall provide for the discharge or cancellation 

of— (A) the Federal student loan indebtedness of an eligible spouse; 

(B) the consolidation loan indebtedness of an eligible surviving debtor; 

(C) the portion of the consolidation loan indebtedness of an eligible parent 

that was incurred on behalf of an eligible victim, if the amount of such indebtedness with respect to such eligible victim may be reliably determined 

on the basis of records available to the lender; and 

(D) the PLUS loan indebtedness of an eligible parent that was incurred 

on behalf of an eligible victim described in subsection (a)(5)(B). 

(2) METHOD OF DISCHARGE OR CANCELLATION.—A loan required to be discharged or canceled under paragraph (1) shall be discharged or canceled by the 

method used under section 437(a), 455(a)(1), or 464(c)(1)(F) of the Higher Education Act of 1965 (20 U.S.C. 1087(a), 1087e(a)(1), 1087dd(c)(1)(F)), whichever 

is applicable to such loan. 

(c) FACILITATION OF CLAIMS.—The Secretary shall— (1) establish procedures for the filing of applications for discharge or cancellation under this section by regulations that shall be prescribed and published 

within 90 days after the date of enactment of this Act and without regard to 

the requirements of section 553 of title 5, United States Code; and 

(2) take such actions as may be necessary to publicize the availability of discharge or cancellation of Federal student loan indebtedness for eligible spouses, 

eligible surviving debtors, and eligible parents under this section. 

(d) AVAILABILITY OF FUNDS FOR PAYMENTS.—Funds available for the purposes of 

making payments to lenders in accordance with section 437(a) for the discharge of 

indebtedness of deceased or disabled individuals shall be available for making payments under section 437(a) to lenders of loans to the eligible spouses, eligible surviving debtors, and eligible parents as required by this section. 

(e) APPLICABLE TO OUTSTANDING DEBT.—The provisions of this section shall be applied to discharge or cancel only Federal student loans (including consolidation 

loans) on which amounts were owed on September 11, 2001.

SEC. 4. INFORMATION ON BENEFITS TO RURAL SCHOOL DISTRICTS. 

The Secretary shall—

(1) notify local educational agencies eligible to participate in the Small Rural 

Achievement Program authorized under subpart 1 of part B of Title VI of the 

Elementary and Secondary Education Act of 1965 of the benefits available 

under the amendments made by section 2 of this Act to the teachers in the 

rural schools of such agencies; and 

(2) encourage such agencies to notify their teachers of such benefits.

PURPOSE

H.R. 5091, the Canceling Loans to Allow School Systems to Attract Classroom Teachers Act (CLASS Act), provides for an increase in the total loan forgiveness for elementary and secondary 

school teachers in Title I schools. This legislation addresses the 

need to increase the number of quality teachers in our nation’s 

classrooms by increasing the maximum loan forgiveness from 

$5,000 to $17,500. H.R. 5091 provides an incentive for teachers to 

work in disadvantaged areas with a priority for teachers of special 

education, mathematics and science and teachers in local education 

agencies struggling to attract highly qualified teachers. 

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COMMITTEE ACTION

On July 11, 2002, Representative Lindsey Graham (R–SC) introduced H.R. 5091, the Canceling Loans to Allow School Systems to 

Attract Classroom Teachers Act (CLASS Act). The Committee on 

Education and the Workforce considered H.R. 5091 during a legislative session on Thursday, September 5, 2002 during which an 

amendment in the nature of a substitute was offered and by unanimous consent accepted as the base text to which any amendments 

would be considered. The Committee considered the following 

amendments to H.R. 5091: 

• The Committee adopted, by voice vote, an amendment offered 

by Representative Kind (D–WI) to have the Secretary of Education 

notify local educational agencies eligible to participate in the Small 

Rural Achievement Program within the Elementary and Secondary 

Education Act of 1965, the benefits of the teacher loan forgiveness 

program within H.R. 5091, and to encourage those agencies to notify their teachers of the program. 

• The Committee adopted, by voice vote, an amendment offered 

by Representative Holt (D–NJ) to set a priority for teacher loan forgiveness for those teachers teaching math or science, along with 

special education teachers. 

• The Committee adopted, by voice vote, an amendment offered 

by Representative Miller (D–CA) to set a priority for teacher loan 

forgiveness for those teachers employed in local educational agencies that are determined by the State educational agency to have 

failed to make progress toward annual increases in the employment of highly qualified teachers as required by the Elementary 

and Secondary Act of 1965, for two consecutive years. 

• The Committee adopted, by voice vote, an amendment offered 

by Representative McCarthy (D–NY) to provide for loan forgiveness 

for spouses of victims who died or became permanently and totally 

disabled as a result of the terrorist attacks on September 11, 2001. 

The amendment also forgives the consolidation loan debt of surviving spouses who consolidated their loans together with the victim, as well as parent loans if the child on whose behalf the loan 

was taken died or become totally and permanently disabled as a result of the September 11th attack. 

The Committee on Education and the Workforce, with a majority 

of the Committee present, favorably reported H.R. 5091 as amended, to the House of Representatives by voice vote. 

Below is a summary of H.R. 5091. 

SUMMARY

H.R 5091 designates the short title as the Canceling Loans to 

Allow School Systems to Attract Classroom Teachers Act. 

H.R. 5091 provides for an increase in the allowable maximum 

loan forgiveness in the Federal Family Education Loan Program 

(FFELP) and the Federal Direct Loan Program to $17,500. This increased loan forgiveness is subject to appropriated funds and will 

be provided on a first-come, first-served basis with priority in funding provided to special education teachers, mathematics and 

science teachers, and those teachers employed in local educational 

agencies that are failing to adequately recruit highly qualified 

teachers as required by the No Child Left Behind Act. 

5

H.R. 5091 also provides for the cancellation of the student loan 

indebtedness to spouses of fire fighters, police officers, rescue personnel and members of the armed forces who lost their lives or became totally and permanently disabled due to injuries suffered in 

the terrorist attack on September 11, 2001. The amendment also 

forgives the consolidation loan debt of surviving spouses who consolidated their loans together with the victim, as well as parent 

loans if the child on whose behalf the loan was taken died or become totally and permanently disabled as a result of the September 

11th attack. The Congressional Budget Office indicates that the 

amendment provides less than five hundred thousand dollars in 

total spending authority. 

H.R. 5091 also requires the Secretary of Education to notify local 

educational agencies eligible to participate in the Small Rural 

Achievement Program authorized within the No Child Left Behind 

Act, of the availability of teacher loan forgiveness and encourage 

those agencies to notify their teachers. 

COMMITTEE VIEWS

On January 8, 2002, President Bush signed into law the No 

Child Left Behind Act, which requires each State educational agency to develop a plan to ensure that all teachers teaching in core 

academic subjects within the State are highly qualified not later 

than the end of the 2005–2006 school year. Over the next decade, 

school districts will need to hire over 2 million additional teachers 

to keep up with increased student enrollment. The No Child Left 

Behind Act has greatly increased the pressure on school system 

leaders to correct staffing deficiencies in schools that serve large 

concentrations of poor and minority children.

States and school districts must recruit a greater quantity of people to the teaching profession while also ensuring teacher quality. 

Unfortunately, schools with concentrated poverty have greater 

teacher and administrator shortages, fewer applications for vacancies, higher absenteeism among teachers and staff, and higher 

rates of teacher and administrator turnover. While the No Child 

Left Behind Act will help school districts recruit and train high 

quality teachers, more help is needed. On March 14, 2002, Laura 

Bush briefed the Committee on Education and the Workforce on 

Preparing Tomorrow’s Teachers. During the briefing, she warned 

members of the Committee that, ‘‘We must do more to attract our 

best and brightest to the teaching profession—and then, provide incentives to keep them in the classroom.’’

H.R. 5091 continues and complements our focus on improving the 

education that children receive, particularly the education that disadvantaged students and students with disabilities receive, by supporting quality teachers for our children. H.R 5091 expands the 

current teacher loan forgiveness maximum amount from $5,000 to 

$17,500 of the loan obligation that is outstanding after the completion of the fifth complete school year of teaching, in an effort to recruit and retain more highly qualified teachers so that the students 

of this nation are given every possible opportunity to succeed. 

The effect of a good teacher on a child is undisputed. By offering 

additional financial support for teachers who have made a commitment to teach in title I schools, this bill can make it possible for 

more disadvantaged students to be taught by caring and competent 

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teachers. Teaching in high need, low income schools isn’t always 

easy, but nowhere is it more important. We are asking a lot of 

teachers and they deserve our full support. 

As William Bennett noted in A Few Lessons Public Schools Need 

to Learn, ‘‘perhaps the single most important factor in how much 

a child learns at school is the presence or absence of a good teacher.’’ We need to do everything we can to encourage college students 

to enter a field that, while challenging, is one of the most rewarding careers one can undertake. H.R. 5091 will help to encourage 

the best and the brightest of our nation’s college students to enter 

the teaching profession. 

SECTION-BY-SECTION ANALYSIS

Section 1. Short title. 

Section 2. Makes amendments to section 482J (c) and 460 (c) of 

the Higher Education Act of 1965 to increase the maximum loan 

forgiveness currently available in both the Federal Family Education Loan Program (FFELP) and the Federal Direct Student 

Loan Program. Section 2 also sets forth the priority in which loan 

forgiveness will be provided. The priority set forth is for special 

education teachers, mathematics and science teachers and those 

teachers employed in local educational agencies that are failing to 

adequately recruit highly qualified teachers as required by the No 

Child Left Behind Act. 

Section 3. Provides for the cancellation of the student loan indebtedness of spouses of fire fighters, police officers, rescue personnel or members of the armed forces who lost their lives or became totally and permanently disabled due to injuries suffered in 

the terrorist attack on September 11, 2001. Section 3 also provides 

for the discharge of the eligible spouses loan if it is combined within a consolidation loan and for the portion of a parent loan if borrowed on behalf of an eligible victim. 

Section 4. Section 4 requires the Secretary of Education to notify 

local educational agencies eligible to participate in the Small Rural 

Achievement Program authorized within the No Child Left Behind 

Act, of the availability of teacher loan forgiveness and encourage 

those agencies to notify their teachers. 

EXPLANATION OF AMENDMENTS

The Amendment in the Nature of a Substitute is explained in the 

body of this report. 

APPLICATION OF LAW TO THE LEGISLATIVE BRANCH

Section 102(b)(3) of Public Law 104–1 requires a description of 

the application of this bill to the legislative branch. H.R. 5091 

amends the Higher Education Act of 1965 to increase the amount 

of student loan forgiveness available to qualified teachers, with an 

emphasis on special education teachers and provide loan forgiveness to certain spouses of victims of September 11th. The bill does 

not prevent legislative branch employees from receiving services 

provided under this legislation. 

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UNFUNDED MANDATE STATEMENT

Section 423 of the Congressional Budget and Impoundment Control Act (as amended by Section 101(a)(2) of the Unfunded Mandates Reform Act, P.L. 104–4) requires a statement of whether the 

provisions of the reported bill include unfunded mandates. H.R. 

5091 amends the spending programs under the Higher Education 

Act. As such, the bill does not contain any unfunded mandates. 

ROLLCALL VOTES

Clause 3(b) of rule XIII of the Rules of the House of Representatives requires the Committee Report to include for each record vote 

on a motion to report the measure or matter and on any amendments offered to the measure or matter the total number of votes 

for and against and the names of the Members voting for and 

against.

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STATEMENT OF OVERSIGHT FINDINGS AND RECOMMENDATIONS OF

THE COMMITTEE

In compliance with clause 3(c)(1) of rule XIII and clause (2)(b)(1) 

of rule X of the Rules of the House of Representatives, the Committee’s oversight findings and recommendations are reflected in the 

body of this report. 

NEW BUDGET AUTHORITY AND CONGRESSIONAL BUDGET OFFICE

COST ESTIMATE

With respect to the requirements of clause 3(c)(2) of rule XIII of 

the House of Representatives and section 308(a) of the Congressional Budget Act of 1974 and with respect to requirements of 

3(c)(3) of rule XIII of the House of Representatives and section 402 

of the Congressional Budget Act of 1974, the Committee has received the following cost estimate for H.R. 5091 from the Director 

of the Congressional Budget Office:

U.S. CONGRESS, 

CONGRESSIONAL BUDGET OFFICE, 

Washington, DC, September 12, 2002. 

Hon. JOHN A. BOEHNER, 

Chairman, Committee on Education and the Workforce, 

House of Representatives, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 5091, the Canceling 

Loans to Allow School Systems to Attract Classroom Teachers Act. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Deborah Kalcevic. 

Sincerely, 

BARRY B. ANDERSON

(For Dan L. Crippen, Director). 

Enclosure. 

H.R. 5091—Canceling Loans to Allow School Systems to Attract 

Classroom Teachers Act 

Summary: H.R. 5091 would establish two new forgiveness programs for federal student loans. The first is a new discretionary 

program to allow the Secretary of Education to pay up to $17,500 

of federal student loan debt for qualified teachers. The other is a 

mandatory program requiring the Secretary of Education to discharge or cancel the outstanding federal student loan debt of the 

spouses and some parents of police officers, firefighters, rescue and 

safety personnel, and members of the Armed Forces who died or 

became permanently and totally disabled as a result of the terrorist 

attacks on September 11, 2001. 

CBO estimates that H.R. 5091 would authorize discretionary 

spending totaling $205 million for fiscal years 2003–2007. Enacting 

this bill would affect direct spending; consequently, pay-as-you-go 

procedures would apply. However, CBO estimates that these direct 

spending effects would be insignificant. 

H.R. 5091 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act (UMRA) 

and would impose no costs on state, local, or tribal governments. 

11

Estimated cost to the Federal Government: The estimated budgetary impact of H.R. 5091 is shown in the following table. The costs 

of this legislation fall within budget function 500 (education, training, employment, and social services).

By fiscal year, in millions of dollars—

2002 2003 2004 2005 2006 2007 

CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Teacher loan forgiveness: 

Estimated authorization level ............................................. ............ 5 12 24 58 106 

Estimated outlays ................................................................ ............ 5 12 24 58 106 

Basis of estimate 

For this estimate, CBO assumes that H.R. 5091 will be enacted 

near the start of fiscal year 2003, and that funds necessary to implement the bill will be appropriated for each year. 

Spending subject to appropriation 

H.R. 5091 would establish a new discretionary program for 

teacher loan forgiveness. CBO estimates this program would cost 

$5 million in 2003 and $205 million over the 2003–2007 period. 

Subject to the availability of appropriated funds, the Secretary of Education would make loan payments up to $17,500 on behalf of 

qualified teachers on a first-come, first-served basis. Payments 

under this program would be in addition to the $5,000 the Secretary is already required to pay on behalf of eligible teachers. 

However, the combination of payments from both programs for an 

individual teacher could not exceed $17,500. The payment would be 

made in a lump sum after a teacher has fulfilled the requirement 

for five consecutive years of full-time teaching. 

All teachers eligible for the current program would be eligible for 

this new program. First, to qualify for both the current and new 

programs, teachers must only have outstanding loans from borrowing after October 7, 1998. Second, they must teach in an elementary or secondary school that has more than 30 percent of its 

students from low-income families and is in a school district eligible for Title I grants. Finally, teachers must have taught full-time 

for five consecutive years and be deemed to be qualified as elementary school teachers or be secondary school teachers teaching in an 

area related to their college major. 

In addition to the teachers eligible for the existing program, special education teachers in the schools described above could be eligible for the new loan forgiveness program. Such teachers would 

have to be employed full-time for five consecutive years teaching 

children with disabilities that correspond to the teacher’s training. 

In making the payments on behalf of teachers, the Secretary would 

have to give priority to special education teachers, teachers in failing schools, and math or science teachers. 

This new program is authorized at such sums as may be necessary for fiscal years 2003 through 2007. The authorization would 

be extended to fiscal year 2008 under the General Education Provisions Act (GEPA). 

Few teachers across the country would be eligible for this new 

program in 2003. Any teacher who had taken out any federal student loans prior to October 8, 1998, and had not paid them all off 

12

in full would be ineligible. Also, by 2003, few teachers whose first 

loans were made after October 1998 would have completed the required five consecutive years of full-time teaching. CBO expects 

that fewer than 1,000 teachers—mostly those who borrowed for the 

first time for teaching certification programs or graduate programs—would qualify for this program in 2003. We estimate that 

the average amount forgiven in 2003 would be approximately 

$6,000. Over time more teachers would meet the bill’s requirements. By 2007, the number of qualified teachers is expected to 

jump to approximately 15,000, with about one of every 12 qualified 

teachers meeting the special education requirements. CBO estimates that the average payment in that year would be nearly 

$7,200. 

CBO estimates the number of participating teachers based on 

data compiled from numerous National Center for Education Statistics (NCES) reports and studies as well as CBO’s projections 

about student loan indebtedness. These factors include the projected number of future elementary and secondary school teachers, 

the turnover rates for new teachers, and the percentage of new 

hires who are recent college graduates. Additional information on 

the percentage of elementary school teachers who are certified, the 

share of secondary school instructors who teach subjects related to 

their college major, and the percentage of these teachers who are 

likely to be teaching in title I schools also factor into the estimate. 

Using these data, CBO estimates that the demand for new teachers 

each year in title I schools would vary each year, ranging from 

about 60,000 to over 100,000 during the forecast period. CBO anticipates that the percent of newly hired teachers who are recent 

college graduates will increase each year as the retirement of older 

teachers accelerates over the next decade. Based on the participation rates in the federal student loan programs. CBO estimates 

that about half of these teachers will have student loan debt and 

that their cumulative total debt level will average roughly $13,000. 

However, many newly hired teachers would not be eligible for this 

program over the 2003–2007 period because either some of their 

student loan debt was acquired prior to October 8, 1998 or they 

would not meet the five-year teaching requirement. Moreover, a 

portion of this outstanding debt for these teachers would be forgiven under existing law.

Direct spending 

H.R. 5091 would require the Secretary of Education to cancel the 

outstanding student loan debt of spouses and some parents of certain people who either died or were permanently disabled in the 

terrorist attacks on September 11, 2001. Loan cancellation would 

be available for the spouses of police, fire, and other rescue and 

safety personnel as well as spouses of members of the Armed 

Forces. This debt would include amounts that the spouse had consolidated with the deceased. In addition, the loans of parents whose 

child was permanently disabled and the consolidation loans of parents whose child died or was permanently disabled would be canceled. 

According to the latest casualty data, fewer than 500 public servants died as a result of the September 11 attacks. In addition, 

some unknown number of individuals may qualify under the disVerDate Sep 04 2002 01:17 Sep 14, 2002 Jkt 099006 PO 00000 Frm 00012 Fmt 6659 Sfmt 6602 E:\HR\OC\HR655.XXX HR655
13

ability requirements for loan cancellation in the future. CBO has 

not been able to ascertain the student loan debt of survivors who 

would be covered by this provision, but the number of people affected is likely to be small and CBO estimates that canceling such 

debts would result in negligible federal costs. 

Pay-as-you-go considerations: The Balanced Budget and Emergency Deficit Control Act of 1985 sets up pay-as-you-go procedures 

for legislation affecting direct spending and receipts. CBO estimates that the direct spending effects of the bill would be less than 

$500,000 in the fiscal year it would be enacted (either 2002 or 

2003), with no effects in other years. 

Intergovernmental and private-sector impact: H.R. 5091 contains 

no intergovernmental or private-sector mandates as defined in 

UMRA and would impose no costs on state, local, or tribal governments. 

Estimate prepared by: Federal costs: Deborah Kalcevic; impact 

on state, local, and tribal governments: Leo Lex, impact on the private sector: Nabeel Alsalam. 

Estimate approved by: Robert A. Sunshine, Assistant Director for 

Budget Analysis. 

STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

In accordance with clause (3)(c) of House rule XIII, the goal of 

H.R. 5091 is to increase the amount of student loan forgiveness 

available to qualified teachers, with an emphasis on special education teachers and provide loan forgiveness to certain spouses of 

victims of September 11th. The Committee expects the Department 

of Education to comply with H.R. 5091 and implement the changes 

to the law in accordance with these stated goals. 

CONSTITUTIONAL AUTHORITY STATEMENT

Under clause 3(d)(1) of rule XIII of the Rules of the House of 

Representatives, the Committee must include a statement citing 

the specific powers granted to Congress in the Constitution to 

enact the law proposed by H.R. 5091. The Committee believes that 

the amendments, made by this bill to the Higher Education Act, 

are within Congress’ authority under Article I, section 8, clause 1 

of the Constitution. 

COMMITTEE ESTIMATE

Clauses 3(d)(2) of rule XIII of the Rules of the House of Representatives requires an estimate and a comparison by the Committee of the costs that would be incurred in carrying out H.R. 

5091. However, clause 3(d)(3)(B) of that rule provides that this requirement does not apply when the Committee has included in its 

report a timely submitted cost estimate of the bill prepared by the 

Director of the Congressional Budget Office under section 402 of 

the Congressional Budget Act.

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3(e) of rule XIII of the Rules of the 

House of Representatives, changes in existing law made by the bill, 

as reported, are shown as follows (new matter is printed in italic, 

14

and existing law in which no change is proposed is shown in 

roman): 

HIGHER EDUCATION ACT OF 1965

* * * * * * *

TITLE IV—STUDENT ASSISTANCE 

* * * * * * *

PART B—FEDERAL FAMILY EDUCATION LOAN PROGRAM

* * * * * * *

SEC. 428J. LOAN FORGIVENESS FOR TEACHERS. 

(a) * * *

* * * * * * *

(c) QUALIFIED LOANS AMOUNT.— (1) * * *

* * * * * * *

(3) ADDITIONAL AMOUNTS; PRIORITY.— (A) LARGER AMOUNTS FROM APPROPRIATED FUNDS.—Notwithstanding the amount specified in paragraph (1), the 

aggregate amount that the Secretary may, from funds appropriated under subparagraph (C), repay under this section is a total amount equal to not more than $17,500. 

(B) AWARD BASIS; PRIORITY.—The Secretary shall make 

payments under this paragraph to elementary or secondary 

school teachers who meet the requirements of subsection (b) 

on a first-come first-served basis, subject to the availability 

of appropriations, but shall give priority in providing loan 

repayment under this paragraph for a fiscal year to teachers who—

(i)(I) are employed as special education teachers 

whose primary responsibility is to teach or support 

children with disabilities (as defined in section 602 of 

the Individuals with Disabilities Act); and 

(II) as certified by the chief administrative officer of 

the public or nonprofit private elementary or secondary 

school in which the borrower is employed, are teaching 

children with disabilities that correspond with the borrower’s training and have demonstrated knowledge 

and teaching skills in the content areas of the elementary or secondary school curriculum that the borrower 

is teaching; 

(ii) are employed as teachers in local educational 

agencies that are determined by a State educational 

agency under section 2141 of the Elementary and Secondary Education Act of 1965 to have failed to make 

progress toward meeting the annual measurable objectives described in section 1119(a)(2) of such Act for 2 

consecutive years; or 

(iii) are employed as teachers of mathematics or 

science. 

(C) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated to carry out this paragraph 

15

such sums as may be necessary for fiscal year 2003 and for 

each of the 4 succeeding fiscal years.

* * * * * * *

PART D—WILLIAM D. FORD FEDERAL DIRECT 

LOAN PROGRAM 

* * * * * * *

SEC. 460. LOAN CANCELLATION FOR TEACHERS. 

(a) * * *

* * * * * * *

(c) QUALIFIED LOAN AMOUNTS.—

(1) * * *

* * * * * * *

(3) ADDITIONAL AMOUNTS; PRIORITY.—

(A) LARGER AMOUNTS FROM APPROPRIATED FUNDS.—Notwithstanding the amount specified in paragraph (1), the 

aggregate amount that the Secretary may, from funds appropriated under subparagraph (C), repay under this section is a total amount equal to not more than $17,500. 

(B) AWARD BASIS; PRIORITY.—The Secretary shall make 

payments under this paragraph to elementary or secondary 

school teachers who meet the requirements of subsection (b) 

on a first-come first-served basis, subject to the availability 

of appropriations, but shall give priority in providing loan 

repayment under this paragraph for a fiscal year to teachers who—

(i)(I) are employed as special education teachers 

whose primary responsibility is to teach or support 

children with disabilities (as defined in section 602 of 

the Individuals with Disabilities Act); and 

(II) as certified by the chief administrative officer of 

the public or nonprofit private elementary or secondary 

school in which the borrower is employed, are teaching 

children with disabilities that correspond with the borrower’s training and have demonstrated knowledge 

and teaching skills in the content areas of the elementary or secondary school curriculum that the borrower 

is teaching; 

(ii) are employed as teachers in local educational 

agencies that are determined by a State educational 

agency under section 2141 of the Elementary and Secondary Education Act of 1965 to have failed to make 

progress toward meeting the annual measurable objectives described in section 1119(a)(2) of such Act for 2 

consecutive years; or 

(iii) are employed as teachers of mathematics or 

science. 

(C) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated to carry out this paragraph 

16

such sums as may be necessary for fiscal year 2003 and for 

each of the 4 succeeding fiscal years.

* * * * * * *

(17)

ADDITIONAL VIEWS 

We are pleased to support H.R. 5091. Indeed, we note that 

Democrats defeated a previous bill—H.R. 4866, which made technical amendments to the Higher Education Act—largely because 

we were denied the opportunity to offer amendments addressing 

these issues. Therefore, we are gratified by the progress the Committee has made today. 

However, we believe that the Committee should have written a 

stronger bill that would ensure that all eligible teachers would receive real and immediate assistance. A better approach would not 

require teachers to pay their loans for five full years before receiving any forgiveness. 

Background 

Last year, we worked with President Bush and members of Congress from both political parties to overhaul federal education laws. 

The No Child Left Behind Act heralds the beginning of an unprecedented national campaign to erase decades of neglect of our worst 

schools. It refocuses federal policy on the original goals of the Elementary and Secondary Education Act of 1965: to ensure that all 

children have an opportunity to learn. 

To reach this goal, we must heed the lessons of state reforms. 

North Carolina’s success was partly due to greater accountability, 

but North Carolina also raised teacher salaries, strengthened education schools, and mentored new teachers. Other states did not invest in teaching and saw disappointing results. For this reason, the 

No Child Left Behind Act requires states to ensure that, within 

four years, every new teacher is fully qualified. 

Despite their importance, our nation continues to struggle to attract and retain qualified teachers, especially in high-poverty 

schools. One of the most important reasons is simple: we don’t pay 

them enough. For example, a recent report from the American Federation of Teachers found that the average salary for a beginning 

teacher was $28,986. In contrast, the average beginning salary for 

accountants is $37,143; for individuals who work in sales or marketing is $40,033; and for engineers is $50,033. The pay disparity 

does not improve as teachers advance in their careers. 

In 1998, Congress enacted a new program to forgive the student 

loans of teachers in high-poverty schools. Under current law, teachers can receive up to $5,000 in loan forgiveness after five years of 

service. The U.S. Department of Education believes that more than 

21,000 students borrowing this year will ultimately benefit from 

this law. 

However, we are concerned that the forgiveness comes too little, 

too late to make a meaningful difference in the career plans of students choosing a major, recent graduates choosing a career, and 

new teachers considering a career change. Moreover, college gradVerDate Sep 04 2002 01:17 Sep 14, 2002 Jkt 099006 PO 00000 Frm 00017 Fmt 6604 Sfmt 6604 E:\HR\OC\HR655.XXX HR655
18

uates’ student loan debt now far exceeds $5,000: in fact, the average debt is now $16,000 and has been growing by $1,000 a year. 

We support the expansion of teacher loan forgiveness established 

by H.R. 5091. However, we believe that the Committee should have 

strengthened this program by adopting the Democratic amendments described below. 

Guaranteed funding 

During Committee consideration of H.R. 5091, Mr. Miller of California offered an amendment to make teacher loan forgiveness an 

entitlement, guaranteeing forgiveness to all eligible teachers. This 

entitlement approach is the same taken by the current forgiveness 

program and by the Bush Administration’s proposal. However, the 

Committee rejected the Miller amendment on a party-line vote. We 

believe that this was a serious mistake. 

The Republican majority takes its faith that Congress will fully 

fund teacher loan forgiveness through the appropriations process. 

This is not a safe assumption. Several years ago, a loan forgiveness 

program for doctors was abruptly eliminated, leading to sudden 

chaos in communities that used the program to recruit physicians. 

A similar program for child care workers receives only $1 million 

a year, enough to help only 75 individuals. 

A discretionary program must fight for funding every year and 

is likely to ultimately fail to obtain adequate and reliable funding. 

Moreover, the resulting uncertainty of program funding years in 

advance will undermine the program’s objective of persuading college students to enter teaching as a profession and new teachers 

to remain in the field. Without that guaranteed stream of funding, 

odds are that this legislation will be nothing more than an empty 

promise. 

Some argue that we cannot enact a real teacher loan forgiveness 

plan because the costs are prohibitive. However, this year alone, 

Congress has passed an $87 billion farm bill, a $36 billion energy 

bill and a $27 billion ‘‘pension reform’’ bill. In the area of education, House Republicans have advocated spending billions more 

subsidizing private school tuition. If Congress were to truly make 

education a top priority, we would approve the Miller amendment. 

Accelerated loan forgiveness 

H.R. 5091 forgives teachers’ loans after five years of service. 

While this loan forgiveness will attract and retain many qualified 

teachers in high poverty schools, teachers will receive no relief 

from their loan debt until they have taught for five years. As a result, it delivers far less in assistance than the promised $17,500: 

after five years, a teacher who borrowed $17,500 will have already 

paid more than $10,000 in principal and interest.

19

Mr. Kildee offered an amendment to provide a portion of the $17,500 in forgiveness after each year of service. Specifically, the 

amount of forgiveness would be $2,000 after the first year of service, $2,500 after the second year of service, $3,500 after the third 

year of service, $4,500 after the fourth year of service, and $5,000 

after the fifth year of service. Providing immediate loan forgiveness 

eliminates the waiting period in the bill and helps schools meet 

H.R. 1’s requirements now. Unfortunately, the Committee rejected 

the Kildee amendment, also on a party-line vote.

President Bush’s proposal 

Mr. Holt offered an amendment to add President Bush’s teacher 

loan forgiveness proposal to H.R. 5091. The President’s proposal, 

which is fully paid for within the Administration’s budget, is superior to H.R. 5091 in that it is an entitlement program, providing 

up to $17,500 in forgiveness to math, science, and special education 

teachers. The Holt amendment was rejected on a voice vote. 

Child care workers 

Ms. Woolsey offered an amendment to make the existing Child 

Care Provider loan forgiveness program an entitlement. Under current law, it is a discretionary program that serves only 75 people 

a year. As a result, efforts to use forgiveness to help provide excellent early children education are seriously impaired. 

The Woolsey amendment was ruled out of order. The legislation 

should not have excluded loan forgiveness for early childhood education teachers who play a critical role in preparing children for 

school. 

Amendments adopted by the Committee 

The Committee adopted, by a voice vote, four amendments offered by Democratic Members of the Committee. We appreciate the 

bipartisan support for these amendments, which we believe substantially strengthen the bill. The four adopted amendments include: 

• An amendment offered by Mr. Kind requiring the Department 

of Education to notify rural school districts of the application deadline and procedures for the teacher loan forgiveness program. 

• An amendment offered by Mr. Miller establishing a priority for 

teachers in schools that are the furthest from meeting the goals of 

Section 1119 of the No Child Left Behind Act, which requires that 

all teachers be highly qualified. 

• An amendment offered by Mr. Holt establishing a priority for 

teachers of math and science.

20

• An amendment offered by Ms. McCarthy providing assistance 

to victims of the September 11th terrorist attacks. Specifically, the 

McCarthy amendment forgives the student loans of spouses of firefighters and police officers killed or permanently disabled on September 11th. The amendment also forgives parents’ education loans 

if their child died or became permanently disabled on September 

11th. For surviving spouses of any September 11th victims who 

consolidated their loans together with the victim, the amendment 

forgives the portion of the consolidation loan borrowed by the deceased or permanently disabled spouse.

GEORGE MILLER. 

RUSH HOLT. 

ROBERT ‘‘BOBBY’’ SCOTT. 

HAROLD FORD. 

BETTY MCCOLLUM. 

MAJOR OWENS. 

LYNN WOOLSEY. 

DENNIS J. KUCINICH. 

CAROLYN MCCARTHY. 

JOHN TIERNEY. 

RUBE ́ N HINOJOSA. 

RON KIND. 

DALE E. KILDEE. 

HILDA L. SOLIS. 

DAVID WU. 

DONALD PAYNE. 

ROBERT E. ANDREWS. 

SUSAN A. DAVIS. 

LORETTA SANCHEZ. 

TIM ROEMER.

Æ