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[House Report 107-655]
[From the U.S. Government Publishing Office]

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--
                          ``(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.
          (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.

                            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.
    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 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.

                       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.

  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.
    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 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 disability 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, 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 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 such sums as may be necessary 
                for fiscal year 2003 and for each of the 4 
                succeeding fiscal years.

           *       *       *       *       *       *       *

                            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 graduates' 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.
    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.
     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.
                                   Ruben Hinojosa.
                                   Ron Kind.
                                   Dale E. Kildee.
                                   Hilda L. Solis.
                                   David Wu.
                                   Donald Payne.
                                   Robert E. Andrews.
                                   Susan A. Davis.
                                   Loretta Sanchez.
                                   Tim Roemer.

                                
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