II

106TH CONGRESS

1ST SESSION S. 475

To amend the Higher Education Act of 1965 to increase the amount of

loan forgiveness for teachers.

IN THE SENATE OF THE UNITED STATES

FEBRUARY 25, 1999

Mr. SCHUMER introduced the following bill; which was read twice and referred

to the Committee on Health, Education, Labor, and Pensions

A BILL

To amend the Higher Education Act of 1965 to increase

the amount of loan forgiveness for teachers.

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

3 SECTION 1. INCREASE IN LOAN FORGIVENESS FOR TEACH4 ERS.

5 (a) FEDERAL STAFFORD LOANS.—

6 (1) AMENDMENT.—Section 428J of the Higher

7 Education Act of 1965 (20 U.S.C. 1078–10) is

8 amended—

9 (A) in subsection (b)—
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•S 475 IS

1 (i) by redesignating paragraph (2) as

2 paragraph (4); and

3 (ii) in paragraph (1)—

4 (I) by amending the matter pre5 ceding subparagraph (A) to read as

6 follows:

7 ‘‘(1) has been employed as a full-time elemen8 tary school or secondary school teacher;’’;

9 (II) by striking subparagraph

10 (A);

11 (III) by redesignating subpara12 graphs (B) and (C) as paragraphs (2)

13 and (3), respectively; and

14 (IV) in paragraph (2) (as redes15 ignated by subclause (III)), by strik16 ing ‘‘and’’ after the semicolon;

17 (B) in subsection (c), by amending para18 graph (1) to read as follows:

19 ‘‘(1) IN GENERAL.—The Secretary shall repay

20 the amount of the loan obligations owed by a bor21 rower on loans made under section 428 or 428H

22 that are outstanding during each of the first 5 years

23 of teaching described in subsection (b). The Sec24 retary shall repay the total amount of all loan obli25 gations owed by a borrower for each loan made
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•S 475 IS

1 under section 428 or 428H that is outstanding after

2 the 5th year of teaching described in subsection (b).

3 No borrower may receive a reduction of loan obliga4 tions under both this section and section 460.’’;

5 (C) by striking subsections (f) and (g), and

6 inserting the following:

7 ‘‘(f) PREVENTION OF DOUBLE BENEFITS.—No bor8 rower may, for the same service, receive a benefit under

9 both this section and subtitle D of title I of the National

10 and Community Service Act of 1990 (42 U.S.C. 12571).’’;

11 and

12 (D) by redesignating subsection (h) as sub13 section (g).

14 (2) EFFECTIVE DATE.—The amendments made

15 by paragraph (1) shall take effect as if included in

16 the amendment made by section 424 of the Higher

17 Education Amendments of 1998.

18 (b) DIRECT LOANS.—

19 (1) AMENDMENT.—Section 460 of the Higher

20 Education Act of 1965 (20 U.S.C. 1087j) is

21 amended—

22 (A) in subsection (b)(1)—

23 (i) by redesignating subparagraph (B)

24 as subparagraph (D); and

25 (ii) in subparagraph (A)—
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•S 475 IS

1 (I) by amending the matter pre2 ceding clause (i) to read as follows:

3 ‘‘(A) has been employed as a full-time ele4 mentary school or secondary school teacher;’’;

5 (II) by striking clause (i);

6 (III) by redesignating clauses (ii)

7 and (iii) as subparagraphs (B) and

8 (C), respectively; and

9 (IV) in subparagraph (B) (as re10 designated by subclause (III)), by

11 striking ‘‘and’’ after the semicolon;

12 (B) in subsection (c), by amending para13 graph (1) to read as follows:

14 ‘‘(1) IN GENERAL.—The Secretary shall cancel

15 the amount of the loan obligations owed by a bor16 rower on a Federal Direct Stafford Loan or a Fed17 eral Direct Unsubsidized Stafford Loan that are

18 outstanding during each of the first 5 years of

19 teaching described in subsection (b). The Secretary

20 shall cancel the total amount of all loan obligations

21 owed by a borrower for each such loan that is out22 standing after the 5th year of teaching described in

23 subsection (b).’’;

24 (C) by striking subsections (f) and (g), and

25 inserting the following:
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•S 475 IS

1 ‘‘(f) PREVENTION OF DOUBLE BENEFITS.—No bor2 rower may, for the same service, receive a benefit under

3 both this section and subtitle D of title I of the National

4 and Community Service Act of 1990 (42 U.S.C. 12571).’’;

5 and

6 (D) by redesignating subsection (h) as sub7 section (g).

8 (2) EFFECTIVE DATE.—The amendments made

9 by paragraph (1) shall take effect as if included in

10 the amendment made by section 456 of the Higher

11 Education Amendments of 1998.

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