I 

109TH CONGRESS 

2D SESSION H. R. 5564 

To facilitate economic growth and development and to promote Tribal sovereignty, by encouraging a dramatic increase in the number of individuals 

with higher education degrees working within and for Indian Country. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 8, 2006 

Ms. HERSETH introduced the following bill; which was referred to the 

Committee on Education and the Workforce 

A BILL 

To facilitate economic growth and development and to promote Tribal sovereignty, by encouraging a dramatic increase in the number of individuals with higher education 

degrees working within and for Indian Country. 

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Indian Country Edu5 cational Empowerment Zone Act’’. 

6 SEC. 2. FINDINGS. 

7 Congress makes the following findings: 


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1 (1) A unique legal and political relationship ex2 ists between the United States and Indian tribes 

3 that is reflected in article I, section 8, clause 3 of 

4 the Constitution, various treaties, Federal statutes, 

5 Supreme Court decisions, executive agreements, and 

6 course of dealing. 

7 (2) Native Americans continue to rank at the 

8 bottom of nearly every indicator of social and eco9 nomic well-being in America: 

10 (A) Unemployment rates average near 50 

11 percent in Indian country and hover well over 

12 90 percent on many reservations. 

13 (B) While the national poverty rate is only 

14 11 percent, over 26 percent of all Native Ameri15 cans live in poverty. 

16 (C) In addition, Native Americans have 

17 some of the lowest levels of educational attain18 ment in the United States. 

19 (3) Numerous external efforts at economic de20 velopment in Indian Country have proven unsuccess21 ful. The most successful efforts have been initiated 

22 from within the Native communities themselves. Ef23 forts that empower the communities and give them 

24 the tools to make their own decisions should be en25 couraged and pursued. 


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1 (4) Educational achievement continues to be a 

2 cyclical obstacle to economic development in Indian 

3 Country. Businesses are often unwilling to locate to 

4 Indian Country because of the lack of an educated 

5 workforce. Over a quarter of all Americans have a 

6 bachelors degree or higher. However, only 12 per7 cent of all Native Americans nationwide have such 

8 a degree, and only 6 percent of those who actually 

9 live in Indian Country have a bachelors or higher. 

10 Once Natives are finally able to obtain higher edu11 cation, many are not able to return to their commu12 nities because there are no jobs. There needs to be 

13 an intervening factor to help break this damaging 

14 cycle. 

15 SEC. 3. LOAN FORGIVENESS FOR EMPLOYMENT IN INDIAN 

16 COUNTRY. 

17 Part B of title IV of the Higher Education Act of 

18 1965 is amended by inserting after section 428K (20 

19 U.S.C. 1078–11) the following: 

20 ‘‘SEC. 428L. LOAN FORGIVENESS FOR EMPLOYMENT IN IN21 DIAN COUNTRY. 

22 ‘‘(a) PURPOSE.—It is the purpose of this section— 

23 ‘‘(1) to dramatically increase the number of in24 dividuals with higher education degrees working 

25 within and for Indian country; 


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1 ‘‘(2) to facilitate economic growth and develop2 ment in Indian country, and promote Tribal sov3 ereignty; 

4 ‘‘(3) to encourage members of Indian tribes 

5 with higher education degrees to return to Indian 

6 country; 

7 ‘‘(4) to encourage the long-term retention of 

8 educated individuals in Indian country; and 

9 ‘‘(5) to encourage public service in Indian coun10 try, and to encourage investment in Indian country 

11 through an increase in the education level of the 

12 available workforce. 

13 ‘‘(b) PROGRAM AUTHORIZED.— 

14 ‘‘(1) IN GENERAL.—From the funds appro15 priated under subsection (g), the Secretary is au16 thorized to forgive, in accordance with this section, 

17 the student loan debt of any borrower, who— 

18 ‘‘(A) obtains or has obtained a bachelor’s 

19 or graduate degree from an institution of high20 er education; and 

21 ‘‘(B) obtains employment in Indian coun22 try. 

23 ‘‘(2) METHOD OF LOAN FORGIVENESS.—To 

24 provide the loan forgiveness authorized in paragraph 


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1 (1), the Secretary is authorized to carry out a pro2 gram— 

3 ‘‘(A) through the holder of the loan, to as4 sume the obligation to repay a qualified loan 

5 amount for a loan made under this part; and 

6 ‘‘(B) to cancel a qualified loan amount for 

7 a loan made under part D of this title. 

8 ‘‘(3) AWARD BASIS; PRIORITY.— 

9 ‘‘(A) AWARD BASIS.—Subject to subpara10 graph (B), loan forgiveness under this section 

11 shall be on a first-come, first-served basis, and 

12 subject to the availability of appropriations. 

13 ‘‘(B) PRIORITIES.—The Secretary shall, by 

14 regulation, establish a system for giving priority 

15 in providing loan forgiveness under this section 

16 to individuals based on the following factors: 

17 ‘‘(i) The level of poverty in the locality 

18 within Indian country where the individual 

19 is employed. 

20 ‘‘(ii) Whether the individual is an en21 rolled member of an Indian tribe. 

22 ‘‘(iii) Whether such enrolled member 

23 is performing employment in the Indian 

24 country of the Indian tribe in which they 

25 are enrolled. 


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1 ‘‘(iv) The ratio of the individual’s stu2 dent loan debt to the individual’s annual 

3 income. 

4 ‘‘(v) Whether the individual’s em5 ployer will provide an additional amount or 

6 a matching percentage for student loan re7 payment for the individual. 

8 ‘‘(4) OUTREACH.—The Secretary shall post a 

9 notice on a Department Internet web site regarding 

10 the availability of loan forgiveness under this sec11 tion, and shall notify institutions of higher education 

12 (including Tribal Colleges and Universities) and the 

13 Bureau of Indian Affairs regarding the availability 

14 of loan forgiveness under this section. 

15 ‘‘(c) QUALIFIED LOAN AMOUNTS.— 

16 ‘‘(1) PERCENTAGES.—Subject to paragraph (2), 

17 the Secretary shall assume or cancel the obligation 

18 to repay under this section— 

19 ‘‘(A) 15 percent of the amount of all loans 

20 made, insured, or guaranteed after the date of 

21 enactment of the Indian Country Educational 

22 Empowerment Zone Act to a student under 

23 part B or D, for each of the first and second 

24 years of employment in Indian country; 


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1 ‘‘(B) 20 percent of such total amount, for 

2 each of the third and fourth years of such em3 ployment; and 

4 ‘‘(C) 30 percent of such total amount, for 

5 the fifth year of such employment. 

6 ‘‘(2) MAXIMUM.—The Secretary shall not repay 

7 or cancel under this section more than— 

8 ‘‘(A) $20,000 in the aggregate of loans 

9 made, insured, or guaranteed under parts B 

10 and D, for any student with a bachelor’s de11 gree, but without a graduate degree; and 

12 ‘‘(B) $20,000 of such loans for each year 

13 of employment, for any student with a graduate 

14 degree. 

15 ‘‘(3) TREATMENT OF CONSOLIDATION LOANS.— 

16 A loan amount for a loan made under section 428C 

17 may be a qualified loan amount for the purposes of 

18 this subsection only to the extent that such loan 

19 amount was used to repay a loan made, insured, or 

20 guaranteed under part B or D for a borrower who 

21 meets the requirements of subsection (b)(1), as de22 termined in accordance with regulations prescribed 

23 by the Secretary. 

24 ‘‘(d) ADDITIONAL REQUIREMENTS.— 


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1 ‘‘(1) NO REFUNDING OF PREVIOUS PAY2 MENTS.—Nothing in this section shall be construed 

3 to authorize the refunding of any repayment of a 

4 loan made under this part or part D. 

5 ‘‘(2) INTEREST.—If a portion of a loan is re6 paid by the Secretary under this section for any 

7 year, the proportionate amount of interest on such 

8 loan which accrues for such year shall be repaid by 

9 the Secretary. 

10 ‘‘(3) DOUBLE BENEFITS PROHIBITED.— 

11 ‘‘(A) INELIGIBILITY OF NATIONAL SERVICE

12 AWARD RECIPIENTS.—No student borrower 

13 may, for the same service, receive a benefit 

14 under both this section and subtitle D of title 

15 I of the National and Community Service Act 

16 of 1990 (42 U.S.C. 12601 et seq.). 

17 ‘‘(B) DOUBLE FORGIVENESS.—No student 

18 borrower may, for the same service, receive a 

19 benefit under both this section and section 

20 428J, 428K, or 460 of this Act or section 108 

21 of the Indian Health Care Improvement Act 

22 (25 U.S.C. 1616a). 

23 ‘‘(4) REPAYMENT TO ELIGIBLE LENDERS.—The 

24 Secretary shall pay to each eligible lender or holder 

25 for each fiscal year an amount equal to the aggreVerDate Aug 31 2005 02:28 Jun 10, 2006 Jkt 049200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H5564.IH H5564

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1 gate amount of loans which are subject to repayment 

2 pursuant to this section for such year. 

3 ‘‘(e) APPLICATION FOR REPAYMENT.— 

4 ‘‘(1) IN GENERAL.—Each eligible individual de5 siring loan forgiveness under this section shall sub6 mit a complete and accurate application to the Sec7 retary at such time, in such manner, and containing 

8 such information as the Secretary may require. Such 

9 application shall contain verification from the em10 ployer of the employment in Indian country. 

11 ‘‘(2) CONDITIONS.—An eligible individual may 

12 apply for loan forgiveness under this section after 

13 completing each year of employment in Indian coun14 try. The borrower shall receive forbearance while en15 gaged in such employment unless the borrower is in 

16 deferment while so engaged. 

17 ‘‘(f) REGULATIONS.—The Secretary is authorized to 

18 issue such regulations as may be necessary to carry out 

19 the provisions of this section. 

20 ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There 

21 are authorized to be appropriated to carry out this section 

22 $20,000,000 for fiscal year 2007, and such sums as may 

23 be necessary for each of the 4 succeeding fiscal years. 

24 ‘‘(h) DEFINITION OF INDIAN TRIBE.—In this section, 

25 the term ‘Indian tribe’ means any Indian tribe, band, naVerDate Aug 31 2005 02:28 Jun 10, 2006 Jkt 049200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H5564.IH H5564

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1 tion, or other organized group or community, including 

2 any Alaska Native village, which is recognized as eligible 

3 for the special programs and services provided by the 

4 United States to Indians because of their status as Indi5 ans.’’. 

Æ 


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