I 

109TH CONGRESS 

1ST SESSION H. R. 1522 

To amend the Higher Education Act of 1965 to expand the loan forgiveness 

and loan cancellation programs for teachers, to provide loan forgiveness 

and loan cancellation programs for nurses, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 6, 2005 

Mrs. MCCARTHY (for herself, Mr. HINCHEY, Mr. OWENS, Mr. CHANDLER, Mr. 

PAYNE, Mr. CLYBURN, Mr. GARRETT of New Jersey, and Mr. GRIJALVA) 

introduced the following bill; which was referred to the Committee on 

Education and the Workforce 

A BILL 

To amend the Higher Education Act of 1965 to expand 

the loan forgiveness and loan cancellation programs for 

teachers, to provide loan forgiveness and loan cancellation programs for nurses, and for other purposes. 

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 ‘‘Teacher and Nurse 

5 Support Act of 2005’’. 

6 SEC. 2. FINDINGS AND PURPOSE. 

7 (a) FINDINGS.—Congress finds the following: 
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1 (1) According to the National Center for Edu2 cation Statistics, over the next 10 years, the United 

3 States will need more than 2,000,000 new teachers 

4 to replace the teachers who are retiring or leaving 

5 the classroom for other careers. 

6 (2) The Hart-Rudman National Security Re7 port on education recommended that the President 

8 direct the Department of Education to work with 

9 the States to devise a comprehensive plan to avert 

10 a looming shortage of high-quality teachers. 

11 (3) According to the National Center for Edu12 cation Statistics, 20 percent of all new teachers leave 

13 the teaching profession within 3 years. Providing 

14 loan forgiveness or loan cancellation is one step that 

15 would help retain high-quality teachers in schools 

16 that need teachers. 

17 (4) The American Hospital Association has re18 ported more than 126,000 unfilled registered nurse 

19 positions in hospitals in the United States. Addition20 ally, the vacancy rate for registered nurse positions 

21 at nursing homes throughout the Nation is ap22 proaching 20 percent. 

23 (5) College loans are more of a burden than 

24 ever for students and families. According to a recent 

25 United States Public Interest Research Group re-
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1 port, average student loan debt almost doubled from 

2 $9,200 in 1992–1993 to $16,928 in 1999–2000. 

3 (b) PURPOSE.—The purpose of this Act is to improve 

4 access to, and the delivery of, high-quality educational and 

5 health services throughout the United States by reducing 

6 the shortage of qualified teachers and nurses. 

7 SEC. 3. LOAN FORGIVENESS AND CANCELLATION. 

8 (a) LOAN FORGIVENESS.—Section 428J of the High9 er Education Act of 1965 (20 U.S.C. 1078–10) is amend10 ed to read as follows: 

11 ‘‘SEC. 428J. LOAN FORGIVENESS FOR TEACHERS AND 

12 NURSES. 

13 ‘‘(a) STATEMENT OF PURPOSE.—It is the purpose of 

14 this section to encourage individuals to enter and continue 

15 in the teaching and nursing professions. 

16 ‘‘(b) PROGRAM AUTHORIZED.—The Secretary shall 

17 carry out a program, through the holder of the loan, of 

18 assuming the obligation to repay a qualified loan amount 

19 for a loan made under section 428 or 428H, in accordance 

20 with subsection (c), for any borrower who has 1 or more 

21 loans made under section 428 or 428H after October 1, 

22 1998, and who— 

23 ‘‘(1) has been employed— 

24 ‘‘(A) as a full-time teacher— 
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1 ‘‘(i) in a school that qualifies under 

2 section 465(a)(2)(A) for loan cancellation 

3 for Perkins loan recipients who teach in 

4 those schools; 

5 ‘‘(ii) if employed as a secondary school 

6 teacher, is teaching a subject area that is 

7 relevant to the borrower’s academic major 

8 as certified by the chief administrative offi9 cer of the public or nonprofit private sec10 ondary school in which the borrower is em11 ployed; and 

12 ‘‘(iii) if employed as an elementary 

13 school teacher, has demonstrated, as cer14 tified by the chief administrative officer of 

15 the public or nonprofit private elementary 

16 school in which the borrower is employed, 

17 knowledge and teaching skills in reading, 

18 writing, mathematics, and other areas of 

19 the elementary school curriculum; or 

20 ‘‘(B) as a full-time eligible nurse— 

21 ‘‘(i) in a clinical setting; or 

22 ‘‘(ii) as a member of the nursing fac23 ulty at an accredited school of nursing (as 

24 those terms are defined in section 801 of 
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1 the Public Health Service Act (42 U.S.C. 

2 296)); and 

3 ‘‘(2) is not in default on a loan for which the 

4 borrower seeks forgiveness. 

5 ‘‘(c) QUALIFIED LOAN AMOUNT.— 

6 ‘‘(1) IN GENERAL.— 

7 ‘‘(A) AGGREGATE AMOUNT.—The Sec8 retary shall, in installments in accordance with 

9 subparagraph (B), repay not more than 

10 $17,500 in the aggregate of the loan obligation 

11 on a loan made under section 428 or 428H that 

12 is outstanding after the completion of each 

13 complete— 

14 ‘‘(i) school year of teaching described 

15 in subsection (b)(1)(A); or 

16 ‘‘(ii) year of nursing described in sub17 section (b)(1)(B). 

18 ‘‘(B) ANNUAL INSTALLMENTS.—The Sec19 retary shall repay the loan obligation on such a 

20 loan in annual installments after each of 5 

21 years of such service not to exceed the lesser of 

22 the remaining outstanding obligation or— 

23 ‘‘(i) $2,000 at the completion of the 

24 first year of such service; 
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1 ‘‘(ii) $2,500 at the completion of the 

2 second year of such service; 

3 ‘‘(iii) $3,500 at the completion of the 

4 third year of such service; 

5 ‘‘(iv) $4,500 at the completion of the 

6 fourth year of such service; and 

7 ‘‘(v) $5,000 at the completion of the 

8 fifth year of such service. 

9 ‘‘(C) RELATION TO LOAN CANCELLA10 TION.—No borrower may receive a reduction of 

11 loan obligations under both this section and sec12 tion 460. 

13 ‘‘(2) TREATMENT OF CONSOLIDATION LOANS.— 

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

15 may be a qualified loan amount for the purposes of 

16 this subsection only to the extent that the loan 

17 amount was used to repay a Federal Direct Stafford 

18 Loan, a Federal Direct Unsubsidized Stafford Loan, 

19 or a loan made under section 428 or 428H for a 

20 borrower who meets the requirements of subsection 

21 (b), as determined in accordance with regulations 

22 prescribed by the Secretary. 

23 ‘‘(3) FORBEARANCE ON QUALIFIED LOAN

24 AMOUNT.—A holder of a loan on which a borrower 

25 is seeking forgiveness under this section— 
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1 ‘‘(A) shall grant forbearance, at the re2 quest of the borrower, in annual increments for 

3 each of the years of qualifying service if the 

4 holder believes, at the time of the borrower’s 

5 annual request, that the amount expected to be 

6 forgiven under this section at the completion of 

7 the period of qualifying service will satisfy the 

8 anticipated remaining outstanding balance on 

9 the loan; and 

10 ‘‘(B) may offer other forbearance options 

11 to the borrower. 

12 ‘‘(d) REGULATIONS.—The Secretary is authorized to 

13 issue such regulations as may be necessary to carry out 

14 the provisions of this section. 

15 ‘‘(e) CONSTRUCTION.—Nothing in this section shall 

16 be construed to authorize any refunding of any repayment 

17 of a loan. 

18 ‘‘(f) LIST OF SCHOOLS.—If the list of schools in 

19 which a teacher may perform service pursuant to sub20 section (b)(1)(A) is not available before May 1 of any year, 

21 the Secretary may use the list for the year preceding the 

22 year for which the determination is made to make the 

23 service determination. 

24 ‘‘(g) ADDITIONAL ELIGIBILITY PROVISIONS.— 
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1 ‘‘(1) CONTINUED ELIGIBILITY FOR TEACH2 ERS.—Any teacher who performs service in a school 

3 that— 

4 ‘‘(A) meets the requirements of subsection 

5 (b)(1)(A)(i) in any year during such service; 

6 and 

7 ‘‘(B) in a subsequent year fails to meet the 

8 requirements of that subsection, 

9 may continue to teach in the school and shall be eli10 gible for loan forgiveness pursuant to subsection (b). 

11 ‘‘(2) PREVENTION OF DOUBLE BENEFITS.—No 

12 borrower may, for the same service, receive a benefit 

13 under both this subsection and— 

14 ‘‘(A) subtitle D of title I of the National 

15 and Community Service Act of 1990 (42 U.S.C. 

16 12571 et seq.); and 

17 ‘‘(B) section 846 of the Public Health 

18 Service Act (42 U.S.C. 297n). 

19 ‘‘(h) DEFINITIONS.—In this section: 

20 ‘‘(1) ELIGIBLE NURSE.—The term ‘eligible 

21 nurse’ means a nurse who meets all of the following: 

22 ‘‘(A) The nurse graduated from— 

23 ‘‘(i) an accredited school of nursing 

24 (as those terms are defined in section 801 
9 

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1 of the Public Health Service Act (42 

2 U.S.C. 296)); 

3 ‘‘(ii) a nursing center; or 

4 ‘‘(iii) an academic health center that 

5 provides nurse training. 

6 ‘‘(B) The nurse holds a valid and unre7 stricted license to practice nursing in the State 

8 in which the nurse practices in a clinical set9 ting. 

10 ‘‘(C) The nurse holds 1 or more of the fol11 lowing: 

12 ‘‘(i) A graduate degree in nursing or 

13 equivalent degree. 

14 ‘‘(ii) A nursing degree from a colle15 giate school of nursing (as defined in sec16 tion 801 of the Public Health Service Act 

17 (42 U.S.C. 296)). 

18 ‘‘(iii) A nursing degree from an asso19 ciate degree school of nursing (as defined 

20 in section 801 of the Public Health Service 

21 Act (42 U.S.C. 296)). 

22 ‘‘(iv) A nursing degree from a diploma 

23 school of nursing (as defined in section 

24 801 of the Public Health Service Act (42 

25 U.S.C. 296)). 
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1 ‘‘(2) YEAR.—The term ‘year’, where applied to 

2 service as a teacher (or service as a member of an 

3 accredited school of nursing (as those terms are de4 fined in section 801 of the Public Health Service Act 

5 (42 U.S.C. 296))), means an academic year as de6 fined by the Secretary.’’. 

7 (b) LOAN CANCELLATION.—Section 460 of the High8 er Education Act of 1965 (20 U.S.C. 1087j) is amended 

9 to read as follows: 

10 ‘‘SEC. 460. LOAN CANCELLATION FOR TEACHERS AND 

11 NURSES. 

12 ‘‘(a) STATEMENT OF PURPOSE.—It is the purpose of 

13 this section to encourage individuals to enter and continue 

14 in the teaching and nursing professions. 

15 ‘‘(b) PROGRAM AUTHORIZED.— 

16 ‘‘(1) IN GENERAL.—The Secretary shall carry 

17 out a program of canceling the obligation to repay 

18 a qualified loan amount in accordance with sub19 section (c) for Federal Direct Stafford Loans and 

20 Federal Direct Unsubsidized Stafford Loans made 

21 under this part for any borrower who has 1 or more 

22 loans made under this part after October 1, 1998, 

23 and who has been employed— 

24 ‘‘(A) as a full-time teacher— 
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1 ‘‘(i) in a school that qualifies under 

2 section 465(a)(2)(A) for loan cancellation 

3 for Perkins loan recipients who teach in 

4 those schools; 

5 ‘‘(ii) if employed as a secondary school 

6 teacher, is teaching a subject area that is 

7 relevant to the borrower’s academic major 

8 as certified by the chief administrative offi9 cer of the public or nonprofit private sec10 ondary school in which the borrower is em11 ployed; and 

12 ‘‘(iii) if employed as an elementary 

13 school teacher, has demonstrated, as cer14 tified by the chief administrative officer of 

15 the public or nonprofit private elementary 

16 school in which the borrower is employed, 

17 knowledge and teaching skills in reading, 

18 writing, mathematics, and other areas of 

19 the elementary school curriculum; or 

20 ‘‘(B) as a full-time eligible nurse— 

21 ‘‘(i) in a clinical setting; or 

22 ‘‘(ii) as a member of the nursing fac23 ulty at an accredited school of nursing (as 

24 those terms are defined in section 801 of 
12 

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1 the Public Health Service Act (42 U.S.C. 

2 296)); and 

3 ‘‘(2) is not in default on a loan for which the 

4 borrower seeks forgiveness. 

5 ‘‘(c) QUALIFIED LOAN AMOUNTS.— 

6 ‘‘(1) IN GENERAL.— 

7 ‘‘(A) AGGREGATE AMOUNT.—The Sec8 retary shall, in installments in accordance with 

9 subparagraph (B), cancel not more than 

10 $17,500 in the aggregate of the loan obligation 

11 on a Federal Direct Stafford Loan or a Federal 

12 Direct Unsubsidized Stafford Loan that is out13 standing after the completion of each com14 plete— 

15 ‘‘(i) school year of teaching described 

16 in subsection (b)(1)(A); or 

17 ‘‘(ii) year of nursing described in sub18 section (b)(1)(B). 

19 ‘‘(B) ANNUAL INSTALLMENTS.—The Sec20 retary shall repay the loan obligation on such a 

21 loan in annual installments after each of 5 

22 years of such service not to exceed the lesser of 

23 the remaining outstanding obligation or— 

24 ‘‘(i) $2,000 at the completion of the 

25 first year of such service; 
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1 ‘‘(ii) $2,500 at the completion of the 

2 second year of such service; 

3 ‘‘(iii) $3,500 at the completion of the 

4 third year of such service; 

5 ‘‘(iv) $4,500 at the completion of the 

6 fourth year of such service; and 

7 ‘‘(v) $5,000 at the completion of the 

8 fifth year of such service. 

9 ‘‘(C) RELATION TO LOAN REPAYMENT.— 

10 No borrower may receive a reduction of loan 

11 obligations under both this section and section 

12 428J. 

13 ‘‘(2) TREATMENT OF CONSOLIDATION LOANS.— 

14 A loan amount for a Federal Direct Consolidation 

15 Loan may be a qualified loan amount for the pur16 poses of this subsection only to the extent that the 

17 loan amount was used to repay a Federal Direct 

18 Stafford Loan, a Federal Direct Unsubsidized Staf19 ford Loan, or a loan made under section 428 or 

20 428H, for a borrower who meets the requirements of 

21 subsection (b), as determined in accordance with 

22 regulations prescribed by the Secretary. 

23 ‘‘(3) FORBEARANCE ON QUALIFIED LOAN

24 AMOUNT.—A holder of a loan on which a borrower 

25 is seeking cancellation under this section— 
14 

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1 ‘‘(A) shall grant forbearance, at the re2 quest of the borrower, in annual increments for 

3 each of the years of qualifying service if the 

4 holder believes, at the time of the borrower’s 

5 annual request, that the amount expected to be 

6 canceled under this section at the completion of 

7 the period of qualifying service will satisfy the 

8 anticipated remaining outstanding balance on 

9 the loan; and 

10 ‘‘(B) may offer other forbearance options 

11 to the borrower. 

12 ‘‘(d) REGULATIONS.—The Secretary is authorized to 

13 issue such regulations as may be necessary to carry out 

14 the provisions of this section. 

15 ‘‘(e) CONSTRUCTION.—Nothing in this section shall 

16 be construed to authorize any refunding of any canceled 

17 loan. 

18 ‘‘(f) LIST OF SCHOOLS.—If the list of schools in 

19 which a teacher may perform service pursuant to sub20 section (b)(1)(A) is not available before May 1 of any year, 

21 the Secretary may use the list for the year preceding the 

22 year for which the determination is made to make such 

23 service determination. 

24 ‘‘(g) ADDITIONAL ELIGIBILITY PROVISIONS.— 
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1 ‘‘(1) CONTINUED ELIGIBILITY FOR TEACH2 ERS.—Any teacher who performs service in a school 

3 that— 

4 ‘‘(A) meets the requirements of subsection 

5 (b)(1)(A)(i) in any year during such service; 

6 and 

7 ‘‘(B) in a subsequent year fails to meet the 

8 requirements of that subsection, 

9 may continue to teach in the school and shall be eli10 gible for loan cancellation pursuant to subsection 

11 (b). 

12 ‘‘(2) PREVENTION OF DOUBLE BENEFITS.—No 

13 borrower may, for the same service, receive a benefit 

14 under both this section and— 

15 ‘‘(A) subtitle D of title I of the National 

16 and Community Service Act of 1990 (42 U.S.C. 

17 12571 et seq.); and 

18 ‘‘(B) section 846 of the Public Health 

19 Service Act (42 U.S.C. 297n). 

20 ‘‘(h) DEFINITIONS.—In this section: 

21 ‘‘(1) ELIGIBLE NURSE.—The term ‘eligible 

22 nurse’ means a nurse who meets all of the following: 

23 ‘‘(A) The nurse graduated from— 

24 ‘‘(i) an accredited school of nursing 

25 (as those terms are defined in section 801 
16 

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1 of the Public Health Service Act (42 

2 U.S.C. 296)); 

3 ‘‘(ii) a nursing center; or 

4 ‘‘(iii) an academic health center that 

5 provides nurse training . 

6 ‘‘(B) The nurse holds a valid and unre7 stricted license to practice nursing in the State 

8 in which the nurse practices in a clinical set9 ting. 

10 ‘‘(C) The nurse holds 1 or more of the fol11 lowing: 

12 ‘‘(i) A graduate degree in nursing or 

13 equivalent degree. 

14 ‘‘(ii) A nursing degree from a colle15 giate school of nursing (as defined in sec16 tion 801 of the Public Health Service Act 

17 (42 U.S.C. 296)). 

18 ‘‘(iii) A nursing degree from an asso19 ciate degree school of nursing (as defined 

20 in section 801 of the Public Health Service 

21 Act (42 U.S.C. 296)). 

22 ‘‘(iv) A nursing degree from a diploma 

23 school of nursing (as defined in section 

24 801 of the Public Health Service Act (42 

25 U.S.C. 296)). 
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1 ‘‘(2) YEAR.—The term ‘year’, where applied to 

2 service as a teacher (or service as a member of an 

3 accredited school of nursing (as those terms are de4 fined in section 801 of the Public Health Service Act 

5 (42 U.S.C. 296))), means an academic year as de6 fined by the Secretary.’’. 

7 SEC. 4. PHASE OUT OF CURRENT PROGRAM. 

8 An individual who began the required period of teach9 ing described in section 428J(b)(1) or 460(b)(1)(A) of the 

10 Higher Education Act of 1965 (20 U.S.C. 1078–10 and 

11 1087j) as such sections were in effect on the day before 

12 the date of enactment of this Act, shall— 

13 (1) be eligible to receive loan forgiveness or loan 

14 cancellation in the amount described in, and in ac15 cordance with the requirements of, such sections as 

16 in effect on the day before the date of enactment of 

17 this Act; and 

18 (2) not be eligible to receive loan forgiveness or 

19 loan cancellation under section 428J or 460 of the 

20 Higher Education Act of 1965 as in effect on the 

21 date of enactment of this Act. 

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