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[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1742 Introduced in House (IH)]

107th CONGRESS
  1st Session
                                H. R. 1742

   To make scholarships available to individuals who are outstanding 
  secondary school graduates or exceptional certified leaders and who 
    demonstrate a commitment to and capacity for the profession of 
teaching, in order to enable and encourage those individuals to pursue 
teaching careers in education at the preschool, elementary or secondary 
 level or improve their teaching skills through further education, and 
                          for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              May 7, 2001

 Mrs. Wilson introduced the following bill; which was referred to the 
                Committee on Education and the Workforce

_______________________________________________________________________

                                 A BILL

 
   To make scholarships available to individuals who are outstanding 
  secondary school graduates or exceptional certified leaders and who 
    demonstrate a commitment to and capacity for the profession of 
teaching, in order to enable and encourage those individuals to pursue 
teaching careers in education at the preschool, elementary or secondary 
 level or improve their teaching skills through further education, and 
                          for other purposes.

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

                     TITLE I--TEACHING SCHOLARSHIPS

SEC. 101. SHORT TITLE.

    This title may be cited as the ``21st Century Teaching Scholarships 
Act''.

SEC. 102. PURPOSE; DESIGNATION.

    (a) Purpose.--It is the purpose of this title to make available, 
through grants to the States, scholarships to individuals who are 
outstanding secondary school graduates or exceptional certified 
teachers and who demonstrate a commitment to and capacity for teaching, 
in order to enable and encourage those individuals to pursue teaching 
careers in education at the preschool, elementary, or secondary level 
or improve their teaching skills through further education.
    (b) Designation.--Scholarships awarded under this title shall be 
referred to as the ``21st Century Teaching Scholarships''.

SEC. 103. ALLOCATION AMONG STATES.

    (a) Allocation.--From the sums appropriated for this title for any 
fiscal year, the Secretary shall allocate to any State an amount based 
on the school-age population in the State compared to the school-age 
population in all States that apply for funds under this title.
    (b) Use of Census Data.--For the purpose of this section, the 
number of persons in a State and in all States shall be determined by 
the most recently available data from the Bureau of the Census.

SEC. 104. GRANT APPLICATIONS.

    (a) Submission of Applications.--The Secretary is authorized to 
make grants to States in accordance with the provisions of this title. 
In order to receive a grant under this title, a State shall submit an 
application at such time or times, in such manner, and containing such 
information as the Secretary may prescribe by regulation. Such 
application shall set forth a program of activities for carrying out 
the purposes set forth in section 102 in such detail as will enable the 
Secretary to determine the degree to which such program will accomplish 
the purposes and requirements of this title.
    (b) Content of Applications.--The Secretary shall approve an 
application under this Act only if the application--
            (1) describes the procedures to be used by the State in the 
        selection of scholarship recipients under this Act;
            (2) designates as the State agency responsible for 
        administering the grants received under this Act the State 
        agency which administers the program under subpart 4 of part A 
        of title IV of the Higher Education Act of 1965 (20 U.S.C. 
        1070c et seq.) (relating to the leveraging educational 
        assistance partnership program), the State agency with which 
        the Secretary has an agreement under section 428(b) of the 
        Higher Education Act of 1965 (20 U.S.C. 1078), or another 
        appropriate State agency approved by the Secretary;
            (3) describes the outreach effort the State agency intends 
        to use to publicize the availability of 21st Century Teaching 
        Scholarships to secondary school students and certified 
        teachers in the State, making particular efforts to attract 
        qualified applicants from low-income backgrounds; ethnic and 
        racial minorities; individuals with disabilities; individuals 
        who express a willingness or desire to teach in schools having 
        less than average academic results or serving large numbers of 
        economically disadvantaged students; or women or minorities who 
        intend to pursue teaching careers in mathematics and science 
        and who are underrepresented in such fields;
            (4) describes how the State will inform recipients, upon 
        receipt of the award, of current and projected teacher 
        shortages and surpluses within the State;
            (5) provides assurances that each recipient eligible under 
        section 6(b) of this Act who receives a 21st Century Teaching 
        Scholarship shall enter into an agreement with the State agency 
        under which the recipient shall--
                    (A) within the 10-year period after completing the 
                postsecondary education for which the 21st Century 
                Teaching Scholarship was awarded, teach in the State 
                for a period of not less than 2 years, on a full-time 
                basis, for each year for which full-time assistance was 
                received or 1 year for each year for which part-time 
                assistance was received, but not to exceed 6 years for 
                any recipient, in a public, or public charter, 
                preschool, elementary, or secondary school except that, 
                in the case of individuals who teach in a shortage area 
                established by the Secretary pursuant to section 12, 
                the requirements of this subparagraph shall be reduced 
                by one-half;
                    (B) provide the State agency evidence of compliance 
                with section 7 as required by the State agency; and
                    (C) repay all or part of a 21st Century Teaching 
                Scholarship received under section 5 plus interest and, 
                if applicable, reasonable collection fees, in 
                compliance with regulations issued by the Secretary 
                under section 8, in the event that the conditions of 
                subparagraph (A) are not complied with, except as 
provided for in section 9;
            (6) provides that the agreement entered into with 
        recipients shall fully disclose the terms and conditions under 
        which assistance under this Act is provided and under which 
        repayment may be required, including--
                    (A) a description of the procedures required to be 
                established under paragraph (7); and
                    (B) a description of the appeals procedures 
                required to be established under paragraph (8) under 
                which a recipient may appeal a determination of 
                noncompliance with any provision under this Act;
            (7) provides for procedures under which a recipient of 
        assistance received under this Act who teaches for less than 
        the period required under paragraph (5)(A) will have the 
        repayment requirements reduced or eliminated consistent with 
        the provisions of sections 8 and 9;
            (8) provides for appeals procedures under which a recipient 
        may appeal any determination of noncompliance with any 
        provision under this Act; and
            (9) provides assurances that the selection panel makes 
        scholarship awards based solely on the selection criteria in 
        section 6.
    (c) Selection Procedures.--The State educational agency, in 
cooperation with the State higher education agency, and pursuant to 
scholarship selection criteria included in section 106, shall establish 
procedures to select 21st Century Teaching Scholarship recipients. 
These procedures shall be intended to attract highly qualified 
individuals into teaching, to ensure that these students are enrolled 
or are accepted for enrollment in approved teacher education programs, 
and to meet the present and projected needs of States in addressing 
teacher shortages, including--
            (1) the demand for and supply of early childhood and 
        elementary teachers in the State;
            (2) the demand for and supply of secondary teachers in the 
        State;
            (3) the demand for and supply of teachers with training in 
        specific academic disciplines in the State;
            (4) the demand for and supply of teachers of students with 
        disabilities in the State;
            (5) the demand for and supply of teachers for limited 
        English proficient students in the State;
            (6) the demand for and supply of teachers for preschool age 
        children in the State; and
            (7) the demand for and supply of teachers in geographic 
        areas of the State where there is a demonstrated shortage of 
        qualified teachers.
    (d) Solicitation of Views on Selection Procedures.--In developing 
the selection procedures to be used by the State, the State shall 
solicit the views of teachers, the public, teacher education programs, 
local educational agencies, private educational institutions, and other 
interested parties. Such views--
            (1) shall be solicited by means of--
                    (A) written comments; and
                    (B) publication of proposed procedures in final 
                form for implementation; and
            (2) may be solicited by means of--
                    (A) public hearings on the teaching needs of 
                elementary and secondary schools in the State 
                (including the number of new teachers needed, the 
                expected supply of new teachers, and the shortages in 
                the State of teachers with specific preparation); or
                    (B) such other methods as the State may determine 
                to be appropriate to gather information on such needs.

SEC. 105. AMOUNT AND DURATION OF AND RELATION TO OTHER ASSISTANCE.

    (a) Limitations on Amount and Duration.--Subject to subsection (c) 
each 21st Century Teaching Scholarship recipient shall receive a 
$10,000 scholarship for each academic year of full-time postsecondary 
education for study in preparation to become a preschool, special 
education, elementary, or secondary teacher or a $5,000 scholarship for 
each academic year of part-time postsecondary education for those 
scholars who qualify for part-time scholarships in accordance with 
section 107(1). No individual shall receive scholarship assistance for 
more than 5 years of full-time or part-time postsecondary education, as 
determined by the State agency.
    (b) Consideration of Award in Other Programs.--Notwithstanding the 
provisions of title IV of the Higher Education Act of 1965, scholarship 
funds awarded pursuant to this title shall be considered in determining 
eligibility for student assistance under title IV of the Higher 
Education Act of 1965.
    (c) Assistance Not To Exceed Cost of Attendance.--No individual 
shall receive an award under the 21st Century Teaching Scholarship 
established under this title, in any academic year, which exceeds the 
cost of attendance, as defined in section 472 of the Higher Education 
Act of 1965 (20 U.S.C. 1087ll), at the institution the individual is 
attending. A scholarship awarded under this title shall not be reduced 
on the basis of the student's receipt of other forms of Federal student 
financial assistance, but shall be taken into account in determining 
the eligibility of the student for those other forms of Federal student 
financial assistance.

SEC. 106. SELECTION OF 21ST CENTURY TEACHING SCHOLARS.

    (a) Selection by Statewide Panels.--21st Century Teaching Scholars 
shall be selected by a 7-member statewide panel appointed by the chief 
State elected official, acting in consultation with the State 
educational agency, or by an existing grant agency or panel designated 
by the chief State elected official and approved by the Secretary. The 
statewide panel shall include community leaders, business leaders, 
principals, teachers, parents, and, after 2005, former scholarship 
recipients. The panel shall not include elected officials with 
responsibility for education, including State legislators, employees of 
State education agencies or local education authorities other than 
principals or teachers, teachers union officials, or employees of the 
chief State elected official.
    (b) Eligibility for Selection.--To be eligible for selection, an 
applicant shall--
            (1) be a citizen of the United States or a permanent legal 
        resident of the United States;
            (2) be no less than 17 years old and no more than 35 years 
        old on September 1 of the year in which they commence their 
        scholarship;
            (3) be a resident of the State of application or a 
        dependent of an active duty service member who had a permanent 
        duty station in the State of application within the last 5 
        years; and
            (4) have a high school degree or equivalent thereof or have 
        completed home schooling through grade 12 by the end of the 
        semester before beginning the scholarship.
    (c) Criteria for Selection.--Panels shall select the best qualified 
applicants based on academic and scholarly achievement and aptitude for 
and commitment to the profession of teaching. In making their 
selections, panels may consider high school and college transcripts and 
grade point averages, standardized test scores, class standing, 
extracurricular activities, work experience, awards and honors, letters 
of reference, the applicant's expression of interest in teaching and 
planned program of study, as expressed in an essay written by the 
applicant, and, at the discretion of the panel, interviews with the 
candidates. Up to 35 percent of the scholarships awarded may be 
designated for applicants who commit to programs of study that will 
address teacher shortages in the areas identified by the State in 
accordance with section 104(c) of this title. Panels shall not consider 
financial need, race, gender, ethnicity, religious preference, 
political or union affiliation, college preference, or geographic 
distribution within the State when determining the best qualified 
applicants.
    (d) Availability of Applications.--The State educational agency 
shall make applications available to public and private secondary 
schools and colleges, local education authority human resource 
departments, and in other locations convenient to potential applicants, 
parents, and others.

SEC. 107. SCHOLARSHIP CONDITIONS.

    Recipients of scholarship assistance under this title shall 
continue to receive such scholarship payments only during such periods 
that the State agency finds that the recipient is--
            (1) enrolled as a full-time student in an accredited 
        postsecondary institution or, if the scholar is a certified 
        teacher, a classroom teacher who is not so certified and is 
        teaching under a waiver authorized in State law, or an 
        educational assistant working full-time in the classroom, 
        enrolled as a part-time student in an accredited postsecondary 
        institution;
            (2) pursuing a course of study leading to teacher 
        certification or pursuing a postgraduate course of study 
        leading to a higher degree or a second bachelors degree for 
        teachers who are already certified; and
            (3) maintaining satisfactory progress as determined by the 
        postsecondary institution the recipient is attending.

SEC. 108. SCHOLARSHIP REPAYMENT PROVISIONS.

    Recipients found by the State agency to be in noncompliance with 
the agreement entered into under section 104(b)(5) of this title shall 
be required to repay a pro rata amount of the scholarship awards 
received, plus interest (but in no event at an interest rate higher 
than the rate applicable to loans in the applicable period under part B 
of title IV of the Higher Education Act of 1965 (20 U.S.C. 1071 et 
seq.)) and, where applicable, reasonable collection fees, on a schedule 
and at a rate of interest to be prescribed by the Secretary by 
regulations issued pursuant to this title.

SEC. 109. EXCEPTIONS TO REPAYMENT PROVISIONS.

    (a) Deferral During Certain Periods.--A recipient shall not be 
considered in violation of the agreement entered into pursuant to 
section 104(b)(5)(C) during any period in which the recipient--
            (1) is pursuing a full-time course of study related to the 
        field of teaching at an eligible institution;
            (2) is serving, not in excess of 3 years, as a member of 
        the armed services of the United States;
            (3) is temporarily totally disabled for a period of time 
        not to exceed 3 years as established by sworn affidavit of a 
        qualified physician;
            (4) is unable to secure employment for a period not to 
        exceed 12 months by reason of the care required by a spouse who 
        is disabled;
            (5) is seeking and unable to find full-time employment for 
        a single period not to exceed 12 months;
            (6) is seeking and unable to find full-time employment as a 
        teacher in a public or private preschool, elementary or 
        secondary school, or education program for a single period not 
        to exceed 27 months; or
            (7) satisfies the provisions of additional repayment 
        exceptions that may be prescribed by the Secretary in 
        regulations issued pursuant to this title.
    (b) Forgiveness if Permanently Totally Disabled.--A recipient shall 
be excused from repayment of any scholarship assistance received under 
this title if the recipient becomes permanently totally disabled as 
established by sworn affidavit of a qualified physician.

SEC. 110. FEDERAL ADMINISTRATION OF STATE PROGRAMS; JUDICIAL REVIEW.

    (a) Disapproval Hearing Required.--The Secretary shall not finally 
disapprove any application for a State program submitted under section 
104, or any modification thereof, without first affording the State 
agency submitting the program reasonable notice and opportunity for a 
hearing.
    (b) Suspension of Eligibility.--Whenever the Secretary, after 
reasonable notice and opportunity for a hearing to the State agency 
administering a State program approved under this title, finds--
            (1) that the State program has been so changed that it no 
        longer complies with the provisions of this title, or
            (2) that in the administration of the program there is a 
        failure to comply substantially with any such provisions,
the Secretary shall notify such State agency that the State will not be 
regarded as eligible to participate in the program under this title 
until the Secretary is satisfied that there is no longer any such 
failure to comply.
    (c) Court Review.--
            (1) In general.--If any State is dissatisfied with the 
        Secretary's final action under paragraph (1) or (2) of 
        subsection (b), such State may appeal to the United States 
        court of appeals for the circuit in which such State is 
        located. The summons and notice of appeal may be served at any 
        place in the United States. The Secretary shall forthwith 
        certify and file in the court the transcript of the proceedings 
        and the record on which the action was based.
            (2) Findings.--The findings of fact by the Secretary, if 
        supported by substantial evidence, shall be conclusive; but the 
        court, for good cause shown, may remand the case to the 
        Secretary to take further evidence, and the Secretary may 
        thereupon make new or modified findings of fact and may modify 
        any previous action, and shall certify to the court the 
        transcript and record of further proceedings. Such new or 
        modified findings of fact shall likewise be conclusive if 
        supported by substantial evidence.
            (3) Jurisdiction.--The court shall have jurisdiction to 
        affirm the action of the Secretary or to set it aside, in whole 
        or in part. The judgment of the court shall be subject to 
        review by the Supreme Court of the United States upon 
        certiorari or certification as provided in section 1254 of 
        title 28, United States Code.

SEC. 111. EVALUATION.

    (a) In General.--The Secretary shall conduct, by grant or contract, 
an independent evaluation of recipients of scholarship assistance under 
this title, which shall summarize and evaluate the State activities 
assisted under this title and the performance of such recipients. The 
evaluation shall assess the impact of the scholarship program assisted 
under this title to determine whether such program has brought into 
teaching a significant number of highly able individuals who otherwise 
would not have entered teaching, or retained in teaching a significant 
number of highly qualified individuals who otherwise would have left 
teaching. The evaluation shall also assess the impact of the 
scholarship on improving the quality and qualifications of teachers and 
the impact of the scholarships on reducing teacher shortages.
    (b) Contents.--The evaluation described in subsection (a) shall 
include--
            (1) a description of the characteristics, including the 
        educational preparation and achievement, of recipients of 
        scholarship assistance under this title compared to similar 
        students participating in teacher training who do not receive 
        such scholarships;
            (2) the rate at which such recipients successfully complete 
        academic training and go on to teaching careers in preschool, 
        elementary, or secondary education, compared to such rate for 
        similar individuals who do not receive scholarship assistance 
        under this Act;
            (3) the extent to which it is possible to determine 
        objectively that the receipt of scholarship assistance under 
        this Act was the primary reason for an individual's choice of a 
        teaching education and career;
            (4) the extent to which such recipients comply with the 
        provisions of this title;
            (5) the length of time such recipients remain in teaching 
        careers, compared to similar teachers who do not receive 
        scholarships;
            (6) the barriers to the effectiveness of the program 
        assisted under this Act;
            (7) the cost-effectiveness of such program in improving 
        teacher quality and quantity; and
            (8) the impact of the program on the quantity and quality 
        of applicants to colleges of education.
    (c) Evaluation Reports.--The Secretary shall submit such interim 
evaluation reports to the President and the Congress as may be 
appropriate, and shall submit a final report on or before January 1, 
2003.
    (d) Funding.--The Secretary shall reserve a total of not more than 
$1,000,000 from the amounts appropriated pursuant to the authority of 
section 113 in fiscal years 2002 through 2005 to carry out this 
section.

SEC. 112. DEFINITIONS.

  For the purposes of this title:
            (1) Shortage areas.--(A) The term ``shortage areas'' 
        means--
                    (i) geographic areas of the State in which there is 
                a shortage of elementary and secondary school teachers;
                    (ii) an area of shortage of elementary and 
                secondary school teachers in specific grade levels and 
                in specific academic, instructional, subject matter, 
                and discipline classifications; and
                    (iii) any school that, in accordance with the 
                accountability statute of the State, is under a program 
                of corrective action for failure to meet minimum State 
                performance standards.
            (B) Such shortage areas shall be prescribed by the 
        Secretary, in consultation with the chief State school officer. 
        In carrying out the provisions of this paragraph, the Secretary 
        shall give special consideration to areas in which emergency 
        certification or waivers of certification of individuals in a 
        State is being used to correct teacher shortages and to States 
        which have retirement laws permitting early retirement.
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of Education.
            (3) Certified teacher.--The term ``certified teacher'' 
        means a teacher who has obtained State certification as a 
        teacher or has passed a State teacher licensing exam and holds 
        a license to teach in such State.

SEC. 113. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There are authorized to be appropriated 
$260,000,000 for fiscal year 2002 and such sums as may be necessary for 
each of the 4 succeeding fiscal years to carry out this title.
    (b) Limitation on Use of Funds for Administrative Purposes.--All of 
the funds appropriated under this title shall be distributed to the 
States in accordance with section 103. No more than 5 percent of the 
funds appropriated under this title may be used by the State for 
program administration.

             TITLE II--PROFESSIONAL DEVELOPMENT ENHANCEMENT

SEC. 201. SHORT TITLE.

    This title may be cited as the ``Professional Development 
Enhancement Act''.

SEC. 202. STATE ACTIVITIES.

    Section 2207 of the Elementary and Secondary Education Act of 1965 
(20 U.S.C. 6647) is amended--
            (1) in paragraph (12), by striking ``; and'' and inserting 
        a semicolon;
            (2) in paragraph (13), by striking the period and inserting 
        a semicolon; and
            (3) by adding at the end the following:
            ``(14) carrying out programs that include support during 
        the initial teaching experience, such as mentoring programs 
        that--
                    ``(A) provide mentoring to beginning teachers from 
                veteran teachers with expertise in the subject matter 
                that the beginning teachers will be teaching;
                    ``(B) provide mentors time for activities such as 
                coaching, observing, and assisting the teachers who are 
                mentored; and
                    ``(C) use standards or assessments for guiding 
                beginning teachers that are consistent with the State's 
                student performance standards and with the requirements 
                for professional development activities described in 
                section 2210(b)(2); and
            ``(15) carrying out programs that establish, expand, or 
        improve alternative routes to State certification of teachers 
        for highly qualified individuals with a baccalaureate degree, 
        including mid-career professionals from other occupations, 
        paraprofessionals, former military personnel, and recent 
        college or university graduates with records of academic 
        distinction, who demonstrate the potential to become highly 
        effective teachers.''.

SEC. 203. ALTERNATIVE ROUTES.

    Section 2207 of the Elementary and Secondary Education Act of 1965 
is amended--
            (1) by inserting ``(a) Activities.--'' before ``Each 
        State''; and
            (2) by adding at the end the following:
    ``(b) Components of Alternative Routes to State Certification 
Programs.--To the extent appropriate, programs carried out under 
subsection (a)(15) shall--
            ``(1) include strong academic and teaching-related course 
        work that provides teachers with the academic subject knowledge 
        and teaching knowledge needed to help students meet State 
        content standards;
            ``(2) provide intensive field experience in the form of an 
        internship, or student teaching, under the direct daily 
        supervision of an expert, veteran teacher; and
            ``(3) provide that, before entry into teaching, candidates 
        shall be fully qualified.''.

SEC. 204. DEFINITIONS.

    Section 2402 of the Elementary and Secondary Education Act of 1965 
(20 U.S.C. 6702) is amended--
            (1) by redesignating paragraphs (1) through (4) as 
        paragraphs (2), (5), (6), and (3) respectively;
            (2) by inserting paragraph (3) (as so redesignated) after 
        paragraph (2);
            (3) by inserting before paragraph (2) the following:
            ``(1) the term `beginning teacher' means an educator in a 
        public school who has not yet been teaching 3 full school 
        years;'';
            (4) by inserting after paragraph (3) (as so redesignated) 
        the following:
            ``(4) the term `mentoring program' means a program to 
        provide professional support and development, instruction, and 
        guidance to beginning teachers, not including a teacher or 
        individual who begins to work in a supervisory position;'';
            (5) in paragraph (3) (as so redesignated), by striking the 
        period and inserting a semicolon;
            (6) in paragraph (5) (as so redesignated), by striking the 
        semicolon at the end and inserting ``; and''; and
            (7) in subparagraph (E) of paragraph (6) (as so 
        redesignated), by striking ``; and'' and inserting a period.

                TITLE III--LOAN FORGIVENESS FOR TEACHERS

SEC. 301. SHORT TITLE.

    This title may be cited as the ``Quality Teacher Recruitment and 
Retention Act''.

SEC. 302. FINDINGS AND PURPOSE.

    (a) Findings.--Congress makes the following findings:
            (1) Over the next 10 years, a large percentage of teachers 
        will retire, leaving American classrooms, particularly urban 
        and rural classrooms, facing a serious teacher shortage.
            (2) The Nation will need 2,000,000 new teachers over the 
        next 10 years. Unfortunately, in the past this need has been 
        met by admitting some unqualified teachers to the classroom.
            (3) There is also a chronic shortage of fully certified 
        special education teachers, averaging about 27,000 per year. 
        While the demand is ever present, institutes of higher 
        education are graduating fewer teachers qualified in special 
        education.
            (4) Moreover, the burdensome paperwork and legal 
        requirements are factors which lead special education teachers 
        to leave the profession. More special education teachers move 
        into the general education realm than vice versa.
            (5) High quality teachers are the first vital step in 
        ensuring students receive a high quality education.
            (6) Potentially valuable teacher candidates are often lured 
        into different careers by higher compensation.
            (7) High-quality prospective teachers need to be identified 
        and recruited by presenting to them a career that is respected 
        by their peers, is financially and intellectually rewarding, 
        and contains sufficient opportunities for advancement.
            (8) Teacher loan forgiveness gives high-poverty schools an 
        effective incentive for recruiting and retaining much-needed 
        high quality teachers.
            (9) Loan forgiveness for high-need teachers, including 
        special education teachers, can be a critical link in 
        increasing the supply of these essential educators.
    (b) Purpose.--The purpose of this title is to encourage individuals 
to enter and continue in the teaching profession in order to ensure 
that high quality teachers are recruited and retained in areas where 
they are most needed so students attending school in such areas receive 
a quality education.

SEC. 303. EXPANDED LOAN FORGIVENESS PROGRAM FOR TEACHERS.

    (a) Program.--
            (1) In general.--The Secretary of Education (in this 
        section referred to as the ``Secretary'') shall carry out a 
        program of assuming the obligation to repay, pursuant to 
        subsection (c), a loan made, insured, or guaranteed under part 
        B of title IV of the Higher Education Act of 1965 or part D of 
        such title (excluding loans made under sections 428B and 428C 
        of such Act or comparable loans made under part D of such 
        title) for any borrower who--
                    (A) is a new teacher;
                    (B)(i) is employed, for 3 consecutive complete 
                school years, as a full-time teacher in a school that 
                qualifies under section 465(a)(2)(A) of the Higher 
                Education Act of 1965 (20 U.S.C. 1087ee(a)(2)(A)) for 
                loan cancellation for a recipient of a loan under part 
                E of title IV of such Act who teaches in such schools; 
                or
                    (ii) is employed, for 3 consecutive complete school 
                years, as a full-time special education teacher, or as 
                a full-time teacher of special needs children;
                    (C) satisfies the requirements of subsection (d); 
                and
                    (D) is not in default on a loan for which the 
                borrower seeks forgiveness.
            (2) Award basis; priority.--
                    (A) Award basis.--Subject to subparagraph (B), loan 
                repayment under this section shall be on a first-come, 
                first-serve basis and subject to the availability of 
                appropriations.
                    (B) Priority.--The Secretary shall give priority in 
                providing loan repayment under this section for a 
                fiscal year to student borrowers who received loan 
                repayment under this section for the preceding fiscal 
                year.
            (3) Regulations.--The Secretary is authorized to prescribe 
        such regulations as may be necessary to carry out the 
        provisions of this section.
    (b) Loan Repayment.--
            (1) Eligible amount.--The amount the Secretary may repay on 
        behalf of any individual under this section shall not exceed--
                    (A) the sum of the principal amounts outstanding 
                (not to exceed $5,000) of the individual's qualifying 
                loans at the end of 3 consecutive complete school years 
                of service described in subsection (a)(1)(B);
                    (B) an additional portion of such sum (not to 
                exceed $7,500) at the end of each of the next 2 
consecutive complete school years of such service; and
                    (C) a total of not more than $20,000.
            (2) Construction.--Nothing in this section shall be 
        construed to authorize the refunding of any repayment of a loan 
        made under part B or D of title IV of the Higher Education Act 
        of 1965.
            (3) Interest.--If a portion of a loan is repaid by the 
        Secretary under this section for any year, the proportionate 
        amount of interest on such loan which accrues for such year 
        shall be repaid by the Secretary.
    (c) Repayment to Eligible Lenders.--The Secretary shall pay to each 
eligible lender or holder for each fiscal year an amount equal to the 
aggregate amount of loans which are subject to repayment pursuant to 
this section for such year.
    (d) Application for Repayment.--
            (1) In general.--Each eligible individual desiring loan 
        repayment under this section shall submit a complete and 
        accurate application to the Secretary at such time, in such 
        manner, and containing such information as the Secretary may 
        require.
            (2) Years of service.--An eligible individual may apply for 
        loan repayment under this section after completing the required 
number of years of qualifying employment.
            (3) Fully qualified teachers in public elementary or 
        secondary schools.--An application for loan repayment under 
        this section shall include such information as is necessary to 
        demonstrate that the applicant--
                    (A) if teaching in a public elementary, middle, or 
                secondary school (other than as a teacher in a public 
                charter school), has obtained State certification as a 
                teacher (including certification obtained through 
                alternative routes to certification) or passed the 
                State teacher licensing exam and holds a license to 
                teach in such State; and
                    (B) if teaching in--
                            (i) a public elementary school, holds a 
                        bachelor's degree and demonstrates knowledge 
                        and teaching skills in each of the subject 
                        areas in which he or she provides instruction; 
                        or
                            (ii) a public middle or secondary school, 
                        holds a bachelor's degree and demonstrates a 
                        high level of competency in all subject areas 
                        in which he or she teaches through--
                                    (I) a high level of performance on 
                                a rigorous State or local academic 
                                subject areas test; or
                                    (II) completion of an academic 
                                major in each of the subject areas in 
                                which he or she provides instruction.
            (4) Teachers in nonprofit private elementary or secondary 
        schools or charter schools.--In the case of an applicant who is 
        teaching in a nonprofit private elementary or secondary school, 
        or in a public charter school, an application for loan 
        repayment under this section shall include such information as 
        is necessary to demonstrate that the applicant has knowledge 
        and teaching skills in each of the subject areas in which he or 
        she provides instruction, as certified by the chief 
        administrative officer of the school.
    (e) Treatment of Consolidation Loans.--A loan amount for a 
consolidation loan made under section 428C of the Higher Education Act 
of 1965, or a Federal Direct Consolidation Loan made under part D of 
title IV of such Act, may be a qualified loan amount for the purpose of 
this section only to the extent that such loan amount was used by a 
borrower who otherwise meets the requirements of this section to 
repay--
            (1) a loan made under section 428 or 428H of such Act; or
            (2) a Federal Direct Stafford Loan, or a Federal Direct 
        Unsubsidized Stafford Loan, made under part D of title IV of 
        such Act.
    (f) Additional Eligibility Provisions.--
            (1) Continued eligibility.--Any teacher who performs 
        service in a school that--
                    (A) meets the requirements of subsection (a)(1)(B) 
                in any year during such service; and
                    (B) in a subsequent year fails to meet the 
                requirements of such subsection,
        may continue to teach in such school and shall be eligible for 
        loan forgiveness pursuant to subsection (a).
            (2) Prevention of double benefits.--No borrower may, for 
        the same service, receive a benefit under both this section and 
        subtitle D of title I of the National and Community Service Act 
        of 1990 (42 U.S.C. 12571 et seq.).
            (3) Definition of new teacher.--The term ``new teacher'' 
        means an individual who has not previously been employed as a 
        teacher in an elementary or secondary school prior to August 1, 
        2002, excluding employment while engaged in student teaching 
        service or comparable activity that is part of a preservice 
        education program.

SEC. 303. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to carry out this title 
such sums as may be necessary for fiscal year 2002 and for each of the 
4 succeeding fiscal years.
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