II 

113TH CONGRESS 

1ST SESSION S. 440 

To amend the Higher Education Act of 1965 to provide for loan forgiveness 

for early childhood educators, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MARCH 4, 2013 

Mr. REID (for Mr. BEGICH) 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 provide 

for loan forgiveness for early childhood educators, 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 ‘‘Preparing and Rein5 vesting in Early Education Act of 2013’’ or ‘‘PRE ED 

6 Act of 2013’’. 


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1 SEC. 2. EXPANDING FFEL LOAN FORGIVENESS PROGRAM 

2 TO EARLY CHILDHOOD EDUCATORS. 

3 Section 428J of the Higher Education Act of 1965 

4 (20 U.S.C. 1078–10) is amended— 

5 (1) in the section heading, by inserting ‘‘EARLY

6 CHILDHOOD EDUCATORS AND ELEMENTARY

7 AND SECONDARY SCHOOL’’ before ‘‘TEACHERS’’; 

8 (2) by striking subsection (b) and inserting the 

9 following: 

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

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

12 assuming the obligation to repay a qualified loan amount 

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

14 with subsection (c), for any borrower who— 

15 ‘‘(1)(A) is a new borrower on or after October 

16 1, 1998, and has been employed as a full-time teach17 er for 5 consecutive complete school years— 

18 ‘‘(i) in a school or location that qualifies 

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

20 for Perkins loan recipients who teach in such 

21 schools or locations; and 

22 ‘‘(ii) if employed as an elementary school 

23 or secondary school teacher, is highly qualified 

24 as defined in section 9101 of the Elementary 

25 Secondary Education Act of 1965, or meets the 

26 requirements of subsection (g)(3); or 


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1 ‘‘(B)(i) has been employed as a full-time early 

2 childhood educator at an early childhood program 

3 for 5 consecutive complete school years or a com4 parable period, as determined by the Secretary; and 

5 ‘‘(ii) obtained an associate degree or bacca6 laureate degree in early childhood education from an 

7 institution of higher education prior to the beginning 

8 of the period described in clause (i); and 

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

10 borrower seeks forgiveness.’’; 

11 (3) by striking paragraph (1) of subsection (c) 

12 and inserting the following: 

13 ‘‘(1) IN GENERAL.— 

14 ‘‘(A) AGGREGATE AMOUNTS.—Of the loan 

15 obligation on a loan made under section 428 or 

16 428H that is outstanding after the completion 

17 of the fifth complete school year of teaching de18 scribed in subsection (b)(1) or comparable pe19 riod (in accordance with subsection 

20 (b)(1)(B)(i)), the Secretary shall repay not 

21 more than— 

22 ‘‘(i) $5,000 in the aggregate for a 

23 borrower described in subsection (b)(1)(A), 

24 except as provided in paragraph (3); and 


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1 ‘‘(ii) $25,000 in the aggregate for a 

2 borrower described in subsection (b)(1)(B). 

3 ‘‘(B) INTERACTION WITH DIRECT LOAN

4 PROGRAM.—No borrower may receive a reduc5 tion of loan obligations under both this section 

6 and section 460.’’; and 

7 (4) in subsection (g)— 

8 (A) in paragraph (1)(A), by striking 

9 ‘‘(b)(1)(A)’’ and inserting ‘‘(b)(1)(A)(i)’’; and 

10 (B) in paragraph (3), by striking 

11 ‘‘(b)(1)(B)’’ and inserting ‘‘(b)(1)(A)(ii)’’. 

12 SEC. 3. EXPANDING FEDERAL DIRECT LOAN CANCELLA13 TION PROGRAM TO EARLY CHILDHOOD EDU14 CATORS. 

15 Section 460 of the Higher Education Act of 1965 (20 

16 U.S.C. 1087j) is amended— 

17 (1) in the section heading, by inserting ‘‘EARLY

18 CHILDHOOD EDUCATORS AND ELEMENTARY

19 AND SECONDARY SCHOOL’’ before ‘‘TEACHERS’’; 

20 (2) by striking subsection (b) and inserting the 

21 following: 

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

23 carry out a program of canceling the obligation to repay 

24 a qualified loan amount in accordance with subsection (c) 

25 for Federal Direct Stafford Loans and Federal Direct UnVerDate Mar 15 2010 22:37 Mar 04, 2013 Jkt 029200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S440.IS S440

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1 subsidized Stafford Loans made under this part for any 

2 borrower who— 

3 ‘‘(1)(A) is a new borrower on or after October 

4 1, 1998 and has been employed as a full-time teach5 er for 5 consecutive complete school years— 

6 ‘‘(i) in a school or location that qualifies 

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

8 for Perkins loan recipients who teach in such 

9 schools or locations; and 

10 ‘‘(ii) if employed as an elementary school 

11 or secondary school teacher, is highly qualified 

12 as defined in section 9101 of the Elementary 

13 Secondary Education Act of 1965, or meets the 

14 requirements of subsection (g)(3); or 

15 ‘‘(B)(i) has been employed as a full-time early 

16 childhood educator at an early childhood program 

17 for 5 consecutive complete school years or a com18 parable period, as determined by the Secretary; and 

19 ‘‘(ii) obtained an associate degree or bacca20 laureate degree in early childhood education from an 

21 institution of higher education prior to the beginning 

22 of the period described in clause (i); and 

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

24 borrower seeks forgiveness.’’; 


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1 (3) by striking paragraph (1) of subsection (c) 

2 and inserting the following: 

3 ‘‘(1) IN GENERAL.— 

4 ‘‘(A) AGGREGATE AMOUNTS.—Of the loan 

5 obligation on a Federal Direct Stafford Loan or 

6 a Federal Direct Unsubsidized Stafford Loan 

7 that is outstanding after the completion of the 

8 fifth complete school year of teaching described 

9 in subsection (b)(1) or comparable period (in 

10 accordance with subsection (b)(1)(B)(i)), the 

11 Secretary shall cancel not more than— 

12 ‘‘(i) $5,000 in the aggregate for a 

13 borrower described in subsection (b)(1)(A), 

14 except as provided in paragraph (3); and 

15 ‘‘(ii) $25,000 in the aggregate for a 

16 borrower described in subsection (b)(1)(B). 

17 ‘‘(B) INTERACTION WITH FFEL PRO18 GRAM.—No borrower may receive a reduction of 

19 loan obligations under both this section and sec20 tion 428J.’’; and 

21 (4) in subsection (g)— 

22 (A) in paragraph (1)(A), by striking 

23 ‘‘(b)(1)(A)’’ and inserting ‘‘(b)(1)(A)(i)’’; and 

24 (B) in paragraph (3), by striking 

25 ‘‘(b)(1)(B)’’ and inserting ‘‘(b)(1)(A)(ii)’’. 


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1 SEC. 4. AMENDMENT TO LOAN FORGIVENESS FOR SERVICE 

2 IN AREAS OF NATIONAL NEED PROGRAM. 

3 Section 428K(g)(3)(C) of the Higher Education Act 

4 of 1965 (20 U.S.C. 1078–11(g)(3)(C)) is amended by in5 serting ‘‘an associate degree in early childhood education 

6 or’’ before ‘‘a baccalaureate’’. 

Æ 


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