I 

108TH CONGRESS 

2D SESSION H. R. 4948

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 

JULY 22, 2004

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 in the number of 

24 individuals 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 shall 

16 carry out a program of assuming the obligation to 

17 repay, pursuant to subsection (c), a loan made, in18 sured, or guaranteed under this part or part D (ex19 cluding loans made under sections 428B and 428C, 

20 or comparable loans made under part D) for any 

21 borrower, who—

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

23 or graduate degree from an institution of high24 er education; and 
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1 ‘‘(B) obtains employment in Indian coun2 try. 

3 ‘‘(2) AWARD BASIS; PRIORITY.—

4 ‘‘(A) AWARD BASIS.—Subject to subpara5 graph (B), loan repayment under this section 

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

7 subject to the availability of appropriations. 

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

9 regulation, establish a system for giving priority 

10 in providing loan repayment under this section 

11 to individual based on the following factors: 

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

13 within Indian country where the individual 

14 is employed. 

15 ‘‘(ii) Whether the individual is an en16 rolled member of an Indian tribe. 

17 ‘‘(iii) Whether such enrolled member 

18 is performing employment in the Indian 

19 country of the Indian tribe in which they 

20 are enrolled. 

21 ‘‘(iv) The ratio of the individual’s stu22 dent loan debt to the individual’s annual 

23 income. 

24 ‘‘(v) Whether the individual’s em25 ployer will provide an additional amount or 
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1 a matching percentage for student loan re2 payment for the individual. 

3 ‘‘(3) OUTREACH.—The Secretary shall post a 

4 notice on a Department Internet web site regarding 

5 the availability of loan repayment under this section, 

6 and shall notify institutions of higher education (in7 cluding Tribal Colleges and Universities) and the 

8 Bureau of Indian Affairs regarding the availability 

9 of loan repayment under this section. 

10 ‘‘(c) QUALIFIED LOAN AMOUNTS.—

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

12 the Secretary shall assume or cancel the obligation 

13 to repay under this section—

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

15 made, insured, or guaranteed after the date of 

16 enactment of the Indian Country Educational 

17 Empowerment Zone Act to a student under 

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

19 years of employment in Indian country; 

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

21 each of the third and fourth years of such em22 ployment; and 

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

24 the fifth year of such employment. 
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1 ‘‘(2) MAXIMUM.—The Secretary shall not repay 

2 or cancel under this section more than—

3 ‘‘(A) for any student with a bachelor’s de4 gree, but without a graduate degree, $20,000 in 

5 the aggregate of loans made, insured, or guar6 anteed under parts B and D; and 

7 ‘‘(B) for any student with a graduate de8 gree, $20,000 of such loans for each year of 

9 employment. 

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

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

12 may be a qualified loan amount for the purposes of 

13 this subsection only to the extent that such loan 

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

15 guaranteed under part B or D for a borrower who 

16 meets the requirements of subsection (b)(1), as de17 termined in accordance with regulations prescribed 

18 by the Secretary. 

19 ‘‘(d) ADDITIONAL REQUIREMENTS.—

20 ‘‘(1) NO REFUNDING OF PREVIOUS PAY21 MENTS.—Nothing in this section shall be construed 

22 to authorize the refunding of any repayment of a 

23 loan made under this part or part D. 

24 ‘‘(2) INTEREST.—If a portion of a loan is re25 paid by the Secretary under this section for any 
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1 year, the proportionate amount of interest on such 

2 loan which accrues for such year shall be repaid by 

3 the Secretary. 

4 ‘‘(3) DOUBLE BENEFITS PROHIBITED.—

5 ‘‘(A) INELIGIBILITY OF NATIONAL SERVICE

6 AWARD RECIPIENTS.—No student borrower 

7 may, for the same service, receive a benefit 

8 under both this section and subtitle D of title 

9 I of the National and Community Service Act 

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

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

12 borrower may, for the same service, receive a 

13 benefit under both this section and section 

14 428J, 428K, or 460 of this Act or section 108 

15 of the Indian Health Care Improvement Act 

16 (25 U.S.C. 1616a). 

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

18 Secretary shall pay to each eligible lender or holder 

19 for each fiscal year an amount equal to the aggre20 gate amount of loans which are subject to repayment 

21 pursuant to this section for such year. 

22 ‘‘(e) APPLICATION FOR REPAYMENT.—

23 ‘‘(1) IN GENERAL.—Each eligible individual de24 siring loan repayment under this section shall sub25 mit a complete and accurate application to the Sec-
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1 retary at such time, in such manner, and containing 

2 such information as the Secretary may require. Such 

3 application shall contain verification from the em4 ployer of the employment in Indian country. 

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

6 apply for loan repayment under this section after 

7 completing each year of employment in Indian coun8 try. The borrower shall receive forbearance while en9 gaged in such employment unless the borrower is in 

10 deferment while so engaged. 

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

12 issue such regulations as may be necessary to carry out 

13 the provisions of this section. 

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

15 are authorized to be appropriated to carry out this section 

16 $20,000,000 for fiscal year 2005, and such sums as may 

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

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

19 the term ‘Indian tribe’ means any Indian tribe, band, na20 tion, or other organized group or community, including 

21 any Alaska Native village, which is recognized as eligible 

22 for the special programs and services provided by the 

23 United States to Indians because of their status as Indi24 ans.’’.

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