I 

108TH CONGRESS 

2D SESSION H. R. 5186

To reduce certain special allowance payments and provide additional teacher 

loan forgiveness on Federal student loans. 

IN THE HOUSE OF REPRESENTATIVES 

SEPTEMBER 30, 2004

Mr. BOEHNER (for himself, Mr. MCKEON, and Mr. WILSON of South Carolina) introduced the following bill; which was referred to the Committee 

on Education and the Workforce 

A BILL

To reduce certain special allowance payments and provide 

additional teacher loan forgiveness on Federal student loans.

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 ‘‘Taxpayer-Teacher Pro5 tection Act of 2004’’. 

6 SEC. 2. REDUCTION OF SPECIAL ALLOWANCE PAYMENTS 

7 FOR LOANS FROM THE PROCEEDS OF TAX EX8 EMPT ISSUES. 

9 Section 438(b)(2)(B) (20 U.S.C. 1087–1(b)(2)(B)) is 

10 amended—
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1 (1) in clause (i), by striking ‘‘this division’’ and 

2 inserting ‘‘this clause’’; 

3 (2) in clause (ii), by striking ‘‘division (i) of this 

4 subparagraph’’ and inserting ‘‘clause (i) of this sub5 paragraph’’; 

6 (3) in clause (iv), by inserting ‘‘or refunded 

7 after September 30, 2004, and before October 1, 

8 2005,’’ after ‘‘October 1, 1993,’’; and 

9 (4) by adding at the end the following new 

10 clause: 

11 ‘‘(v) Notwithstanding clauses (i) and (ii), the 

12 quarterly rate of the special allowance shall be the 

13 rate determined under subparagraph (A), (E), (F), 

14 (G), (H), or (I) of this paragraph, or paragraph (4), 

15 as the case may be, for a holder of loans that—

16 ‘‘(I) were made or purchased with funds—

17 ‘‘(aa) obtained from the issuance of 

18 obligations the income from which is ex19 cluded from gross income under the Inter20 nal Revenue Code of 1986 and which obli21 gations were originally issued before Octo22 ber 1, 1993; or 

23 ‘‘(bb) obtained from collections or de24 fault reimbursements on, or interest or 

25 other income pertaining to, eligible loans 
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1 made or purchased with funds described in 

2 division (aa), or from income on the invest3 ment of such funds; and 

4 ‘‘(II) are—

5 ‘‘(aa) financed by such an obligation 

6 that has matured, or been retired or 

7 defeased; 

8 ‘‘(bb) refinanced after September 30, 

9 2004, and before October 1, 2005, with 

10 funds obtained from a source other than 

11 funds described in subclause (I) of this 

12 clause; or 

13 ‘‘(cc) sold or transferred to any other 

14 holder after September 30, 2004, and be15 fore October 1, 2005.’’. 

16 SEC. 3. LOAN FORGIVENESS FOR TEACHERS. 

17 (a) IMPLEMENTING HIGHLY QUALIFIED TEACHER

18 REQUIREMENTS.—

19 (1) AMENDMENTS.—

20 (A) FFEL LOANS.—Section 428J(b)(1) of 

21 the Higher Education Act of 1965 (20 U.S.C. 

22 1078–10(b)(1)) is amended—

23 (i) in subparagraph (A), by inserting 

24 ‘‘and’’ after the semicolon; and 
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1 (ii) by striking subparagraphs (B) and 

2 (C) and inserting the following: 

3 ‘‘(B) if employed as an elementary school 

4 or secondary school teacher, is highly qualified 

5 as defined in section 9101 of the Elementary 

6 Secondary Education Act of 1965; and’’. 

7 (B) DIRECT LOANS.—Section 460(b)(1)(A) 

8 of such Act (20 U.S.C. 1087j(b)(1)(A)) is 

9 amended—

10 (i) in clause (i), by inserting ‘‘and’’ 

11 after the semicolon; and 

12 (ii) by striking clauses (ii) and (iii) 

13 and inserting the following: 

14 ‘‘(ii) if employed as an elementary 

15 school or secondary school teacher, is high16 ly qualified as defined in section 9101 of 

17 the Elementary and Secondary Education 

18 Act of 1965; and’’. 

19 (2) TRANSITION RULE.—

20 (A) RULE.—The amendments made by 

21 paragraph (1) of this subsection to sections 

22 428J(b)(1) and 460(b)(1)(A) of the Higher 

23 Education Act of 1965 shall not be applied to 

24 disqualify any individual who, before the date of 

25 enactment of this Act, commenced service that 
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1 met and continues to meet the requirements of 

2 such sections as such sections were in effect on 

3 the day before the date of enactment of this 

4 Act. 

5 (B) RULE NOT APPLICABLE TO INCREASED

6 QUALIFIED LOAN AMOUNTS.—Subparagraph 

7 (A) of this paragraph shall not apply for pur8 poses of obtaining increased qualified loan 

9 amounts under sections 428J(c)(3) and 

10 460(c)(3) of the Higher Education Act of 1965 

11 as added by subsection (b) of this section. 

12 (b) ADDITIONAL AMOUNTS ELIGIBLE TO BE RE13 PAID.—

14 (1) FFEL LOANS.—Section 428J(c) of the 

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

16 10(c)) is amended by adding at the end the fol17 lowing: 

18 ‘‘(3) ADDITIONAL AMOUNTS FOR TEACHERS IN

19 MATHEMATICS, SCIENCE, OR SPECIAL EDUCATION.—

20 Notwithstanding the amount specified in paragraph 

21 (1), the aggregate amount that the Secretary shall 

22 repay under this section shall be not more than 

23 $17,500 in the case of—

24 ‘‘(A) a secondary school teacher—
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1 ‘‘(i) who meets the requirements of 

2 subsection (b); and 

3 ‘‘(ii) whose qualifying employment for 

4 purposes of such subsection is teaching 

5 mathematics or science on a full-time 

6 basis; and 

7 ‘‘(B) an elementary school or secondary 

8 school teacher—

9 ‘‘(i) who meets the requirements of 

10 subsection (b); 

11 ‘‘(ii) whose qualifying employment for 

12 purposes of such subsection is as a special 

13 education teacher whose primary responsi14 bility is to provide special education to 

15 children with disabilities (as those terms 

16 are defined in section 602 of the Individ17 uals with Disabilities Education Act); and 

18 ‘‘(iii) who, as certified by the chief ad19 ministrative officer of the public or non20 profit private elementary school or sec21 ondary school in which the borrower is em22 ployed, is teaching children with disabilities 

23 that correspond with the borrower’s special 

24 education training and has demonstrated 

25 knowledge and teaching skills in the con-
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1 tent areas of the elementary school or sec2 ondary school curriculum that the bor3 rower is teaching.’’. 

4 (2) DIRECT LOANS.—Section 460(c) of the 

5 Higher Education Act of 1965 (20 U.S.C. 1087j(c)) 

6 is amended by adding at the end the following: 

7 ‘‘(3) ADDITIONAL AMOUNTS FOR TEACHERS IN

8 MATHEMATICS, SCIENCE, OR SPECIAL EDUCATION.—

9 Notwithstanding the amount specified in paragraph 

10 (1), the aggregate amount that the Secretary shall 

11 cancel under this section shall be not more than 

12 $17,500 in the case of—

13 ‘‘(A) a secondary school teacher—

14 ‘‘(i) who meets the requirements of 

15 subsection (b)(1); and 

16 ‘‘(ii) whose qualifying employment for 

17 purposes of such subsection is teaching 

18 mathematics or science on a full-time 

19 basis; and 

20 ‘‘(B) an elementary school or secondary 

21 school teacher—

22 ‘‘(i) who meets the requirements of 

23 subsection (b)(1); 

24 ‘‘(ii) whose qualifying employment for 

25 purposes of such subsection is as a special 
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1 education teacher whose primary responsi2 bility is to provide special education to 

3 children with disabilities (as those terms 

4 are defined in section 602 of the Individ5 uals with Disabilities Education Act); and 

6 ‘‘(iii) who, as certified by the chief ad7 ministrative officer of the public or non8 profit private elementary school or sec9 ondary school in which the borrower is em10 ployed, is teaching children with disabilities 

11 that correspond with the borrower’s special 

12 education training and has demonstrated 

13 knowledge and teaching skills in the con14 tent areas of the elementary school or sec15 ondary school curriculum that the bor16 rower is teaching.’’. 

17 (3) EFFECTIVE DATE.—The amendments made 

18 by this subsection shall apply only with respect to el19 igible individuals who are new borrowers (as such 

20 term is defined in 103 of the Higher Education Act 

21 of 1965 (20 U.S.C. 1003)) on or after October 1, 

22 1998, and before August 16, 2005.

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