SERVE Act

To amend the Higher Education Act of 1965 to increase the amount of loan forgiveness available to highly qualified teachers employed in low-income schools who teach in the same school district for five consecutive years. 1. Short title This Act may be cited as the Support Educators and Reinvest in Valuable Education Act SERVE Act 2. Additional loan forgiveness for highly qualified teachers employed in a low-income school in the same local educational agency for 5 consecutive years (a) Federal Family Education Loan Program Section 428J(c) of the Higher Education Act of 1965 ( 20 U.S.C. 1078–10(c) (4) Additional amounts for teachers employed by the same local educational agency for 5 consecutive complete school years (A) Amounts Notwithstanding the amount specified in paragraph (1), the aggregate amount that the Secretary shall repay under this section shall be not more than $17,500 in the case of an elementary or secondary school teacher— (i) who meets the requirements of subsection (b); and (ii) who has been employed as a full-time teacher for 5 consecutive complete school years at the same local educational agency. (B) Inclusion of PLUS loans A loan made under section 428B (other than an excepted PLUS loan) shall be considered a qualified loan amount for purposes of this paragraph. (C) Treatment of consolidation loans Notwithstanding paragraph (2), a loan amount for a loan made under section 428C may be a qualified loan amount for the purposes of this paragraph only to the extent that such loan amount was used to repay a Federal Direct Stafford Loan, a Federal Direct Unsubsidized Stafford Loan, a Federal Direct PLUS Loan (other than an excepted PLUS loan), or a loan made under section 428, 428B (other than an excepted PLUS loan), or 428H for a borrower who meets the requirements of subparagraph (A), as determined in accordance with regulations prescribed by the Secretary. (D) Excepted PLUS loan In this paragraph, the term excepted PLUS loan . (b) William D. Ford Federal Direct Loan Program Section 460(c) of the Higher Education Act of 1965 ( 20 U.S.C. 1087j(c) (4) Additional amounts for teachers employed by the same local educational agency for 5 consecutive complete school years (A) Amounts Notwithstanding the amount specified in paragraph (1), the aggregate amount that the Secretary shall cancel under this section shall be not more than $17,500 in the case of an elementary or secondary school teacher— (i) who meets the requirements of subsection (b); and (ii) who has been employed as a full-time teacher for 5 consecutive complete school years at the same local educational agency. (B) Inclusion of PLUS loans A Federal Direct PLUS Loan (other than an excepted PLUS loan) shall be considered a qualified loan amount for purposes of this paragraph. (C) Treatment of consolidation loans Notwithstanding paragraph (2), a loan amount for a Federal Direct Consolidation Loan may be a qualified loan amount for the purposes of this paragraph only to the extent that such loan amount was used to repay a Federal Direct Stafford Loan, a Federal Direct Unsubsidized Stafford Loan, a Federal Direct PLUS Loan (other than an excepted PLUS loan), or a loan made under section 428, 428B (other than an excepted PLUS loan), or 428H for a borrower who meets the requirements of subparagraph (A), as determined in accordance with regulations prescribed by the Secretary. (D) Excepted PLUS loan In this paragraph, the term excepted PLUS loan .

Summary: Support Educators and Reinvest in Valuable Education Act or the SERVE Act - Amends title IV (Student Assistance) of the Higher Education Act of 1965 to increase, from $5,000 to $17,500, the amount of loan forgiveness available under the Federal Family Education Loan (FFEL) and Direct Loan (DL) programs to highly qualified teachers who have been employed at a low income school in the same local educational agency (LEA) for five consecutive complete school years. Requires those low income schools to be schools: (1) at which more than 30% of the students are impoverished, and (2) located within the school district of an LEA that is eligible for school improvement funds under title I of the Elementary and Secondary Education Act of 1965. Excepts PLUS loans under the FFEL and DL programs that are provided to the parents of dependent undergraduate students from that loan forgiveness program. Includes consolidation loans in that loan forgiveness program, but only to the extent they are used to repay eligible FFELs or DLs.