I 
107TH CONGRESS 
2D SESSION 
H. R. 5718
To amend the Higher Education Act of 1965 to expand and improve the 
program of loan forgiveness for teachers, and to amend the Elementary 
and Secondary Education Act of 1965 to focus the expenditure of certain 
recruitment and professional development funds on high-need local edu-
cational agencies. 
IN THE HOUSE OF REPRESENTATIVES 
NOVEMBER 13, 2002
Mr. GRAVES introduced the following bill; which was referred to the 
Committee on Education and the Workforce 
A BILL 
To amend the Higher Education Act of 1965 to expand 
and improve the program of loan forgiveness for teach-
ers, and to amend the Elementary and Secondary Edu-
cation Act of 1965 to focus the expenditure of certain 
recruitment and professional development funds on high-
need local educational agencies.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. LOAN FORGIVENESS FOR TEACHERS. 
(a) ELIMINATION
OF NEW BORROWER RESTRIC-
TIONS.—
(1) FFEL PROGRAM.—Section 428J(b) of the 
Higher Education Act of 1965 (20 U.S.C. 1078–
10(b)) is amended by striking ‘‘for any new bor-
rower on or after October 1, 1998, who’’ and insert-
ing ‘‘for any borrower who’’. 
(2) FEDERAL DIRECT LOAN PROGRAM.—Section 
460(b)(1) of such Act (20 U.S.C. 1087j(b)(1)) is 
amended by striking ‘‘for any new borrower on or 
after October 1, 1998, who’’ and inserting ‘‘for any 
borrower who’’. 
(b) EXPANSION OF ELIGIBLE TEACHING LOCATIONS 
AND SUBJECTS; ELIMINATING DELAY IN SERVICE BEN-
EFIT.—
(1) FFEL PROGRAM.—Section 428J(b)(1) of 
such Act is amended by striking everything pre-
ceding subparagraph (B) and inserting the following: 
‘‘(1) has been employed—
‘‘(A)(i) as a full-time teacher in a school 
that qualifies under section 465(a)(2)(A) for 
loan cancellation for Perkins loan recipients 
who teach in such schools; 
‘‘(ii) as a full-time special education teach-
er, as described in section 465(a)(2)(C); 
‘‘(iii) as a full-time teacher in the fields of 
mathematics or science; or
‘‘(iv) as a full-time teacher in a school that 
is located in a high-need local educational agen-
cy, as that term is defined in section 2102 of 
the Elementary and Secondary Education Act 
of 1965;’’. 
(2) FEDERAL DIRECT LOAN PROGRAM.—Section 
460(b)(1)(A) 
of 
such 
Act 
(20 
U.S.C. 
1087j(b)(1)(A)) is amended by striking everything 
preceding clause (ii) and inserting the following: 
‘‘(A) has been employed—
‘‘(i)(I) as a full-time teacher in a 
school 
that 
qualifies 
under 
section 
465(a)(2)(A) for loan cancellation for Per-
kins loan recipients who teach in such 
schools; 
‘‘(II) as a full-time special education 
teacher, 
as 
described 
in 
section 
465(a)(2)(C); 
‘‘(III) as a full-time teacher in the fields of 
mathematics or science; or 
‘‘(IV) as a full-time teacher in a school 
that is located in a high-need local educational 
agency, as that term is defined in section 2102 
of the Elementary and Secondary Education 
Act of 1965;’’.
(c) AMOUNTS SUBJECT TO FORGIVENESS.—
(1) FFEL PROGRAM.—Section 428J(c) of the 
Higher Education Act of 1965 (20 U.S.C. 1078–
10(c)) is amended by striking paragraph (1) and in-
serting the following: 
‘‘(1) AMOUNT AND RATE OF REPAYMENT.—The 
Secretary shall repay an amount that is not more 
than $20,000 in the aggregate of the loan obligation 
on a loan made under section 428 or 428H that is 
outstanding after the completion of the first com-
plete school year of teaching described in subsection 
(b)(1) for which the borrower seeks repayment 
under this section. Such amount shall be repaid at 
the rate of 15 percent for the first or second year 
of such service, 20 percent for the third or fourth 
year of such service, and 30 percent for the fifth 
year of such service. No borrower may receive a re-
duction of loan obligations under both this section 
and section 460.’’. 
(2) FEDERAL DIRECT LOAN PROGRAM.—Section 
460(c) of such Act (20 U.S.C. 1087j(c)) is amended 
by striking paragraph (1) and inserting the fol-
lowing: 
‘‘(1) AMOUNT AND RATE OF REPAYMENT.—The 
Secretary shall cancel an amount that is not more
than $20,000 in the aggregate of the loan obligation 
on a loan made under section 428 or 428H that is 
outstanding after the completion of the first com-
plete school year of teaching described in subsection 
(b)(1)(A). Such amount shall be canceled at the rate 
of 15 percent for the first or second year of such 
service, 20 percent for the third or fourth year of 
such service, and 30 percent for the fifth year of 
such service.’’. 
SEC. 2. GRANTS TO STATES FOR PREPARING, TRAINING, 
AND RECRUITING HIGH QUALITY TEACHERS 
AND PRINCIPALS. 
Section 2122 of the Elementary and Secondary Edu-
cation Act of 1965 (20 U.S.C. 6622) is amended by add-
ing at the end the following: 
‘‘(d) PRIORITY.—In distributing funds under this 
subpart, a State educational agency shall give priority to 
high-need local educational agencies.’’.
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