SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Strategic Technology/ 
Engineering Program Act of 2007’’ or the ‘‘STEP Act’’. 
SEC. 2. FINDINGS. 
Congress finds as follows: 
(1) In 1985, the number of bachelor’s degrees 
awarded annually in engineering peaked at 77,572, 
and that number has decreased every year since 
1985. According to the National Science Founda-
tion, the number of people who earned bachelor’s de-
grees in engineering declined to approximately 
60,000 in 2002. 
(2) In 1996, the number of doctoral degrees 
awarded annually in engineering peaked at 6,309. 
(3) Since 1983, the unemployment rate for 
science and engineering jobs has been at least 2 per-
cent lower than the unemployment rate in the 
United States for all fields of employment. 
(4) In 2004, engineers held 1,400,000 jobs in 
the United States, and the Department of Labor’s 
Bureau of Labor Studies has projected that 611,000 
new engineering jobs will open up during the 10- 
year period from 2004 through 2014. 
(5) Over one-quarter of the science and engi-
neering workforce is comprised of individuals who 
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are older than age 50 and who are expected to retire 
in the next 15 years. 
(6) The United States is facing a shortage of 
engineers because the number of engineering grad-
uates is consistently surpassed by the growth in en-
gineering jobs, many engineers are nearing retire-
ment, and many new engineering graduates take 
jobs in other fields. 
(7) The United States should take advantage of 
available intellectual resources by recruiting students 
from the top third of high school graduates to pur-
sue engineering degrees and to become the next gen-
eration of engineers. 
(8) The United States should develop education 
standards, assessments, and curricula that reflect 
the engineering needs of our Nation now and in the 
future. 
(9) Most engineering jobs require a bachelor’s 
degree in engineering, and many States require ad-
ditional years of study beyond a bachelor’s degree to 
qualify for and maintain the Professional Engineer 
designation. 
(10) The years of study required to be able to 
perform engineering jobs result in a large financial 
burden. 
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(11) Providing scholarships and loan forgive-
ness for engineering graduates who work in the engi-
neering field will make it easier for such graduates 
to enter and continue to work in the engineering 
profession, a profession that is vital to the United 
States. 
SEC. 3. STRATEGIC TECHNOLOGY AND ENGINEERING PRO-
GRAM (STEP). 
Title VII of the Higher Education Act of 1965 (20 
U.S.C. 1133 et seq.) is amended by adding at the end 
the following new part: 
‘‘PART E—STEP 
‘‘SEC. 771. STRATEGIC TECHNOLOGY/ENGINEERING PRO-
GRAM (STEP). 
‘‘(a) PROGRAM ESTABLISHED.—The Secretary is au-
thorized to establish a STEP scholarship program, in ac-
cordance with the requirements of this section, to award 
scholarships to individuals who enroll in a program of 
study at institution of higher educations to pursue under-
graduate and graduate degrees in engineering, technology, 
applied sciences, mathematics, or similar fields. 
‘‘(b) STEP SCHOLARS.—Individuals awarded schol-
arships under this section shall be known as ‘STEP Schol-
ars’. 
‘‘(c) SCHOLARSHIP AWARDS.— 
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‘‘(1) SCHOLARSHIP AMOUNT.— 
‘‘(A) 
YEARLY
AND
AGGREGATE 
AMOUNTS.—The amount of a STEP scholarship 
shall be— 
‘‘(i) for an undergraduate student, not 
more than $9,000 for an academic year, 
and not more than $36,000 in the aggre-
gate; and 
‘‘(ii) for a graduate student, not more 
than $15,000 for an academic year, and 
not more than $45,000 in the aggregate. 
‘‘(B) LIMITATION.—In no case shall the 
total amount of a STEP scholarship awarded to 
an individual exceed such individual’s total cost 
of attendance for the academic year for which 
the scholarship is awarded. 
‘‘(C) ADJUSTMENT FOR INSUFFICIENT AP-
PROPRIATIONS.—If funds available to carry out 
this section for an academic year are insuffi-
cient to fully fund all scholarships awarded by 
the Secretary under this section for such aca-
demic year, the amount of the scholarship paid 
to each individual under this section shall be re-
duced proportionately. 
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‘‘(2) PERIOD OF AWARD.—STEP scholarships 
shall be awarded for a period of one academic year, 
and may be renewed for subsequent one-year periods 
during— 
‘‘(A) the 4 years of study necessary to ob-
tain an undergraduate degree; and 
‘‘(B) the 3 years of study necessary to ob-
tain a graduate degree. 
‘‘(3) RELATION
TO
OTHER
ASSISTANCE.— 
STEP scholarships shall not be considered for the 
purpose of awarding Federal grant assistance under 
title IV of the Higher Education Act of 1965 (20 
U.S.C. 1070 et seq.), except that in no case shall the 
total amount of student financial assistance awarded 
to an individual under this section and title IV of 
such Act exceed such individual’s total cost of at-
tendance. 
‘‘(d) ELIGIBILITY.—To be eligible for a STEP schol-
arship, an individual shall— 
‘‘(1) be a citizen, national, or permanent resi-
dent of the United States; 
‘‘(2) be an eligible student under section 484; 
‘‘(3) be enrolled or accepted for enrollment in 
a program of— 
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‘‘(A) undergraduate instruction leading to 
a bachelor’s degree with a major in engineering, 
technology, applied sciences, mathematics, or 
similar fields at an institution of higher edu-
cation; or 
‘‘(B) graduate instruction leading to a 
master’s or doctoral degree in engineering, 
technology, applied sciences, mathematics, or 
similar fields at an institution of higher edu-
cation; 
‘‘(4) be enrolled or accepted for enrollment in 
at least 15 credit hours per semester (or the equiva-
lent for a course of study that measures its program 
length in trimesters, quarters, or clock hours) of 
courses required to obtain an undergraduate or 
graduate degree in engineering, technology, applied 
sciences, mathematics, or similar fields; and 
‘‘(5) have a grade point average— 
‘‘(A) of at least 2.5, cumulatively, (or the 
equivalent as determined under regulations pre-
scribed by the Secretary) at the end of the sec-
ondary school program of study, in the case of 
an individual enrolled or accepted for enroll-
ment in the first academic year of under-
graduate education; or 
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‘‘(B) of at least 2.5 (or the equivalent as 
determined under regulations prescribed by the 
Secretary) for each completed academic semes-
ter of undergraduate or graduate education, in 
the case of an individual enrolled or accepted 
for enrollment other than in the first academic 
year of undergraduate education. 
‘‘(e) SELECTION.— 
‘‘(1) APPLICATION.—Each eligible individual 
desiring a STEP scholarship shall submit an appli-
cation to the Secretary at such time, in such man-
ner, and containing such information as the Sec-
retary may reasonably require. 
‘‘(2) AWARD BASIS.—Subject to paragraph (3), 
STEP scholarships shall be awarded on a first-come, 
first-served basis and subject to the availability of 
appropriations. 
‘‘(3) PRIORITY.—The Secretary shall give pri-
ority in awarding STEP scholarships for an aca-
demic year— 
‘‘(A) to eligible individuals who received a 
STEP scholarship for the preceding academic 
year; and 
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‘‘(B) to eligible individuals enrolled in an 
institution of higher education that is an eligi-
ble institution under section 312 of this Act. 
‘‘(f) CONVERSION TO LOAN.— 
‘‘(1) REPAYMENT.—In the event that any re-
cipient of a STEP scholarship fails or refuses to ob-
tain the degree in engineering, technology, applied 
sciences, mathematics, or similar fields for which the 
individual was awarded such scholarship within a pe-
riod prescribed by the Secretary by regulations 
issued pursuant to this section, the sum of the 
amounts of such STEP scholarship provided to such 
recipient shall be treated as a Direct Loan under 
part D of title IV of the Higher Education Act of 
1965 (20 U.S.C. 1087a et seq.), and shall be subject 
to repayment in accordance with terms and condi-
tions specified by the Secretary in such regulations. 
‘‘(2) FORGIVENESS
IF
DECEASED
OR
DIS-
ABLED.—An individual shall be excused from repay-
ment of any scholarship award required under para-
graph (1) if— 
‘‘(A) the individual dies or becomes perma-
nently and totally disabled (as determined in 
accordance with regulations prescribed by the 
Secretary); or 
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‘‘(B) recovery under this subsection would 
be against equity and good conscience or 
against the public interest. 
‘‘(g) REGULATIONS.—The Secretary is authorized to 
prescribe such regulations as may be necessary to carry 
out the provisions of this section. 
‘‘(h) DEFINITIONS.—For the purposes of this section: 
‘‘(1) ENGINEERING, 
TECHNOLOGY, 
APPLIED 
SCIENCES, MATHEMATICS, OR SIMILAR FIELDS.—An 
individual shall be considered to be considered to 
pursue or obtain a degree in engineering, technology, 
applied sciences, mathematics, or similar fields if— 
‘‘(A) such degree qualifies the individual to 
be with a professional engineering designation, 
including any of the following designations: 
aerospace engineer; agricultural engineer; bio-
medical engineer; chemical engineer; civil engi-
neer; computer hardware engineer; electrical en-
gineer; electronics engineer; environmental engi-
neer; health and safety engineer; industrial en-
gineer; marine engineer; and naval architects; 
materials engineer; mechanical engineer; mining 
and geological engineer; nuclear engineer; and 
petroleum engineer; and 
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‘‘(B) such degree is awarded by an institu-
tion of higher education program in engineer-
ing, technology, applied sciences, mathematics, 
or similar fields that is accredited by the Ac-
creditation Board for Engineering and Tech-
nology (ABET). 
‘‘(2) INSTITUTION OF HIGHER EDUCATION.— 
The term ‘institution of higher education’ has the 
meaning given such term in section 102 of the High-
er Education Act of 1965 (20 U.S.C. 1001(a)), ex-
cept that the term does not include any institution 
described in subsection (a)(1)(c) of such section. 
‘‘(3) SECRETARY.—The term ‘Secretary’ means 
the Secretary of Education. 
‘‘(i) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated to carry out this section 
such sums as may be necessary for fiscal year 2008 and 
each succeeding fiscal year.’’. 
SEC. 4. STUDENT LOAN FORGIVENESS FOR ENGINEERS. 
The Higher Education Act of 1965 is amended by 
inserting after section 428K (20 U.S.C. 1078–11) the fol-
lowing: 
‘‘SEC. 428L. LOAN FORGIVENESS FOR ENGINEERS. 
‘‘(a) PROGRAM AUTHORIZED.— 
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‘‘(1) IN GENERAL.—For the purpose of encour-
aging qualified individuals to enter and continue em-
ployment as engineers, the Secretary is authorized, 
from the funds appropriated under subsection (h), to 
forgive, in accordance with this section, the student 
loan debt of any borrower, who— 
‘‘(A) is employed as an engineer; 
‘‘(B) has or is seeking a license as a pro-
fessional engineer in accordance with the re-
quirements of a State licensing board; and 
‘‘(C) is not in default on a loan for which 
the borrower seeks forgiveness. 
‘‘(2) METHOD
OF
LOAN
FORGIVENESS.—To 
provide the loan forgiveness authorized in paragraph 
(1), the Secretary is authorized to carry out a pro-
gram— 
‘‘(A) through the holder of the loan, to as-
sume the obligation to repay a qualified loan 
amount (as determined under subsection (b)) 
for a loan made under this part; and 
‘‘(B) to cancel a qualified loan amount (as 
so determined) for a loan made under part D 
of this title. 
‘‘(b) QUALIFIED LOAN AMOUNTS.—The Secretary 
shall forgive the loan obligation of the borrower, in accord-
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ance with subsection (a)(2), not to exceed $150,000 in the 
aggregate, in the following increments: 
‘‘(1) For the completion of each of the 8 years 
of employment as an engineer as specified in the 
written agreement in subsection (c), 10 percent of 
the borrower’s total loan obligation that is out-
standing at the completion of each such year. 
‘‘(2) For obtaining licensure as a professional 
engineer in accordance with the requirements of a 
State licensing board as specified in the written 
agreement in subsection (c), 20 percent of the bor-
rower’s total loan obligation that is outstanding at 
the time of such licensure. 
‘‘(c) TERMS OF AGREEMENT.— 
‘‘(1) IN GENERAL.—To be eligible to receive 
forgiveness benefits under this section, a borrower 
shall enter into a written agreement that specifies 
that— 
‘‘(A) the borrower will remain employed as 
an engineer for a not less than 8 years; 
‘‘(B) the borrower will obtain licensure as 
a professional engineer in accordance with the 
requirements of a State licensing board within 
8 years after obtaining a degree; 
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‘‘(e) CONSTRUCTION.—Nothing in this section shall 
be construed to authorize the refunding of any repayment 
of a loan. 
‘‘(f) REGULATIONS.—The Secretary is authorized to 
issue such regulations as may be necessary to carry out 
the provisions of this section. 
‘‘(g) DEFINITION.—In this section, the term ‘engi-
neer’ means an individual who is qualified to be employed 
in an occupation with a professional engineering designa-
tion, including any of the following designations: aerospace 
engineer; agricultural engineer; biomedical engineer; 
chemical engineer; civil engineer; computer hardware engi-
neer; electrical engineer; electronics engineer; environ-
mental engineer; health and safety engineer; industrial en-
gineer; marine engineer; and naval architects; materials 
engineer; mechanical engineer; mining and geological engi-
neer; nuclear engineer; and petroleum engineer. 
‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated to carry out this section 
such sums as may be necessary for fiscal year 2008 and 
each succeeding fiscal year.’’. 
Æ 
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