I
107TH CONGRESS
1ST SESSION
H. R. 687
To expand the teacher loan forgiveness programs under the Federal Family
Education Loan and Federal Direct Loan programs.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 14, 2001
Mr. MOORE (for himself, Ms. MCKINNEY, Mr. FROST, Ms. MCCARTHY of Mis-
souri, Mr. BENTSEN, Ms. BERKLEY, and Mrs. JONES of Ohio) introduced
the following bill; which was referred to the Committee on Education and
the Workforce
A BILL
To expand the teacher loan forgiveness programs under the
Federal Family Education Loan and Federal Direct
Loan programs.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Teacher Recruitment
and Retention Act of 2001’’.
SEC. 2. EXPANSION OF ELIGIBILITY.
(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 as a full-time teacher—
‘‘(A)(i) in a school that qualifies under sec-
tion 465(a)(2)(A) for loan cancellation for Per-
kins loan recipients who teach in such schools;
‘‘(ii) as a full-time special education teach-
er, as described in section 465(a)(2)(C); or
‘‘(iii) as a full-time teacher of mathe-
matics, science, foreign languages, bilingual
education, or any other field of expertise where
the State educational agency determines there
is a shortage of qualified teachers;’’.
(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 as a full-time
teacher—
‘‘(i)(I) 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
teacher, 
as 
described 
in 
section
465(a)(2)(C); or
‘‘(III) as a full-time teacher of mathe-
matics, science, foreign languages, bilin-
gual education, or any other field of exper-
tise where the State educational agency de-
termines there is a shortage of qualified
teachers;’’.
SEC. 3. AMOUNT AND RATE OF REPAYMENT.
(a) FFEL PROGRAM.—Section 428J(c) of the High-
er Education Act of 1965 (20 U.S.C. 1078–10(c)) is
amended by striking paragraph (1) and inserting the fol-
lowing:
‘‘(1) AMOUNT AND RATE OF REPAYMENT.—The
Secretary shall repay an amount that is not more
than $10,000 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.’’.
(b) 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 following:
‘‘(1) AMOUNT AND RATE OF REPAYMENT.—The
Secretary shall cancel an amount that is not more
than $10,000 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.’’.
Æ