I 
108TH CONGRESS 
1ST SESSION H. R. 1306
To provide student loan forgiveness to Americans employed in service to 
the public, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 18, 2003
Mr. GEORGE MILLER of California (for himself, Mr. KILDEE, Mr. DOGGETT, 
Mr. PAYNE, Mr. ANDREWS, Mr. MCDERMOTT, Mr. FARR, Mr. CAPUANO, 
Mr. NEAL of Massachusetts, Ms. LEE, Mrs. NAPOLITANO, Mr. TOWNS, 
Mr. STARK, Mr. NADLER, Ms. MILLENDER-MCDONALD, Mr. UDALL of 
New Mexico, Mr. FORD, Mr. OLVER, Mr. WEINER, Mr. ABERCROMBIE, 
Mr. HINCHEY, Mr. BACA, Mr. RODRIGUEZ, Mr. FRANK of Massachusetts, 
Mr. MCGOVERN, Mr. ETHERIDGE, Ms. SOLIS, Ms. ESHOO, Mr. FROST, 
Ms. CARSON of Indiana, Mr. GRIJALVA, Mr. SANDERS, Ms. MCCOLLUM, 
Mr. OWENS, Ms. CORRINE BROWN of Florida, Mr. MARKEY, Mr. MEE-
HAN, Mr. CASE, Mr. ENGEL, Mr. SERRANO, Ms. MAJETTE, Mr. WEXLER, 
Mr. GREEN of Texas, Ms. WATSON, Ms. HOOLEY of Oregon, Mr. PETER-
SON of Minnesota, Mr. CUMMINGS, Mr. HOLDEN, Mr. RYAN of Ohio, Ms. 
SCHAKOWSKY, Ms. LOFGREN, Mr. GUTIERREZ, Mr. OBERSTAR, Mrs. 
JONES of Ohio, Mr. EVANS, Mr. HOEFFEL, Mr. RANGEL, Mr. KUCINICH, 
Mr. ALLEN, Mr. ACKERMAN, Ms. LORETTA SANCHEZ of California, Mrs. 
LOWEY, and Mr. HINOJOSA) introduced the following bill; which was re-
ferred to the Committee on Education and the Workforce 
A BILL 
To provide student loan forgiveness to Americans employed 
in service to the public, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; REFERENCES. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘College Opportunity for a Better America Act of 2003’’. 
(b) REFERENCE.—Except as otherwise expressly pro-
vided in this Act, whenever in this Act an amendment or 
repeal is expressed in terms of an amendment to, or repeal 
of, a section or other provision, the reference shall be con-
sidered to be made to a section or other provision of the 
Higher Education Act of 1965 (20 U.S.C. 1001 et seq.). 
SEC. 2. FINDINGS. 
The Congress finds the following: 
(1) Education after high school, including two-
year and four-year college degrees, is more impor-
tant than ever for Americans’ future economic secu-
rity. A four-year college degree is estimated to be 
worth $1 million in earnings more than a high 
school diploma over the course of a lifetime. 
(2) The cost of attending college has steadily 
increased faster than the rate of inflation. The aver-
age tuition and fees at four-year public and private 
universities are now $4,081 and $18,273, respec-
tively, an increase of approximately 75 percent over 
the past decade. 
(3) More and more, American students are rely-
ing on debt to finance higher education. In 1999-
2000, the average student loan debt totaled
$16,948, a dramatic increase from the average debt 
of $9,188 in 1992-93. At the same time, the per-
centage of students borrowing increased from 42 
percent to 64 percent. 
(4) Student debt constrains the career options 
of millions of college graduates. Nearly two-fifths of 
graduates with debt find it unmanageable, defined 
as exceeding eight percent of their income. As a re-
sult, many college graduates may chose higher-pay-
ing jobs rather than enter public service. 
(5) Many of our Nation’s public service profes-
sions, including teaching, nursing, and child care, 
face shortages of highly qualified personnel that im-
peril the health and future welfare of our citizens. 
(6) Record school enrollments, an aging teach-
ing force, and chronic attrition of new teachers make 
it difficult to ensure that every child has a qualified, 
engaged, caring teacher. Excellent teachers are par-
ticularly rare in high-poverty schools and in subjects 
like mathematics, science, and special education. 
(7) There is a national shortage of 126,000 
nurses, according to the American Hospital Associa-
tion. At the same time, the number of nursing 
school graduates decreased by 29 percent between 
1995 and 2001.
(8) According to a growing body of research, 
the single most important determinant of child care 
quality is the presence of consistent, well-trained 
child care providers. However, the Nation’s child 
care programs are plagued by high staff turnover 
fueled by poor compensation. 
(9) A well-trained and stable child welfare 
workforce is needed to protect our country’s most 
vulnerable children and families. The number of un-
filled child welfare jobs is large and growing rapidly. 
Nearly one-tenth of positions in State child welfare 
agencies are unfilled and staff turnover has doubled 
since 1991. 
(10) The number of infant and toddler special-
ists are insufficient to meet the health and special 
education needs of infants and toddlers. 
SEC. 3. LOAN FORGIVENESS FOR PUBLIC SERVICE EM-
PLOYEES. 
Section 428K (20 U.S.C. 1078–11) is amended to 
read as follows: 
‘‘SEC. 428K. LOAN FORGIVENESS FOR PUBLIC SERVICE EM-
PLOYEES. 
‘‘(a) PURPOSES.—The purposes of this section are—
‘‘(1) to reduce the burden of student debt, par-
ticularly for Americans who dedicate their careers to 
meeting certain urgent national needs; and 
‘‘(2) to attract more excellent individuals into 
important public service careers. 
‘‘(b) LOAN FORGIVENESS.—
‘‘(1) IN GENERAL.—The Secretary shall assume 
the obligation to repay, pursuant to subsection (c), 
a loan made under section 428 or 428H, a Federal 
Direct Stafford Loan or Federal Direct Unsub-
sidized Stafford Loan, a Federal Direct Consolida-
tion Loan, or a Federal Perkins Loan for any new 
borrower after the date of enactment of the Higher 
Education Amendments of 1998, who—
‘‘(A) is employed full time in a qualified 
public service position described in paragraph 
(2); and 
‘‘(B) is not in default on a loan for which 
the borrower seeks forgiveness. 
‘‘(2) QUALIFIED PUBLIC SERVICE POSITIONS.—
For purposes of this section, an individual shall be 
treated as employed in a qualified public service po-
sition if the individual is any of the following: 
‘‘(A) HIGHLY
QUALIFIED
TEACHERS
IN 
LOW-INCOME
COMMUNITIES
AND
OF
MATHE-
MATICS, SCIENCE, AND
BILINGUAL
AND
SPE-
CIAL EDUCATION.—An individual who—
‘‘(i) is highly qualified as such term is 
defined in section 9101 of the Elementary 
and Secondary Education Act of 1965; and 
‘‘(ii)(I) has obtained employment as a 
teacher for service in a public or nonprofit 
private elementary or secondary school 
which is in the school district of a local 
educational agency which is eligible in such 
year for assistance pursuant to title I of 
the Elementary and Secondary Education 
Act of 1965, and which for the purpose of 
this paragraph and for that year has been 
determined by the Secretary (pursuant to 
regulations and after consultation with the 
State educational agency of the State in 
which the school is located) to be a school 
in which the enrollment of children counted 
under section 1113(a)(5) of the Elemen-
tary and Secondary Education Act of 1965 
exceeds 40 percent of the total enrollment 
of that school; or
‘‘(II) has obtained employment as a 
full-time teacher of mathematics, science, 
or bilingual or special education. 
‘‘(B) EARLY CHILDHOOD EDUCATORS.—An 
individual who—
‘‘(i) has received a degree in early 
childhood education; and 
‘‘(ii) has obtained employment in a 
child care facility, such as employment as 
a preschool teacher, in a low-income com-
munity. 
‘‘(C) NURSES.—An individual who has ob-
tained employment—
‘‘(i) in a clinical setting; or 
‘‘(ii) as a member of the nursing fac-
ulty at an accredited school of nursing (as 
those terms are defined in section 801 of 
the Public Health Service Act (42 U.S.C. 
296)). 
‘‘(D) CHILD WELFARE WORKERS.—An in-
dividual who—
‘‘(i) has completed a degree in social 
work or related field with a focus on serv-
ing children and families (as determined in
accordance with regulations prescribed by 
the Secretary); and 
‘‘(ii) has obtained employment in pub-
lic or private child welfare services. 
‘‘(E) NUTRITION PROFESSIONALS.—An in-
dividual who—
‘‘(i) is a certified registered dietician 
who has completed a degree in a relevant 
field; and 
‘‘(ii) has obtained employment in a 
local agency of the special supplemental 
nutrition program for women, infants, and 
children under section 17 of the Child Nu-
trition Act of 1966 (42 U.S.C. 1786). 
‘‘(F) INFANT
AND
TODDLER
SPECIAL-
ISTS.—An individual who—
‘‘(i) has obtained an associate’s or 
bachelor’s degree in a discipline that would 
qualify the individual to work in the pro-
gram under part C of the Individuals with 
Disabilities Education Act in the State in 
which such individual resides; and 
‘‘(ii) has obtained employment in an 
occupation that is directly related to such 
degree and that (I) provides services to in-
fants, toddlers, and their families under an 
individualized family service plan under 
section 636 of the Individuals with Disabil-
ities Education Act (20 U.S.C. 1436) or 
an individualized education plan under sec-
tion 614(d) of such Act (20 U.S.C. 
1414(d)); or (II) provides training or tech-
nical assistance to providers of such serv-
ices. 
‘‘(G) ADDITIONAL PUBLIC SERVANTS.—An 
individual who, as determined by the Secretary 
of Education by regulation—
‘‘(i) works in a public service profes-
sion that suffers from a critical lack of 
qualified personnel; 
‘‘(ii) serves a low-income or needy 
community; and 
‘‘(iii) is highly qualified. 
‘‘(c) LOAN REPAYMENT.—
‘‘(1) IN GENERAL.—The Secretary shall assume 
the obligation to repay—
‘‘(A) after each of the first or second years 
of service by an individual in a qualified public 
service position, 15 percent of the total amount 
of principal and interest of the loans described
in subsection (b)(1) to such individual that are 
outstanding immediately preceding such first 
year of such service; 
‘‘(B) after each of the third or fourth years 
of such service, 20 percent of such total 
amount; and 
‘‘(C) after the fifth year of such service, 30 
percent of such total amount. 
‘‘(2) TREATMENT OF CONSOLIDATION LOANS.—
A loan amount for a loan made under section 428C 
or for a Federal Direct Consolidation Loan may be 
a qualified loan amount for the purposes of this sub-
section only to the extent that such loan amount was 
used to repay a loan described in subsection (b)(1) 
for a borrower who meets the requirements of sub-
section (b), as determined in accordance with regula-
tions prescribed by the Secretary. 
‘‘(3) CONSTRUCTION.—Nothing in this section 
shall be construed to authorize the refunding of any 
repayment of a loan made under section 428 or 
428H, a Federal Direct Stafford Loan or Federal 
Direct Unsubsidized Stafford Loan, a Federal Direct 
Loan, or a Federal Perkins Loan. 
‘‘(4) INTEREST.—If a portion of a loan is re-
paid by the Secretary under this section for any
year, the proportionate amount of interest on such 
loan that accrues for such year shall be repaid by 
the Secretary.
‘‘(5) INELIGIBILITY
OF
NATIONAL
SERVICE 
AWARD RECIPIENTS.—No student borrower may, for 
the same service, receive a benefit under both this 
section and subtitle D of title I of the National and 
Community Service Act of 1990 (42 U.S.C. 12601 
et seq.). 
‘‘(6) INELIGIBILITY FOR DOUBLE BENEFITS.—
No borrower may receive a reduction of loan obliga-
tions under both this section and section 428J or 
460. 
‘‘(7) CONTINUED ELIGIBILITY.—
‘‘(A) TEACHERS.—Any teacher who per-
forms service in a school that—
‘‘(i) meets the requirements of sub-
section (b)(2)(A)(ii)(I) in any year during 
such service; and 
‘‘(ii) in a subsequent year fails to 
meet the requirements of such subsection, 
may continue to teach in such school and shall be 
eligible for loan forgiveness pursuant to subsection 
(b).
‘‘(B) TEACHERS IN LOW-INCOME COMMU-
NITIES.—Any early childhood educator who per-
forms service in a community that—
‘‘(i) meets the definition of low-income 
community in any year during such serv-
ice; and 
‘‘(ii) in a subsequent year fails to 
meet such definition, 
may continue to perform service in such community 
and shall be eligible for loan forgiveness pursuant to 
subsection (b). 
‘‘(d) REPAYMENT
TO
ELIGIBLE
LENDERS
AND 
HOLDERS.—The Secretary shall pay to each eligible lend-
er or holder for each fiscal year an amount equal to the 
aggregate amount of the lender’s or holder’s loans that 
are subject to repayment pursuant to this section for such 
year. 
‘‘(e) APPLICATION FOR REPAYMENT.—
‘‘(1) IN GENERAL.—Each eligible individual de-
siring loan repayment under this section shall sub-
mit a complete and accurate application to the Sec-
retary at such time, in such manner, and containing 
such information as the Secretary may require. 
‘‘(2) CONDITIONS.—An eligible individual may 
apply for loan repayment under this section after
completing each of the consecutive years of quali-
fying service described in subsection (c)(1). The bor-
rower may elect to receive forbearance while engaged 
in qualifying service described in subsection (c)(1) 
unless the borrower is in deferment while so en-
gaged. 
‘‘(f) REGULATIONS.—The Secretary is authorized to 
prescribe such regulations as may be necessary to carry 
out the provisions of this section. 
‘‘(g) DEFINITIONS.—In this section: 
‘‘(1) CHILD CARE FACILITY.—The term ‘child 
care facility’ means a facility, including a home, 
that—
‘‘(A) provides child care services; and 
‘‘(B) meets applicable State or local gov-
ernment licensing, certification, approval, or 
registration requirements, if any. 
‘‘(2) CHILD CARE SERVICES.—The term ‘child 
care services’ means activities and services provided 
for the education and care of children from birth 
through age 5 by an individual who has a degree in 
early childhood education, including a preschool 
teacher.
‘‘(3) CHILD
WELFARE
SERVICES.—The term 
‘child welfare services’ has the meaning given the 
term in section 425 of the Social Security Act. 
‘‘(4) DEGREE.—The term ‘degree’ means an as-
sociate’s or bachelor’s degree awarded by an institu-
tion of higher education. 
‘‘(5) EARLY
CHILDHOOD
EDUCATION.—The 
term ‘early childhood education’ means education in 
the area of early child development and education, 
child care, or any other educational area related to 
early child education or child care that the Secretary 
determines to be appropriate. 
‘‘(6) ELIGIBLE
NURSE.—The term ‘eligible 
nurse’ means a nurse who meets all of the following: 
‘‘(A) The nurse graduated from—
‘‘(i) an accredited school of nursing 
(as those terms are defined in section 801 
of the Public Health Service Act (42 
U.S.C. 296)); 
‘‘(ii) a nursing center; or 
‘‘(iii) an academic health center that 
provides nurse training. 
‘‘(B) The nurse holds a valid and unre-
stricted license to practice nursing in the State
in which the nurse practices in a clinical set-
ting. 
‘‘(C) The nurse holds 1 or more of the fol-
lowing: 
‘‘(i) A graduate degree in nursing, or 
an equivalent degree. 
‘‘(ii) A nursing degree from a colle-
giate school of nursing (as defined in sec-
tion 801 of the Public Health Service Act 
(42 U.S.C. 296)). 
‘‘(iii) A nursing degree from an asso-
ciate degree school of nursing (as defined 
in section 801 of the Public Health Service 
Act (42 U.S.C. 296)). 
‘‘(iv) A nursing degree from a diploma 
school of nursing (as defined in section 
801 of the Public Health Service Act (42 
U.S.C. 296)). 
‘‘(7) ELIGIBLE
PRESCHOOL
PROGRAM
PRO-
VIDER.—The term ‘eligible preschool program pro-
vider’ means a preschool program provider serving 
children younger than the age of compulsory school 
attendance that is—
‘‘(A) a public or private school;
‘‘(B) a provider that is supported, spon-
sored, supervised, or administered by a local 
educational agency;
‘‘(C) a Head Start agency designated 
under the Head Start Act (42 U.S.C. 9831 et 
seq.); 
‘‘(D) a nonprofit or community-based orga-
nization; or 
‘‘(E) a licensed child care center or family 
child care provider. 
‘‘(8) LOW-INCOME COMMUNITY.—In this sub-
section, the term ‘low-income community’ means a 
community in which 70 percent of households earn 
less than 85 percent of the State median household 
income. 
‘‘(9) PRESCHOOL
TEACHER.—The term ‘pre-
school teacher’ means an individual—
‘‘(A) who has received at least an associ-
ate’s degree in early childhood education and 
who is working toward or who has already re-
ceived a bachelor’s degree in early childhood 
education; and 
‘‘(B) who works for an eligible preschool 
program provider supporting the children’s cog-
nitive, social, emotional, and physical develop-
ment to prepare the children for the transition 
to kindergarten. 
‘‘(10) YEAR.—The term ‘year’, where applied to 
service as a teacher (or service as a member of an 
accredited school of nursing (as those terms are de-
fined in section 801 of the Public Health Service Act 
(42 U.S.C. 296))), means an academic year as de-
fined by the Secretary.’’. 
SEC. 4. INCOME-CONTINGENT LOAN REFORM. 
(a) FFEL INCOME CONTINGENT REPAYMENT.—
(1) REPAYMENT PLANS CONSISTENT WITH DI-
RECT LOANS.—Clause (iii) of section 428(b)(9)(A) 
(20 U.S.C. 1078(b)(9)(A)(iii)) is amended to read as 
follows: 
‘‘(iii) an income contingent repayment 
plan consistent with the income contingent 
repayment plans offered pursuant to sec-
tion 455(e), with income contingent repay-
ment amounts paid over a fixed period of 
time, not to exceed 25 years; and’’. 
(2) CONFORMING AMENDMENTS.—
(A) Each of the following provisions is 
amended by striking ‘‘income-sensitive’’ each 
place it appears and inserting ‘‘income contin-
gent’’: 
section 
427(a)(2)(H), 
subsections