shall transfer 25 percent of the funds made
available to the Secretary of Labor under sec-
tion 286(s)(2) of the Immigration and Nation-
ality Act (8 U.S.C. 1356(s)(2)) to the Secretary
of Education.
‘‘(B) USE OF FUNDS.—The Secretary of
Education shall use funds made available under
subparagraph (A) to carry out section 3 of the
Training and Education for American Workers
Act of 2000.’’.
SEC. 3. LOAN FORGIVENESS PROGRAM FOR MATHEMATICS,
SCIENCE, AND READING TEACHERS.
(a) PROGRAM.—
(1) IN GENERAL.—The Secretary of Education
(in this section referred to as the ‘‘Secretary’’) shall
carry out a program of assuming the obligation to
repay, pursuant to subsection (c), a loan made, in-
sured, or guaranteed under part B of title IV of the
Higher Education Act of 1965 or part D of such
title (excluding loans made under sections 428B and
428C of such Act or comparable loans made under
part D of such title) for any new borrower after Oc-
tober 1, 1998, who—
(A) has been employed as a full-time
teacher of mathematics, science, or a related
field, or has been a full-time teacher responsible
for providing reading instruction in any of
grades kindergarten through 3d grade, for 3
consecutive complete school years in a school
that qualifies under section 465(a)(2)(A) of the
Higher Education Act of 1965 for loan can-
cellation for a recipient of a loan under part E
of title IV of such Act who teaches in such
school;
(B) satisfies the requirements of sub-
section (d); and
(C) is not in default on a loan for which
the borrower seeks forgiveness.
(2) AWARD BASIS; PRIORITY.—
(A) AWARD
BASIS.—Subject to subpara-
graph (B), loan repayment under this section
shall be on a first-come, first-serve basis and
subject to the availability of appropriations.
(B) PRIORITY.—The Secretary shall give
priority in providing loan repayment under this
section for a fiscal year to student borrowers
who received loan repayment under this section
for the preceding fiscal year.
(3) REGULATIONS.—The Secretary is author-
ized to prescribe such regulations as may be nec-
essary to carry out the provisions of this section.
(b) LOAN REPAYMENT.—
(1) ELIGIBLE AMOUNT.—The amount the Sec-
retary may repay on behalf of any individual under
this section shall not exceed—
(A) the sum of the principal amounts out-
standing (not to exceed $3,000) of the individ-
ual’s qualifying loans at the end of 3 consecu-
tive complete school years of service described
in subsection (a)(1)(A);
(B) an additional portion of such sum (not
to exceed $1,000) at the end of each of the next
2 consecutive complete school years of such
service; and
(C) a total of not more than $5,000.
(2) CONSTRUCTION.—Nothing in this section
shall be construed to authorize the refunding of any
repayment of a loan made under part B or D of title
IV of the Higher Education Act of 1965.
(3) INTEREST.—If a portion of a loan is repaid
by the Secretary under this section for any year, the
proportionate amount of interest on such loan which
accrues for such year shall be repaid by the Sec-
retary.
(c) REPAYMENT TO ELIGIBLE LENDERS.—The Sec-
retary shall pay to each eligible lender or holder for each
fiscal year an amount equal to the aggregate amount of
loans which are subject to repayment pursuant to this sec-
tion for such year.
(d) 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.—
(A) YEARS OF SERVICE.—An eligible indi-
vidual may apply for loan repayment under this
section after completing the required number of
years of qualifying employment.
(B) OTHER QUALIFICATIONS.—An applica-
tion for loan repayment under this section shall
include such information as is necessary to
demonstrate that the applicant—
(i) if employed as a secondary school
teacher, is teaching a subject area that is
relevant to the borrower’s academic major
as certified by the chief administrative offi-
cer of the public or nonprofit private sec-
ondary school (including public charter
schools) in which the borrower is employed;
and
(ii) if employed as an elementary
school teacher, has demonstrated, as cer-
tified by the chief administrative officer of
the public or nonprofit private elementary
school (including public charter school) in
which the borrower is employed, knowledge
and teaching skills in reading, writing,
mathematics, and other areas of the ele-
mentary school curriculum.
(e) TREATMENT OF CONSOLIDATION LOANS.—A loan
amount for a consolidation loan made under section 428C
of the Higher Education Act of 1965, or a Federal Direct
Consolidation Loan made under part D of title IV of such
Act, may be a qualified loan amount for the purpose of
this section only to the extent that such loan amount was
used by a borrower who otherwise meets the requirements
of this section to repay—
(1) a loan made under section 428 or 428H of
such Act; or
(2) a Federal Direct Stafford Loan, or a Fed-
eral Direct Unsubsidized Stafford Loan, made under
part D of title IV of such Act.
(f) FUNDS
FOR PROGRAM.—The Secretary shall
carry out this section with funds made available under sec-
tion 414(c)(2) the American Competitiveness and Work-
force Improvement Act of 1998.
SEC. 4. EFFECTIVE DATE.
This Act, and the amendments made by this Act,
shall take effect on October 1, 2000.
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