I
107TH CONGRESS
2D SESSION
H. R. 5133
To expand the eligibility of individuals to qualify for loan forgiveness for
teachers in order to provide additional incentives for teachers currently
employed or seeking employment in economically depressed rural areas,
Territories, and Indian Reservations.
IN THE HOUSE OF REPRESENTATIVES
JULY 16, 2002
Mrs. CHRISTENSEN introduced the following bill; which was referred to the
Committee on Education and the Workforce
A BILL
To expand the eligibility of individuals to qualify for loan
forgiveness for teachers in order to provide additional
incentives for teachers currently employed or seeking em-
ployment in economically depressed rural areas, Terri-
tories, and Indian Reservations.
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
Act of 2002’’.
SEC. 2. EXPANSION OF TEACHER LOAN FORGIVENESS PRO-
GRAMS.
(a) GUARANTEED STUDENT LOANS.—Part B of title
IV of the Higher Education Act of 1965 is amended by—
(1) redesignating section 428K (20 U.S.C.
1078–11) as section 428L; and
(2) by inserting after section 428J the following
new section:
‘‘SEC. 428K. EXPANDED LOAN FORGIVENESS FOR TEACH-
ERS.
‘‘(a) PURPOSE.—It is the purpose of this section to
expand, subject to the availability of appropriations there-
for, the eligibility of individuals to qualify for loan forgive-
ness for teachers beyond that available under section
428J, in order to provide additional incentives for such
individuals to teach in economically disadvantaged or de-
pressed and underserved rural areas.
‘‘(b) PROGRAM AUTHORIZED.—
‘‘(1) IN
GENERAL.—From the sums appro-
priated pursuant to subsection (i), the Secretary
shall carry out a program, through the holder of the
loan, of assuming the obligation to repay a qualified
loan amount for a loan made under section 428 or
428H, in accordance with subsection (c), for any
new borrower on or after October 1, 1998, who—
‘‘(A) is employed as a full-time teacher in
a public elementary or secondary school in an
economically disadvantaged or depressed and
underserved rural area;
‘‘(B) has a State certification (which may
include certification obtained through alter-
native means) or a State license to teach, and
has not failed to comply with State or local ac-
countability standards; and
‘‘(C) is not in default on a loan for which
the borrower seeks forgiveness.
‘‘(2) SELECTION
OF
RECIPIENTS.—The Sec-
retary shall by regulations, establish a formula that
ensures fairness and equality for applicants in the
selection of borrowers for loan repayment under this
section, based on the amount available pursuant to
subsection (i).
‘‘(c) QUALIFIED LOANS AMOUNT.—
‘‘(1) IN GENERAL.—The Secretary shall repay
not more than the percentage specified in paragraph
(2) of the loan obligation on a loan made under sec-
tion 428 or 428H that is outstanding after the com-
pletion of each complete school year of teaching de-
scribed in subsection (b)(1). No borrower may re-
ceive a reduction of loan obligations under both this
section and section 460.
‘‘(2) PERCENTAGE ELIGIBLE.—The percent of
the loan obligation which the Secretary shall repay
under paragraph (1) of this subsection is 15 percent
for the first or second year of such service, 20 per-
cent for the third or fourth year of such service, and
30 percent for the fifth year of such service.
‘‘(3) TREATMENT OF CONSOLIDATION LOANS.—
A loan amount for a loan made under section 428C
may be a qualified loan amount for the purposes of
this subsection only to the extent that such loan
amount was used to repay a Federal Direct Stafford
Loan, a Federal Direct Unsubsidized Stafford Loan,
or a loan made under section 428 or 428H for a
borrower who meets the requirements of subsection
(b), as determined in accordance with regulations
prescribed by the Secretary.
‘‘(4) TREATMENT OF YEARS OF SERVICE FOR
CONTINUING EDUCATION LOANS.—For purposes of
paragraph (2), the year of service is determined on
the basis of the academic year that the borrower
began the service as a full-time teacher, except that
in the case of a borrower who incurs a loan obliga-
tion for continuing education expenses while teach-
ing, the year of service is determined on the basis
of the academic year following the academic year for
which the loan obligation was incurred.
‘‘(d) REGULATIONS.—The Secretary is authorized to
issue such regulations as may be necessary to carry out
the provisions of this section.
‘‘(e) CONSTRUCTION.—Nothing in this section shall
be construed to authorize any refunding of any repayment
of a loan.
‘‘(f) LIST.—If the list of schools in which a teacher
may perform service pursuant to subsection (b)(1)(A) is
not available before May 1 of any year, the Secretary may
use the list for the year preceding the year for which the
determination is made to make such service determination.
‘‘(g) ADDITIONAL ELIGIBILITY PROVISIONS.—
‘‘(1) CONTINUED
ELIGIBILITY.—Any teacher
who performs service in a school that—
‘‘(A) meets the requirements of subsection
(b)(1)(A) in any year during such service; and
‘‘(B) 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).
‘‘(2) PREVENTION OF DOUBLE BENEFITS.—No
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. 12571 et seq.).
‘‘(h) DEFINITION.—For purposes of this section:
‘‘(1) AREA.—The term ‘economically disadvan-
taged or depressed and underserved rural area’
means any of the following areas in any State (as
that term is defined in section 103):
‘‘(A) A rural area that has a chronically
high rate of unemployment.
‘‘(B) A rural area in which at least 30 per-
cent of the households have household incomes
of less than $15,000, as determined on the
basis of the most recent decennial census.
‘‘(C) An Indian reservation.
‘‘(D) Any other rural area that, as deter-
mined by regulations, has a significant shortage
of educational and employment opportunities.
‘‘(2) INDIAN RESERVATION.—The term ‘Indian
reservation’ includes Indian reservations, public do-
main Indian allotments, former Indian reservations
in Oklahoma, and land held by incorporated Native
Alaskan groups, regional corporations, and village
corporations under the provisions of the Alaska Na-
tive Claims Settlement Act (43 U.S.C. 1601 et seq.).
‘‘(3) YEAR.—The term ‘year’, where applied to
service as a teacher, means an academic year as de-
fined by the Secretary.
‘‘(i) AUTHORIZATION OF APPROPRIATIONS.—There
are authorized to be appropriated to carry out this section
such sums as may be necessary for fiscal year 2002 and
each of the 5 succeeding fiscal years.’’.
(b) DIRECT STUDENT LOANS.—Part D of title IV of
the Higher Education Act of 1965 is amended by inserting
after section 460 the following new section:
‘‘SEC. 460A. EXPANDED LOAN FORGIVENESS FOR TEACH-
ERS.
‘‘(a) PURPOSE.—It is the purpose of this section to
expand, subject to the availability of appropriations there-
for, the eligibility of individuals to qualify for loan forgive-
ness for teachers beyond that available under section 460,
in order to provide additional incentives for such individ-
uals to teach in economically disadvantaged or depressed
and underserved rural areas.
‘‘(b) PROGRAM AUTHORIZED.—
‘‘(1) IN
GENERAL.—From the sums appro-
priated pursuant to subsection (i), the Secretary
shall carry out canceling the obligation to repay a
qualified loan amount in accordance with subsection
(c) for Federal Direct Stafford Loans and Federal
Direct Unsubsidized Stafford Loans made under this
part for any new borrower on or after October 1,
1998, but who—
‘‘(A) is employed as a full-time teacher in
a public elementary or secondary school in an
economically disadvantaged or depressed and
underserved rural area;
‘‘(B) has a State certification (which may
include certification obtained through alter-
native means) or a State license to teach, and
has not failed to comply with State or local ac-
countability standards; and
‘‘(C) is not in default on a loan for which
the borrower seeks forgiveness.
‘‘(2) SELECTION
OF
RECIPIENTS.—The Sec-
retary shall by regulations, establish a formula that
ensures fairness and equality for applicants in the
selection of borrowers for loan repayment under this
section, based on the amount available pursuant to
subsection (i).
‘‘(c) QUALIFIED LOANS AMOUNT.—
‘‘(1) IN GENERAL.—The Secretary shall cancel
not more than the percentage specified in paragraph
(2) of the loan obligation on a loan made under this
part that is outstanding after the completion of each
complete school year of teaching described in sub-
section (b)(1). No borrower may receive a reduction
of loan obligations under both this section and sec-
tion 428J.
‘‘(2) PERCENTAGE ELIGIBLE.—The percent of
the loan obligation which the Secretary shall repay
under paragraph (1) of this subsection is 15 percent
for the first or second year of such service, 20 per-
cent for the third or fourth year of such service, and
30 percent for the fifth year of such service.
‘‘(3) TREATMENT OF CONSOLIDATION LOANS.—
A loan amount for a Federal Direct Consolidation
Loan may be a qualified loan amount for the pur-
poses of this subsection only to the extent that such
loan amount was used to repay a Federal Direct
Stafford Loan, a Federal Direct Unsubsidized Staf-
ford Loan, or a loan made under section 428 or
428H for a borrower who meets the requirements of
subsection (b), as determined in accordance with
regulations prescribed by the Secretary.
‘‘(4) TREATMENT OF YEARS OF SERVICE FOR
CONTINUING EDUCATION LOANS.—For purposes of
paragraph (2), the year of service is determined on
the basis of the academic year that the borrower
began the service as a full-time teacher, except that
in the case of a borrower who incurs a loan obliga-
tion for continuing education expenses while teach-
ing, the year of service is determined on the basis
of the academic year following the academic year for
which the loan obligation was incurred.
‘‘(d) REGULATIONS.—The Secretary is authorized to
issue such regulations as may be necessary to carry out
the provisions of this section.
‘‘(e) CONSTRUCTION.—Nothing in this section shall
be construed to authorize any refunding of any repayment
of a loan.
‘‘(f) LIST.—If the list of schools in which a teacher
may perform service pursuant to subsection (b)(1)(A) is
not available before May 1 of any year, the Secretary may
use the list for the year preceding the year for which the
determination is made to make such service determination.
‘‘(g) ADDITIONAL ELIGIBILITY PROVISIONS.—
‘‘(1) CONTINUED
ELIGIBILITY.—Any teacher
who performs service in a school that—
‘‘(A) meets the requirements of subsection
(b)(1)(A) in any year during such service; and
‘‘(B) 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).
‘‘(2) PREVENTION OF DOUBLE BENEFITS.—No
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. 12571 et seq.).
‘‘(h) DEFINITION.—For purposes of this section:
‘‘(1) AREA.—The term ‘economically disadvan-
taged or depressed and underserved rural area’
means any of the following areas in any State (as
that term is defined in section 103):
‘‘(A) A rural area that has a chronically
high rate of unemployment.
‘‘(B) A rural area in which at least 30 per-
cent of the households have household incomes
of less than $15,000, as determined on the
basis of the most recent decennial census.
‘‘(C) An Indian reservation.
‘‘(D) Any other rural area that, as deter-
mined by regulations, has a significant shortage
of educational and employment opportunities.
‘‘(2) INDIAN RESERVATION.—The term ‘Indian
reservation’ includes Indian reservations, public do-
main Indian allotments, former Indian reservations
in Oklahoma, and land held by incorporated Native
Alaskan groups, regional corporations, and village
corporations under the provisions of the Alaska Na-
tive Claims Settlement Act (43 U.S.C. 1601 et seq.).
‘‘(3) YEAR.—The term ‘year’, where applied to
service as a teacher, means an academic year as de-
fined by the Secretary.
‘‘(i) AUTHORIZATION OF APPROPRIATIONS.—There
are authorized to be appropriated to carry out this section
such sums as may be necessary for fiscal year 2002 and
each of the 5 succeeding fiscal years.’’.
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