I 
110TH CONGRESS 
1ST SESSION H. R. 2621 
To amend the Higher Education Act of 1965 to expand the loan forgiveness 
program for teachers, to provide a loan forgiveness program for nurses, 
and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 7, 2007 
Mrs. MCCARTHY of New York (for herself and Mr. PORTER) introduced the 
following bill; which was referred to the Committee on Education and Labor 
A BILL 
To amend the Higher Education Act of 1965 to expand 
the loan forgiveness program for teachers, to provide 
a loan forgiveness program for nurses, 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. 
This Act may be cited as the ‘‘Teacher and Nurse 
Support Act of 2007’’. 
SEC. 2. FINDINGS AND PURPOSE. 
(a) FINDINGS.—Congress finds the following: 
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(1) According to the National Center for Edu-
cation Statistics, over the next 10 years, the United 
States will need more than 2,000,000 new teachers 
to replace the teachers who are retiring or leaving 
the classroom for other careers. 
(2) The Hart-Rudman National Security Re-
port on education recommended that the President 
direct the Department of Education to work with 
the States to devise a comprehensive plan to avert 
a looming shortage of high-quality teachers. 
(3) According to the National Center for Edu-
cation Statistics, 20 percent of all new teachers leave 
the teaching profession within 3 years. Providing 
loan forgiveness or loan cancellation is one step that 
would help retain high-quality teachers in schools 
that need teachers. 
(4) The American Hospital Association has re-
ported more than 118,000 unfilled registered nurse 
positions in hospitals in the United States. Addition-
ally, the National Commission on Nursing Work-
force for Long-Term Care released a report in May, 
2005, stating that there are nearly 100,000 vacant 
nursing positions in long-term care facilities on any 
given day, and the nurse turnover rate exceeds 50 
percent. The shortage is costing long-term care fa-
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cilities an estimated $4 billion a year in recruitment 
and training expenses. 
(5) College loans are more of a burden than 
ever for students and families. According to a recent 
United States Public Interest Research Group re-
port, average student loan debt almost doubled from 
$9,200 in 1992–1993 to $16,928 in 1999–2000. 
(b) PURPOSE.—The purpose of this Act is to improve 
access to, and the delivery of, high-quality educational and 
health services throughout the United States by reducing 
the shortage of qualified teachers and nurses. 
SEC. 3. LOAN FORGIVENESS. 
(a) LOAN FORGIVENESS.—Section 428J of the High-
er Education Act of 1965 (20 U.S.C. 1078–10) is amend-
ed to read as follows: 
‘‘SEC. 428J. LOAN FORGIVENESS FOR TEACHERS AND 
NURSES. 
‘‘(a) STATEMENT OF PURPOSE.—It is the purpose of 
this section to encourage individuals to enter and continue 
in the teaching and nursing professions. 
‘‘(b) PROGRAM AUTHORIZED.— 
‘‘(1) IN GENERAL.—The Secretary shall carry 
out a program to forgive, in accordance with this 
section, the student loan debt of any borrower who 
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has one or more loans described under paragraph 
(2) made on or after October 1, 1998, and who— 
‘‘(A) has been employed— 
‘‘(i) as a full-time teacher— 
‘‘(I) in a school that qualifies 
under section 465(a)(2)(A) for loan 
cancellation for Perkins loan recipi-
ents who teach in those schools; 
‘‘(II) 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 officer of the pub-
lic or nonprofit private secondary 
school in which the borrower is em-
ployed; and 
‘‘(III) if employed as an elemen-
tary school teacher, has demonstrated, 
as certified by the chief administrative 
officer of the public or nonprofit pri-
vate elementary school in which the 
borrower is employed, knowledge and 
teaching skills in reading, writing, 
mathematics, and other areas of the 
elementary school curriculum; or 
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‘‘(ii) as a full-time eligible nurse— 
‘‘(I) in a clinical setting; or 
‘‘(II) as a member of the nursing 
faculty at an accredited school of 
nursing (as those terms are defined in 
section 801 of the Public Health Serv-
ice Act (42 U.S.C. 296)); and 
‘‘(B) 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 shall, subject to paragraph (3), 
carry out a program— 
‘‘(A) through the holder of the loan, to as-
sume the obligation to repay a qualified loan 
amount (as determined under subsection (c)) 
for a loan made under section 428 or 428H of 
this part; and 
‘‘(B) to cancel a qualified loan amount (as 
so determined) for a Federal Direct Stafford 
Loan or a Federal Direct Unsubsidized Staf-
ford Loan made under part D of this title; 
‘‘(3) TREATMENT OF CONSOLIDATION LOANS.— 
A loan amount for a loan made under section 428C 
or section 455(g) may be a qualified loan amount for 
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the purposes of paragraph (2) only to the extent 
that such loan amount was used to repay a loan 
made under section 428 or 428H, a Federal Direct 
Stafford Loan, or a Federal Direct Unsubsidized 
Stafford Loan for a borrower who meets the require-
ments of paragraph (1), as determined in accordance 
with regulations prescribed by the Secretary. 
‘‘(c) QUALIFIED LOAN AMOUNT.— 
‘‘(1) IN GENERAL.— 
‘‘(A) AGGREGATE
AMOUNT.—The Sec-
retary shall, in installments in accordance with 
subparagraph (B), forgive under this section 
not more than $17,500 in the aggregate of the 
student loan obligation of a borrower. 
‘‘(B) ANNUAL INSTALLMENTS.—The Sec-
retary shall forgive the student loan obligation 
of a borrower in annual installments after each 
of 5 years of service described in clause (i) or 
(ii) of subsection (b)(1)(A)(i) in an amount not 
to exceed the lesser of the remaining out-
standing obligation of the borrower or— 
‘‘(i) $2,000 at the completion of the 
first year of such service; 
‘‘(ii) $2,500 at the completion of the 
second year of such service; 
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‘‘(iii) $3,500 at the completion of the 
third year of such service; 
‘‘(iv) $4,500 at the completion of the 
fourth year of such service; and 
‘‘(v) $5,000 at the completion of the 
fifth year of such service. 
‘‘(2) FORBEARANCE
ON
QUALIFIED
LOAN 
AMOUNT.—A holder of a loan on which a borrower 
is seeking forgiveness under this section— 
‘‘(A) shall grant forbearance, at the re-
quest of the borrower, in annual increments for 
each of the years of qualifying service if the 
holder believes, at the time of the borrower’s 
annual request, that the amount expected to be 
forgiven under this section at the completion of 
the period of qualifying service will satisfy the 
anticipated remaining outstanding balance on 
the loan; and 
‘‘(B) may offer other forbearance options 
to the borrower. 
‘‘(d) REGULATIONS.—The Secretary is authorized to 
issue such regulations as may be necessary to carry out 
the provisions of this section. 
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‘‘(e) CONSTRUCTION.—Nothing in this section shall 
be construed to authorize any refunding of any repayment 
of a loan. 
‘‘(f) LIST OF SCHOOLS.—If the list of schools in 
which a teacher may perform service pursuant to sub-
section (b)(1)(A)(i) 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 the 
service determination. 
‘‘(g) ADDITIONAL ELIGIBILITY PROVISIONS.— 
‘‘(1) CONTINUED
ELIGIBILITY
FOR
TEACH-
ERS.—Any teacher who performs service in a school 
that— 
‘‘(A) meets the requirements of subsection 
(b)(1)(A)(i)(I) in any year during such service; 
and 
‘‘(B) in a subsequent year fails to meet the 
requirements of that subsection, 
may continue to teach in the school and shall be eli-
gible 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 subsection and— 
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‘‘(A) subtitle D of title I of the National 
and Community Service Act of 1990 (42 U.S.C. 
12571 et seq.); or 
‘‘(B) section 846 of the Public Health 
Service Act (42 U.S.C. 297n). 
‘‘(h) DEFINITIONS.—In this section: 
‘‘(1) 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 
equivalent degree. 
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‘‘(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)). 
‘‘(2) YEAR.—The term ‘year’, where applied to 
service as a teacher (or service as a member of the 
nursing faculty 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))), means 
an academic year as defined by the Secretary.’’. 
(b) REPEAL OF LOAN CANCELLATION PROVISION.— 
Section 460 of the Higher Education Act of 1965 (20 
U.S.C. 1087j) is repealed. 
SEC. 4. PHASE OUT OF CURRENT PROGRAM. 
An individual who began the required period of teach-
ing described in section 428J(b)(1) or 460(b)(1)(A) of the 
Higher Education Act of 1965 (20 U.S.C. 1078–10 and 
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1087j) as such sections were in effect on the day before 
the date of enactment of this Act, shall— 
(1) be eligible to receive loan forgiveness or loan 
cancellation in the amount described in, and in ac-
cordance with the requirements of, such sections as 
in effect on the day before the date of enactment of 
this Act; and 
(2) not be eligible to receive loan forgiveness 
under section 428J of the Higher Education Act of 
1965 as in effect on the date of enactment of this 
Act. 
Æ 
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