I 
109TH CONGRESS 
1ST SESSION H. R. 2815
To amend the Internal Revenue Code of 1986 to expand and enhance the 
HOPE and Lifetime Learning Credits, and to amend the Higher Edu-
cation Act of 1965 to provide loan forgiveness opportunities for public 
service employees. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 8, 2005
Mr. MENENDEZ introduced the following bill; which was referred to the Com-
mittee on Ways and Means, and in addition to the Committee on Edu-
cation and the Workforce, for a period to be subsequently determined by 
the Speaker, in each case for consideration of such provisions as fall with-
in the jurisdiction of the committee concerned 
A BILL 
To amend the Internal Revenue Code of 1986 to expand 
and enhance the HOPE and Lifetime Learning Credits, 
and to amend the Higher Education Act of 1965 to 
provide loan forgiveness opportunities for public service 
employees.
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 ‘‘College Access and 
Affordability Act’’.
SEC. 2. EXPANSION OF HOPE AND LIFETIME LEARNING 
CREDITS. 
(a) INCREASE IN PER STUDENT LIMITATION FOR 
HOPE SCHOLARSHIP CREDIT.—
(1) IN GENERAL.—Subparagraph (B) of section 
25A(b)(1) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘the applicable limit’’ and in-
serting ‘‘$4,000’’. 
(2) INFLATION ADJUSTMENT.—Paragraph (1) 
of section 25A(h) of such Code is amended by redes-
ignating subparagraph (B) as subparagraph (C) and 
by inserting after subparagraph (A) the following 
new subparagraph: 
‘‘(B) $4,000 AMOUNT.—In the case of a 
taxable year beginning after 2005, the $4,000 
amount contained in subsection (b)(1)(B) shall 
be increased by an amount equal to—
‘‘(i) such dollar amount, multiplied by 
‘‘(ii) the cost-of-living adjustment de-
termined under section 1(f)(3) for the cal-
endar year in which the taxable year be-
gins, determined by substituting ‘calendar 
year 2004’ for ‘calendar year 1992’ in sub-
paragraph (B) thereof.’’.
(3) CONFORMING AMENDMENT.—Subsection (b) 
of section 25A of such Code is amended by striking 
paragraph (4). 
(b) INCREASE IN GROSS INCOME LIMITATION .—
(1) IN
GENERAL.—Clause (ii) of section 
25A(d)(2)(A) of such Code is amended by striking 
‘‘$40,000 ($80,000’’ and inserting ‘‘$58,000 (twice 
such amount’’. 
(2) INFLATION
ADJUSTMENT.—Subparagraph 
(A) of section 25A(h)(2) of such Code is amended 
to read as follows: 
‘‘(A) IN GENERAL.—In the case of a tax-
able year beginning after 2005, the $58,000 
amount in subsection (d)(2) shall be increased 
by an amount equal to—
‘‘(i) such dollar amount, multiplied by 
‘‘(ii) the cost-of-living adjustment de-
termined under section 1(f)(3) for the cal-
endar year in which the taxable year be-
gins, determined by substituting ‘calendar 
year 2004’ for ‘calendar year 1992’ in sub-
paragraph (B) thereof.’’. 
(c) HOPE SCHOLARSHIP CREDIT AVAILABLE FOR 4 
YEARS.—Paragraph (2) of section 25A(b) of such Code
is amended by striking ‘‘2’’ each place it appears in sub-
paragraphs (A) and (C) and inserting ‘‘4’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2004. 
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
OF 
MATHEMATICS, SCIENCE, AND BILINGUAL AND 
SPECIAL EDUCATION AND IN LOW-INCOME COM-
MUNITIES.—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) FIRST RESPONDERS IN LOW-INCOME 
COMMUNITIES.—An individual who, as deter-
mined by the Secretary of Education by regula-
tion—
‘‘(i) has obtained employment as a 
firefighter, police officer, or emergency 
medical technician; and 
‘‘(ii) serves a low-income community. 
‘‘(C) NURSES
IN
LOW
INCOME
COMMU-
NITIES.—An individual who is an eligible nurse 
and has obtained employment—
‘‘(i)(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)); and 
‘‘(ii) serves a low-income or needy 
community. 
‘‘(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. 
‘‘(c) LOAN REPAYMENT.—
‘‘(1) IN GENERAL.—The Secretary shall assume 
the obligation to repay a total of not more than 
$20,000 of principal and interest as follows: 
‘‘(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 OF TEACHERS.—
Any teacher who performs service in a school that—
‘‘(A) meets the requirements of subsection 
(b)(2)(A)(ii)(I) 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). 
‘‘(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
WELFARE
SERVICES.—The term 
‘child welfare services’ has the meaning given the 
term in section 425 of the Social Security Act.
‘‘(2) DEGREE.—The term ‘degree’ means an as-
sociate’s or bachelor’s degree awarded by an institu-
tion of higher education. 
‘‘(3) 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)). 
‘‘(4) 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. 
‘‘(5) 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.’’.
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