ment to, and demonstrate measurable progress toward,
meeting the requirements of subsection (a).’’.
TITLE IV—INCENTIVES FOR IN-
CREASING THE SUPPLY OF
QUALIFIED TEACHERS
SEC. 401. LOAN FORGIVENESS.
(a) GUARANTEED LOANS.—Section 437 of the Act is
amended—
(1) in the section heading, by striking out the
period at the end thereof and inserting in lieu there-
of a semicolon and ‘‘LOAN
FORGIVENESS
FOR
TEACHING’’;
(2) by amending the heading for subsection (c)
to read as follows: ‘‘DISCHARGE
RELATED
TO
SCHOOL CLOSURE OR FALSE CERTIFICATION.—’’;
and
(3) by adding at the end thereof the following
new subsection:
‘‘(e) CANCELLATION OF LOANS FOR TEACHING.—(1)
The Secretary shall discharge the liability of a borrower
of a loan made under section 428, 428H, or 428C (to the
extent that a loan made under section 428C repays a loan
made under section 428 or 428H) on or after the date
of enactment of the Teaching Excellence for All Children
Act of 1997, to students who have not previously borrowed
under any of such sections, by repaying the amount owed
on the loan, to the extent specified in paragraph (3), for
service described in paragraph (2) as a full time teacher
who has demonstrated, in accordance with State teacher
certification or licensing law, the subject matter knowl-
edge, teaching knowledge, and teaching skill necessary to
teach effectively in the content area or areas for which
the borrower provides instruction.
‘‘(2)(A) A loan shall be discharged under paragraph
(1) for service by the borrower as a full-time teacher for
1 or more academic years in a public elementary or sec-
ondary school—
‘‘(i)(I) in the school district of a local edu-
cational agency that is eligible in that academic year
for assistance under title I of the Elementary and
Secondary Education Act of 1965; and
‘‘(II) that, for that academic year, has been de-
termined by the Secretary to be a school in which
the enrollment of children counted under section
1124(c) of that Act exceeds 30 percent of the total
enrollment of that school; or
‘‘(ii) in an academic subject matter area in
which the State or local educational agency deter-
mines to the satisfaction of the Secretary that there
is a shortage of qualified teachers.
‘‘(B) A loan shall be discharged under paragraph (1)
at the rate provided in paragraph (3)(B) for service de-
scribed in clause (i) or (ii) of subparagraph (A) by the
borrower as a full-time teacher for 1 or more academic
years if such borrower—
‘‘(i) has engaged in such service for each of the
5 preceding academic years; and
‘‘(ii) has pursued and achieved advanced teach-
ing credentials.
‘‘(3)(A) Loans shall be discharged under paragraph
(1) for service described in paragraph (2)(A) at the rate
of—
‘‘(i) 20 percent for the first or second complete
academic year of such service, which amount for
each year shall not exceed $6,000;
‘‘(ii) 25 percent for the third complete year of
such service, which amount shall not exceed $7,500;
and
‘‘(iii) 35 percent for the fourth complete year of
such service, which amount shall not exceed
$10,500;
except that the total amount for all such academic years
shall not exceed $30,000.
‘‘(B) Loans shall be discharged under paragraph (1)
for service described in paragraph (2)(B) at the rate of
50 percent for each complete academic year of such serv-
ice, except that the total amount discharged shall not ex-
ceed $5,000 for any borrower.
‘‘(C) If a portion of a loan is discharged under sub-
paragraph (A) or (B) for any year, the entire amount of
interest on that loan that accrues for that year shall also
be discharged by the Secretary.
‘‘(D) Nothing in this section shall be construed to au-
thorize refunding of any repayment of a loan.
‘‘(4) The amount of a loan, and interest on a loan,
that is canceled under this subsection shall not be consid-
ered income for purposes of the Internal Revenue Code
of 1986.
‘‘(5) No borrower may, for the same volunteer serv-
ice, receive a benefit under both this subsection and sub-
title D of title I of the National and Community Service
Act of 1990 (42 U.S.C. 12571 et seq.).
‘‘(6) The Secretary shall specify in regulations the
manner in which lenders shall be reimbursed for loans
made under this part, or portions thereof, that are dis-
charged under this subsection.
‘‘(7) If the list of schools in which a teacher may per-
form service pursuant to paragraph (2) is not available
before May 1 of any year, the Secretary may use the list
for the year preceding the year for which the determina-
tion is made to make such service determination.
‘‘(8) Any teacher who performs service in a school
which—
‘‘(A) meets the requirements of paragraph (2)
in any year during such service; and
‘‘(B) in a subsequent year fails to meet the re-
quirements of such subsection,
may continue to teach in such school and shall be eligible
for loan cancellation pursuant to paragraph (1) with re-
spect to such subsequent years.’’.
(b) DIRECT LOANS.—Part D of title IV of the Act
is amended by inserting after section 458 (20 U.S.C.
1087h) the following new section:
‘‘SEC. 459. CANCELLATION OF LOANS FOR CERTAIN PUBLIC
SERVICE.
‘‘(a) CANCELLATION
OF PERCENTAGE
OF DEBT
BASED ON YEARS OF QUALIFYING SERVICE.—
‘‘(1) IN
GENERAL.—The percent specified in
paragraph (3) of the total amount of any loan made
under this part after the date of enactment of the
Teaching Excellence for All Children Act of 1997, to
students who have not previously borrowed under
this part, shall be canceled for each complete year
of service after such date by the borrower under cir-
cumstances described in paragraph (2) for service as
a full time teacher who has demonstrated, in accord-
ance with State teacher certification or licensing law,
the subject matter knowledge, teaching knowledge,
and teaching skill necessary to teach effectively in
the content area or areas for which the borrower
provides instruction.
‘‘(2) QUALIFYING SERVICE.—
‘‘(A) IN GENERAL.—A loan shall be dis-
charged under paragraph (1) for service by the
borrower as a full-time teacher for 1 or more
academic years in a public elementary or sec-
ondary school—
‘‘(i)(I) in the school district of a local
educational agency that is eligible in that
academic year for assistance under title I
of the Elementary and Secondary Edu-
cation Act of 1965; and
‘‘(II) that, for that academic year, has
been determined by the Secretary to be a
school in which the enrollment of children
counted under section 1124(c) of that Act
exceeds 30 percent of the total enrollment
of that school; or
‘‘(ii) in an academic subject matter
area in which the State or local edu-
cational agency determines to the satisfac-
tion of the Secretary that there is a short-
age of qualified teachers.
‘‘(B) ACCELERATED DISCHARGE.—A loan
shall be discharged under paragraph (1) at the
rate provided in paragraph (3)(B) for service
described in clause (i) or (ii) of subparagraph
(A) by the borrower as a full-time teacher for
1 or more academic years if such borrower—
‘‘(i) has engaged in such service for
each of the 5 preceding academic years;
and
‘‘(ii) has pursued and achieved ad-
vanced teaching credentials.
‘‘(3) PERCENTAGE OF CANCELLATION.—
‘‘(A) IN
GENERAL.—Loans shall be dis-
charged under paragraph (1) for service de-
scribed in paragraph (2)(A) at the rate of—
‘‘(i) 20 percent for the first or second
complete academic year of such service,
which amount for each year shall not ex-
ceed $6,000;
‘‘(ii) 25 percent for the third complete
year of such service, which amount shall
not exceed $7,500; and
‘‘(iii) 35 percent for the fourth com-
plete year of such service, which amount
shall not exceed $10,500;
except that the total amount for all such aca-
demic years shall not exceed $30,000.
‘‘(B) ACCELERATED
DISCHARGE.—Loans
shall be discharged under paragraph (1) for
service described in paragraph (2)(B) at the
rate of 50 percent for each complete academic
year of such service, except that the total
amount discharged shall not exceed $5,000 for
any borrower.
‘‘(C) TREATMENT
OF
INTEREST.—If a
portion of a loan is discharged under subpara-
graph (A) or (B) for any year, the entire
amount of interest on that loan that accrues for
that year shall also be discharged by the Sec-
retary.
‘‘(D) REFUNDING
PROHIBITED.—Nothing
in this section shall be construed to authorize
refunding of any repayment of a loan.
‘‘(4) DEFINITION.—For the purpose of this sec-
tion, the term ‘year’ where applied to service as a
teacher means an academic year as defined by the
Secretary.
‘‘(5) TREATMENT OF CANCELED AMOUNTS.—
The amount of a loan, and interest on a loan, which
is canceled under this section shall not be considered
income for purposes of the Internal Revenue Code of
1986.
‘‘(6) PREVENTION OF DOUBLE BENEFITS.—No
borrower may, for the same volunteer 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.).
‘‘(b) SPECIAL RULES.—
‘‘(1) LIST.—If the list of schools in which a
teacher may perform service pursuant to subsection
(a)(2)(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.
‘‘(2) CONTINUING
ELIGIBILITY.—Any teacher
who performs service in a school which—
‘‘(A) meets the requirements of subsection
(a)(2)(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 cancellation pursuant to subsection
(a)(1) with respect to such subsequent years.’’.
TITLE V—BEGINNING TEACHER
RECRUITMENT AND SUPPORT
SEC. 501. PROGRAM ESTABLISHED.
Title V of the Higher Education Act of 1965 is
amended by adding at the end the following new part:
‘‘PART G—BEGINNING TEACHER RECRUITMENT
AND SUPPORT
‘‘SEC. 599A. PROGRAM AUTHORIZED.
‘‘(a) GRANTS BY THE SECRETARY.—The Secretary
shall use funds pursuant to this subpart to make grants,
on a competitive basis, to Beginning Teacher Recruitment
and Support partnerships for the purpose of recruiting,
training, and supporting qualified entry-level teachers.
‘‘(b) DURATION.—Grants shall be awarded for a pe-
riod of 3 years, of which no more than 1 year may be
used for planning and preparation.
‘‘(c) BEGINNING TEACHER RECRUITMENT AND SUP-
PORT PARTNERSHIP.—For the purposes of this subpart,
the term ‘Beginning Teacher Recruitment and Support
Partnership’ means a partnership consisting of—
‘‘(1) a local educational agency, a subunit of
such agency, or a consortium of such agencies; and
‘‘(2) 1 or more nonprofit organizations, includ-
ing institutions of higher education—
‘‘(A) each of which must have a dem-
onstrated record of success in teacher prepara-
tion and staff development;
‘‘(B) which must have expertise and a
demonstrated record of success, either collec-
tively or individually, in providing teachers with
the subject matter knowledge, teaching knowl-
edge, and teaching skills necessary for them to
teach effectively in each and every content area
in which they plan to prepare teachers to pro-
vide instruction under a grant made under this
subpart; and
‘‘(C) which include at least 1 teacher prep-
aration institution that has met the criteria
under section 500A (as added by section 301 of
the Teaching Excellence for All Children Act of
1997).
These entities shall jointly develop and submit their pro-
posal to the Department of Education.
‘‘(d) BEGINNING TEACHER RECRUITMENT AND SUP-
PORT SCHOOL.—For the purpose of this subpart, a ‘Be-