107TH CONGRESS
2D SESSION
H. R. 5091
AN ACT
To increase the amount of student loan forgiveness
available to qualified teachers, and for other pur-
poses.
107TH CONGRESS
2D SESSION
H. R. 5091
AN ACT
To increase the amount of student loan forgiveness available
to qualified teachers, 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 ‘‘Canceling Loans to
Allow School Systems to Attract Classroom Teachers
Act’’.
SEC. 2. ADDITIONAL QUALIFIED LOAN AMOUNTS FOR STU-
DENT LOAN FORGIVENESS.
(a) FFEL LOANS.—Section 428J(c) of the Higher
Education Act of 1965 (20 U.S.C. 1078–10(c)) is amend-
ed by adding at the end the following new paragraph:
‘‘(3) ADDITIONAL AMOUNTS; PRIORITY.—
‘‘(A) LARGER
AMOUNTS
FROM
APPRO-
PRIATED FUNDS.—Notwithstanding the amount
specified in paragraph (1), the aggregate
amount that the Secretary may, from funds ap-
propriated under subparagraph (C), repay
under this section is a total amount equal to
not more than $17,500.
‘‘(B) AWARD BASIS; PRIORITY.—The Sec-
retary shall make payments under this para-
graph to elementary or secondary school teach-
ers who meet the requirements of subsection (b)
on a first-come first-served basis, subject to the
availability of appropriations, but shall give pri-
ority in providing loan repayment under this
paragraph for a fiscal year to teachers who—
‘‘(i)(I) are employed as special edu-
cation teachers whose primary responsi-
bility is to teach or support children with
disabilities (as defined in section 602 of
the Individuals with Disabilities Act); and
‘‘(II) as certified by the chief adminis-
trative officer of the public or nonprofit
private elementary or secondary school in
which the borrower is employed, are teach-
ing children with disabilities that cor-
respond with the borrower’s training and
have demonstrated knowledge and teaching
skills in the content areas of the elemen-
tary or secondary school curriculum that
the borrower is teaching;
‘‘(ii) are employed as teachers in local
educational agencies that are determined
by a State educational agency under sec-
tion 2141 of the Elementary and Sec-
ondary Education Act of 1965 to have
failed to make progress toward meeting the
annual measurable objectives described in
section 1119(a)(2) of such Act for 2 con-
secutive years; or
‘‘(iii) are employed as teachers of
mathematics or science.
‘‘(C) 
AUTHORIZATION
OF
APPROPRIA-
TIONS.—There are authorized to be appro-
priated to carry out this paragraph such sums
as may be necessary for fiscal year 2003 and
for each of the 4 succeeding fiscal years.’’.
(b) DIRECT LOANS.—Section 460(c) of the Higher
Education Act of 1965 (20 U.S.C. 1087j(c)) is amended
by adding at the end the following new paragraph:
‘‘(3) ADDITIONAL AMOUNTS; PRIORITY.—
‘‘(A) LARGER
AMOUNTS
FROM
APPRO-
PRIATED FUNDS.—Notwithstanding the amount
specified in paragraph (1), the aggregate
amount that the Secretary may, from funds ap-
propriated under subparagraph (C), repay
under this section is a total amount equal to
not more than $17,500.
‘‘(B) AWARD BASIS; PRIORITY.—The Sec-
retary shall make payments under this para-
graph to elementary or secondary school teach-
ers who meet the requirements of subsection (b)
on a first-come first-served basis, subject to the
availability of appropriations, but shall give pri-
ority in providing loan repayment under this
paragraph for a fiscal year to teachers who—
‘‘(i)(I) are employed as special edu-
cation teachers whose primary responsi-
bility is to teach or support children with
disabilities (as defined in section 602 of
the Individuals with Disabilities Act); and
‘‘(II) as certified by the chief adminis-
trative officer of the public or nonprofit
private elementary or secondary school in
which the borrower is employed, are teach-
ing children with disabilities that cor-
respond with the borrower’s training and
have demonstrated knowledge and teaching
skills in the content areas of the elemen-
tary or secondary school curriculum that
the borrower is teaching;
‘‘(ii) are employed as teachers in local
educational agencies that are determined
by a State educational agency under sec-
tion 2141 of the Elementary and Sec-
ondary Education Act of 1965 to have
failed to make progress toward meeting the
annual measurable objectives described in
(2) ELIGIBLE VICTIM.—The term ‘‘eligible vic-
tim’’ means an individual who died (or dies) or be-
came (or becomes) permanently and totally disabled
due to injuries suffered in the terrorist attack on
September 11, 2001, as determined in accordance
with regulations of the Secretary.
(3) ELIGIBLE
SPOUSE.—The term ‘‘eligible
spouse’’ means the spouse of an eligible public serv-
ant, as determined in accordance with regulations of
the Secretary.
(4) ELIGIBLE SURVIVING DEBTOR.—The term
‘‘eligible surviving debtor’’ means an individual who
owes a Federal student loan that is a consolidation
loan that was used, jointly by that individual and an
eligible victim, to repay the Federal student loans of
that individual and of such eligible victim.
(5) ELIGIBLE
PARENT.—The term ‘‘eligible
parent’’ means the parent of an eligible victim if—
‘‘(A) the parent owes a Federal student
loan that is a consolidation loan that was used
to repay a PLUS loan incurred on behalf of
such eligible victim; or
‘‘(B) the parent owes a Federal student
loan that is a PLUS loan incurred on behalf of
an eligible victim who became (or becomes) per-
manently and totally disabled due to injuries
suffered in the terrorist attack on September
11, 2001.
(6) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Education.
(7) FEDERAL
STUDENT
LOAN.—The term
‘‘Federal student loan’’ means any loan made, in-
sured, or guaranteed under part B, D, or E of title
IV of the Higher Education Act of 1965.
(b) RELIEF FROM INDEBTEDNESS.—
(1) IN GENERAL.—The Secretary shall provide
for the discharge or cancellation of—
(A) the Federal student loan indebtedness
of an eligible spouse;
(B) the consolidation loan indebtedness of
an eligible surviving debtor;
(C) the portion of the consolidation loan
indebtedness of an eligible parent that was in-
curred on behalf of an eligible victim, if the
amount of such indebtedness with respect to
such eligible victim may be reliably determined
on the basis of records available to the lender;
and
(D) the PLUS loan indebtedness of an eli-
gible parent that was incurred on behalf of an
eligible victim described in subsection (a)(5)(B).
(2) METHOD
OF
DISCHARGE
OR
CANCELLA-
TION.—A loan required to be discharged or canceled
under paragraph (1) shall be discharged or canceled
by the method used under section 437(a), 455(a)(1),
or 464(c)(1)(F) of the Higher Education Act of
1965 
(20 
U.S.C. 
1087(a), 
1087e(a)(1),
1087dd(c)(1)(F)), whichever is applicable to such
loan.
(c) FACILITATION
OF
CLAIMS.—The Secretary
shall—
(1) establish procedures for the filing of appli-
cations for discharge or cancellation under this sec-
tion by regulations that shall be prescribed and pub-
lished within 90 days after the date of enactment of
this Act and without regard to the requirements of
section 553 of title 5, United States Code; and
(2) take such actions as may be necessary to
publicize the availability of discharge or cancellation
of Federal student loan indebtedness for eligible
spouses, eligible surviving debtors, and eligible par-
ents under this section.
(d) AVAILABILITY
OF FUNDS
FOR PAYMENTS.—
Funds available for the purposes of making payments to
lenders in accordance with section 437(a) for the dis-
charge of indebtedness of deceased or disabled individuals
shall be available for making payments under section
437(a) to lenders of loans to the eligible spouses, eligible
surviving debtors, and eligible parents as required by this
section.
(e) APPLICABLE TO OUTSTANDING DEBT.—The pro-
visions of this section shall be applied to discharge or can-
cel only Federal student loans (including consolidation
loans) on which amounts were owed on September 11,
2001.
SEC. 4. INFORMATION ON BENEFITS TO RURAL SCHOOL
DISTRICTS.
The Secretary shall—
(1) notify local educational agencies eligible to
participate in the Small Rural Achievement Program
authorized under subpart 1 of part B of Title VI of
the Elementary and Secondary Education of 1965 of
the benefits available under the amendments made
by section 2 of this Act to the teachers in the rural
schools of such agencies; and
(2) encourage such agencies to notify their
teachers of such benefits.
Passed the House of Representatives October 1,
2002.
Attest:
Clerk.