I 
107TH CONGRESS 
2D SESSION 
H. R. 5636
To establish a student loan forgiveness program for nurses. 
IN THE HOUSE OF REPRESENTATIVES 
OCTOBER 10, 2002
Mr. TANCREDO introduced the following bill; which was referred to the 
Committee on Education and the Workforce 
A BILL 
To establish a student loan forgiveness program for nurses.
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 ‘‘Nurse Loan Forgive-
ness Act of 2002’’. 
SEC. 2. ESTABLISHMENT OF PROGRAM. 
(a) STAFFORD LOANS.—Part B of title IV of the 
Higher Education Act of 1965 is amended by inserting 
after section 428K (20 U.S.C. 1078–11) the following new 
section:
‘‘SEC. 428L. LOAN FORGIVENESS FOR NURSES. 
‘‘(a) STATEMENT OF PURPOSE.—It is the purpose of 
this section to encourage individuals to enter and continue 
in the nursing profession. 
‘‘(b) PROGRAM AUTHORIZED.—From the amount ap-
propriated under subsection (g) for any fiscal year, the 
Secretary shall, in accordance with subsection (c), carry 
out a program, through the holder of the loan, of assum-
ing the obligation to repay a qualified loan amount for 
a loan made under section 428 or 428H for any borrower 
who— 
‘‘(1) has been employed for 3 consecutive cal-
endar years as a full-time registered nurse in a 
health care facility or a health care setting approved 
by the Secretary of Health and Human Services for 
purposes of this section; and 
‘‘(2) is not in default on a loan for which the 
borrower seeks forgiveness. 
‘‘(c) QUALIFIED LOANS AMOUNT.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), the Secretary may, from funds appro-
priated under subsection (g)(1), repay not more 
than $5,000 in the aggregate of the loan obligation 
on a loan made under section 428 or 428H that is 
outstanding after the completion of the third com-
plete year of nursing described in subsection (b)(1).
‘‘(2) ADDITIONAL AMOUNTS.—Notwithstanding 
the amount specified in paragraph (1), the aggregate 
amount that the Secretary may, from funds appro-
priated under subsection (g)(2), repay is a total 
amount equal to not more than $12,000 for any reg-
istered nurse who, in addition to meeting the re-
quirements of subsection (b), has been employed as 
required by such subsection for 5 consecutive cal-
endar years. 
‘‘(3) AWARD BASIS.—The Secretary shall make 
payments under this subsection on a first-come first-
served basis, subject to the availability of appropria-
tions. 
‘‘(4) 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.
‘‘(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 ) PREVENTION OF DOUBLE BENEFITS.—
‘‘(1) NATIONAL AND COMMUNITY SERVICE.—No 
borrower may, for the same service, receive a benefit 
under both this subsection and subtitle D of title I 
of the National and Community Service Act of 1990 
(42 U.S.C. 12571 et seq.). 
‘‘(2) DIRECT
LOAN
FORGIVENESS.—No bor-
rower may receive a reduction of loan obligations 
under both this section and section 460A. 
‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—For fis-
cal year 2003 and for each of the 4 succeeding fiscal years, 
there are authorized to be appropriated such sums as may 
be necessary—
‘‘(1) to repay loans in the amount specified in 
subsection (c)(1); and 
‘‘(2) to repay loans in the additional amount 
specified in subsection (c)(2).’’.
(b) DIRECT LOANS.—Part D of title IV of the Higher 
Education Act of 1965 is amended by inserting after sec-
tion 460 (20 U.S.C. 1087j) the following new section: 
‘‘SEC. 460A. LOAN FORGIVENESS FOR NURSES. 
‘‘(a) STATEMENT OF PURPOSE.—It is the purpose of 
this section to encourage individuals to enter and continue 
in the nursing profession. 
‘‘(b) PROGRAM AUTHORIZED.—From the amount ap-
propriated under subsection (g) for any fiscal year, the 
Secretary shall carry out a program of canceling the obli-
gation to repay a qualified loan amount in accordance with 
subsection (c) for Federal Direct Stafford Loans and Fed-
eral Direct Unsubsidized Stafford Loans made under this 
part for any borrower who—
‘‘(1) has been employed for 3 consecutive cal-
endar years as a full-time registered nurse in a 
health care facility or a health care setting approved 
by the Secretary of Health and Human Services for 
purposes of this section; and 
‘‘(2) is not in default on a loan for which the 
borrower seeks forgiveness. 
‘‘(c) QUALIFIED LOANS AMOUNT.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), the Secretary may, from funds appro-
priated under subsection (g)(1), cancel not more
than $5,000 in the aggregate of the loan obligation 
on a loan made under section 428 or 428H that is 
outstanding after the completion of the third com-
plete year of nursing described in subsection (b)(1). 
‘‘(2) ADDITIONAL AMOUNTS.—Notwithstanding 
the amount specified in paragraph (1), the aggregate 
amount that the Secretary may, from funds appro-
priated under subsection (g)(2), cancel is a total 
amount equal to not more than $12,000 for any reg-
istered nurse who, in addition to meeting the re-
quirements of subsection (b), has been employed as 
required by such subsection for 5 consecutive cal-
endar years. 
‘‘(3) AWARD BASIS.—The Secretary shall cancel 
loan amounts under this subsection on a first-come 
first-served basis, subject to the availability of ap-
propriations. 
‘‘(4) 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
‘‘(2) to repay loans in the additional amount 
specified in subsection (c)(2).’’.
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