I
105TH CONGRESS
2D SESSION
H. R. 3986
To improve education, raise standards, and attract the best teachers to
the public schools.
IN THE HOUSE OF REPRESENTATIVES
JUNE 3, 1998
Mr. SCHUMER (for himself and Mr. MEEKS of New York) introduced the fol-
lowing bill; which was referred to the Committee on Ways and Means,
and in addition to the Committee on Education and the Workforce, for
a period to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the com-
mittee concerned
A BILL
To improve education, raise standards, and attract the best
teachers to the public schools.
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 ‘‘Student and Teachers
Excellence in Education Act’’.
TITLE I—TAX INCENTIVES FOR
TEACHERS
SEC. 101. NONREFUNDABLE TAX CREDIT FOR ELEMENTARY
AND SECONDARY PUBLIC SCHOOL TEACH-
ERS.
(a) IN GENERAL.—Subpart A of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of
1986 (relating to nonrefundable personal credits) is
amended by inserting after section 25A the following new
section:
‘‘SEC. 25B. ELEMENTARY AND SECONDARY PUBLIC SCHOOL
TEACHERS.
‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in-
dividual who is an eligible elementary or secondary public
school teacher, there shall be allowed as a credit against
the tax imposed by this chapter for a taxable year an
amount equal to the full-time teaching amount.
‘‘(b) FULL-TIME TEACHING AMOUNT.—
‘‘(1) IN GENERAL.—For purposes of subsection
(a), the full-time teaching amount is the amount
equal to——
‘‘(A) $2,000, multiplied by
‘‘(B) the fraction—
‘‘(i) the numerator of which is the
number of months credited with full-time
teaching, and
‘‘(ii) the denominator of which is 9.
‘‘(2) SPECIAL RULES.—For purposes of para-
graph (1)—
‘‘(A) a month is credited with full-time
teaching if the teacher is teaching in at least
one of the grades K through 12 on a full-time
basis for more than half of the business days in
such month, and
‘‘(B) not more than 9 months of a taxable
year shall be taken into account under para-
graph (1)(B)(i).’’.
(b) CLERICAL AMENDMENT.—The table of sections
for subpart A of part IV of subchapter A of chapter 1
of such Code is amended by inserting after the item relat-
ing to section 25A the following new item:
‘‘Sec. 25B. Elementary and secondary public school teachers.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 1997.
SEC. 102. DEDUCTIONS FOR EXPENSES OF ELEMENTARY
AND SECONDARY PUBLIC SCHOOL TEACHERS
BECOMING ACCREDITED FROM NATIONAL
BOARD 
FOR 
PROFESSIONAL 
TEACHING
STANDARDS.
(a) IN GENERAL.—Subsection (a) of section 62 of the
Internal Revenue Code of 1986 (relating to definition of
adjusted gross income) is amended by adding at the end
thereof the following new paragraph:
‘‘(18) NATIONAL
BOARD
FOR
PROFESSIONAL
TEACHING
STANDARDS
ACCREDITATION.—In the
case of an individual who is an eligible elementary
or secondary public school teacher (as defined in sec-
tion 25B), the deductions (not to exceed $2,000) al-
lowed by section 162 which consist of expenses paid
by the taxpayer in connection with receiving accredi-
tation from the National Board for Professional
Teaching Standards.’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall apply to taxable years beginning after
December 31, 1997.
TITLE II—OTHER INCENTIVES
FOR TEACHERS
SEC. 201. CANCELLATION OF STUDENT LOANS FOR TEACH-
ERS.
(a) FFEL LOANS.—Section 437 of the Higher Edu-
cation Act of 1965 (20 U.S.C. 101087) 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) FUNCTIONS
OF
SECRETARY.—The Sec-
retary shall discharge the liability of a borrower of
a qualifying loan by repaying the amount owed on
the loan, to the extent specified in paragraph (4),
for service described in paragraph (3).
‘‘(2) QUALIFYING LOANS.—
‘‘(A) IN GENERAL.—For purposes of this
subsection, a loan is a qualifying loan if—
‘‘(i) the loan was made under section
428 on or after the date of enactment of
the Higher Education Amendments of
1998 to a borrower who, on the date of en-
tering into the note or other written evi-
dence of the loan, had no outstanding bal-
ance of principal or interest on any loan
made before such date; and
‘‘(ii) the loan was obtained to cover
the cost of instruction for an academic
year after the first and second year of un-
dergraduate education.
‘‘(B) LIMITATION.—The Secretary may
not repay loans described in subparagraph (A)
to cover the costs of instruction for more than
two academic years, or three academic years in
the case of a program of instruction normally
requiring five years.
‘‘(C) 
TREATMENT
OF
CONSOLIDATION
LOANS.—A loan made under section 428C may
be a qualifying loan for the purposes of this
subsection only to the extent that such loan was
used to repay a loan or loans that meet the re-
quirements of subparagraphs (A) and (B), as
determined in accordance with regulations pre-
scribed by the Secretary.
‘‘(3) QUALIFYING
SERVICE.—A loan shall be
discharged under paragraph (1) for service by the
borrower as a full-time teacher for each complete
academic year of service, after completion of the sec-
ond academic year of service, in a public elementary
or secondary school.
‘‘(4) RATE OF DISCHARGE.—(A) Loans shall be
discharged under this subsection at the rate of—
‘‘(i) 30 percent for the first or second com-
plete academic year of qualifying service as de-
scribed in paragraph (3) (after completion of
two years of service); and
‘‘(ii) 40 percent for the third complete year
of such qualifying service.
‘‘(B) The total amount that may be discharged
under this subsection for any borrower shall not ex-
ceed $17,750.
‘‘(C) If a portion of a loan is discharged under
subparagraph (A) 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 authorize refunding of any repayment of a loan.
‘‘(5) LIMITATION ON TEACHER ELIGIBILITY.—
‘‘(A) SECONDARY SCHOOL TEACHERS.—A
borrower may not receive assistance under this
subsection by virtue of teaching in a secondary
school unless such borrower majored in the sub-
ject area in which they are teaching.
‘‘(B) ELEMENTARY SCHOOL TEACHERS.—
A borrower may not receive assistance under
this subsection by virtue of teaching in a ele-
mentary school unless such borrower dem-
onstrates, in accordance with State teacher cer-
tification or licensing requirements, subject
matter knowledge and teaching skills in read-
ing, writing, mathematics, and other subjects
taught in elementary schools.
‘‘(6) PREVENTION OF DOUBLE BENEFITS.—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.).
‘‘(7) METHOD
OF
PAYMENT.—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 discharged
under this subsection.
‘‘(8) LIST.—If the list of schools in which a
teacher may perform service pursuant to paragraph
(3) 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.
‘‘(9) CONTINUING
ELIGIBILITY.—Any teacher
who performs service in a school which—
‘‘(A) meets the requirements of paragraph
(3) 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 this sub-
section with respect to such subsequent years.’’.
(b) DIRECT STUDENT LOANS.—Part D of title IV of
the Higher Education Act of 1965 is amended by inserting
after section 455 (20 U.S.C. 1087h) the following new sec-
tion:
‘‘SEC. 459. CANCELLATION OF LOANS FOR CERTAIN PUBLIC
SERVICE.
‘‘(a) CANCELLATION
OF PERCENTAGE
OF DEBT
BASED ON YEARS OF QUALIFYING SERVICE.—
‘‘(1) FUNCTIONS OF SECRETARY.—The percent
specified in paragraph (4) of the total amount of
any qualifying loan shall be canceled for each com-
plete year of service by the borrower described in
paragraph (3).
‘‘(2) QUALIFYING LOANS.—
‘‘(A) IN GENERAL.—For purposes of this
subsection, a loan is a qualifying loan if—
‘‘(i) the loan was a Federal Direct
Stafford Loan made on or after the date of
enactment 
of 
the 
Higher 
Education
Amendments of 1998 to a borrower who,
on the date of entering into the note or
other written evidence of the loan, had no
outstanding balance of principal or interest
on any loan made before such date; and
‘‘(ii) the loan was obtained to cover
the cost of instruction for an academic
year after the first and second year of un-
dergraduate education.
‘‘(B) LIMITATION.—The Secretary may
not repay loans described in subparagraph (A)
to cover the costs of instruction for more than
two academic years, or three academic years in
the case of a program of instruction normally
requiring five years.
‘‘(C) 
TREATMENT
OF
CONSOLIDATION
LOANS.—A Federal Direct Consolidation Loan
may be a qualifying loan for the purposes of
this subsection only to the extent that such loan
was used to repay a loan or loans that meet the
requirements of subparagraphs (A) and (B), as
determined in accordance with regulations pre-
scribed by the Secretary.
‘‘(3) QUALIFYING
SERVICE.—A loan shall be
canceled under paragraph (1) for service by the bor-
rower as a full-time teacher for each complete aca-
demic year of service, after completion of the second
academic year of service, in a public elementary or
secondary school.
‘‘(4) PERCENTAGE
OF
CANCELLATION.—(A)
The percent of a loan which shall be canceled under
paragraph (1) of this subsection is at the rate of—
‘‘(i) 30 percent for the first or second com-
plete academic year of qualifying service as de-
scribed in paragraph (3) (after completion of
two years of service); and
‘‘(ii) 40 percent for the third complete year
of such qualifying service.
‘‘(B) The total amount that may be canceled
under this subsection for any borrower shall not ex-
ceed $17,750.
‘‘(C) If a portion of a loan is canceled under
this subsection for any year, the entire amount of in-
terest on such loan which accrues for such year shall
be canceled.
‘‘(D) Nothing in this section shall be construed
to authorize refunding of any repayment of a loan.
‘‘(5) LIMITATION ON TEACHER ELIGIBILITY.—
‘‘(A) SECONDARY SCHOOL TEACHERS.—A
borrower may not receive assistance under this
subsection by virtue of teaching in a secondary
school unless such borrower majored in the sub-
ject area in which they are teaching.
‘‘(B) ELEMENTARY SCHOOL TEACHERS.—
A borrower may not receive assistance under
this subsection by virtue of teaching in a ele-
mentary school unless such borrower dem-
onstrates, in accordance with State teacher cer-
tification or licensing requirements, subject
matter knowledge and teaching skills in read-
ing, writing, mathematics, and other subjects
taught in elementary schools.
‘‘(6) 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.
‘‘(7) 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)(3) 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)(3) 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.’’.
SEC. 202. GRANTS FOR ACHIEVEMENTS IN MATH, EDU-
CATION, AND SCIENCE.
(a) PROGRAM AUTHORIZED.—The Secretary is au-
thorized to provide grants to local educational agencies
that have improved student achievement in mathematics
and English as demonstrated by improved national stand-
ardized test results of students completing the 4th, 8th,
and 12th grades.
(b) APPLICATION.—To be eligible to receive a grant
under this section, a local educational agency shall submit
an application to the Secretary at such time and in such
form as the Secretary may reasonable require.
(c) REQUIREMENTS.—Not later than 90 days after
the date of the enactment of this Act, the Secretary shall,
by notice issued in the Federal Register, establish any re-
quirements necessary to implement this section.
(d) DEFINITION.—For purposes of this section, the
term ‘‘Secretary’’ means the Secretary of Education.
(e) AUTHORIZATIONS.—There are authorized to be
appropriated to carry out this section $200,000,000 for
each of the fiscal years 1999 through 2004.
SEC. 203. TEACHER TECHNOLOGY TRAINING.
(a) STATEMENT OF PURPOSE FOR TITLE I.—Section
1001(d)(4) of the Elementary and Secondary Education
Act of 1965 (20 U.S.C. 6301(d)(4)) is amended by insert-
ing ‘‘, giving attention to the role technology can play in
professional development and improved teaching and
learning’’ before the semicolon.
(b) SCHOOL IMPROVEMENT.—Section 1116(c)(3) of
such Act (20 U.S.C. 6317(c)(3)) is amended by adding
at the end the following:
‘‘(D) In carrying out professional development
under this paragraph a school shall give attention to
professional development that incorporates tech-
nology used to improve teaching and learning.’’.
(c) 
PROFESSIONAL
DEVELOPMENT.—Section
1119(b) of such Act (20 U.S.C. 6320(b)) is amended—
(1) in paragraph (1)—
(A) in subparagraph (D), by striking
‘‘and’’ after the semicolon;
(B) in subparagraph (E), by striking the
period and inserting ‘‘; and’’; and
(C) by adding at the end the following:
‘‘(F) include instruction in the use of tech-
nology.’’; and
(2) in paragraph (2)—
(A) by striking subparagraph (D); and
(B) by redesignating subparagraphs (E)
through (I) as subparagraphs (D) through (H),
respectively.
(d) PURPOSES FOR TITLE II.—Section 2002(2) of
such Act (20 U.S.C. 6602(2)) is amended—
(1) in subparagraph (E), by striking ‘‘and’’
after the semicolon;
(2) in subparagraph (F), by striking the period
and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(G) uses technology to enhance the teach-
ing and learning process.’’.
(e) NATIONAL TEACHER TRAINING PROJECT.—Sec-
tion 2103(b)(2) of such Act (20 U.S.C. 6623(b)(2)) is
amended by adding at the end the following:
‘‘(J) Technology.’’.
(f) LOCAL PLAN FOR IMPROVING TEACHING AND
LEARNING.—Section 2208(d)(1)(F) of such Act (20
U.S.C. 6648(d)(1)(F)) is amended by inserting ‘‘, tech-
nologies,’’ after ‘‘strategies’’.
(g) 
AUTHORIZED
ACTIVITIES.—Section
2210(b)(2)(C) of such Act (20 U.S.C. 6650(b)(2)(C)) is
amended by striking ‘‘and practices’’ and inserting ‘‘prac-
tices, and technology’’.
(h) 
HIGHER
EDUCATION
ACTIVITIES.—Section
2211(a)(1)(C) of such Act (20 U.S.C. 6651(a)(1)(C)) is
amended by inserting ‘‘, including technological innova-
tion,’’ after ‘‘innovation’’.
SEC. 204. SENSE OF CONGRESS.
It is the sense of Congress that—
(1) local educational agencies should use na-
tional standardized tests to evaluate student per-
formance in mathematics and English at the end of
each school year; and
(2) schools should end social promotion of stu-
dents to the next grade level.
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