SEC. 3. INCREASE IN PAYMENT RATE FOR STATES FOR EX-
PENDITURES FOR SHORT TERM TRAINING OF 
STAFF OF CERTAIN CHILD WELFARE AGEN-
CIES AND COURT PERSONNEL. 
Section 474(a)(3)(B) of the Social Security Act (42 
U.S.C. 674(a)(3)(B)) is amended to read as follows: 
‘‘(B) 75 percent of so much of such ex-
penditures (including travel and per diem ex-
penses) as are for the short-term training of—
‘‘(i) current or prospective foster or 
adoptive parents and the members of the 
staff of State-licensed or State-approved 
child care institutions providing care, or of 
State-licensed or State-approved child wel-
fare agencies providing services, to foster 
and adopted children receiving assistance 
under this part, 
‘‘(ii) members of the staff of abuse 
and neglect courts, agency attorneys, attor-
neys representing children, parents, or 
guardians ad litem, or other court-ap-
pointed special advocates representing chil-
dren in proceedings of such courts, 
‘‘(iii) persons employed by State, 
local, or private nonprofit child-serving 
agencies that are working with the State
or local agency administering the State 
plan under this part to keep children safe 
and provide permanent families for chil-
dren, and 
‘‘(iv) persons employed by State, local, 
or private nonprofit child-serving agencies, 
in the provision of mental health services 
(including an overview of communication 
skills, of signs of normal and pathological 
development of children, of normal and 
pathological family interaction, of coun-
seling strategies and interventions, and of 
community mental health resources includ-
ing how and when to use such resources), 
in ways that increase the ability of such current 
or prospective parents, guardians, staff mem-
bers, institutions, attorneys, advocates, and per-
sons to provide support and assistance to foster 
and adopted children, whether incurred directly 
by the State or by contract,’’. 
SEC. 4. LOAN FORGIVENESS FOR CHILD WELFARE WORK-
ERS. 
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 CHILD WELFARE 
WORKERS. 
‘‘(a) PURPOSE.—It is the purpose of this section—
‘‘(1) to bring more highly trained individuals 
into the child welfare profession; and 
‘‘(2) to keep more highly trained child welfare 
workers in the child welfare field for longer periods 
of time. 
‘‘(b) 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 a 
bachelor’s or graduate degree awarded by an institu-
tion of higher education. 
‘‘(c) DEMONSTRATION PROGRAM.—
‘‘(1) IN GENERAL.—The Secretary may carry 
out a demonstration program of assuming the obli-
gation to repay, pursuant to subsection (d), a loan 
made, insured, or guaranteed under this part or part 
D (excluding loans made under sections 428B and 
428C or comparable loans made under part D) for 
any new borrower after the date of enactment of this 
section, who—
‘‘(A) completes a degree in social work or 
related field with a focus on serving children
and families (as determined in accordance with 
regulations prescribed by the Secretary);
‘‘(B) obtains employment in public or pri-
vate child welfare services; and 
‘‘(C) has worked full time for the 2 con-
secutive years preceding the year for which the 
determination is made as a child welfare work-
er. 
‘‘(2) AWARD BASIS; PRIORITY.—
‘‘(A) AWARD BASIS.—Subject to subpara-
graph (B), loan repayment under this section 
shall be on a first-come, first-served basis and 
subject to the availability of appropriations. 
‘‘(B) PRIORITY.—The Secretary shall give 
priority in providing loan repayment under this 
section for a fiscal year to student borrowers 
who received loan repayment under this section 
for the preceding fiscal year. 
‘‘(3) REGULATIONS.—The Secretary is author-
ized to prescribe such regulations as may be nec-
essary to carry out the provisions of this section. 
‘‘(d) LOAN REPAYMENT.—
‘‘(1) IN GENERAL.—The Secretary shall assume 
the obligation to repay—
‘‘(A) after the second consecutive year of 
employment described in subparagraphs (B) 
and (C) of subsection (c)(1), 20 percent of the 
total amount of all loans made after date of en-
actment of the Higher Education Amendments 
of 1998, to a student under this part or part 
D; 
‘‘(B) after the third consecutive year of 
such employment, 20 percent of the total 
amount of all such loans; and 
‘‘(C) after each of the fourth and fifth con-
secutive years of such employment, 30 percent 
of the total amount of all such loans.
‘‘(2) CONSTRUCTION.—Nothing in this section 
shall be construed to authorize the refunding of any 
repayment of a loan made under this part or part 
D. 
‘‘(3) 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 which accrues for such year shall be repaid by 
the Secretary. 
‘‘(4) SPECIAL RULE.—In the case where a stu-
dent borrower who is not participating in loan repay-
ment pursuant to this section returns to an institu-
tion of higher education after graduation from an in-
stitution of higher education for the purpose of ob-
taining a degree described in subsection (c)(1)(A), 
the Secretary is authorized to assume the obligation 
to repay the total amount of loans made under this 
part or part D incurred for a maximum of two aca-
demic years in returning to an institution of higher 
education for the purpose of obtaining such a de-
gree. Such loans shall only be repaid for borrowers 
who qualify for loan repayment pursuant to the pro-
visions of this section, and shall be repaid in accord-
ance with the provisions of paragraph (1). 
‘‘(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.). 
‘‘(e) REPAYMENT TO ELIGIBLE LENDERS.—The Sec-
retary shall pay to each eligible lender or holder for each 
fiscal year an amount equal to the aggregate amount of 
loans which are subject to repayment pursuant to this sec-
tion for such year. 
‘‘(f) 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 year of qualifying employment. The 
borrower shall receive forbearance while engaged in 
qualifying employment unless the borrower is in 
deferment while so engaged. 
‘‘(g) EVALUATION.—
‘‘(1) IN GENERAL.—The Secretary shall con-
duct, by grant or contract, an independent national 
evaluation of the impact of the demonstration pro-
gram assisted under this section on the field of child 
welfare services. 
‘‘(2) COMPETITIVE BASIS.—The grant or con-
tract described in subsection (b) shall be awarded on 
a competitive basis. 
‘‘(3) CONTENTS.—The evaluation described in 
this subsection shall determine—
‘‘(A) whether the program has increased 
child welfare workers’ education in the areas 
covered by loan forgiveness;
‘‘(B) whether the loan forgiveness program 
has contributed to increased time on the job for 
child welfare workers as measured by (i) the 
length of time child welfare workers receiving 
loan forgiveness have worked in the child wel-
fare field; and (ii) the length of time such work-
ers are continuing to work in such field after 
they have met the requirements of the loan for-
giveness programs; 
‘‘(C) whether the program has increased 
the experience and the quality of child welfare 
workers and has contributed to increased per-
formance in the outcomes of child welfare serv-
ices in terms of child well-being, permanency, 
and safety, as determined after consultation 
with the Secretary of Health and Human Serv-
ices. 
‘‘(4) INTERIM
AND
FINAL
EVALUATION
RE-
PORTS.—The Secretary shall prepare and submit to 
the President and the Congress such interim reports 
regarding the evaluation described in this subsection 
as the Secretary deems appropriate, and shall pre-
pare and so submit a final report regarding the eval-
uation by September 30, 2008.
‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated to carry out this section 
$10,000,000 for fiscal year 2004, and such sums as may 
be necessary for each of the 4 succeeding fiscal years.’’.
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