I 
108TH CONGRESS 
1ST SESSION 
H. R. 789
To expand the eligibility of individuals to qualify for loan forgiveness for 
teachers in order to provide additional incentives for teachers currently 
employed or seeking employment in economically depressed rural areas, 
Territories, and Indian Reservations. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 13, 2003
Mrs. CHRISTENSEN introduced the following bill; which was referred to the 
Committee on Education and the Workforce 
A BILL 
To expand the eligibility of individuals to qualify for loan 
forgiveness for teachers in order to provide additional 
incentives for teachers currently employed or seeking em-
ployment in economically depressed rural areas, Terri-
tories, and Indian Reservations.
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 ‘‘Teacher Recruitment 
Act of 2003’’.
SEC. 2. EXPANSION OF TEACHER LOAN FORGIVENESS PRO-
GRAMS. 
(a) GUARANTEED STUDENT LOANS.—Part B of title 
IV of the Higher Education Act of 1965 is amended by—
(1) redesignating section 428K (20 U.S.C. 
1078–11) as section 428L; and 
(2) by inserting after section 428J the following 
new section: 
‘‘SEC. 428K. EXPANDED LOAN FORGIVENESS FOR TEACH-
ERS. 
‘‘(a) PURPOSE.—It is the purpose of this section to 
expand, subject to the availability of appropriations there-
for, the eligibility of individuals to qualify for loan forgive-
ness for teachers beyond that available under section 
428J, in order to provide additional incentives for such 
individuals to teach in economically disadvantaged or de-
pressed and underserved rural areas. 
‘‘(b) PROGRAM AUTHORIZED.—
‘‘(1) IN
GENERAL.—From the sums appro-
priated pursuant to subsection (i), the Secretary 
shall carry out a program, through the holder of the 
loan, of assuming the obligation to repay a qualified 
loan amount for a loan made under section 428 or 
428H, in accordance with subsection (c), for any 
new borrower on or after October 1, 1998, who—
‘‘(A) is employed as a full-time teacher in 
a public elementary or secondary school in an 
economically disadvantaged or depressed and 
underserved rural area; 
‘‘(B) has a State certification (which may 
include certification obtained through alter-
native means) or a State license to teach, and 
has not failed to comply with State or local ac-
countability standards; and 
‘‘(C) is not in default on a loan for which 
the borrower seeks forgiveness. 
‘‘(2) SELECTION
OF
RECIPIENTS.—The Sec-
retary shall by regulations, establish a formula that 
ensures fairness and equality for applicants in the 
selection of borrowers for loan repayment under this 
section, based on the amount available pursuant to 
subsection (i). 
‘‘(c) QUALIFIED LOANS AMOUNT.—
‘‘(1) IN GENERAL.—The Secretary shall repay 
not more than the percentage specified in paragraph 
(2) of the loan obligation on a loan made under sec-
tion 428 or 428H that is outstanding after the com-
pletion of each complete school year of teaching de-
scribed in subsection (b)(1). No borrower may re-
ceive a reduction of loan obligations under both this 
section and section 460. 
‘‘(2) PERCENTAGE ELIGIBLE.—The percent of 
the loan obligation which the Secretary shall repay 
under paragraph (1) of this subsection is 15 percent 
for the first or second year of such service, 20 per-
cent for the third or fourth year of such service, and 
30 percent for the fifth year of such service. 
‘‘(3) 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. 
‘‘(4) TREATMENT OF YEARS OF SERVICE FOR 
CONTINUING EDUCATION LOANS.—For purposes of 
paragraph (2), the year of service is determined on 
the basis of the academic year that the borrower 
began the service as a full-time teacher, except that 
in the case of a borrower who incurs a loan obliga-
tion for continuing education expenses while teach-
ing, the year of service is determined on the basis 
of the academic year following the academic year for 
which the loan obligation was incurred. 
‘‘(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) LIST.—If the list of schools in which a teacher 
may perform service pursuant to subsection (b)(1)(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. 
‘‘(g) ADDITIONAL ELIGIBILITY PROVISIONS.—
‘‘(1) CONTINUED
ELIGIBILITY.—Any teacher 
who performs service in a school that—
‘‘(A) meets the requirements of subsection 
(b)(1)(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 forgiveness pursuant to subsection 
(b).
‘‘(2) PREVENTION OF DOUBLE BENEFITS.—No 
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. 12571 et seq.). 
‘‘(h) DEFINITION.—For purposes of this section: 
‘‘(1) AREA.—The term ‘economically disadvan-
taged or depressed and underserved rural area’ 
means any of the following areas in any State (as 
that term is defined in section 103): 
‘‘(A) A rural area that has a chronically 
high rate of unemployment. 
‘‘(B) A rural area in which at least 30 per-
cent of the households have household incomes 
of less than $15,000, as determined on the 
basis of the most recent decennial census. 
‘‘(C) An Indian reservation. 
‘‘(D) Any other rural area that, as deter-
mined by regulations, has a significant shortage 
of educational and employment opportunities. 
‘‘(2) INDIAN RESERVATION.—The term ‘‘Indian 
reservation’’ includes Indian reservations, public do-
main Indian allotments, former Indian reservations 
in Oklahoma, and land held by incorporated Native 
Alaskan groups, regional corporations, and village
corporations under the provisions of the Alaska Na-
tive Claims Settlement Act (43 U.S.C. 1601 et seq.). 
‘‘(3) YEAR.—The term ‘year’, where applied to 
service as a teacher, means an academic year as de-
fined by the Secretary. 
‘‘(i) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated to carry out this section 
such sums as may be necessary for fiscal year 2002 and 
each of the 5 succeeding fiscal years.’’. 
(b) DIRECT STUDENT LOANS.—Part D of title IV of 
the Higher Education Act of 1965 is amended by inserting 
after section 460 the following new section: 
‘‘SEC. 460A. EXPANDED LOAN FORGIVENESS FOR TEACH-
ERS. 
‘‘(a) PURPOSE.—It is the purpose of this section to 
expand, subject to the availability of appropriations there-
for, the eligibility of individuals to qualify for loan forgive-
ness for teachers beyond that available under section 460, 
in order to provide additional incentives for such individ-
uals to teach in economically disadvantaged or depressed 
and underserved rural areas. 
‘‘(b) PROGRAM AUTHORIZED.—
‘‘(1) IN
GENERAL.—From the sums appro-
priated pursuant to subsection (i), the Secretary 
shall carry out canceling the obligation to repay a
qualified loan amount in accordance with subsection 
(c) for Federal Direct Stafford Loans and Federal 
Direct Unsubsidized Stafford Loans made under this 
part for any new borrower on or after October 1, 
1998, but who— 
‘‘(A) is employed as a full-time teacher in 
a public elementary or secondary school in an 
economically disadvantaged or depressed and 
underserved rural area; 
‘‘(B) has a State certification (which may 
include certification obtained through alter-
native means) or a State license to teach, and 
has not failed to comply with State or local ac-
countability standards; and 
‘‘(C) is not in default on a loan for which 
the borrower seeks forgiveness. 
‘‘(2) SELECTION
OF
RECIPIENTS.—The Sec-
retary shall by regulations, establish a formula that 
ensures fairness and equality for applicants in the 
selection of borrowers for loan repayment under this 
section, based on the amount available pursuant to 
subsection (i). 
‘‘(c) QUALIFIED LOANS AMOUNT.—
‘‘(1) IN GENERAL.—The Secretary shall cancel 
not more than the percentage specified in paragraph
(2) of the loan obligation on a loan made under this 
part that is outstanding after the completion of each 
complete school year of teaching described in sub-
section (b)(1). No borrower may receive a reduction 
of loan obligations under both this section and sec-
tion 428J. 
‘‘(2) PERCENTAGE ELIGIBLE.—The percent of 
the loan obligation which the Secretary shall repay 
under paragraph (1) of this subsection is 15 percent 
for the first or second year of such service, 20 per-
cent for the third or fourth year of such service, and 
30 percent for the fifth year of such service. 
‘‘(3) TREATMENT OF CONSOLIDATION LOANS.—
A loan amount for a Federal Direct Consolidation 
Loan may be a qualified loan amount for the pur-
poses of this subsection only to the extent that such 
loan amount was used to repay a Federal Direct 
Stafford Loan, a Federal Direct Unsubsidized Staf-
ford 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. 
‘‘(4) TREATMENT OF YEARS OF SERVICE FOR 
CONTINUING EDUCATION LOANS.—For purposes of 
paragraph (2), the year of service is determined on
the basis of the academic year that the borrower 
began the service as a full-time teacher, except that 
in the case of a borrower who incurs a loan obliga-
tion for continuing education expenses while teach-
ing, the year of service is determined on the basis 
of the academic year following the academic year for 
which the loan obligation was incurred. 
‘‘(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) LIST.—If the list of schools in which a teacher 
may perform service pursuant to subsection (b)(1)(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. 
‘‘(g) ADDITIONAL ELIGIBILITY PROVISIONS.—
‘‘(1) CONTINUED
ELIGIBILITY.—Any teacher 
who performs service in a school that—
‘‘(A) meets the requirements of subsection 
(b)(1)(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 forgiveness pursuant to subsection 
(b). 
‘‘(2) PREVENTION OF DOUBLE BENEFITS.—No 
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. 12571 et seq.). 
‘‘(h) DEFINITION.—For purposes of this section: 
‘‘(1) AREA.—The term ‘economically disadvan-
taged or depressed and underserved rural area’ 
means any of the following areas in any State (as 
that term is defined in section 103): 
‘‘(A) A rural area that has a chronically 
high rate of unemployment. 
‘‘(B) A rural area in which at least 30 per-
cent of the households have household incomes 
of less than $15,000, as determined on the 
basis of the most recent decennial census. 
‘‘(C) An Indian reservation. 
‘‘(D) Any other rural area that, as deter-
mined by regulations, has a significant shortage 
of educational and employment opportunities. 
‘‘(2) INDIAN RESERVATION.—The term ‘Indian 
reservation’ includes Indian reservations, public do-
main Indian allotments, former Indian reservations 
in Oklahoma, and land held by incorporated Native 
Alaskan groups, regional corporations, and village 
corporations under the provisions of the Alaska Na-
tive Claims Settlement Act (43 U.S.C. 1601 et seq.). 
‘‘(3) YEAR.—The term ‘year’, where applied to 
service as a teacher, means an academic year as de-
fined by the Secretary. 
‘‘(i) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated to carry out this section 
such sums as may be necessary for fiscal year 2002 and 
each of the 5 succeeding fiscal years.’’.
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