I 
114TH CONGRESS 
1ST SESSION H. R. 3925 
To direct the Secretary of Education to carry out a program of canceling 
certain Federal student loans of principals in high need schools. 
IN THE HOUSE OF REPRESENTATIVES 
NOVEMBER 4, 2015 
Mrs. DAVIS of California introduced the following bill; which was referred to 
the Committee on Education and the Workforce 
A BILL 
To direct the Secretary of Education to carry out a program 
of canceling certain Federal student loans of principals 
in high need 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 ‘‘Recruiting and Retain-
ing Effective School Leaders Act’’. 
SEC. 2. LOAN FORGIVENESS FOR PRINCIPALS IN HIGH 
NEEDS SCHOOLS. 
Part D of title IV of the Higher Education Act of 
1965 (20 U.S.C. 1087a et seq.) is amended by adding at 
the end the following: 
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‘‘SEC. 460A. LOAN FORGIVENESS FOR PRINCIPALS IN HIGH 
NEEDS SCHOOLS. 
‘‘(a) LOAN FORGIVENESS AUTHORIZED.—The Sec-
retary shall carry out a program of canceling the obliga-
tion to repay a qualified loan amount in accordance with 
subsection (b) for loans made under this part, which were 
first disbursed on or after July 1, 2010, to any borrower 
who— 
‘‘(1) has graduated from a high-quality pro-
gram, as determined by the appropriate State agen-
cy for higher education, in consultation with the Sec-
retary; 
‘‘(2) has been employed as a full-time principal, 
as defined by, for not less than 1 complete school 
year in a school or location that qualifies under sec-
tion 465(a)(2)(A) for loan cancellation for Perkins 
loan recipients who teach in such schools or loca-
tions; and 
‘‘(3) is not in default on a loan for which the 
borrower seeks forgiveness. 
‘‘(b) QUALIFIED LOAN AMOUNTS.— 
‘‘(1) IN GENERAL.— 
‘‘(A) FIRST
YEARS.—Subject to para-
graph (2), after the completion of service as a 
principal as described in subsection (a)(2) for a 
complete school year for any school year after 
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the first complete school year of such service 
through the fourth complete school year of such 
service, the Secretary shall cancel— 
‘‘(i) 15 percent of the loan obligation 
on a loan made under this part, which was 
first disbursed on or after July 1, 2010; 
and 
‘‘(ii) the total amount of interest that 
accrued during such school year. 
‘‘(B) SUCCEEDING
YEARS.—Subject to 
paragraph (2), after the completion of service 
as a principal as described in subsection (a)(2) 
for a complete school year for any school year 
after the fourth complete school year of such 
service through the seventh complete school 
year of such service, the Secretary shall can-
cel— 
‘‘(i) 20 percent of the loan obligation 
on a loan made under this part, which was 
first disbursed on or after July 1, 2010; 
and 
‘‘(ii) the total amount of interest that 
accrued during such school year. 
‘‘(2) LIMITATIONS.—To be eligible for loan can-
cellation under subparagraph (A) or (B) of para-
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graph (1) for any school year after the first complete 
school year of service, a principal— 
‘‘(A) shall be serving as a principal in the 
school or location in which the principal served 
for such first year, except that a principal may 
serve as a principal in a different school or lo-
cation described in subsection (a)(2) for a 
school year after such first year if the local edu-
cational agency involved places the principal in 
such different school or location; and 
‘‘(B) may stop serving as a principal for 
not more than 1 complete school year after 
such first year. 
‘‘(3) TREATMENT OF CONSOLIDATION LOANS.— 
A loan amount for a Federal Direct Consolidation 
Loan, which was first disbursed on or after July 1, 
2010, 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, a Federal Direct PLUS Loan for enroll-
ment in a graduate or professional program or a 
loan made under section 428, 428H, or 428B for 
enrollment in a graduate or professional program, 
for a borrower who meets the requirements of sub-
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