I
107TH CONGRESS
1ST SESSION
H. R. 2476
To amend the Higher Education Act of 1965 to increase the funds available
for the provision of student financial assistance, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JULY 11, 2001
Mr. SANDERS (for himself, Mr. MCGOVERN, Mr. ALLEN, Mr. BALDACCI, Mr.
BISHOP, Mr. BLAGOJEVICH, Mr. BOUCHER, Mr. CONYERS, Mr. CROW-
LEY, Mr. DEFAZIO, Mr. DELAHUNT, Mr. EVANS, Mr. FILNER, Mr.
FORD, Mr. FRANK, Mr. HINCHEY, Mr. LANTOS, Ms. LEE, Ms. MCCAR-
THY of Missouri, Ms. MCKINNEY, Mr. MEEKS of New York, Mrs. MINK
of Hawaii, Mrs. NAPOLITANO, Mr. OLVER, Mr. OWENS, Mr. PASCRELL,
Mr. PAYNE, Ms. SCHAKOWSKY, Ms. SLAUGHTER, Mr. WAXMAN, and Mr.
WEINER) introduced the following bill; which was referred to the Com-
mittee on Education and the Workforce
A BILL
To amend the Higher Education Act of 1965 to increase
the funds available for the provision of student financial
assistance, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; REFERENCES TO HIGHER EDU-
CATION ACT OF 1965.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Higher Education Assistance Improvement Act’’.
for fiscal year 2002 and such sums as may be necessary
for the succeeding fiscal year’’.
(d) 
SUPPLEMENTAL
EDUCATION
OPPORTUNITY
GRANTS.—Section 413A(b) (20 U.S.C. 1070b(b)) is
amended by striking ‘‘$675,000,000 for fiscal year 1999
and such sums as may be necessary for the 4 succeeding
fiscal years’’ and inserting ‘‘$1,300,000,000 for fiscal year
2002 and such sums as may be necessary for the suc-
ceeding fiscal year’’.
(e) GRADUATE ASSISTANCE IN AREAS OF NATIONAL
NEED.—Section 716 (20 U.S.C. 1135e) is amended by
striking ‘‘$35,000,000 for fiscal year 1999 and such sums
as may be necessary for each of the 4 succeeding fiscal
years’’ and inserting ‘‘$62,000,000 for fiscal year 2002
and such sums as may be necessary for the succeeding
fiscal year’’.
(f) THURGOOD
MARSHALL.—Section 721(h) (20
U.S.C. 1136(h)) is amended by striking ‘‘$5,000,000 for
fiscal year 1999 and each of the 4 succeeding fiscal years’’
and inserting ‘‘$8,000,000 for fiscal year 2002 and such
sums as may be necessary for the succeeding fiscal year’’.
SEC. 3. ADDITIONAL APPROPRIATIONS MANDATE.
It is the sense of Congress that the appropriations
for the following higher education programs should be in-
creased as follows:
(1) LEAP.—The appropriations under section
415A(b)(1) (20 U.S.C. 1070c(b)(1)) should be dou-
bled to at least $110,000,000 for fiscal year 2002
and such sums as may be necessary for the suc-
ceeding fiscal year.
(2) CAMPIS.—The appropriations under sec-
tion 419N(g) (20 U.S.C. 1070e(g)) should be dou-
bled to at least $50,000,000 for fiscal year 2002 and
such sums as may be necessary for the succeeding
fiscal year.
(3) WORK-STUDY.—The appropriations under
section 441(b) (42 U.S.C. 2751(b)) should be in-
creased to at least $1,050,000,000 for fiscal year
2002 and such sums as may be necessary for the
succeeding fiscal year.
(4) NATIONAL HEALTH SERVICE CORPS SCHOL-
ARSHIP
AND
LOAN
REPAYMENT
PROGRAMS.—The
appropriations under sections 338A and 338B of the
Public Health Service Act (42 U.S.C. 254l, 254l–1)
should be doubled to at least $175,850,000 for fiscal
year 2002 and such sums as may be necessary for
the succeeding fiscal year.
(5) 
PERKINS
LOANS.—The 
appropriations
under section 461(b)(1) (20 U.S.C. 1087aa(b)(1))
should be doubled to at least $200,000,000 for fiscal
year 2002 and such sums as may be necessary for
the succeeding fiscal year, and the amount available
under section 465 for loan cancellation should be
doubled to at least $120,000,000 for fiscal year
2002 and such sums as may be necessary for the
succeeding fiscal year.
(6) JAVITS FELLOWSHIPS.—The appropriations
under section 705 (20 U.S.C. 1134d) should be in-
creased to at least $20,000,000 for fiscal year 2002
and such sums as may be necessary for the suc-
ceeding fiscal year.
SEC. 4. LOAN FORGIVENESS.
(a) EXPANSION OF ELIGIBILITY.—
(1) ELIMINATION OF NEW BORROWER RESTRIC-
TIONS.—
(A) FFEL PROGRAM.—Section 428J(b)
(20 U.S.C. 1078–10(b)) is amended by striking
‘‘for any new borrower on or after October 1,
1998, who’’ and inserting ‘‘for any borrower
who performs the qualifying service on or after
October 1, 1998, and who’’.
(B) FEDERAL DIRECT LOAN PROGRAM.—
Section 460(b)(1) of such Act (20 U.S.C.
1087j(b)(1)) is amended by striking ‘‘for any
new borrower on or after October 1, 1998,
who’’ and inserting ‘‘for any borrower who per-
forms the qualifying service on or after October
1, 1998, and who’’.
(2) EXPANSION OF ELIGIBLE SERVICE; ELIMI-
NATING DELAY IN SERVICE BENEFIT.—
(A) FFEL PROGRAM.—Section 428J(b)(1)
is amended to read as follows:
‘‘(1) has been engaged—
‘‘(A) in any service that qualifies for can-
cellation of Federal Perkins Loans under sec-
tion 465(a)(2);
‘‘(B) in full-time employment in service to
economically disadvantaged individuals or com-
munities, child and elder care services, social
work, public prosecutors and defenders, and po-
lice, fire, and rescue services, as defined by the
Secretary; or
‘‘(C) in full-time employment in any serv-
ice that the Secretary recognizes by regulation
as providing public service that is comparable to
the services described in subparagraph (A) or
(B); and’’.
(B) FEDERAL DIRECT LOAN PROGRAM.—
Section 
460(b)(1)(A) 
(20 
U.S.C.
1087j(b)(1)(A)) is amended to read as follows:
‘‘(A) has been engaged—
‘‘(i) in any service that qualifies for
cancellation of Federal Perkins Loans
under section 465(a)(2); or
‘‘(ii) in full-time employment in serv-
ice to economically disadvantaged individ-
uals or communities, child and elder care
services, social work, public prosecutors
and defenders, and police, fire, and rescue
services, as defined by the Secretary;
‘‘(iii) in full-time employment in any
service that the Secretary recognizes by
regulation as providing public service that
is comparable to the services described in
clause (i) or (ii); and’’.
(C) PERKINS LOANS.—Section 465(a)(2) is
amended by adding after the last sentence
thereof the following new sentence: ‘‘Whenever
the 
Secretary 
acts 
pursuant 
to 
section
428J(b)(1)(B) or (C) or 460(b)(1)(A)(ii) or (iii)
to recognize by regulation or define additional
services as comparable qualifying services under
such sections, the Secretary shall, by regulation,
recognize such services as qualifying services for
purposes of this section.’’.
(b) AMOUNT AND RATE OF REPAYMENT.—
(1) FFEL PROGRAM.—Section 428J(c) (20
U.S.C. 1078–10(c)) is amended by striking para-
graph (1) and inserting the following:
‘‘(1) AMOUNT AND RATE OF REPAYMENT.—The
Secretary shall repay the aggregate of the loan obli-
gation on a loan made under section 428 or 428H
that is outstanding after the completion of the first
complete year of qualifying service described in sub-
section (b)(1) for which the borrower seeks repay-
ment under this section. Such amount shall be re-
paid at the rate of one-third of such amount for
each of the first three years of such service.’’.
(2) FEDERAL DIRECT LOAN PROGRAM.—Section
460(c) of such Act (20 U.S.C. 1087j(c)) is amended
by striking paragraph (1) and inserting the fol-
lowing:
‘‘(1) AMOUNT AND RATE OF REPAYMENT.—The
Secretary shall cancel the aggregate of the loan obli-
gation on a loan made under section 428 or 428H
that is outstanding after the completion of the first
complete year of qualifying service described in sub-
section (b)(1)(A). Such amount shall be canceled at
the rate of one-third of such amount for each of the
first three years of such service.’’.
(3) PERKINS
LOANS.—Section 465(a) (20
U.S.C. 1087ee(a)) is amended by striking paragraph
(3)(A) and inserting the following:
‘‘(3)(A) The percent of a loan which shall be canceled
under paragraph (1) of this subsection is at the rate of
331⁄3 percent for each of 3 years of service described in
paragraph (2).’’.
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