HR 438 RFS 
and paragraph (1) of this subsection that 5 
consecutive complete years of service have been 
completed prior to the receipt of loan forgive-
ness, in the case of service described in sub-
paragraph (A) of this paragraph, the Secretary 
shall repay a portion of a borrower’s loan obli-
gation outstanding at the commencement of the 
qualifying service under this subsection, not to 
exceed a total of $17,500, in the following in-
crements: 
‘‘(i) up to $1,750, or 10 percent of 
such outstanding loan obligation, which-
ever is less, at the completion of the second 
year of such service; 
‘‘(ii) up to $2,625, or 15 percent of 
such outstanding loan obligation, which-
ever is less, at the completion of the third 
year of such service; 
‘‘(iii) up to $4,375, or 25 percent of 
such outstanding loan obligation, which-
ever is less, at the completion of the fourth 
year of such service; and 
‘‘(iv) up to $8,750, or 50 percent of 
such outstanding loan obligation, which-
HR 438 RFS 
ever is less, at the completion of the fifth 
year of such service. 
‘‘(C) PROMISE TO COMPLETE SERVICE RE-
QUIRED
FOR
ACCELERATED
PAYMENT.—Any 
borrower who receives accelerated payment 
under this paragraph shall enter into an agree-
ment to continue in the qualifying service for 
not less than 5 consecutive complete school 
years, or, upon a failure to complete such 5 
years, to repay the United States, in accordance 
with regulations prescribed by the Secretary, 
the amount of the loans repaid by the Secretary 
under this paragraph, together with interest 
thereon and, to the extent required in such reg-
ulations, the reasonable costs of collection. Such 
regulations may provide for waiver by the Sec-
retary of such repayment obligations upon proof 
of economic hardship as specified in such regu-
lations. 
‘‘(D) HIGHER POVERTY ENROLLMENT RE-
QUIRED.—In order to qualify for an increased 
repayment amount under this paragraph, sec-
tion 465(a)(2)(A) shall, for purposes of sub-
section (b)(1)(A) of this section, be applied by
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substituting ‘40 percent of the total enrollment’ 
for ‘30 percent of the total enrollment’.’’. 
(b) DIRECT LOANS.—Section 460(c) of the Higher 
Education Act of 1965 (20 U.S.C. 1087j(c)) is amended 
by adding at the end the following new paragraph: 
‘‘(3) INCREASED AMOUNTS FOR TEACHERS IN 
MATHEMATICS, SCIENCE, OR SPECIAL EDUCATION.—
‘‘(A) 
SERVICE
QUALIFYING
FOR
IN-
CREASED
AMOUNTS.—Notwithstanding 
the 
amount specified in paragraph (1), the aggre-
gate amount that the Secretary shall repay 
under this section shall not be more than 
$17,500 in the case of—
‘‘(i) a secondary school teacher—
‘‘(I) who meets the requirements 
of subsection (b)(1), subject to sub-
paragraph (D) of this paragraph; and 
‘‘(II) whose qualifying employ-
ment for purposes of such subsection 
has been teaching mathematics or 
science on a full-time basis; 
‘‘(ii) an elementray or secondary 
school teacher—
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‘‘(I) who meets the requirements 
of subsection (b)(1), subject to sub-
paragraph (D) of this paragraph; 
‘‘(II) whose qualifying employ-
ment for purposes of such subsection 
has been as a special education teach-
er whose primary responsibility is to 
provide special education to children 
with disabilities (as those terms are 
defined in section 602 of the Individ-
uals with Disabilities Act); and 
‘‘(III) who, as certified by the 
chief administrative officer of the pub-
lic or nonprofit private elementary or 
secondary school in which the bor-
rower is employed, is teaching chil-
dren with disabilities that correspond 
with the borrower’s special education 
training and has demonstrated knowl-
edge and teaching skills in the content 
areas of the elementary or secondary 
school curriculum that the borrower is 
teaching; and
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‘‘(iii) an elementary or secondary 
school teacher who primarily teaches read-
ing and—
‘‘(I) who meets the requirements 
of subsection (b), subject to subpara-
graph (D) of this paragraph; 
‘‘(II) who has obtained a sepa-
rate reading instruction credential 
from the State in which the teacher is 
employed; and 
‘‘(III) who is certified by the 
chief administrative officer of the pub-
lic or nonprofit private elementary or 
secondary school in which the bor-
rower is employed to teach reading—
‘‘(aa) as being proficient in 
teaching the essential compo-
nents of reading instruction as 
defined in section 1208 of the El-
ementary and Secondary Edu-
cation Act of 1965; and 
‘‘(bb) as having such creden-
tial. 
‘‘(B) ACCELERATED PAYMENT.—Notwith-
standing 
the 
requirements 
of 
subsection
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(b)(1)(A) and paragraph (1) of this subsection 
that 5 consecutive complete years of service 
have been completed prior to the receipt of loan 
forgiveness, in the case of service described in 
subparagraph (A) of this paragraph, the Sec-
retary shall repay a portion of a borrower’s loan 
obligation outstanding at the commencement of 
the qualifying service under this subsection, not 
to exceed a total of $17,500, in the following in-
crements: 
‘‘(i) up to $1,750, or 10 percent of 
such outstanding loan obligation, which-
ever is less, at the completion of the second 
year of such service; 
‘‘(ii) up to $2,625, or 15 percent of 
such outstanding loan obligation, which-
ever is less, at the completion of the third 
year of such service; 
‘‘(iii) up to $4,375, or 25 percent of 
such outstanding loan obligation, which-
ever is less, at the completion of the fourth 
year of such service; and 
‘‘(iv) up to $8,750, or 50 percent of 
such outstanding loan obligation, which-
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ever is less, at the completion of the fifth 
year of such service. 
‘‘(C) PROMISE TO COMPLETE SERVICE RE-
QUIRED
FOR
ACCELERATED
PAYMENT.—Any 
borrower who receives accelerated payment 
under this paragraph shall enter into an agree-
ment to continue in the qualifying service for 
not less than 5 consecutive complete school 
years, or, upon a failure to complete such 5 
years, to repay the United States, in accordance 
with regulations prescribed by the Secretary, 
the amount of the loans repaid by the Secretary 
under this paragraph, together with interest 
thereon and, to the extent required in such reg-
ulations, the reasonable costs of collection. Such 
regulations may provide for waiver by the Sec-
retary of such repayment obligations upon proof 
of economic hardship as specified in such regu-
lations. 
‘‘(D) HIGHER POVERTY ENROLLMENT RE-
QUIRED.—In order to qualify for an increased 
repayment amount under this paragraph, sec-
tion 465(a)(2)(A) shall, for purposes of sub-
section (b)(1)(A)(i) of this section, be applied
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by substituting ‘40 percent of the total enroll-
ment’ for ‘30 percent of the total enrollment’.’’. 
SEC. 3. IMPLEMENTING HIGHLY QUALIFIED TEACHER RE-
QUIREMENTS. 
(a) AMENDMENTS.—
(1) FFEL LOANS.—Section 428J(b)(1) of the 
Higher Education Act of 1965 (20 U.S.C. 1078–
10(b)(1)) is amended—
(A) by inserting ‘‘and’’ after the semicolon 
at the end of subparagraph (A); and 
(B) by striking subparagraphs (B) and (C) 
and inserting the following: 
‘‘(B) if employed as an elementary or sec-
ondary school teacher, is highly qualified as de-
fined in section 9101(23) of the Elementary 
Secondary Education Act of 1965; and’’. 
(2) DIRECT LOANS.—Section 460(b)(1)(A) of 
such Act (20 U.S.C. 1087j(b)(1)(A)) is amended—
(A) by inserting ‘‘and’’ after the semicolon 
at the end of clause (i); and 
(B) by striking clauses (ii) and (iii) and in-
serting the following: 
‘‘(ii) if employed as an elementary or 
secondary school teacher, is highly quali-
fied as defined in section 9101(23) of the
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Elementary Secondary Education Act of 
1965; and’’. 
(b) TRANSITION RULE.—
(1) RULE.—The amendments made by sub-
section (a) of this section to sections 428J(b)(1) and 
460(b)(1)(A) of the Higher Education Act of 1965 
shall not be applied to disqualify any individual who, 
before the date of enactment of this Act, commenced 
service that met and continues to meet the require-
ments of such sections as in effect before such date 
of enactment. 
(2) RULE
NOT
APPLICABLE
TO
INCREASED 
QUALIFIED LOAN AMOUNTS.—Paragraph (1) of this 
subsection shall not apply for purposes of obtaining 
increased qualified loan amounts under sections 
428J(b)(3) and 460(b)(3) of the Higher Education 
Act of 1965 as added by section 2 of this Act. 
SEC. 4. INFORMATION ON BENEFITS TO RURAL SCHOOL 
DISTRICTS. 
The Secretary shall—
(1) notify local educational agencies eligible to 
participate in the Small Rural Achievement Program 
authorized under subpart 1 of part B of title VI of 
the Elementary and Secondary Education Act of
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1965 of the benefits available under the amendments 
made by this Act; and 
(2) encourage such agencies to notify their 
teachers of such benefits.
Passed the House of Representatives July 9, 2003. 
Attest: 
JEFF TRANDAHL, 
Clerk.