‘‘(i) a description of how the State in-
tends to increase teacher quality through
the activities; and
‘‘(ii) a description of how the State in-
tends to increase, through the activities,
the number of teachers who majored in the
academic subjects in which the teachers
teach, and the number of teachers who re-
ceived certification through alternative
routes; and
‘‘(B) if the State intends to carry out ac-
tivities described in subsection (e)(3)—
‘‘(i) a description of how the State in-
tends to increase teacher quality through
the activities; and
‘‘(ii) a description of how the State in-
tends to decrease the rate of teacher attri-
tion, and to increase the number of teach-
ers who have the necessary teaching skills
and academic subject knowledge in the
academic subjects in which the teachers
teach, through the activities; and
‘‘(3) contains such other information and assur-
ances as the Secretary may require.
‘‘(e) USE OF FUNDS.—
‘‘(1) IN GENERAL.—An eligible State that re-
ceives a grant under this section shall use the grant
funds—
‘‘(A) to recruit high-quality teachers by
carrying out 1 or more of the activities de-
scribed in paragraph (2); or
‘‘(B) to retain and retrain high-quality
teachers by carrying out 1 or more of the activi-
ties described in paragraph (3).
‘‘(2) RECRUITMENT ACTIVITIES.—The activities
referred to in paragraph (1)(A) consist of—
‘‘(A) providing signing bonuses for teach-
ers;
‘‘(B) providing stipends to teachers for cer-
tification through alternative routes;
‘‘(C) providing loan forgiveness to students
with academic degrees in core academic sub-
jects who agree to teach;
‘‘(D) providing State income tax credits for
new teachers; and
‘‘(E) carrying out any other program that
the State believes to be effective in recruiting
individuals with strong academic backgrounds
into the teaching field.
‘‘(3) RETENTION
AND
RETRAINING
ACTIVI-
TIES.—The activities referred to in paragraph
(1)(B) consist of—
‘‘(A) carrying out teacher testing and
merit pay programs;
‘‘(B) providing performance bonuses to
teachers;
‘‘(C) providing scholarships for teachers to
pursue advanced course work in the academic
subjects in which the teachers teach;
‘‘(D) providing mentoring programs for
teachers;
‘‘(E) coordinating with institutions of high-
er education to provide professional develop-
ment activities for teachers; and
‘‘(F) carrying out any other program that
the State believes to be effective in retaining
and retraining quality teachers.
‘‘(4) SUPPLEMENT NOT SUPPLANT.—Funds ap-
propriated pursuant to the authority of this section
shall be used to supplement and not supplant other
Federal, State, and local public funds expended to
provide services for eligible individuals.
‘‘(f) DURATION
OF GRANTS.—The Secretary may
make grants under this section for periods of 3 years.
‘‘(g) REPORTING.—
‘‘(1) IN GENERAL.—An eligible State that re-
ceives a grant under this section shall prepare and
submit to the Secretary, at the end of the grant pe-
riod, a report on how the activities carried out with
funds received under the grant increased teacher
quality in the State.
‘‘(2) CONTENTS.—The report shall include—
‘‘(A) in the case of activities conducted
under subsection (e)(2), information indicating
the impact of the activities, including the num-
ber of additional teachers with a major in the
academic subject in which the teachers teach,
and the number of additional teachers who re-
ceived certification through alternative routes,
as a result of the activities;
‘‘(B) in the case of activities conducted
under subsection (e)(3), information indicating
the impact of the activities, including the de-
crease in the rate of teacher attrition, and the
increase in the number of teachers who have
the necessary teaching skills and academic sub-
ject knowledge in the academic subjects in
which the teachers teach, as a result of the ac-
tivities; and
‘‘(C) any other information that indicates
how teacher quality has improved in the State
as a result of activities carried out with funds
received under the grant.
‘‘(h) AUTHORIZATION.—There are authorized to be
appropriated to carry out this section $1,155,000,000 for
fiscal year 2002 and such sums as may be necessary for
each of the 4 succeeding fiscal years.
‘‘(i) DEFINITION.—In this section, the term ‘high-
quality’, used with respect to a teacher, means—
‘‘(A) with respect to an elementary school
teacher, a teacher—
‘‘(i) with an academic major in the
arts and sciences; or
‘‘(ii) who can demonstrate competence
through a high level of performance in core
academic subjects; and
‘‘(B) with respect to a secondary school
teacher, a teacher—
‘‘(i) with an academic major in the
academic subject in which the teacher
teaches or in a related field;
‘‘(ii) who can demonstrate a high level
of competence through rigorous academic
subject tests; or
‘‘(iii) who can demonstrate com-
petence through a high level of perform-
ance in relevant content areas.
‘‘SEC. 2402. LOAN FORGIVENESS FOR STUDENTS.
‘‘(a) PURPOSE.—The purpose of this section is to en-
courage individuals who have majored in, or obtained
graduate degrees in, core academic subjects, as opposed
to education, to enter the teaching profession by providing
an incentive, through loan forgiveness, for the individuals
to enter the profession.
‘‘(b) PROGRAM AUTHORIZED.—The Secretary shall
carry out a program, through the holder of a federally sub-
sidized or federally guaranteed loan made to enable an in-
dividual to attend an institution of higher education, of—
‘‘(1) permitting an eligible borrower to defer
payments on the loan; or
‘‘(2) assuming the obligation to repay part or
all of a qualified loan amount for the loan for the
eligible borrower.
‘‘(c) ELIGIBILITY.—
‘‘(1) DEFINITION.—In this subsection, the term
‘core academic subject’ means—
‘‘(A) mathematics;
‘‘(B) science;
‘‘(C) English;
‘‘(D) a foreign language;
‘‘(E) civics or government;
‘‘(F) a subject in the arts;
‘‘(G) geography;
‘‘(H) history; or
‘‘(I) economics.
‘‘(2) ELIGIBLE BORROWER.—To be eligible to
receive assistance under this section, a borrower
shall demonstrate—
‘‘(A) that the borrower—
‘‘(i) obtained an undergraduate degree
with a major in a core academic subject at
an institution of higher education; or
‘‘(ii) obtained a graduate degree in a
core academic subject at an institution of
higher education;
‘‘(B) that the borrower achieved at least a
3.0 grade point average in the major or the
graduate program for which the borrower ob-
tained the degree;
‘‘(C)(i) in the case of a borrower seeking
assistance described in subsection (d)(1)—
‘‘(I) that the borrower is seeking or
has obtained employment as a teacher in a
public elementary school or secondary
school; and
‘‘(II) for each year after the first year
that the borrower receives the assistance,
that the borrower has maintained such em-
ployment; or
‘‘(ii) in the case of a borrower seeking as-
sistance described in subsection (d)(2), that the
borrower is enrolled in an alternative certifi-
cation program, as defined in subsection (d)(2);
and
‘‘(D) that the borrower has not previously
served as a full-time teacher in a public elemen-
tary school or secondary school, prior to receiv-
ing assistance under this section.
‘‘(d) DEFERRAL AND REPAYMENT.—
‘‘(1) DEFERRAL AND REPAYMENT FOR TEACH-
ING IN A PUBLIC SCHOOL.—
‘‘(A) DEFERRAL.—In the case of an eligi-
ble borrower who has provided notification to
the Secretary that the borrower is seeking or
has obtained employment as a teacher in a pub-
lic school or secondary school, the Secretary
shall permit the eligible borrower to defer all
payments relating to the outstanding loan obli-
gation on the loan described in subsection (b)
until the earlier of—
‘‘(i) the last day on which the bor-
rower maintains employment as such a
teacher; or
‘‘(ii) 8 years after the date on which
the borrower begins such employment.
‘‘(B) REPAYMENT.—
‘‘(i) IN GENERAL.—In the case of an
eligible borrower who has provided the no-
tification described in subparagraph (A),
the Secretary shall repay a portion of the
outstanding loan obligation on the loan for
each 2-year period during which the eligi-
ble borrower teaches in a public elementary
school or secondary school.
‘‘(ii) 
REPAYMENT
PERIODS.—The
Secretary shall repay—
‘‘(I) 35 percent of the out-
standing loan obligation, for an eligi-
ble borrower who has taught at a pub-
lic elementary school or secondary
school for 2 years;
‘‘(II) an additional 30 percent of
the obligation, for an eligible borrower
who has taught at such a school for 4
years;
‘‘(III) an additional 20 percent of
the obligation, for a teacher who has
taught in such a school for 6 years;
and
‘‘(IV) the remaining 15 percent
of the obligation, for a teacher who
has taught in such a school for 8
years.
‘‘(C) FAILURE
TO
MAINTAIN
EMPLOY-
MENT.—If the borrower seeks assistance under
this paragraph for a 2-year period and fails to
maintain employment as a teacher in a public
elementary school or secondary school for that
period, the deferral period, for purposes of sub-
paragraph (A), shall be considered to end on
the last date of the employment, and the bor-
rower shall be required to repay (or resume re-
paying) the remaining loan obligation on the
loan. The borrower shall not be required to
repay any amount that was paid on behalf of
the borrower under this paragraph for an ear-
lier 2-year period, or to pay interest on the loan
for any period during which the borrower was
so employed.
‘‘(2) DEFERRAL FOR PARTICIPATION IN AN AL-
TERNATIVE CERTIFICATION PROGRAM.—
‘‘(A) DEFINITION.—In this paragraph, the
term ‘alternative certification program’ means a
program to obtain teacher certification through
an alternative route.
‘‘(B) DEFERRAL.—In the case of an eligi-
ble borrower who has provided notification to
the Secretary that the borrower has enrolled in
an alternative certification program, the Sec-
retary shall permit the eligible borrower to
defer all payments relating to the outstanding
loan obligation of a loan described in subsection
(b) until—
‘‘(i) if the borrower fails to complete
the program, the last day on which the
borrower maintains participation in the
program; or
‘‘(ii) if the borrower completes the
program, 6 months after the date on which
the borrower completes the program.
‘‘(C) FAILURE
TO
MAINTAIN
PARTICIPA-
TION.—If the borrower seeks assistance under
this paragraph and fails to complete the alter-
native certification program, the deferral pe-
riod, for purposes of subparagraph (B), shall be
considered to end on the last date of the bor-
rower’s participation in the program. The bor-
rower shall not be required to pay interest on
the loan for any period during which the bor-
rower participated in the program.
‘‘(3) AMOUNT.—The Secretary shall not estab-
lish a limit on the amount of a loan that may be re-
paid under this section.
‘‘(e) APPLICATION.—To be eligible to receive assist-
ance under this section, a borrower shall submit an appli-
cation to the Secretary at such time, in such manner, and
containing such information as the Secretary may require.
‘‘SEC. 2403. ALTERNATIVE CERTIFICATION STIPENDS.
‘‘(a) PURPOSE.—The purpose of this section is to en-
courage eligible individuals to enter the teaching profes-
sion, by paying for the costs incurred by such individuals
in obtaining certification through an alternative route for
employment as elementary school or secondary school
teachers.
‘‘(b) PAYMENTS.—
‘‘(1) IN GENERAL.—The Secretary may make
payments to eligible individuals to pay for the costs
incurred by the individuals in obtaining the certifi-
cation.
‘‘(2) AMOUNT.—The Secretary shall make a
payment to an eligible individual under paragraph
(1) in an amount equal to the lesser of—
‘‘(A) $5,000; or
‘‘(B) the total cost of the expenses de-
scribed in paragraphs (1), (2), (3), (8), and (9)
of section 472 of the Higher Education Act of
1965 incurred by the individual while obtaining
the certification.
‘‘(c) ELIGIBILITY.—To be eligible to receive a pay-
ment under this section an individual shall—
‘‘(1)(A) have obtained an undergraduate degree
with a major in a core academic subject at an insti-
tution of higher education; or
‘‘(B) have obtained a graduate degree in a core
academic subject at an institution of higher edu-
cation;
‘‘(2) have achieved at least a 3.0 grade point
average in the major or the graduate program for
which the individual obtained the degree; and
‘‘(3) have not previously served as a full-time
teacher in a public elementary school or secondary
school, prior to receiving assistance under this sec-
tion.
‘‘(d) APPLICATIONS.—To be eligible to receive a pay-
ment under this section, an individual shall submit an ap-
plication to the Secretary at such time, in such manner,
and containing such information as the Secretary may re-
quire, including—
‘‘(1) documentation of the costs described in
subsection (b)(2)(B); and
‘‘(2) an assurance that the individual will teach
in an elementary school or secondary school for 2
years, beginning in the first full school year after the
date on which the individual obtains the certifi-
cation.
‘‘(e) AWARD BASIS; PRIORITY.—
‘‘(1) AWARD BASIS.—Subject to paragraph (2),
payments made under this section shall be made on
a first-come, first-served basis and subject to the
availability of appropriations.
‘‘(2) PRIORITY.—In making payments under
this section, the Secretary shall give priority to indi-
viduals who have received assistance under section
2402.
‘‘(f) 
REIMBURSEMENT
UNDER
CERTAIN
CIR-
CUMSTANCES.—
‘‘(1) IN
GENERAL.—If an eligible individual
who receives assistance under this section fails to ob-
tain teacher certification or employment as an ele-
mentary school or secondary school teacher or volun-
tarily leaves, or is terminated for cause, from the
employment during the 2 years of required service,
the individual shall be required to reimburse the
State for any payment made to the individual under
subsection (b)(1) in an amount that bears the same
ratio to the amount of the payment as the unserved
portion of the required service bears to the 2 years
of required service.
‘‘(2) TRANSFER OF FUNDS TO SECRETARY.—A
State shall transfer any reimbursement funds re-
ceived under this subsection to the Secretary. The
Secretary shall establish an account for reimburse-
ment funds transferred to the Secretary under this
subsection. The Secretary shall deposit the funds in
the account, and may use funds in the account to
carry out this section.
‘‘(3) OBLIGATION TO REIMBURSE.—The obliga-
tion to reimburse the State under this subsection is,
for all purposes, a debt owing the United States. A
discharge in bankruptcy under title 11, United
States Code, shall not release an eligible individual
from the obligation to reimburse the State. Any
amount owed by an individual under paragraph (1)
shall bear interest at the rate equal to the highest
rate being paid by the United States, on the day on
which the reimbursement is determined to be due,
for securities having maturities of 90 days or less
and shall accrue from the day on which the eligible
individual is first notified of the amount due.
‘‘(g) EXCEPTIONS
TO
REIMBURSEMENT
PROVI-
SIONS.—
‘‘(1) IN GENERAL.—An eligible individual who
receives assistance under this section shall be ex-
cused from reimbursement under subsection (f) dur-
ing any period in which the individual—
‘‘(A) is pursuing a full-time course of
study related to the field of teaching at an eligi-
ble institution;
‘‘(B) is serving on active duty as a member
of the Armed Forces;
‘‘(C) is temporarily totally disabled for a
period of time of not more than 3 years as es-
tablished by the sworn affidavit of a qualified
physician;
‘‘(D) is unable to secure employment for a
period of not more than 12 months by reason
of the care required by a spouse who is dis-
abled;
‘‘(E) is seeking and unable to find full-
time employment as a teacher in an elementary
school or secondary school for a single period of
not more than 27 months; or
‘‘(F) satisfies the provisions of additional
reimbursement exceptions that may be pre-
scribed by the Secretary.
‘‘(2) FORGIVENESS.—An eligible individual
shall be excused from reimbursement under sub-
section (f) if the individual becomes permanently to-
tally disabled, as established by the sworn affidavit
of a qualified physician. The Secretary may also
waive reimbursement in cases of extreme hardship to
the individual, as determined by the Secretary.
‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There
are authorized to be appropriated to carry out this section
$125,000,000 for fiscal year 2002 and such sums as may
be necessary for each of the 4 succeeding fiscal years.
‘‘SEC. 2404. NOTIFICATION, PUBLIC AWARENESS, AND AD-
VERTISING ACTIVITIES.
‘‘(a) NOTIFICATION AND PUBLIC AWARENESS.—
‘‘(1) IN GENERAL.—The Secretary shall notify
all institutions of higher education concerning both
the loan forgiveness program described in section
2402 and the alternative certification stipend pro-
gram described in section 2403. Each institution of
higher education that accepts Federal funds shall
notify all students who receive Federal aid to attend
such institution of the opportunities afforded by the
programs.
‘‘(2) CONTRACTS.—The Secretary may enter
into contracts with appropriate public agencies, non-
profit private organizations, for-profit organizations,
and institutions of higher education to conduct an
information program designed—
‘‘(A) to broaden awareness of the opportu-
nities afforded under the programs described in
paragraph (1); and
‘‘(B) to encourage eligible individuals to
take advantage of the programs.
‘‘(b) ADVERTISING ACTIVITIES.—The Secretary may
disseminate information about the loan forgiveness pro-
gram described in section 2402 and the alternative certifi-
cation stipend program described in section 2403 through
television advertisements, the publication of brochures, ad-
vertisements in college newspapers or other newspapers,
or any other means that the Secretary determines to be
effective to broaden awareness of the program.
‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—There
are authorized to be appropriated to carry out this section,
$20,000,000 for fiscal year 2002 and such sums as may
be necessary for each of the 2 succeeding fiscal years.’’.
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