I 
109TH CONGRESS 
1ST SESSION H. R. 1522 
To amend the Higher Education Act of 1965 to expand the loan forgiveness 
and loan cancellation programs for teachers, to provide loan forgiveness 
and loan cancellation programs for nurses, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 6, 2005 
Mrs. MCCARTHY (for herself, Mr. HINCHEY, Mr. OWENS, Mr. CHANDLER, Mr. 
PAYNE, Mr. CLYBURN, Mr. GARRETT of New Jersey, and Mr. GRIJALVA) 
introduced the following bill; which was referred to the Committee on 
Education and the Workforce 
A BILL 
To amend the Higher Education Act of 1965 to expand 
the loan forgiveness and loan cancellation programs for 
teachers, to provide loan forgiveness and loan cancella-
tion programs for nurses, 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. 
This Act may be cited as the ‘‘Teacher and Nurse 
Support Act of 2005’’. 
SEC. 2. FINDINGS AND PURPOSE. 
(a) FINDINGS.—Congress finds the following:
(1) According to the National Center for Edu-
cation Statistics, over the next 10 years, the United 
States will need more than 2,000,000 new teachers 
to replace the teachers who are retiring or leaving 
the classroom for other careers. 
(2) The Hart-Rudman National Security Re-
port on education recommended that the President 
direct the Department of Education to work with 
the States to devise a comprehensive plan to avert 
a looming shortage of high-quality teachers. 
(3) According to the National Center for Edu-
cation Statistics, 20 percent of all new teachers leave 
the teaching profession within 3 years. Providing 
loan forgiveness or loan cancellation is one step that 
would help retain high-quality teachers in schools 
that need teachers. 
(4) The American Hospital Association has re-
ported more than 126,000 unfilled registered nurse 
positions in hospitals in the United States. Addition-
ally, the vacancy rate for registered nurse positions 
at nursing homes throughout the Nation is ap-
proaching 20 percent. 
(5) College loans are more of a burden than 
ever for students and families. According to a recent 
United States Public Interest Research Group re-
port, average student loan debt almost doubled from 
$9,200 in 1992–1993 to $16,928 in 1999–2000. 
(b) PURPOSE.—The purpose of this Act is to improve 
access to, and the delivery of, high-quality educational and 
health services throughout the United States by reducing 
the shortage of qualified teachers and nurses. 
SEC. 3. LOAN FORGIVENESS AND CANCELLATION. 
(a) LOAN FORGIVENESS.—Section 428J of the High-
er Education Act of 1965 (20 U.S.C. 1078–10) is amend-
ed to read as follows: 
‘‘SEC. 428J. LOAN FORGIVENESS FOR TEACHERS AND 
NURSES. 
‘‘(a) STATEMENT OF PURPOSE.—It is the purpose of 
this section to encourage individuals to enter and continue 
in the teaching and nursing professions. 
‘‘(b) PROGRAM AUTHORIZED.—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 borrower who has 1 or more 
loans made under section 428 or 428H after October 1, 
1998, and who— 
‘‘(1) has been employed— 
‘‘(A) as a full-time teacher—
‘‘(i) in a school that qualifies under 
section 465(a)(2)(A) for loan cancellation 
for Perkins loan recipients who teach in 
those schools; 
‘‘(ii) if employed as a secondary school 
teacher, is teaching a subject area that is 
relevant to the borrower’s academic major 
as certified by the chief administrative offi-
cer of the public or nonprofit private sec-
ondary school in which the borrower is em-
ployed; and 
‘‘(iii) if employed as an elementary 
school teacher, has demonstrated, as cer-
tified by the chief administrative officer of 
the public or nonprofit private elementary 
school in which the borrower is employed, 
knowledge and teaching skills in reading, 
writing, mathematics, and other areas of 
the elementary school curriculum; or 
‘‘(B) as a full-time eligible nurse— 
‘‘(i) in a clinical setting; or 
‘‘(ii) as a member of the nursing fac-
ulty at an accredited school of nursing (as 
those terms are defined in section 801 of
the Public Health Service Act (42 U.S.C. 
296)); and 
‘‘(2) is not in default on a loan for which the 
borrower seeks forgiveness. 
‘‘(c) QUALIFIED LOAN AMOUNT.— 
‘‘(1) IN GENERAL.— 
‘‘(A) AGGREGATE
AMOUNT.—The Sec-
retary shall, in installments in accordance with 
subparagraph (B), repay not more than 
$17,500 in the aggregate of the loan obligation 
on a loan made under section 428 or 428H that 
is outstanding after the completion of each 
complete— 
‘‘(i) school year of teaching described 
in subsection (b)(1)(A); or 
‘‘(ii) year of nursing described in sub-
section (b)(1)(B). 
‘‘(B) ANNUAL INSTALLMENTS.—The Sec-
retary shall repay the loan obligation on such a 
loan in annual installments after each of 5 
years of such service not to exceed the lesser of 
the remaining outstanding obligation or— 
‘‘(i) $2,000 at the completion of the 
first year of such service;
‘‘(ii) $2,500 at the completion of the 
second year of such service; 
‘‘(iii) $3,500 at the completion of the 
third year of such service; 
‘‘(iv) $4,500 at the completion of the 
fourth year of such service; and 
‘‘(v) $5,000 at the completion of the 
fifth year of such service. 
‘‘(C) RELATION
TO
LOAN
CANCELLA-
TION.—No borrower may receive a reduction of 
loan obligations under both this section and sec-
tion 460. 
‘‘(2) 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 the 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. 
‘‘(3) FORBEARANCE
ON
QUALIFIED
LOAN 
AMOUNT.—A holder of a loan on which a borrower 
is seeking forgiveness under this section—
‘‘(A) shall grant forbearance, at the re-
quest of the borrower, in annual increments for 
each of the years of qualifying service if the 
holder believes, at the time of the borrower’s 
annual request, that the amount expected to be 
forgiven under this section at the completion of 
the period of qualifying service will satisfy the 
anticipated remaining outstanding balance on 
the loan; and 
‘‘(B) may offer other forbearance options 
to the borrower. 
‘‘(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 OF SCHOOLS.—If the list of schools in 
which a teacher may perform service pursuant to sub-
section (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 the 
service determination. 
‘‘(g) ADDITIONAL ELIGIBILITY PROVISIONS.—
‘‘(1) CONTINUED
ELIGIBILITY
FOR
TEACH-
ERS.—Any teacher who performs service in a school 
that— 
‘‘(A) meets the requirements of subsection 
(b)(1)(A)(i) in any year during such service; 
and 
‘‘(B) in a subsequent year fails to meet the 
requirements of that subsection, 
may continue to teach in the school and shall be eli-
gible 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 subsection and— 
‘‘(A) subtitle D of title I of the National 
and Community Service Act of 1990 (42 U.S.C. 
12571 et seq.); and 
‘‘(B) section 846 of the Public Health 
Service Act (42 U.S.C. 297n). 
‘‘(h) DEFINITIONS.—In this section: 
‘‘(1) ELIGIBLE
NURSE.—The term ‘eligible 
nurse’ means a nurse who meets all of the following: 
‘‘(A) The nurse graduated from— 
‘‘(i) an accredited school of nursing 
(as those terms are defined in section 801
of the Public Health Service Act (42 
U.S.C. 296)); 
‘‘(ii) a nursing center; or 
‘‘(iii) an academic health center that 
provides nurse training. 
‘‘(B) The nurse holds a valid and unre-
stricted license to practice nursing in the State 
in which the nurse practices in a clinical set-
ting. 
‘‘(C) The nurse holds 1 or more of the fol-
lowing: 
‘‘(i) A graduate degree in nursing or 
equivalent degree. 
‘‘(ii) A nursing degree from a colle-
giate school of nursing (as defined in sec-
tion 801 of the Public Health Service Act 
(42 U.S.C. 296)). 
‘‘(iii) A nursing degree from an asso-
ciate degree school of nursing (as defined 
in section 801 of the Public Health Service 
Act (42 U.S.C. 296)). 
‘‘(iv) A nursing degree from a diploma 
school of nursing (as defined in section 
801 of the Public Health Service Act (42 
U.S.C. 296)).
‘‘(2) YEAR.—The term ‘year’, where applied to 
service as a teacher (or service as a member of an 
accredited school of nursing (as those terms are de-
fined in section 801 of the Public Health Service Act 
(42 U.S.C. 296))), means an academic year as de-
fined by the Secretary.’’. 
(b) LOAN CANCELLATION.—Section 460 of the High-
er Education Act of 1965 (20 U.S.C. 1087j) is amended 
to read as follows: 
‘‘SEC. 460. LOAN CANCELLATION FOR TEACHERS AND 
NURSES. 
‘‘(a) STATEMENT OF PURPOSE.—It is the purpose of 
this section to encourage individuals to enter and continue 
in the teaching and nursing professions. 
‘‘(b) PROGRAM AUTHORIZED.— 
‘‘(1) IN GENERAL.—The Secretary shall carry 
out a program of canceling the obligation to repay 
a qualified loan amount in accordance with sub-
section (c) for Federal Direct Stafford Loans and 
Federal Direct Unsubsidized Stafford Loans made 
under this part for any borrower who has 1 or more 
loans made under this part after October 1, 1998, 
and who has been employed— 
‘‘(A) as a full-time teacher—
‘‘(i) in a school that qualifies under 
section 465(a)(2)(A) for loan cancellation 
for Perkins loan recipients who teach in 
those schools; 
‘‘(ii) if employed as a secondary school 
teacher, is teaching a subject area that is 
relevant to the borrower’s academic major 
as certified by the chief administrative offi-
cer of the public or nonprofit private sec-
ondary school in which the borrower is em-
ployed; and 
‘‘(iii) if employed as an elementary 
school teacher, has demonstrated, as cer-
tified by the chief administrative officer of 
the public or nonprofit private elementary 
school in which the borrower is employed, 
knowledge and teaching skills in reading, 
writing, mathematics, and other areas of 
the elementary school curriculum; or 
‘‘(B) as a full-time eligible nurse— 
‘‘(i) in a clinical setting; or 
‘‘(ii) as a member of the nursing fac-
ulty at an accredited school of nursing (as 
those terms are defined in section 801 of
the Public Health Service Act (42 U.S.C. 
296)); and 
‘‘(2) is not in default on a loan for which the 
borrower seeks forgiveness. 
‘‘(c) QUALIFIED LOAN AMOUNTS.— 
‘‘(1) IN GENERAL.— 
‘‘(A) AGGREGATE
AMOUNT.—The Sec-
retary shall, in installments in accordance with 
subparagraph (B), cancel not more than 
$17,500 in the aggregate of the loan obligation 
on a Federal Direct Stafford Loan or a Federal 
Direct Unsubsidized Stafford Loan that is out-
standing after the completion of each com-
plete— 
‘‘(i) school year of teaching described 
in subsection (b)(1)(A); or 
‘‘(ii) year of nursing described in sub-
section (b)(1)(B). 
‘‘(B) ANNUAL INSTALLMENTS.—The Sec-
retary shall repay the loan obligation on such a 
loan in annual installments after each of 5 
years of such service not to exceed the lesser of 
the remaining outstanding obligation or— 
‘‘(i) $2,000 at the completion of the 
first year of such service;
‘‘(ii) $2,500 at the completion of the 
second year of such service; 
‘‘(iii) $3,500 at the completion of the 
third year of such service; 
‘‘(iv) $4,500 at the completion of the 
fourth year of such service; and 
‘‘(v) $5,000 at the completion of the 
fifth year of such service. 
‘‘(C) RELATION TO LOAN REPAYMENT.— 
No borrower may receive a reduction of loan 
obligations under both this section and section 
428J. 
‘‘(2) 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 the 
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. 
‘‘(3) FORBEARANCE
ON
QUALIFIED
LOAN 
AMOUNT.—A holder of a loan on which a borrower 
is seeking cancellation under this section—
‘‘(A) shall grant forbearance, at the re-
quest of the borrower, in annual increments for 
each of the years of qualifying service if the 
holder believes, at the time of the borrower’s 
annual request, that the amount expected to be 
canceled under this section at the completion of 
the period of qualifying service will satisfy the 
anticipated remaining outstanding balance on 
the loan; and 
‘‘(B) may offer other forbearance options 
to the borrower. 
‘‘(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 canceled 
loan. 
‘‘(f) LIST OF SCHOOLS.—If the list of schools in 
which a teacher may perform service pursuant to sub-
section (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
FOR
TEACH-
ERS.—Any teacher who performs service in a school 
that— 
‘‘(A) meets the requirements of subsection 
(b)(1)(A)(i) in any year during such service; 
and 
‘‘(B) in a subsequent year fails to meet the 
requirements of that subsection, 
may continue to teach in the school and shall be eli-
gible for loan cancellation pursuant to subsection 
(b). 
‘‘(2) PREVENTION OF DOUBLE BENEFITS.—No 
borrower may, for the same service, receive a benefit 
under both this section and— 
‘‘(A) subtitle D of title I of the National 
and Community Service Act of 1990 (42 U.S.C. 
12571 et seq.); and 
‘‘(B) section 846 of the Public Health 
Service Act (42 U.S.C. 297n). 
‘‘(h) DEFINITIONS.—In this section: 
‘‘(1) ELIGIBLE
NURSE.—The term ‘eligible 
nurse’ means a nurse who meets all of the following: 
‘‘(A) The nurse graduated from— 
‘‘(i) an accredited school of nursing 
(as those terms are defined in section 801
of the Public Health Service Act (42 
U.S.C. 296)); 
‘‘(ii) a nursing center; or 
‘‘(iii) an academic health center that 
provides nurse training . 
‘‘(B) The nurse holds a valid and unre-
stricted license to practice nursing in the State 
in which the nurse practices in a clinical set-
ting. 
‘‘(C) The nurse holds 1 or more of the fol-
lowing: 
‘‘(i) A graduate degree in nursing or 
equivalent degree. 
‘‘(ii) A nursing degree from a colle-
giate school of nursing (as defined in sec-
tion 801 of the Public Health Service Act 
(42 U.S.C. 296)). 
‘‘(iii) A nursing degree from an asso-
ciate degree school of nursing (as defined 
in section 801 of the Public Health Service 
Act (42 U.S.C. 296)). 
‘‘(iv) A nursing degree from a diploma 
school of nursing (as defined in section 
801 of the Public Health Service Act (42 
U.S.C. 296)).
‘‘(2) YEAR.—The term ‘year’, where applied to 
service as a teacher (or service as a member of an 
accredited school of nursing (as those terms are de-
fined in section 801 of the Public Health Service Act 
(42 U.S.C. 296))), means an academic year as de-
fined by the Secretary.’’. 
SEC. 4. PHASE OUT OF CURRENT PROGRAM. 
An individual who began the required period of teach-
ing described in section 428J(b)(1) or 460(b)(1)(A) of the 
Higher Education Act of 1965 (20 U.S.C. 1078–10 and 
1087j) as such sections were in effect on the day before 
the date of enactment of this Act, shall— 
(1) be eligible to receive loan forgiveness or loan 
cancellation in the amount described in, and in ac-
cordance with the requirements of, such sections as 
in effect on the day before the date of enactment of 
this Act; and 
(2) not be eligible to receive loan forgiveness or 
loan cancellation under section 428J or 460 of the 
Higher Education Act of 1965 as in effect on the 
date of enactment of this Act. 
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