‘‘(1) USE
OF
FUNDS
FOR
SCHOLARSHIPS.—
From the funds appropriated under subsection (g),
the Secretary shall make grants available to States
for the purpose of establishing State Teaching Fel-
lows Programs to provide scholarships for Teaching
Fellows. Such scholarships shall be used to pay for
higher education tuition, fees, and other costs of at-
tendance.
‘‘(2) SELECTION OF FELLOWS.—Teaching Fel-
lows shall be selected from individuals who—
‘‘(A) at the time of application, are high
school seniors or in their second year of a pro-
gram of undergraduate education;
‘‘(B) are United States citizens or legal
aliens;
‘‘(C) are residents of the State sponsoring
the Fellows Program to which they are apply-
ing; and
‘‘(D) meet the criteria established under
subsection (d)(1)(B).
‘‘(c) COMPETITION FOR FEDERAL FUNDS.—
‘‘(1) STATE APPLICATION TO PROGRAM.—The
governor of each State desiring to participate in the
Partnership Program shall designate a single State
agency to submit an application to the Secretary and
to administer the State Fellows Program. Such
agency shall have a full-time staff and may be a di-
vision of the State’s education department, a coordi-
nating or governing board of higher education, an
independent government agency, or a non-profit or-
ganization. Any such application shall be submitted
to the Secretary at such time, and contain such in-
formation, as the Secretary shall require.
‘‘(2) COMPETITIVE SELECTION.—From the ap-
plications submitted by State agencies, the Secretary
shall approve those applications that the Secretary
determines to be the most promising in carrying out
the purposes of the Fellows Program. Each State
whose application is selected by the Secretary to par-
ticipate in the Fellows Program shall receive funds
to offer scholarships in an amount determined by
the Secretary in light of the amount of the total ap-
propriation for the Fellows Program, the relative
size of the State’s student population, and the fund-
ing necessary to administer a viable State Fellows
Program. Such funds shall go to the State agency
designated in subsection (c)(1).
‘‘(d) REQUIREMENTS FOR STATE RECEIPT OF FED-
ERAL FUNDS.—Each State participating in the Fellows
Program shall—
‘‘(1) provide information and assurances—
‘‘(A) identifying the institutions of higher
education within the State, either private or
public, that will participate in the Fellows Pro-
gram;
‘‘(B) establishing specific, rigorous criteria
to be used in selecting Teaching Fellows;
‘‘(C) providing that the State will offer no
less than $6,500 per year in scholarships to
each Fellow, which shall be available—
‘‘(i) for each of 4 years of under-
graduate education, in the case of a Fellow
who, at the time of application, was a high
school senior;
‘‘(ii) for the third and fourth year of
undergraduate education, in the case of a
Fellow who, at the time of application, was
in his or her second year of undergraduate
education; and
‘‘(iii) for a fifth year of undergraduate
education if such year is required in order
to obtain a bachelor’s degree with a State
license or certificate to teach;
‘‘(D) providing that each participating in-
stitution will provide a full-time faculty member
or administrator to serve as the Fellows Pro-
gram director and to work closely with the
State agency to administer the campus program
and create and execute the extra-curricular en-
richment programs;
‘‘(E) describing mandatory extra-curricular
enrichment programs and activities as part of
the State’s Fellows Program that—
‘‘(i) are designed to motivate students
to become career educators;
‘‘(ii) provide Teaching Fellows with a
multidisciplinary education;
‘‘(iii) are offered regularly during each
year of schooling (including during inter-
vals between periods of enrollment); and
‘‘(iv) expose Fellows to the State’s
business, political, demographic, cultural,
and economic climate and help Fellows de-
velop leadership qualities; and
‘‘(F) establishing procedures for the dis-
tribution of scholarships and administration of
service obligation oversight;
‘‘(2) provide an assurance that the State agency
and participating institutions shall, collectively,
match the Federal funds provided under this section
by providing at least 25 percent of the total cost of
the Fellows Program;
‘‘(3) use funds received under this section only
to supplement the amount of funds that would, in
the absence of such Federal funds, be made avail-
able from non-Federal sources for the purposes of
this section, and not to supplant such funds; and
‘‘(4) provide an assurance that Teaching Fel-
lows fulfill their teaching commitments at United
States public schools within that State only.
‘‘(e) CONVERSION TO LOAN.—
‘‘(1) OBLIGATION
TO
REPAY.—The Fellows
Program shall require that a Teaching Fellow agree
to repay a pro rata amount, as determined by the
State agency, of the scholarship received from the
Fellows Program, and to pay interest on such pro
rata amount at an annual rate of 10 percent until
such pro rata amount is repaid, if the recipient fails
to comply with one of the following:
‘‘(A) Within 7 years after graduation the
recipient of the scholarship teaches for 4 years
at a public school.
‘‘(B) Within 7 years after graduation the
recipient teaches for 3 consecutive years, unless
the recipient takes an approved leave of ab-
sence, at a public school that at the time the re-
cipient accepts employment is a low-performing
school, as defined by State educational agency
or the Secretary of Education.
‘‘(2) EXCEPTION.—Paragraph (1) shall not
apply if the State agency finds that it is impossible
for the recipient to teach for 4 years, within 7 years
after the recipient graduates, at a public school be-
cause of the death or permanent disability of the re-
cipient.
‘‘(f) REVOLVING FUNDING.—Any funds repaid by a
Teaching Fellow pursuant to subsection (e), together with
any interest thereon, may be retained by the State agency
for making available additional scholarships under this
section, and for paying costs related to the disbursement
of awards and the collection of payments under subsection
(e).
‘‘(g) FUNDS.—There is authorized to be appropriated
to carry out this section $200,000,000 for fiscal year 2002
and such sums as may be necessary for the 4 succeeding
fiscal years.
‘‘(h) DEFINITIONS.—For the purposes of this section:
‘‘(1) FELLOWS PROGRAM.—The term ‘Fellows
Program’ means the program established under this
section.
‘‘(2) TEACHING FELLOWS.—The term ‘Teach-
ing Fellow’ means an individual selected for an
award of financial assistance under this section.
‘‘(3) STATE.—The term ‘State’ includes the
several States, the District of Columbia, and the
Commonwealth of Puerto Rico.
‘‘(4) STATE AGENCY.—The term ‘State agency’
means the agency designated pursuant to subsection
(c)(1).
‘‘SEC. 212. TEACHING FELLOWS PARTNERSHIP PROGRAM.
‘‘(a) PURPOSE.—The purpose of this section is to en-
courage members of the education community, such as
teaching assistants and other school employees who are
not yet certified teachers, to obtain a degree in education.
‘‘(b) ESTABLISHMENT OF PARTNERSHIP FELLOWS
PROGRAM.—
‘‘(1) USE
OF
FUNDS
FOR
SCHOLARSHIPS.—
From the funds appropriated under subsection (h),
the Secretary shall make grants available to States
for the purpose of establishing Partnership Pro-
grams between associate-degree-granting institutions
and bachelor-degree-granting institutions.
‘‘(2) SELECTION
OF
FELLOWS.—Partnership
Fellows shall be selected from individuals who—
‘‘(2) The State agency may reserve up to 20
percent of its Federal funding to be used for admin-
istrative costs associated with the creation of articu-
lation agreements between one or more associate-de-
gree-granting institutions and one or more bachelor-
degree-granting institutions that detail the partner-
ship arrangement between the institutions. Such re-
served administrative funds shall be made available
to the Partnership institutions in order to support
curricula alignment between the associate-degree
granting institution’s and the bachelor-degree-grant-
ing institution’s requirements and to allow the Part-
nership institutions to sponsor extra-curricular ac-
tivities for its Fellows as specified in subsection
(e)(3).
‘‘(3) The State agency shall be responsible for
determining how the funds provided under this sec-
tion are allocated among specific partnership pro-
posals or to administer the allocation of funds for an
approved state-wide Partnership Program.
‘‘(4) The State agency shall be responsible for
assuring such funds are used to provide full-time
Partnership Fellows with scholarships of no less
than $6,500 per year, which shall be available for
each of the four years of undergraduate education
remaining after the year of the Fellow’s selection,
and for a fifth year of undergraduate education if
such year is required in order to obtain a bachelor’s
degree with a State license or certificate to teach.
Partnership Fellows pursuing a part-time course
load, as defined by the institution attended, shall re-
ceive a pro rata scholarship over a period not to ex-
ceed six years. The annual scholarship amount shall
be a fraction of the full-time scholarship amount and
shall be reduced according to the number of credits
being pursued. Partnership Programs also may
make scholarship funds available during the period
of student teaching as prescribed by subsection
(e)(6).
‘‘(5) The State agency will use funds received
under this section only to supplement the amount of
funds that would, in the absence of such Federal
funds, be made available from non-Federal sources
for the purposes of this section, and not to supplant
such funds.
‘‘(e) REQUIREMENTS
FOR
PARTNERSHIP
PRO-
POSALS.—Each partnership proposal under this section
shall be submitted by one or more associate-degree-grant-
ing institutions and one or more bachelor-degree-granting
institutions and shall propose the establishment of a pro-
gram allowing individuals, such as those currently in the
education field, to complete a bachelor’s degree with a
State license or certification to teach. Such proposals shall
include—
‘‘(1) identification of specific, rigorous criteria
to be used in selecting Partnership Fellows, includ-
ing outstanding service to school-age children, a firm
commitment to the field of education, and aptitude
to succeed as a teacher;
‘‘(2) designation of a full-time faculty member
or administrator to serve as the local or regional
Partnership Program director or coordinator and to
work closely with the State agency director to ad-
minister the program and create and execute the
extra-curricular enrichment programs;
‘‘(3) mandatory extra-curricular enrichment
programs and activities as part of the State’s Fel-
lows Program that—
‘‘(A) are designed to motivate students to
become career educators;
‘‘(B) provide Fellows with a multidisci-
plinary education;
‘‘(C) are offered regularly during each year
of schooling (including during intervals between
periods of enrollment); and
‘‘(D) expose Fellows to the State’s busi-
ness, political, demographic, cultural, and eco-
nomic climate and help Fellows develop leader-
ship qualities;
‘‘(4) a specific description of how the proposed
Partnership Program will provide individuals in
rural or underserved communities access to the cur-
riculum and extracurricular opportunities created by
the Partnership Program;
‘‘(5) a description of how the program will ac-
commodate Partnership Fellows who must maintain
employment while pursuing a degree, whether via
distance learning methods, evening and weekend
programs, minimum credit requirements, or other
programs;
‘‘(6) a description of how the program will as-
sist Partnership Fellows in accordance with sub-
section (d)(4) during the period of student teaching
should they be otherwise financially unable to com-
plete such a requirement; and
‘‘(7) an itemized account of how the funds will
be allocated to best achieve the goals of the Partner-
ship Program.
‘‘(f) CONVERSION TO LOAN.—
‘‘(1) OBLIGATION TO REPAY.—The Partnership
Program shall require that a Partnership Fellow
agree to repay a pro rata amount, as determined by
the State agency, of the scholarship received from
the Partnership Program, and to pay interest on
such pro rata amount at an annual rate of 10 per-
cent until such pro rata amount is repaid, if the re-
cipient fails to comply with one of the following:
‘‘(A) Within 7 years after graduation the
recipient of the scholarship teaches for 4 years
at a public school.
‘‘(B) Within 7 years after graduation the
recipient teaches for 3 consecutive years, unless
the recipient takes an approved leave of ab-
sence, at a public school that at the time the re-
cipient accepts employment is a low-performing
school, as defined by State educational agency
or the Secretary of Education.
‘‘(2) EXCEPTION.—Paragraph (1) shall not
apply if the State agency finds that it is impossible
for the recipient to teach for 4 years, within 7 years
after the recipient graduates, at a public school be-
cause of the death or permanent disability of the re-
cipient.
‘‘(g) REVOLVING FUNDING.—Any funds repaid by a
Teaching Fellow pursuant to subsection (f), together with
any interest thereon, may be retained by the State agency
for making available additional scholarships under this
section, and for paying costs related to the disbursement
of awards and the collection of payments under subsection
(f).
‘‘(h) FUNDS.—There is authorized to be appropriated
to carry out this section $100,000,000 for fiscal year 2002
and such sums as necessary for the 4 subsequent fiscal
years.
‘‘(i) DEFINITIONS.—For the purposes of this section:
‘‘(1) PARTNERSHIP PROGRAM.—the term ‘Part-
nership Program’ means the program established
under this section.
‘‘(2) 
PARTNERSHIP
FELLOWS.—The 
term
‘Partnership Fellow’ means an individual selected
for an award of financial assistance under this sec-
tion.
‘‘(3) STATE.—The term ‘State’ includes the
several States, the District of Columbia, and the
Commonwealth of Puerto Rico.