I 
108TH CONGRESS 
1ST SESSION 
H. R. 365
To recruit and retain more qualified individuals to teach in Tribal Colleges 
or Universities. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 27, 2003
Ms. HOOLEY of Oregon (for herself, Mr. BACA, Mr. FALEOMAVAEGA, Mr. FIL-
NER, Mr. HASTINGS of Florida, Mr. MCDERMOTT, Mr. PALLONE, Mr. 
POMEROY, Mr. UDALL of Colorado, Mr. UDALL of New Mexico, Mr. 
FRANK of Massachusetts, Ms. MCCOLLUM, Mr. TOWNS, Mr. KILDEE, Mr. 
ABERCROMBIE, and Mr. BEREUTER) introduced the following bill; which 
was referred to the Committee on Education and the Workforce, and in 
addition to the Committee on Ways and Means, for a period to be subse-
quently determined by the Speaker, in each case for consideration of such 
provisions as fall within the jurisdiction of the committee concerned 
A BILL 
To recruit and retain more qualified individuals to teach 
in Tribal Colleges or Universities.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. LOAN REPAYMENT OR CANCELLATION FOR IN-
DIVIDUALS WHO TEACH IN TRIBAL COL-
LEGES OR UNIVERSITIES. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Tribal College or University Teacher Loan Forgiveness 
Act’’. 
(b) PERKINS LOANS.—
(1) AMENDMENT.—Section 465(a) of the High-
er Education Act of 1965 (20 U.S.C. 1087ee(a)) is 
amended—
(A) in paragraph (2)—
(i) in subparagraph (H), by striking 
‘‘or’’ after the semicolon; 
(ii) in subparagraph (I), by striking 
the period and inserting ‘‘; or’’; and 
(iii) by adding at the end the fol-
lowing: 
‘‘(J) as a full-time teacher at a tribal College or 
University as defined in section 316(b).’’; and 
(B) in paragraph (3)(A)(i), by striking ‘‘or 
(I)’’ and inserting ‘‘(I), or (J)’’. 
(2) EFFECTIVE DATE.—The amendments made 
by paragraph (1) shall be effective for service per-
formed during academic year 1998–1999 and suc-
ceeding academic years, notwithstanding any con-
trary provision of the promissory note under which
a loan under part E of title IV of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1087aa et seq.) was 
made. 
(c) FFEL AND DIRECT LOANS.—Part G of title IV 
of the Higher Education Act of 1965 (20 U.S.C. 1088 
et seq.) is amended by adding at the end the following: 
‘‘SEC. 493C. LOAN REPAYMENT OR CANCELLATION FOR IN-
DIVIDUALS WHO TEACH IN TRIBAL COL-
LEGES OR UNIVERSITIES. 
‘‘(a) PROGRAM AUTHORIZED.—The Secretary shall 
carry out a program, through the holder of a loan, of as-
suming or canceling the obligation to repay a qualified 
loan amount, in accordance with subsection (b), for any 
new borrower on or after the date of enactment of the 
Tribal College or University Teacher Loan Forgiveness 
Act, who—
‘‘(1) has been employed as a full-time teacher 
at a Tribal College or University as defined in sec-
tion 316(b); and 
‘‘(2) is not in default on a loan for which the 
borrower seeks repayment or cancellation. 
‘‘(b) QUALIFIED LOAN AMOUNTS.—
‘‘(1) PERCENTAGES.—Subject to paragraph (2), 
the Secretary shall assume or cancel the obligation 
to repay under this section—
‘‘(A) 15 percent of the amount of all loans 
made, insured, or guaranteed after the date of 
enactment of the Tribal College or University 
Teacher Loan Forgiveness Act to a student 
under part B or D, for the first or second year 
of employment described in subsection (a)(1); 
‘‘(B) 20 percent of such total amount, for 
the third or fourth year of such employment; 
and 
‘‘(C) 30 percent of such total amount, for 
the fifth year of such employment. 
‘‘(2) MAXIMUM.—The Secretary shall not repay 
or cancel under this section more than $15,000 in 
the aggregate of loans made, insured, or guaranteed 
under parts B and D for any student. 
‘‘(3) 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 such loan 
amount was used to repay a loan made, insured, or 
guaranteed under part B or D for a borrower who 
meets the requirements of subsection (a), as deter-
mined in accordance with regulations prescribed by 
the Secretary.
‘‘(c) REGULATIONS.—The Secretary is authorized to 
issue such regulations as may be necessary to carry out 
the provisions of this section. 
‘‘(d) CONSTRUCTION.—Nothing in this section shall 
be construed to authorize any refunding of any repayment 
of a loan. 
‘‘(e) PREVENTION OF DOUBLE BENEFITS.—No bor-
rower may, for the same service, receive a benefit under 
both this section and subtitle D of title I of the National 
and Community Service Act of 1990 (42 U.S.C. 12571 
et seq.). 
‘‘(f) DEFINITION.—For purposes of this section, the 
term ‘year’, when applied to employment as a teacher, 
means an academic year as defined by the Secretary.’’. 
SEC. 2. AMOUNTS FORGIVEN NOT TREATED AS GROSS IN-
COME. 
The amount of any loan that is assumed or canceled 
under an amendment made by this Act shall not, con-
sistent with section 108(f) of the Internal Revenue Code 
of 1986, be treated as gross income for Federal income 
tax purposes.
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