I 
113TH CONGRESS 
1ST SESSION H. R. 2881 
To amend the Higher Education Act of 1965 to increase the amount of 
loan forgiveness available to highly qualified teachers employed in low- 
income schools who teach in the same school district for five consecutive 
years. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 31, 2013 
Mr. BUTTERFIELD (for himself, Mr. PRICE of North Carolina, Ms. LEE of 
California, Mrs. BEATTY, Ms. KELLY of Illinois, Ms. JACKSON LEE, Mr. 
MCINTYRE, Mr. BISHOP of Georgia, Mr. JEFFRIES, Mr. PAYNE, Ms. 
BASS, Mr. CARSON of Indiana, Ms. CLARKE, Mr. RICHMOND, Mr. LEWIS, 
Ms. KAPTUR, Mr. CLEAVER, Mr. SCOTT of Virginia, Ms. BROWN of Flor-
ida, and Ms. EDDIE BERNICE JOHNSON of Texas) introduced the fol-
lowing bill; which was referred to the Committee on Education and the 
Workforce 
A BILL 
To amend the Higher Education Act of 1965 to increase 
the amount of loan forgiveness available to highly quali-
fied teachers employed in low-income schools who teach 
in the same school district for five consecutive years. 
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 ‘‘Support Educators and 
Reinvest in Valuable Education Act’’ or ‘‘SERVE Act’’. 
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SEC. 2. ADDITIONAL LOAN FORGIVENESS FOR HIGHLY 
QUALIFIED TEACHERS EMPLOYED IN A LOW- 
INCOME SCHOOL IN THE SAME LOCAL EDU-
CATIONAL 
AGENCY 
FOR 
CONSECUTIVE 
YEARS. 
(a) FEDERAL
FAMILY
EDUCATION
LOAN
PRO-
GRAM.—Section 428J(c) of the Higher Education Act of 
1965 (20 U.S.C. 1078–10(c)) is amended by adding at 
the end the following new paragraph: 
‘‘(4) ADDITIONAL
AMOUNTS
FOR
TEACHERS 
EMPLOYED
BY
THE
SAME
LOCAL
EDUCATIONAL 
AGENCY
FOR
CONSECUTIVE
COMPLETE
SCHOOL 
YEARS.— 
‘‘(A) 
AMOUNTS.—Notwithstanding 
the 
amount specified in paragraph (1), the aggre-
gate amount that the Secretary shall repay 
under this section shall be not more than 
$17,500 in the case of an elementary or sec-
ondary school teacher— 
‘‘(i) who meets the requirements of 
subsection (b); and 
‘‘(ii) who has been employed as a full- 
time teacher for 5 consecutive complete 
school years at the same local educational 
agency. 
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‘‘(B) INCLUSION OF PLUS LOANS.—A loan 
made under section 428B (other than an ex-
cepted PLUS loan) shall be considered a quali-
fied loan amount for purposes of this para-
graph. 
‘‘(C) 
TREATMENT
OF
CONSOLIDATION 
LOANS.—Notwithstanding paragraph (2), a 
loan amount for a loan made under section 
428C may be a qualified loan amount for the 
purposes of this paragraph only to the extent 
that such loan amount was used to repay a 
Federal Direct Stafford Loan, a Federal Direct 
Unsubsidized Stafford Loan, a Federal Direct 
PLUS Loan (other than an excepted PLUS 
loan), or a loan made under section 428, 428B 
(other than an excepted PLUS loan), or 428H 
for a borrower who meets the requirements of 
subparagraph (A), as determined in accordance 
with regulations prescribed by the Secretary. 
‘‘(D) EXCEPTED
PLUS
LOAN.—In this 
paragraph, the term ‘excepted PLUS loan’ has 
the meaning given the term in section 
493C(a).’’. 
(b) WILLIAM D. FORD FEDERAL DIRECT LOAN PRO-
GRAM.—Section 460(c) of the Higher Education Act of 
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1965 (20 U.S.C. 1087j(c)) is amended by adding at the 
end the following new paragraph: 
‘‘(4) ADDITIONAL
AMOUNTS
FOR
TEACHERS 
EMPLOYED
BY
THE
SAME
LOCAL
EDUCATIONAL 
AGENCY
FOR
CONSECUTIVE
COMPLETE
SCHOOL 
YEARS.— 
‘‘(A) 
AMOUNTS.—Notwithstanding 
the 
amount specified in paragraph (1), the aggre-
gate amount that the Secretary shall cancel 
under this section shall be not more than 
$17,500 in the case of an elementary or sec-
ondary school teacher— 
‘‘(i) who meets the requirements of 
subsection (b); and 
‘‘(ii) who has been employed as a full- 
time teacher for 5 consecutive complete 
school years at the same local educational 
agency. 
‘‘(B) INCLUSION OF PLUS LOANS.—A Fed-
eral Direct PLUS Loan (other than an ex-
cepted PLUS loan) shall be considered a quali-
fied loan amount for purposes of this para-
graph. 
‘‘(C) 
TREATMENT
OF
CONSOLIDATION 
LOANS.—Notwithstanding paragraph (2), a 
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loan amount for a Federal Direct Consolidation 
Loan may be a qualified loan amount for the 
purposes of this paragraph only to the extent 
that such loan amount was used to repay a 
Federal Direct Stafford Loan, a Federal Direct 
Unsubsidized Stafford Loan, a Federal Direct 
PLUS Loan (other than an excepted PLUS 
loan), or a loan made under section 428, 428B 
(other than an excepted PLUS loan), or 428H 
for a borrower who meets the requirements of 
subparagraph (A), as determined in accordance 
with regulations prescribed by the Secretary. 
‘‘(D) EXCEPTED
PLUS
LOAN.—In this 
paragraph, the term ‘excepted PLUS loan’ has 
the meaning given the term in section 
493C(a).’’. 
Æ 
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