IIB 
107TH CONGRESS 
2D SESSION 
H. R. 5091
IN THE SENATE OF THE UNITED STATES 
OCTOBER 2, 2002
Received; read twice and referred to the Committee on Health, Education, 
Labor, and Pensions 
AN ACT 
To increase the amount of student loan forgiveness available 
to qualified teachers, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
HR 5091 RFS 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Canceling Loans to 
Allow School Systems to Attract Classroom Teachers 
Act’’. 
SEC. 2. ADDITIONAL QUALIFIED LOAN AMOUNTS FOR STU-
DENT LOAN FORGIVENESS. 
(a) FFEL LOANS.—Section 428J(c) of the Higher 
Education Act of 1965 (20 U.S.C. 1078–10(c)) is amend-
ed by adding at the end the following new paragraph: 
‘‘(3) ADDITIONAL AMOUNTS; PRIORITY.—
‘‘(A) LARGER
AMOUNTS
FROM
APPRO-
PRIATED FUNDS.—Notwithstanding the amount 
specified in paragraph (1), the aggregate 
amount that the Secretary may, from funds ap-
propriated under subparagraph (C), repay 
under this section is a total amount equal to 
not more than $17,500. 
‘‘(B) AWARD BASIS; PRIORITY.—The Sec-
retary shall make payments under this para-
graph to elementary or secondary school teach-
ers who meet the requirements of subsection (b) 
on a first-come first-served basis, subject to the 
availability of appropriations, but shall give pri-
ority in providing loan repayment under this 
paragraph for a fiscal year to teachers who—
HR 5091 RFS 
‘‘(i)(I) are employed as special edu-
cation teachers whose primary responsi-
bility is to teach or support children with 
disabilities (as defined in section 602 of 
the Individuals with Disabilities Act); and 
‘‘(II) as certified by the chief adminis-
trative officer of the public or nonprofit 
private elementary or secondary school in 
which the borrower is employed, are teach-
ing children with disabilities that cor-
respond with the borrower’s training and 
have demonstrated knowledge and teaching 
skills in the content areas of the elemen-
tary or secondary school curriculum that 
the borrower is teaching; 
‘‘(ii) are employed as teachers in local 
educational agencies that are determined 
by a State educational agency under sec-
tion 2141 of the Elementary and Sec-
ondary Education Act of 1965 to have 
failed to make progress toward meeting the 
annual measurable objectives described in 
section 1119(a)(2) of such Act for 2 con-
secutive years; or
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‘‘(iii) are employed as teachers of 
mathematics or science. 
‘‘(C) 
AUTHORIZATION
OF
APPROPRIA-
TIONS.—There are authorized to be appro-
priated to carry out this paragraph such sums 
as may be necessary for fiscal year 2003 and 
for each of the 4 succeeding fiscal years.’’. 
(b) DIRECT LOANS.—Section 460(c) of the Higher 
Education Act of 1965 (20 U.S.C. 1087j(c)) is amended 
by adding at the end the following new paragraph: 
‘‘(3) ADDITIONAL AMOUNTS; PRIORITY.—
‘‘(A) LARGER
AMOUNTS
FROM
APPRO-
PRIATED FUNDS.—Notwithstanding the amount 
specified in paragraph (1), the aggregate 
amount that the Secretary may, from funds ap-
propriated under subparagraph (C), repay 
under this section is a total amount equal to 
not more than $17,500. 
‘‘(B) AWARD BASIS; PRIORITY.—The Sec-
retary shall make payments under this para-
graph to elementary or secondary school teach-
ers who meet the requirements of subsection (b) 
on a first-come first-served basis, subject to the 
availability of appropriations, but shall give pri-
HR 5091 RFS 
ority in providing loan repayment under this 
paragraph for a fiscal year to teachers who—
‘‘(i)(I) are employed as special edu-
cation teachers whose primary responsi-
bility is to teach or support children with 
disabilities (as defined in section 602 of 
the Individuals with Disabilities Act); and 
‘‘(II) as certified by the chief adminis-
trative officer of the public or nonprofit 
private elementary or secondary school in 
which the borrower is employed, are teach-
ing children with disabilities that cor-
respond with the borrower’s training and 
have demonstrated knowledge and teaching 
skills in the content areas of the elemen-
tary or secondary school curriculum that 
the borrower is teaching; 
‘‘(ii) are employed as teachers in local 
educational agencies that are determined 
by a State educational agency under sec-
tion 2141 of the Elementary and Sec-
ondary Education Act of 1965 to have 
failed to make progress toward meeting the 
annual measurable objectives described in
HR 5091 RFS 
section 1119(a)(2) of such Act for 2 con-
secutive years; or 
‘‘(iii) are employed as teachers of 
mathematics or science. 
‘‘(C) 
AUTHORIZATION
OF
APPROPRIA-
TIONS.—There are authorized to be appro-
priated to carry out this paragraph such sums 
as may be necessary for fiscal year 2003 and 
for each of the 4 succeeding fiscal years.’’. 
SEC. 3. CANCELLATION OF STUDENT LOAN INDEBTEDNESS 
FOR SPOUSES, SURVIVING JOINT DEBTORS, 
AND PARENTS. 
(a) DEFINITIONS.—For purposes of this section: 
(1) ELIGIBLE PUBLIC SERVANT.—The term ‘‘el-
igible public servant’’ means an individual who—
(A) served as a police officer, firefighter, 
other safety or rescue personnel, or as a mem-
ber of the Armed Forces; and 
(B) died (or dies) or became (or becomes) 
permanently and totally disabled due to injuries 
suffered in the terrorist attack on September 
11, 2001; 
as determined in accordance with regulations of the 
Secretary.
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(2) ELIGIBLE VICTIM.—The term ‘‘eligible vic-
tim’’ means an individual who died (or dies) or be-
came (or becomes) permanently and totally disabled 
due to injuries suffered in the terrorist attack on 
September 11, 2001, as determined in accordance 
with regulations of the Secretary. 
(3) ELIGIBLE
SPOUSE.—The term ‘‘eligible 
spouse’’ means the spouse of an eligible public serv-
ant, as determined in accordance with regulations of 
the Secretary. 
(4) ELIGIBLE SURVIVING DEBTOR.—The term 
‘‘eligible surviving debtor’’ means an individual who 
owes a Federal student loan that is a consolidation 
loan that was used, jointly by that individual and an 
eligible victim, to repay the Federal student loans of 
that individual and of such eligible victim. 
(5) ELIGIBLE
PARENT.—The term ‘‘eligible 
parent’’ means the parent of an eligible victim if—
‘‘(A) the parent owes a Federal student 
loan that is a consolidation loan that was used 
to repay a PLUS loan incurred on behalf of 
such eligible victim; or 
‘‘(B) the parent owes a Federal student 
loan that is a PLUS loan incurred on behalf of 
an eligible victim who became (or becomes) per-
HR 5091 RFS 
manently and totally disabled due to injuries 
suffered in the terrorist attack on September 
11, 2001. 
(6) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Education. 
(7) FEDERAL
STUDENT
LOAN.—The term 
‘‘Federal student loan’’ means any loan made, in-
sured, or guaranteed under part B, D, or E of title 
IV of the Higher Education Act of 1965. 
(b) RELIEF FROM INDEBTEDNESS.—
(1) IN GENERAL.—The Secretary shall provide 
for the discharge or cancellation of—
(A) the Federal student loan indebtedness 
of an eligible spouse; 
(B) the consolidation loan indebtedness of 
an eligible surviving debtor; 
(C) the portion of the consolidation loan 
indebtedness of an eligible parent that was in-
curred on behalf of an eligible victim, if the 
amount of such indebtedness with respect to 
such eligible victim may be reliably determined 
on the basis of records available to the lender; 
and
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(D) the PLUS loan indebtedness of an eli-
gible parent that was incurred on behalf of an 
eligible victim described in subsection (a)(5)(B). 
(2) METHOD
OF
DISCHARGE
OR
CANCELLA-
TION.—A loan required to be discharged or canceled 
under paragraph (1) shall be discharged or canceled 
by the method used under section 437(a), 455(a)(1), 
or 464(c)(1)(F) of the Higher Education Act of 
1965 
(20 
U.S.C. 
1087(a), 
1087e(a)(1), 
1087dd(c)(1)(F)), whichever is applicable to such 
loan. 
(c) FACILITATION
OF
CLAIMS.—The Secretary 
shall—
(1) establish procedures for the filing of appli-
cations for discharge or cancellation under this sec-
tion by regulations that shall be prescribed and pub-
lished within 90 days after the date of enactment of 
this Act and without regard to the requirements of 
section 553 of title 5, United States Code; and 
(2) take such actions as may be necessary to 
publicize the availability of discharge or cancellation 
of Federal student loan indebtedness for eligible 
spouses, eligible surviving debtors, and eligible par-
ents under this section.
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(d) AVAILABILITY
OF FUNDS
FOR PAYMENTS.—
Funds available for the purposes of making payments to 
lenders in accordance with section 437(a) for the dis-
charge of indebtedness of deceased or disabled individuals 
shall be available for making payments under section 
437(a) to lenders of loans to the eligible spouses, eligible 
surviving debtors, and eligible parents as required by this 
section. 
(e) APPLICABLE TO OUTSTANDING DEBT.—The pro-
visions of this section shall be applied to discharge or can-
cel only Federal student loans (including consolidation 
loans) on which amounts were owed on September 11, 
2001. 
SEC. 4. INFORMATION ON BENEFITS TO RURAL SCHOOL 
DISTRICTS. 
The Secretary shall—
(1) notify local educational agencies eligible to 
participate in the Small Rural Achievement Program 
authorized under subpart 1 of part B of Title VI of 
the Elementary and Secondary Education of 1965 of 
the benefits available under the amendments made 
by section 2 of this Act to the teachers in the rural 
schools of such agencies; and
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(2) encourage such agencies to notify their 
teachers of such benefits.
Passed the House of Representatives October 1, 
2002. 
Attest: 
JEFF TRANDAHL, 
Clerk.