I 
108TH CONGRESS 
1ST SESSION 
H. R. 501
To establish a student loan forgiveness program for nurses. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 29, 2003
Mr. TANCREDO (for himself and Ms. LORETTA SANCHEZ of California) intro-
duced the following bill; which was referred to the Committee on Edu-
cation and the Workforce 
A BILL 
To establish a student loan forgiveness program for nurses.
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 ‘‘Nurse Loan Forgive-
ness Act of 2003’’. 
SEC. 2. FINDINGS. 
The Congress finds the following: 
(1) According to 2001 statistics from the Amer-
ican Hospital Association, 126,000 nurses are cur-
rently needed to fill vacancies at our nation’s hos-
pitals. Today, fully 75 percent of all hospital per-
sonnel vacancies are for nurses. 
(2) According to the Journal of the American 
Medical Association (2000), the U.S. will experience 
a 20 percent shortage in the number of nurses need-
ed in the U.S. health care system by the year 2020. 
This translates into a shortage of more than 
400,000 registered nurses nationwide. 
(3) Research indicates that there is a greater 
need for health care services, especially hospitals and 
prescription drugs, but there continues to be a 28 
percent decrease in national licensure examination 
for all entry-level registered nurses. 
(4) The U.S. Department of Labor projects a 
21 percent increase in the need for nurses nation-
wide from 1998 to 2008, compared with a 14 per-
cent increase for all other occupations. 
(5) The General Accounting Office estimates 
that 40 percent of all registered nurses will be older 
than age 50 by the year 2010. 
(6) Of those registered nurses in 2000, an esti-
mated 18 percent have chosen to pursue other career 
paths. 
(7) According to a 2001 issue of Health Af-
fairs, many nurses report they are dissatisfied with
their current position. One out of every 3 hospital 
nurses under the age of 30 are planning to leave 
their current job in the next year. 
SEC. 3. ESTABLISHMENT OF PROGRAM. 
(a) STAFFORD LOANS.—Part B of title IV of the 
Higher Education Act of 1965 is amended by inserting 
after section 428K (20 U.S.C. 1078–11) the following new 
section: 
‘‘SEC. 428L. LOAN FORGIVENESS FOR NURSES. 
‘‘(a) STATEMENT OF PURPOSE.—It is the purpose of 
this section to encourage individuals to enter and continue 
in the nursing profession. 
‘‘(b) PROGRAM AUTHORIZED.—From the amount ap-
propriated under subsection (g) for any fiscal year, the 
Secretary shall, in accordance with subsection (c), carry 
out a program, through the holder of the loan, of assum-
ing the obligation to repay a qualified loan amount for 
a loan made under section 428 or 428H for any borrower 
who— 
‘‘(1) has been employed for a calendar year as 
a full-time registered nurse in a health care facility 
or a health care setting approved by the Secretary 
of Health and Human Services for purposes of this 
section; and
‘‘(2) is not in default on a loan for which the 
borrower seeks forgiveness. 
‘‘(c) QUALIFIED LOANS AMOUNT.—
‘‘(1) IN
GENERAL.—Of the aggregate of the 
loan obligation on a loan made under section 428 or 
428H that is outstanding to an individual who meets 
the requirements of subsection (b), the Secretary 
may, from funds appropriated under subsection (g), 
repay not more than—
‘‘(A) $2,000 after the first calendar year 
of employment described in subsection (b)(1); 
‘‘(B) $2,500 after the second such year of 
employment; 
‘‘(C) $3,000 after the third such year of 
employment; 
‘‘(D) $4,500 after the fourth such year of 
employment; and 
‘‘(E) $5,000 after the fifth such year of 
employment.
‘‘(2) AWARD BASIS.—The Secretary shall make 
payments under this subsection on a first-come first-
served basis, subject to the availability of appropria-
tions. 
‘‘(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 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. 
‘‘(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 ) PREVENTION OF DOUBLE BENEFITS.—
‘‘(1) NATIONAL AND COMMUNITY SERVICE.—No 
borrower may, for the same service, receive a benefit 
under both this subsection and subtitle D of title I 
of the National and Community Service Act of 1990 
(42 U.S.C. 12571 et seq.). 
‘‘(2) DIRECT
LOAN
FORGIVENESS.—No bor-
rower may receive a reduction of loan obligations 
under both this section and section 460A. 
‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—For fis-
cal year 2004 and for each of the 9 succeeding fiscal years,
there are authorized to be appropriated such sums as may 
be necessary to repay loans in the amounts specified in 
subsection (c)(1).’’. 
(b) DIRECT LOANS.—Part D of title IV of the Higher 
Education Act of 1965 is amended by inserting after sec-
tion 460 (20 U.S.C. 1087j) the following new section: 
‘‘SEC. 460A. LOAN FORGIVENESS FOR NURSES. 
‘‘(a) STATEMENT OF PURPOSE.—It is the purpose of 
this section to encourage individuals to enter and continue 
in the nursing profession. 
‘‘(b) PROGRAM AUTHORIZED.—From the amount ap-
propriated under subsection (g) for any fiscal year, the 
Secretary shall carry out a program of canceling the obli-
gation to repay a qualified loan amount in accordance with 
subsection (c) for Federal Direct Stafford Loans and Fed-
eral Direct Unsubsidized Stafford Loans made under this 
part for any borrower who— 
‘‘(1) has been employed for a calendar year as 
a full-time registered nurse in a health care facility 
or a health care setting approved by the Secretary 
of Health and Human Services for purposes of this 
section; and 
‘‘(2) is not in default on a loan for which the 
borrower seeks forgiveness. 
‘‘(c) QUALIFIED LOANS AMOUNT.—
‘‘(1) IN
GENERAL.—Of the aggregate of the 
loan obligation on a Federal Direct Stafford Loan or 
a Federal Direct Unsubsidized Stafford Loan that is 
outstanding to an individual who meets the require-
ments of subsection (b), the Secretary may, from 
funds appropriated under subsection (g), repay not 
more than—
‘‘(A) $2,000 after the first calendar year 
of employment described in subsection (b)(1); 
‘‘(B) $2,500 after the second such year of 
employment; 
‘‘(C) $3,000 after the third such year of 
employment; 
‘‘(D) $4,500 after the fourth such year of 
employment; and 
‘‘(E) $5,000 after the fifth such year of 
employment. 
‘‘(2) AWARD BASIS.—The Secretary shall make 
payments under this subsection on a first-come first-
served basis, subject to the availability of appropria-
tions. 
‘‘(3) 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 such
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. 
‘‘(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 ) PREVENTION OF DOUBLE BENEFITS.—
‘‘(1) NATIONAL AND COMMUNITY SERVICE.—No 
borrower may, for the same service, receive a benefit 
under both this subsection and subtitle D of title I 
of the National and Community Service Act of 1990 
(42 U.S.C. 12571 et seq.). 
‘‘(2) STAFFORD LOAN FORGIVENESS.—No bor-
rower may receive a reduction of loan obligations 
under both this section and section 428L. 
‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—For fis-
cal year 2004 and for each of the 9 succeeding fiscal years, 
there are authorized to be appropriated such sums as may
be necessary to repay loans in the amounts specified in 
subsection (c)(1).’’.
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