106TH CONGRESS
2D SESSION
H. R. 5034
AN ACT
To expand loan forgiveness for teachers, and for
other purposes.
106TH CONGRESS
2D SESSION
H. R. 5034
AN ACT
To expand loan forgiveness for 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,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Quality Teacher Re-
cruitment and Retention Act of 2000’’.
SEC. 2. FINDINGS AND PURPOSE.
(a) FINDINGS.—Congress makes the following find-
ings:
(1) Over the next 10 years, a large percentage
of teachers will retire, leaving American classrooms,
particularly urban and rural classrooms, facing a se-
rious teacher shortage.
(2) The Nation will need 2,000,000 new teach-
ers over the next 10 years. Unfortunately, in the
past this need has been met by admitting some un-
qualified teachers to the classroom.
(3) There is also a chronic shortage of fully cer-
tified special education teachers, averaging about
27,000 per year. While the demand is ever present,
institutes of higher education are graduating fewer
teachers qualified in special education.
(4) High quality teachers are the first vital step
in ensuring students receive a high quality edu-
cation.
(5) Potentially valuable teacher candidates are
often lured into different careers by higher com-
pensation.
(6) Moreover, the burdensome paperwork and
legal requirements are factors which lead special
education teachers to leave the profession. More spe-
cial education teachers move into the general edu-
cation realm than vice versa.
(7) High-quality prospective teachers need to be
identified and recruited by presenting to them a ca-
reer that is respected by their peers, is financially
and intellectually rewarding, and contains sufficient
opportunities for advancement.
(8) Teacher loan forgiveness gives high-poverty
schools an effective incentive for recruiting and re-
taining much-needed high quality teachers.
(9) Loan forgiveness for high-need teachers, in-
cluding special education teachers, can be a critical
link in increasing the supply of these essential edu-
cators.
(b) PURPOSE.—The purpose of this Act is to encour-
age individuals to enter and continue in the teaching pro-
fession in order to ensure that high quality teachers are
recruited and retained in areas where they are most need-
ed so students attending school in such areas receive a
quality education.
SEC. 3. EXPANDED LOAN FORGIVENESS PROGRAM FOR
TEACHERS.
(a) PROGRAM.—
(1) IN GENERAL.—The Secretary of Education
(in this section referred to as the ‘‘Secretary’’) shall
carry out a program of assuming the obligation to
repay, pursuant to subsection (c), a loan made, in-
sured, or guaranteed under part B of title IV of the
Higher Education Act of 1965 or part D of such
title (excluding loans made under sections 428B and
428C of such Act or comparable loans made under
part D of such title) for any borrower who—
(A) is a new teacher;
(B)(i) is employed, for 3 consecutive com-
plete school years, as a full-time teacher in a
school that qualifies under section 465(a)(2)(A)
of the Higher Education Act of 1965 (20
U.S.C. 1087ee(a)(2)(A)) for loan cancellation
for a recipient of a loan under part E of title
IV of such Act who teaches in such schools; or
(ii) is employed, for 3 consecutive complete
school years, as a full-time special education
teacher, or as a full-time teacher of special
needs children;
(C) satisfies the requirements of subsection
(d); and
(D) is not in default on a loan for which
the borrower seeks forgiveness.
(2) AWARD BASIS; PRIORITY.—
(A) AWARD
BASIS.—Subject to subpara-
graph (B), loan repayment under this section
shall be on a first-come, first-serve basis and
subject to the availability of appropriations.
(B) PRIORITY.—The Secretary shall give
priority in providing loan repayment under this
section for a fiscal year to student borrowers
who received loan repayment under this section
for the preceding fiscal year.
(3) REGULATIONS.—The Secretary is author-
ized to prescribe such regulations as may be nec-
essary to carry out the provisions of this section.
(b) LOAN REPAYMENT.—
(1) ELIGIBLE AMOUNT.—The amount the Sec-
retary may repay on behalf of any individual under
this section shall not exceed—
(A) the sum of the principal amounts out-
standing (not to exceed $5,000) of the individ-
ual’s qualifying loans at the end of 3 consecu-
tive complete school years of service described
in subsection (a)(1)(B);
(B) an additional portion of such sum (not
to exceed $7,500) at the end of each of the next
2 consecutive complete school years of such
service; and
(C) a total of not more than $20,000.
(2) CONSTRUCTION.—Nothing in this section
shall be construed to authorize the refunding of any
repayment of a loan made under part B or D of title
IV of the Higher Education Act of 1965.
(3) INTEREST.—If a portion of a loan is repaid
by the Secretary under this section for any year, the
proportionate amount of interest on such loan which
accrues for such year shall be repaid by the Sec-
retary.
(c) REPAYMENT TO ELIGIBLE LENDERS.—The Sec-
retary shall pay to each eligible lender or holder for each
fiscal year an amount equal to the aggregate amount of
loans which are subject to repayment pursuant to this sec-
tion for such year.
(d) APPLICATION FOR REPAYMENT.—
(1) IN GENERAL.—Each eligible individual de-
siring loan repayment under this section shall sub-
mit a complete and accurate application to the Sec-
retary at such time, in such manner, and containing
such information as the Secretary may require.
(2) YEARS OF SERVICE.—An eligible individual
may apply for loan repayment under this section
after completing the required number of years of
qualifying employment.
(3) FULLY
QUALIFIED
TEACHERS
IN
PUBLIC
ELEMENTARY OR SECONDARY SCHOOLS.—An appli-
cation for loan repayment under this section shall
include such information as is necessary to dem-
onstrate that the applicant—
(A) if teaching in a public elementary,
middle, or secondary school (other than as a
teacher in a public charter school), has obtained
State certification as a teacher (including cer-
tification obtained through alternative routes to
certification) or passed the State teacher licens-
ing exam and holds a license to teach in such
State; and
(B) if teaching in—
(i) a public elementary school, holds a
bachelor’s degree and demonstrates knowl-
edge and teaching skills in each of the sub-
ject areas in which he or she provides in-
struction; or
(ii) a public middle or secondary
school, holds a bachelor’s degree and dem-
onstrates a high level of competency in all
subject areas in which he or she teaches
through—
(I) a high level of performance on
a rigorous State or local academic
subject areas test; or
(II) completion of an academic
major in each of the subject areas in
which he or she provides instruction.
(4) TEACHERS
IN
NONPROFIT
PRIVATE
ELE-
MENTARY
OR
SECONDARY
SCHOOLS
OR
CHARTER
SCHOOLS.—In the case of an applicant who is teach-
ing in a nonprofit private elementary or secondary
school, or in a public charter school, an application
for loan repayment under this section shall include
such information as is necessary to demonstrate that
the applicant has knowledge and teaching skills in
each of the subject areas in which he or she provides
instruction, as certified by the chief administrative
officer of the school.
(e) TREATMENT OF CONSOLIDATION LOANS.—A loan
amount for a consolidation loan made under section 428C
of the Higher Education Act of 1965, or a Federal Direct
Consolidation Loan made under part D of title IV of such
Act, may be a qualified loan amount for the purpose of
this section only to the extent that such loan amount was
used by a borrower who otherwise meets the requirements
of this section to repay—
(1) a loan made under section 428 or 428H of
such Act; or
(2) a Federal Direct Stafford Loan, or a Fed-
eral Direct Unsubsidized Stafford Loan, made under
part D of title IV of such Act.
(f) ADDITIONAL ELIGIBILITY PROVISIONS.—
(1) CONTINUED
ELIGIBILITY.—Any teacher
who performs service in a school that—
(A) meets the requirements of subsection
(a)(1)(B) in any year during such service; and
(B) in a subsequent year fails to meet the
requirements of such subsection,
may continue to teach in such school and shall be
eligible for loan forgiveness pursuant to subsection
(a).
(2) PREVENTION OF DOUBLE BENEFITS.—No
borrower 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.).
(3) DEFINITION OF NEW TEACHER.—The term
‘‘new teacher’’ means an individual who has not pre-
viously been employed as a teacher in an elementary
or secondary school prior to August 1, 2001, exclud-
ing employment while engaged in student teaching
service or comparable activity that is part of a
preservice education program.
SEC. 3. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to carry out
this Act such sums as may be necessary for fiscal year
2001 and for each of the 4 succeeding fiscal years.
Passed the House of Representatives September 26,
2000.
Attest:
Clerk.