I
107TH CONGRESS
1ST SESSION
H. R. 1843
To amend the Elementary and Secondary Education Act of 1965 to provide
grants to local educational agencies for teacher recruitment, retention,
and training, and to amend the Higher Education Act of 1965 to
expand the program of loan forgiveness for teachers.
IN THE HOUSE OF REPRESENTATIVES
MAY 15, 2001
Mr. GRAVES introduced the following bill; which was referred to the
Committee on Education and the Workforce
A BILL
To amend the Elementary and Secondary Education Act
of 1965 to provide grants to local educational agencies
for teacher recruitment, retention, and training, and to
amend the Higher Education Act of 1965 to expand
the program of loan forgiveness for teachers.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. TEACHER RECRUITMENT, RETENTION, AND
TRAINING.
(a) IN GENERAL.—Title II of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 6601 et
seq.) is amended—
(1) by redesignating part E as part F;
(2) by redesignating sections 2401 and 2402 as
sections 2501 and 2502, respectively; and
(3) by inserting after part D the following:
‘‘PART E—TEACHER RECRUITMENT, RETENTION,
AND TRAINING
‘‘SEC. 2401. PROGRAM AUTHORIZED.
‘‘(a) IN GENERAL.—The Secretary is authorized to
make grants to local educational agencies to permit such
agencies to recruit, retain, and train high-quality teachers
by carrying out one or more of the activities described in
subsection (b).
‘‘(b) USES OF FUNDS.—
‘‘(1) RECRUITMENT, RETENTION, AND TRAIN-
ING ACTIVITIES.—A local educational agency that
receives a grant under this part may use the grant
funds for any of the following recruitment, retention,
and training activities:
‘‘(A) Providing signing bonuses for teach-
ers.
‘‘(B) Carrying out merit pay programs.
‘‘(C) Providing performance bonuses to
teachers.
‘‘(D) Providing scholarships to teachers to
pursue advanced course work.
‘‘(E) Providing mentoring programs for
teachers.
‘‘(F) Coordinating with institutions of
higher education to provide professional devel-
opment for teachers.
‘‘(G) Any other activity that the local edu-
cational agency believes to be effective in re-
cruiting, retaining, or training high-quality
teachers.
‘‘SEC. 2402. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to carry out
this part such sums as may be necessary for each of fiscal
years 2002 through 2004.’’.
(b) CONFORMING AMENDMENTS.—Section 2003 of
the Elementary and Secondary Education Act of 1965 (20
U.S.C. 6603) is amended—
(1) in subsection (a), by striking ‘‘part C)’’ and
inserting ‘‘parts C and E)’’; and
(2) in subsection (b), by inserting ‘‘(other than
parts C and E)’’ after ‘‘title’’.
SEC. 2. LOAN FORGIVENESS FOR TEACHERS.
(a) ELIMINATION
OF NEW BORROWER RESTRIC-
TIONS.—
(1) FFEL PROGRAM.—Section 428J(b) of the
Higher Education Act of 1965 (20 U.S.C. 1078–
10(b)) is amended by striking ‘‘for any new bor-
rower on or after October 1, 1998, who’’ and insert-
ing ‘‘for any borrower who’’.
(2) FEDERAL DIRECT LOAN PROGRAM.—Section
460(b)(1) of such Act (20 U.S.C. 1087j(b)(1)) is
amended by striking ‘‘for any new borrower on or
after October 1, 1998, who’’ and inserting ‘‘for any
borrower who’’.
(b) EXPANSION OF ELIGIBLE TEACHING LOCATIONS
AND SUBJECTS; ELIMINATING DELAY IN SERVICE BEN-
EFIT.—
(1) FFEL PROGRAM.—Section 428J(b)(1) of
such Act is amended by striking everything pre-
ceding subparagraph (B) and inserting the following:
‘‘(1) has been employed as a full-time teacher—
‘‘(A)(i) in a school that qualifies under sec-
tion 465(a)(2)(A) for loan cancellation for Per-
kins loan recipients who teach in such schools;
‘‘(ii) as a full-time special education teach-
er, as described in section 465(a)(2)(C); or
‘‘(iii) as a full-time teacher in any field of
expertise where the State educational agency
determines there is a shortage of qualified
teachers;’’.
(2) FEDERAL DIRECT LOAN PROGRAM.—Section
460(b)(1)(A) 
of 
such 
Act 
(20 
U.S.C.
1087j(b)(1)(A)) is amended by striking everything
preceding clause (ii) and inserting the following:
‘‘(A) has been employed as a full-time
teacher—
‘‘(i)(I) in a school that qualifies under
section 465(a)(2)(A) for loan cancellation
for Perkins loan recipients who teach in
such schools;
‘‘(II) as a full-time special education
teacher, 
as 
described 
in 
section
465(a)(2)(C); or
‘‘(III) as a full-time teacher in any
field of expertise where the State edu-
cational agency determines there is a
shortage of qualified teachers;’’.
(c) AMOUNTS SUBJECT TO FORGIVENESS.—
(1) FFEL PROGRAM.—Section 428J(c) of the
Higher Education Act of 1965 (20 U.S.C. 1078–
10(c)) is amended by striking paragraph (1) and in-
serting the following:
‘‘(1) AMOUNT AND RATE OF REPAYMENT.—The
Secretary shall repay an amount that is not more
than $20,000 in the aggregate of the loan obligation
on a loan made under section 428 or 428H that is
outstanding after the completion of the first com-
plete school year of teaching described in subsection
(b)(1) for which the borrower seeks repayment
under this section. Such amount shall be repaid at
the rate of 15 percent for the first or second year
of such service, 20 percent for the third or fourth
year of such service, and 30 percent for the fifth
year of such service. No borrower may receive a re-
duction of loan obligations under both this section
and section 460.’’.
(2) FEDERAL DIRECT LOAN PROGRAM.—Section
460(c) of such Act (20 U.S.C. 1087j(c)) is amended
by striking paragraph (1) and inserting the fol-
lowing:
‘‘(1) AMOUNT AND RATE OF REPAYMENT.—The
Secretary shall cancel an amount that is not more
than $20,000 in the aggregate of the loan obligation
on a loan made under section 428 or 428H that is
outstanding after the completion of the first com-
plete school year of teaching described in subsection
(b)(1)(A). Such amount shall be canceled at the rate
of 15 percent for the first or second year of such
service, 20 percent for the third or fourth year of
such service, and 30 percent for the fifth year of
such service.’’.
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