(B) such other methods as the State may
determine to be appropriate to gather informa-
tion on such needs.
SEC. 105. AMOUNT AND DURATION OF AND RELATION TO
OTHER ASSISTANCE.
(a) LIMITATIONS
ON AMOUNT
AND DURATION.—
Subject to subsection (c) each 21st Century Teaching
Scholarship recipient shall receive a $10,000 scholarship
for each academic year of full-time postsecondary edu-
cation for study in preparation to become a preschool, spe-
cial education, elementary, or secondary teacher or a
$5,000 scholarship for each academic year of part-time
postsecondary education for those scholars who qualify for
part-time scholarships in accordance with section 107(1).
No individual shall receive scholarship assistance for more
than 5 years of full-time or part-time postsecondary edu-
cation, as determined by the State agency.
(b) CONSIDERATION
OF AWARD
IN OTHER PRO-
GRAMS.—Notwithstanding the provisions of title IV of the
Higher Education Act of 1965, scholarship funds awarded
pursuant to this title shall be considered in determining
eligibility for student assistance under title IV of the
Higher Education Act of 1965.
(c) ASSISTANCE NOT TO EXCEED COST OF ATTEND-
ANCE.—No individual shall receive an award under the
21st Century Teaching Scholarship established under this
title, in any academic year, which exceeds the cost of at-
tendance, as defined in section 472 of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1087ll), at the institution
the individual is attending. A scholarship awarded under
this title shall not be reduced on the basis of the student’s
receipt of other forms of Federal student financial assist-
ance, but shall be taken into account in determining the
eligibility of the student for those other forms of Federal
student financial assistance.
SEC. 106. SELECTION OF 21ST CENTURY TEACHING SCHOL-
ARS.
(a) SELECTION BY STATEWIDE PANELS.—21st Cen-
tury Teaching Scholars shall be selected by a 7-member
statewide panel appointed by the chief State elected offi-
cial, acting in consultation with the State educational
agency, or by an existing grant agency or panel designated
by the chief State elected official and approved by the Sec-
retary. The statewide panel shall include community lead-
ers, business leaders, principals, teachers, parents, and,
after 2005, former scholarship recipients. The panel shall
not include elected officials with responsibility for edu-
cation, including State legislators, employees of State edu-
cation agencies or local education authorities other than
principals or teachers, teachers union officials, or employ-
ees of the chief State elected official.
(b) ELIGIBILITY FOR SELECTION.—To be eligible for
selection, an applicant shall—
(1) be a citizen of the United States or a per-
manent legal resident of the United States;
(2) be no less than 17 years old and no more
than 35 years old on September 1 of the year in
which they commence their scholarship;
(3) be a resident of the State of application or
a dependent of an active duty service member who
had a permanent duty station in the State of appli-
cation within the last 5 years; and
(4) have a high school degree or equivalent
thereof or have completed home schooling through
grade 12 by the end of the semester before begin-
ning the scholarship.
(c) CRITERIA FOR SELECTION.—Panels shall select
the best qualified applicants based on academic and schol-
arly achievement and aptitude for and commitment to the
profession of teaching. In making their selections, panels
may consider high school and college transcripts and grade
point averages, standardized test scores, class standing,
extracurricular activities, work experience, awards and
honors, letters of reference, the applicant’s expression of
interest in teaching and planned program of study, as ex-
pressed in an essay written by the applicant, and, at the
discretion of the panel, interviews with the candidates. Up
to 35 percent of the scholarships awarded may be des-
ignated for applicants who commit to programs of study
that will address teacher shortages in the areas identified
by the State in accordance with section 104(c) of this title.
Panels shall not consider financial need, race, gender, eth-
nicity, religious preference, political or union affiliation,
college preference, or geographic distribution within the
State when determining the best qualified applicants.
(d) AVAILABILITY
OF APPLICATIONS.—The State
educational agency shall make applications available to
public and private secondary schools and colleges, local
education authority human resource departments, and in
other locations convenient to potential applicants, parents,
and others.
SEC. 107. SCHOLARSHIP CONDITIONS.
Recipients of scholarship assistance under this title
shall continue to receive such scholarship payments only
during such periods that the State agency finds that the
recipient is—
(1) enrolled as a full-time student in an accred-
ited postsecondary institution or, if the scholar is a
certified teacher, a classroom teacher who is not so
certified and is teaching under a waiver authorized
in State law, or an educational assistant working
full-time in the classroom, enrolled as a part-time
student in an accredited postsecondary institution;
(2) pursuing a course of study leading to teach-
er certification or pursuing a postgraduate course of
study leading to a higher degree or a second bach-
elors degree for teachers who are already certified;
and
(3) maintaining satisfactory progress as deter-
mined by the postsecondary institution the recipient
is attending.
SEC. 108. SCHOLARSHIP REPAYMENT PROVISIONS.
Recipients found by the State agency to be in non-
compliance with the agreement entered into under section
104(b)(5) of this title shall be required to repay a pro rata
amount of the scholarship awards received, plus interest
(but in no event at an interest rate higher than the rate
applicable to loans in the applicable period under part B
of title IV of the Higher Education Act of 1965 (20 U.S.C.
1071 et seq.)) and, where applicable, reasonable collection
fees, on a schedule and at a rate of interest to be pre-
scribed by the Secretary by regulations issued pursuant
to this title.
SEC. 109. EXCEPTIONS TO REPAYMENT PROVISIONS.
(a) DEFERRAL DURING CERTAIN PERIODS.—A re-
cipient shall not be considered in violation of the agree-
ment entered into pursuant to section 104(b)(5)(C) during
any period in which the recipient—
(1) is pursuing a full-time course of study re-
lated to the field of teaching at an eligible institu-
tion;
(2) is serving, not in excess of 3 years, as a
member of the armed services of the United States;
(3) is temporarily totally disabled for a period
of time not to exceed 3 years as established by
sworn affidavit of a qualified physician;
(4) is unable to secure employment for a period
not to exceed 12 months by reason of the care re-
quired by a spouse who is disabled;
(5) is seeking and unable to find full-time em-
ployment for a single period not to exceed 12
months;
(6) is seeking and unable to find full-time em-
ployment as a teacher in a public or private pre-
school, elementary or secondary school, or education
program for a single period not to exceed 27
months; or
(7) satisfies the provisions of additional repay-
ment exceptions that may be prescribed by the Sec-
retary in regulations issued pursuant to this title.
(b) FORGIVENESS IF PERMANENTLY TOTALLY DIS-
ABLED.—A recipient shall be excused from repayment of
any scholarship assistance received under this title if the
recipient becomes permanently totally disabled as estab-
lished by sworn affidavit of a qualified physician.
SEC. 110. FEDERAL ADMINISTRATION OF STATE PRO-
GRAMS; JUDICIAL REVIEW.
(a) DISAPPROVAL HEARING REQUIRED.—The Sec-
retary shall not finally disapprove any application for a
State program submitted under section 104, or any modi-
fication thereof, without first affording the State agency
submitting the program reasonable notice and opportunity
for a hearing.
(b) SUSPENSION
OF ELIGIBILITY.—Whenever the
Secretary, after reasonable notice and opportunity for a
hearing to the State agency administering a State pro-
gram approved under this title, finds—
(1) that the State program has been so changed
that it no longer complies with the provisions of this
title, or
(2) that in the administration of the program
there is a failure to comply substantially with any
such provisions,
the Secretary shall notify such State agency that the State
will not be regarded as eligible to participate in the pro-
gram under this title until the Secretary is satisfied that
there is no longer any such failure to comply.
(c) COURT REVIEW.—
(1) IN GENERAL.—If any State is dissatisfied
with the Secretary’s final action under paragraph
(1) or (2) of subsection (b), such State may appeal
to the United States court of appeals for the circuit
in which such State is located. The summons and
notice of appeal may be served at any place in the
United States. The Secretary shall forthwith certify
and file in the court the transcript of the pro-
ceedings and the record on which the action was
based.
(2) FINDINGS.—The findings of fact by the
Secretary, if supported by substantial evidence, shall
be conclusive; but the court, for good cause shown,
may remand the case to the Secretary to take fur-
ther evidence, and the Secretary may thereupon
make new or modified findings of fact and may mod-
ify any previous action, and shall certify to the court
the transcript and record of further proceedings.
Such new or modified findings of fact shall likewise
be conclusive if supported by substantial evidence.
(3) JURISDICTION.—The court shall have juris-
diction to affirm the action of the Secretary or to set
it aside, in whole or in part. The judgment of the
court shall be subject to review by the Supreme
Court of the United States upon certiorari or certifi-
cation as provided in section 1254 of title 28, United
States Code.
SEC. 111. EVALUATION.
(a) IN GENERAL.—The Secretary shall conduct, by
grant or contract, an independent evaluation of recipients
of scholarship assistance under this title, which shall sum-
marize and evaluate the State activities assisted under this
title and the performance of such recipients. The evalua-
tion shall assess the impact of the scholarship program
assisted under this title to determine whether such pro-
gram has brought into teaching a significant number of
highly able individuals who otherwise would not have en-
tered teaching, or retained in teaching a significant num-
ber of highly qualified individuals who otherwise would
have left teaching. The evaluation shall also assess the im-
pact of the scholarship on improving the quality and quali-
fications of teachers and the impact of the scholarships
on reducing teacher shortages.
(b) CONTENTS.—The evaluation described in sub-
section (a) shall include—
(1) a description of the characteristics, includ-
ing the educational preparation and achievement, of
recipients of scholarship assistance under this title
compared to similar students participating in teach-
er training who do not receive such scholarships;
(2) the rate at which such recipients success-
fully complete academic training and go on to teach-
ing careers in preschool, elementary, or secondary
education, compared to such rate for similar individ-
uals who do not receive scholarship assistance under
this Act;
(3) the extent to which it is possible to deter-
mine objectively that the receipt of scholarship as-
sistance under this Act was the primary reason for
an individual’s choice of a teaching education and
career;
(4) the extent to which such recipients comply
with the provisions of this title;
(5) the length of time such recipients remain in
teaching careers, compared to similar teachers who
do not receive scholarships;
(6) the barriers to the effectiveness of the pro-
gram assisted under this Act;
(7) the cost-effectiveness of such program in
improving teacher quality and quantity; and
(8) the impact of the program on the quantity
and quality of applicants to colleges of education.
(c) EVALUATION REPORTS.—The Secretary shall
submit such interim evaluation reports to the President
and the Congress as may be appropriate, and shall submit
a final report on or before January 1, 2003.
(d) FUNDING.—The Secretary shall reserve a total of
not more than $1,000,000 from the amounts appropriated
pursuant to the authority of section 113 in fiscal years
2002 through 2005 to carry out this section.
SEC. 112. DEFINITIONS.
For the purposes of this title:
(1) SHORTAGE AREAS.—(A) The term ‘‘short-
age areas’’ means—
(i) geographic areas of the State in which
there is a shortage of elementary and secondary
school teachers;
(ii) an area of shortage of elementary and
secondary school teachers in specific grade lev-
els and in specific academic, instructional, sub-
ject matter, and discipline classifications; and
(iii) any school that, in accordance with
the accountability statute of the State, is under
a program of corrective action for failure to
meet minimum State performance standards.
(B) Such shortage areas shall be prescribed by
the Secretary, in consultation with the chief State
school officer. In carrying out the provisions of this
paragraph, the Secretary shall give special consider-
ation to areas in which emergency certification or
waivers of certification of individuals in a State is
being used to correct teacher shortages and to
States which have retirement laws permitting early
retirement.
(2) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Education.
(3) CERTIFIED TEACHER.—The term ‘‘certified
teacher’’ means a teacher who has obtained State
certification as a teacher or has passed a State
teacher licensing exam and holds a license to teach
in such State.
SEC. 113. AUTHORIZATION OF APPROPRIATIONS.
(a) IN GENERAL.—There are authorized to be appro-
priated $260,000,000 for fiscal year 2002 and such sums
as may be necessary for each of the 4 succeeding fiscal
years to carry out this title.
(b) LIMITATION ON USE OF FUNDS FOR ADMINIS-
TRATIVE PURPOSES.—All of the funds appropriated under
this title shall be distributed to the States in accordance
with section 103. No more than 5 percent of the funds
appropriated under this title may be used by the State
for program administration.
TITLE II—PROFESSIONAL
DEVELOPMENT ENHANCEMENT
SEC. 201. SHORT TITLE.
This title may be cited as the ‘‘Professional Develop-
ment Enhancement Act’’.
SEC. 202. STATE ACTIVITIES.
Section 2207 of the Elementary and Secondary Edu-
cation Act of 1965 (20 U.S.C. 6647) is amended—
(1) in paragraph (12), by striking ‘‘; and’’ and
inserting a semicolon;
(2) in paragraph (13), by striking the period
and inserting a semicolon; and
(3) by adding at the end the following:
‘‘(14) carrying out programs that include sup-
port during the initial teaching experience, such as
mentoring programs that—
‘‘(A) provide mentoring to beginning teach-
ers from veteran teachers with expertise in the
subject matter that the beginning teachers will
be teaching;
‘‘(B) provide mentors time for activities
such as coaching, observing, and assisting the
teachers who are mentored; and
‘‘(C) use standards or assessments for
guiding beginning teachers that are consistent
with the State’s student performance standards
and with the requirements for professional de-
velopment 
activities 
described 
in 
section
2210(b)(2); and
‘‘(15) carrying out programs that establish, ex-
pand, or improve alternative routes to State certifi-
cation of teachers for highly qualified individuals
with a baccalaureate degree, including mid-career
professionals from other occupations, paraprofes-
sionals, former military personnel, and recent college
or university graduates with records of academic dis-
tinction, who demonstrate the potential to become
highly effective teachers.’’.
SEC. 203. ALTERNATIVE ROUTES.
Section 2207 of the Elementary and Secondary Edu-
cation Act of 1965 is amended—
(1) by inserting ‘‘(a) ACTIVITIES.—’’ before
‘‘Each State’’; and
(2) by adding at the end the following:
‘‘(b) COMPONENTS
OF ALTERNATIVE ROUTES
TO
STATE CERTIFICATION PROGRAMS.—To the extent appro-
priate, programs carried out under subsection (a)(15)
shall—
‘‘(1) include strong academic and teaching-re-
lated course work that provides teachers with the
academic subject knowledge and teaching knowledge
needed to help students meet State content stand-
ards;
‘‘(2) provide intensive field experience in the
form of an internship, or student teaching, under
the direct daily supervision of an expert, veteran
teacher; and
‘‘(3) provide that, before entry into teaching,
candidates shall be fully qualified.’’.
SEC. 204. DEFINITIONS.
Section 2402 of the Elementary and Secondary Edu-
cation Act of 1965 (20 U.S.C. 6702) is amended—
(1) by redesignating paragraphs (1) through
(4) as paragraphs (2), (5), (6), and (3) respectively;
(2) by inserting paragraph (3) (as so redesig-
nated) after paragraph (2);
(3) by inserting before paragraph (2) the fol-
lowing:
‘‘(1) the term ‘beginning teacher’ means an ed-
ucator in a public school who has not yet been teach-
ing 3 full school years;’’;
(4) by inserting after paragraph (3) (as so re-
designated) the following:
‘‘(4) the term ‘mentoring program’ means a
program to provide professional support and devel-
opment, instruction, and guidance to beginning
teachers, not including a teacher or individual who
begins to work in a supervisory position;’’;
(5) in paragraph (3) (as so redesignated), by
striking the period and inserting a semicolon;
(6) in paragraph (5) (as so redesignated), by
striking the semicolon at the end and inserting ‘‘;
and’’; and
(7) in subparagraph (E) of paragraph (6) (as
so redesignated), by striking ‘‘; and’’ and inserting
a period.
TITLE III—LOAN FORGIVENESS
FOR TEACHERS
SEC. 301. SHORT TITLE.
This title may be cited as the ‘‘Quality Teacher Re-
cruitment and Retention Act’’.
SEC. 302. 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) 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.
(5) High quality teachers are the first vital step
in ensuring students receive a high quality edu-
cation.
(6) Potentially valuable teacher candidates are
often lured into different careers by higher com-
pensation.
(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 title 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. 303. 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, 2002, exclud-
ing employment while engaged in student teaching
service or comparable activity that is part of a
preservice education program.
SEC. 303. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to carry out
this title such sums as may be necessary for fiscal year
2002 and for each of the 4 succeeding fiscal years.
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