I 
109TH CONGRESS 
2D SESSION 
H. R. 5564 
To facilitate economic growth and development and to promote Tribal sov-
ereignty, by encouraging a dramatic increase in the number of individuals 
with higher education degrees working within and for Indian Country. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 8, 2006 
Ms. HERSETH introduced the following bill; which was referred to the 
Committee on Education and the Workforce 
A BILL 
To facilitate economic growth and development and to pro-
mote Tribal sovereignty, by encouraging a dramatic in-
crease in the number of individuals with higher education 
degrees working within and for Indian Country. 
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 ‘‘Indian Country Edu-
cational Empowerment Zone Act’’. 
SEC. 2. FINDINGS. 
Congress makes the following findings: 
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(1) A unique legal and political relationship ex-
ists between the United States and Indian tribes 
that is reflected in article I, section 8, clause 3 of 
the Constitution, various treaties, Federal statutes, 
Supreme Court decisions, executive agreements, and 
course of dealing. 
(2) Native Americans continue to rank at the 
bottom of nearly every indicator of social and eco-
nomic well-being in America: 
(A) Unemployment rates average near 50 
percent in Indian country and hover well over 
90 percent on many reservations. 
(B) While the national poverty rate is only 
11 percent, over 26 percent of all Native Ameri-
cans live in poverty. 
(C) In addition, Native Americans have 
some of the lowest levels of educational attain-
ment in the United States. 
(3) Numerous external efforts at economic de-
velopment in Indian Country have proven unsuccess-
ful. The most successful efforts have been initiated 
from within the Native communities themselves. Ef-
forts that empower the communities and give them 
the tools to make their own decisions should be en-
couraged and pursued. 
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(4) Educational achievement continues to be a 
cyclical obstacle to economic development in Indian 
Country. Businesses are often unwilling to locate to 
Indian Country because of the lack of an educated 
workforce. Over a quarter of all Americans have a 
bachelors degree or higher. However, only 12 per-
cent of all Native Americans nationwide have such 
a degree, and only 6 percent of those who actually 
live in Indian Country have a bachelors or higher. 
Once Natives are finally able to obtain higher edu-
cation, many are not able to return to their commu-
nities because there are no jobs. There needs to be 
an intervening factor to help break this damaging 
cycle. 
SEC. 3. LOAN FORGIVENESS FOR EMPLOYMENT IN INDIAN 
COUNTRY. 
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: 
‘‘SEC. 428L. LOAN FORGIVENESS FOR EMPLOYMENT IN IN-
DIAN COUNTRY. 
‘‘(a) PURPOSE.—It is the purpose of this section— 
‘‘(1) to dramatically increase the number of in-
dividuals with higher education degrees working 
within and for Indian country; 
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‘‘(2) to facilitate economic growth and develop-
ment in Indian country, and promote Tribal sov-
ereignty; 
‘‘(3) to encourage members of Indian tribes 
with higher education degrees to return to Indian 
country; 
‘‘(4) to encourage the long-term retention of 
educated individuals in Indian country; and 
‘‘(5) to encourage public service in Indian coun-
try, and to encourage investment in Indian country 
through an increase in the education level of the 
available workforce. 
‘‘(b) PROGRAM AUTHORIZED.— 
‘‘(1) IN
GENERAL.—From the funds appro-
priated under subsection (g), the Secretary is au-
thorized to forgive, in accordance with this section, 
the student loan debt of any borrower, who— 
‘‘(A) obtains or has obtained a bachelor’s 
or graduate degree from an institution of high-
er education; and 
‘‘(B) obtains employment in Indian coun-
try. 
‘‘(2) METHOD
OF
LOAN
FORGIVENESS.—To 
provide the loan forgiveness authorized in paragraph 
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(1), the Secretary is authorized to carry out a pro-
gram— 
‘‘(A) through the holder of the loan, to as-
sume the obligation to repay a qualified loan 
amount for a loan made under this part; and 
‘‘(B) to cancel a qualified loan amount for 
a loan made under part D of this title. 
‘‘(3) AWARD BASIS; PRIORITY.— 
‘‘(A) AWARD BASIS.—Subject to subpara-
graph (B), loan forgiveness under this section 
shall be on a first-come, first-served basis, and 
subject to the availability of appropriations. 
‘‘(B) PRIORITIES.—The Secretary shall, by 
regulation, establish a system for giving priority 
in providing loan forgiveness under this section 
to individuals based on the following factors: 
‘‘(i) The level of poverty in the locality 
within Indian country where the individual 
is employed. 
‘‘(ii) Whether the individual is an en-
rolled member of an Indian tribe. 
‘‘(iii) Whether such enrolled member 
is performing employment in the Indian 
country of the Indian tribe in which they 
are enrolled. 
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‘‘(iv) The ratio of the individual’s stu-
dent loan debt to the individual’s annual 
income. 
‘‘(v) Whether the individual’s em-
ployer will provide an additional amount or 
a matching percentage for student loan re-
payment for the individual. 
‘‘(4) OUTREACH.—The Secretary shall post a 
notice on a Department Internet web site regarding 
the availability of loan forgiveness under this sec-
tion, and shall notify institutions of higher education 
(including Tribal Colleges and Universities) and the 
Bureau of Indian Affairs regarding the availability 
of loan forgiveness under this section. 
‘‘(c) QUALIFIED LOAN AMOUNTS.— 
‘‘(1) PERCENTAGES.—Subject to paragraph (2), 
the Secretary shall assume or cancel the obligation 
to repay under this section— 
‘‘(A) 15 percent of the amount of all loans 
made, insured, or guaranteed after the date of 
enactment of the Indian Country Educational 
Empowerment Zone Act to a student under 
part B or D, for each of the first and second 
years of employment in Indian country; 
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‘‘(B) 20 percent of such total amount, for 
each of the third and fourth years of such em-
ployment; and 
‘‘(C) 30 percent of such total amount, for 
the fifth year of such employment. 
‘‘(2) MAXIMUM.—The Secretary shall not repay 
or cancel under this section more than— 
‘‘(A) $20,000 in the aggregate of loans 
made, insured, or guaranteed under parts B 
and D, for any student with a bachelor’s de-
gree, but without a graduate degree; and 
‘‘(B) $20,000 of such loans for each year 
of employment, for any student with a graduate 
degree. 
‘‘(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 loan made, insured, or 
guaranteed under part B or D for a borrower who 
meets the requirements of subsection (b)(1), as de-
termined in accordance with regulations prescribed 
by the Secretary. 
‘‘(d) ADDITIONAL REQUIREMENTS.— 
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‘‘(1) NO
REFUNDING
OF
PREVIOUS
PAY-
MENTS.—Nothing in this section shall be construed 
to authorize the refunding of any repayment of a 
loan made under this part or part D. 
‘‘(2) INTEREST.—If a portion of a loan is re-
paid 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 Secretary. 
‘‘(3) DOUBLE BENEFITS PROHIBITED.— 
‘‘(A) INELIGIBILITY OF NATIONAL SERVICE 
AWARD
RECIPIENTS.—No student 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. 12601 et seq.). 
‘‘(B) DOUBLE FORGIVENESS.—No student 
borrower may, for the same service, receive a 
benefit under both this section and section 
428J, 428K, or 460 of this Act or section 108 
of the Indian Health Care Improvement Act 
(25 U.S.C. 1616a). 
‘‘(4) REPAYMENT TO ELIGIBLE LENDERS.—The 
Secretary shall pay to each eligible lender or holder 
for each fiscal year an amount equal to the aggre-
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gate amount of loans which are subject to repayment 
pursuant to this section for such year. 
‘‘(e) APPLICATION FOR REPAYMENT.— 
‘‘(1) IN GENERAL.—Each eligible individual de-
siring loan forgiveness 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. Such 
application shall contain verification from the em-
ployer of the employment in Indian country. 
‘‘(2) CONDITIONS.—An eligible individual may 
apply for loan forgiveness under this section after 
completing each year of employment in Indian coun-
try. The borrower shall receive forbearance while en-
gaged in such employment unless the borrower is in 
deferment while so engaged. 
‘‘(f) REGULATIONS.—The Secretary is authorized to 
issue such regulations as may be necessary to carry out 
the provisions of this section. 
‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated to carry out this section 
$20,000,000 for fiscal year 2007, and such sums as may 
be necessary for each of the 4 succeeding fiscal years. 
‘‘(h) DEFINITION OF INDIAN TRIBE.—In this section, 
the term ‘Indian tribe’ means any Indian tribe, band, na-
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tion, or other organized group or community, including 
any Alaska Native village, which is recognized as eligible 
for the special programs and services provided by the 
United States to Indians because of their status as Indi-
ans.’’. 
Æ 
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