To amend the Higher Education Act of 1965 to establish student loan forgiveness programs for adult education instructors.

SECTION. 1. SHORT TITLE.

    This Act may be cited as the ``Adult Education Instructor 
Recruitment and Retention Act of 2002''.

SEC. 2. FINDINGS.

    The Congress finds the following:
            (1) Adult literacy and remedial education teachers provide 
        adults and out-of-school youths basic skills that equip them to 
        solve problems and become active participants in our society, 
        to hold a job, and to further their education.
            (2) Students in adult literacy and remedial education 
        classes are made up of those who dropped out of school or have 
        passed through the school system without an adequate education. 
        It also includes students who want to take the General 
        Educational Development examination and, increasingly, 
        immigrants whose native language is not English.
            (3) In the year 1998, there were over 4,000,000 students 
        enrolled in adult education programs throughout the United 
        States.
            (4) Nearly one-fourth of the 4,000,000 students enrolled 
        were unemployed. Another 24 percent were working poor. Welfare 
        recipients comprised almost 10 percent of all students in 1998.
            (5) That same year, there were 177,943 adult education 
        instructors. Nearly 23,000 of those were working full-time, 
        with another 69,129 working part-time. The remaining 85,924 
        teachers were volunteers.
            (6) Adult education has been shown to assist persons in 
        achieving job skills and gain or advance in employment. For 
        example, in 1998, over 150,000 adult education students went on 
        to do other training; nearly 300,000 students retained, 
        advanced, or gained employment.
            (7) As employers increasingly require a more literate 
        workforce, workers' demand will grow for all types of literacy 
        and remedial classes.
            (8) A softening economy may require more students to obtain 
        additional education to get a job.
            (9) Adult education instructors often feel they are not as 
        respected by education departments as their general education 
        peers. Funding is generally inadequate, and resources are often 
        old or nonexistent. Funding level changes can cause the number 
        of teaching jobs to fluctuate from year to year.
            (10) Median hourly earnings of adult literacy and remedial 
        education teachers and high school equivalency instructors were 
        $16.12 in 2000. Yet, many adult education teachers have high 
        student loans that they need to repay.

SEC. 3. LOAN FORGIVENESS FOR ADULT EDUCATION INSTRUCTORS.

    (a) Guaranteed Student 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 ADULT EDUCATION INSTRUCTORS.

    ``(a) Purpose.--It is the purpose of this section--
            ``(1) to bring more highly trained individuals into the 
        adult education profession; and
            ``(2) to keep more highly trained adult education 
        instructors in the adult education field for longer periods of 
        time.
    ``(b) Definitions.--In this section:
            ``(1) Adult education facility.--The term `adult education 
        facility' means a facility that provides any of the following 
        types of educational instruction for individuals 16 years old 
        and older:
                    ``(A) Education for adults with limited English 
                proficiency.
                    ``(B) Adult secondary education.
                    ``(C) Literacy education for older adults.
                    ``(D) Adult basic education programs for adults 
                with disabilities.
            ``(2) Year.--The term `year', when applied to service as an 
        adult education instructor means any period of 365 consecutive 
        days.
            ``(3) Low-income family.--The term `low-income family' 
        means a low-income family, as determined by the local 
        educational agency for purposes of allocating funds to schools 
        under section 1113(c)(1) of the Elementary and Secondary 
        Education Act of 1965 (20 U.S.C. 6313(c)(1)).
            ``(4) Low-income community.--An adult education facility is 
        serving a low-income community if at least 70 percent of the 
        students enrolled at the facility are from low-income families.
            ``(5) Full-time.--The term `full-time' means employment 
        that includes at least 30 hours per week of adult education 
        teaching.
    ``(c) Program Authorized.--The Secretary shall carry out a program, 
through the holder of the loan, of assuming the obligation to repay a 
qualified loan amount for a loan made under section 428 or 428H, in 
accordance with subsection (d) of this section, for any borrower who--
            ``(1) has been employed as a full-time teacher for 3 
        consecutive years in an adult education facility that serves a 
        low-income community; and
            ``(2) is not in default on a loan for which the borrower 
        seeks forgiveness.
    ``(d) Loan Repayment.--
            ``(1) In general.--The Secretary shall assume the 
        obligation to repay a qualified loan amount for each year of 
        employment described in subsection (c)(1) completed after the 
        date of enactment of this section, but counting consecutive 
        years before or after such date for purposes of determining the 
        number of consecutive years. Such qualified loan amount shall 
        be equal to--
                    ``(A) $500 for the third consecutive year of 
                employment;
                    ``(B) $1,000 for the fourth consecutive year of 
                such employment;
                    ``(C) $1,500 for the fifth consecutive year of such 
                employment; and
                    ``(D) $2,000 for the sixth consecutive year of such 
                employment.
            ``(2) No refunds.--Nothing in this section shall be 
        construed to authorize the refunding of any repayment of a loan 
        made under this part.
            ``(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 Secretary.
            ``(4) 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.).
    ``(e) Repayment to Eligible Lenders.--The Secretary 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 section for such year.
    ``(f) Application for Repayment.--
            ``(1) In general.--Each eligible individual desiring loan 
        repayment under this section shall submit a complete and 
        accurate application to the Secretary at such time, in such 
        manner, and containing such information as the Secretary may 
        require.
            ``(2) Conditions.--An eligible individual may apply for 
        loan repayment under this section after completing each year of 
        qualifying employment. The borrower shall receive forbearance 
        while engaged in qualifying employment unless the borrower is 
        in deferment while so engaged.
    ``(g) Regulations.--The Secretary is authorized to prescribe such 
regulations as may be necessary to carry out the provisions of this 
section.
    ``(h) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $50,000,000 for fiscal year 
2003, and such sums as may be necessary for succeeding fiscal years.''.
    (b) Direct Loans.--Part D of title IV of the Higher Education Act 
of 1965 is amended by inserting after section 460 (20 U.S.C. 1087j) the 
following new section:

``SEC. 460A. LOAN FORGIVENESS FOR ADULT EDUCATION INSTRUCTORS.

    ``(a) Purpose.--It is the purpose of this section--
            ``(1) to bring more highly trained individuals into the 
        adult education profession; and
            ``(2) to keep more highly trained adult education 
        instructors in the adult education field for longer periods of 
        time.
    ``(b) Definitions.--In this section:
            ``(1) Adult education facility.--The term `adult education 
        facility' means a facility that provides any of the following 
        types of educational instruction for individuals 16 years old 
        and older:
                    ``(A) Education for adults with limited English 
                proficiency.
                    ``(B) Adult secondary education.
                    ``(C) Literacy education for older adults.
                    ``(D) Adult basic education programs for adults 
                with disabilities.
            ``(2) Year.--The term `year', when applied to service as an 
        adult education instructor means any period of 365 consecutive 
        days.
            ``(3) Low-income family.--The term `low-income family' 
        means a low-income family, as determined by the local 
        educational agency for purposes of allocating funds to schools 
        under section 1113(c)(1) of the Elementary and Secondary 
        Education Act of 1965 (20 U.S.C. 6313(c)(1)).
            ``(4) Low-income community.--An adult education facility is 
        serving a low-income community if at least 70 percent of the 
        students enrolled at the facility are from low-income families.
            ``(5) Full-time.--The term `full-time' means employment 
        that includes at least 30 hours per week of adult education 
        teaching.
    ``(c) Program Authorized.--The Secretary shall carry out a program 
of cancelling the obligation to repay a qualified loan amount for 
Federal Direct Stafford Loans and Federal Direct Unsubsidized Stafford 
Loans in accordance with subsection (d) of this section, for any 
borrower who--
            ``(1) has been employed as a full-time teacher for 3 
        consecutive years in an adult education facility that serves a 
        low-income community; and
            ``(2) is not in default on a loan for which the borrower 
        seeks forgiveness.
    ``(d) Loan Repayment.--
            ``(1) In general.--The Secretary shall cancel the 
        obligation to repay a qualified loan amount for each year of 
        employment described in subsection (c)(1) completed after the 
        date of enactment of this section, but counting consecutive 
        years before or after such date for purposes of determining the 
        number of consecutive years. Such qualified loan amount shall 
        be equal to--
                    ``(A) $500 for the third consecutive year of 
                employment;
                    ``(B) $1,000 for the fourth consecutive year of 
                such employment;
                    ``(C) $1,500 for the fifth consecutive year of such 
                employment; and
                    ``(D) $2,000 for the sixth consecutive year of such 
                employment.
            ``(2) No refunds.--Nothing in this section shall be 
        construed to authorize the refunding of any repayment of a loan 
        made under this part.
            ``(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 Secretary.
            ``(4) 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.).
    ``(e) Repayment to Eligible Lenders.--The Secretary 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 section for such year.
    ``(f) Application for Repayment.--
            ``(1) In general.--Each eligible individual desiring loan 
        repayment under this section shall submit a complete and 
        accurate application to the Secretary at such time, in such 
        manner, and containing such information as the Secretary may 
        require.
            ``(2) Conditions.--An eligible individual may apply for 
        loan repayment under this section after completing each year of 
        qualifying employment. The borrower shall receive forbearance 
        while engaged in qualifying employment unless the borrower is 
        in deferment while so engaged.
    ``(g) Regulations.--The Secretary is authorized to prescribe such 
regulations as may be necessary to carry out the provisions of this 
section.
    ``(h) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $50,000,000 for fiscal year 
2003, and such sums as may be necessary for succeeding fiscal years.''.

Summary: Adult Education Instructor Recruitment and Retention Act of 2002 - Amends the Higher Education Act of 1965 to establish student loan forgiveness programs for adult education instructors.