SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Teacher Education Assistance 
Creating Hope for Our Future Act of 2008'', or the ``TEACH for Our 
Future Act of 2008''.

SEC. 2. FFEL PROGRAM LOAN FORGIVENESS FOR TEACHERS.

    Section 428J of the Higher Education Act of 1965 (20 U.S.C. 1078-
10) is amended--
            (1) by amending subsection (b) to read as follows:
    ``(b) Program Authorized.--
            ``(1) In general.--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 (c), for any borrower--
                    ``(A) who--
                            ``(i) has been employed as a full-time 
                        elementary school or secondary school teacher 
                        for 5 consecutive complete school years at any 
                        public school; or
                            ``(ii) is a new borrower on or after 
                        October 1, 1998, and who has been employed as a 
                        full-time private school teacher for 5 
                        consecutive complete school years--
                                    ``(I) in a school that qualifies 
                                under section 465(a)(2)(A) for loan 
                                cancellation for Perkins loan 
                                recipients who teach in such schools; 
                                and
                                    ``(II) if employed as an elementary 
                                school or secondary school teacher, is 
                                highly qualified as defined in section 
                                9101 of the Elementary Secondary 
                                Education Act of 1965, or meets the 
                                requirements of subsection (g)(3); and
                    ``(B) who is not in default on a loan for which the 
                borrower seeks forgiveness.
            ``(2) Special rule.--No borrower may obtain a reduction of 
        loan obligations under both this section and section 460.'';
            (2) in subsection (c)--
                    (A) by amending paragraph (1) to read as follows:
            ``(1) In general.--Of the loan obligation on a loan made 
        under section 428 or 428H that is outstanding after the 
        completion of the fifth complete school year of teaching 
        described in subsection (b)(1)(A), the Secretary shall repay 
        not more than--
                    ``(A) $25,000 in the aggregate for a borrower 
                described in subsection (b)(1)(A)(i); and
                    ``(B) $5,000 in the aggregate for a borrower 
                described in subsection (b)(1)(A)(ii), except as 
                provided in paragraph (3) of this subsection.''; and
                    (B) in paragraph (3)--
                            (i) in the header, by inserting ``private 
                        school'' before ``teachers'';
                            (ii) in subparagraph (A)(i), by striking 
                        ``subsection (b)'' and inserting ``subsection 
                        (b)(1)(A)(ii)'';
                            (iii) in subparagraph (B)(i), by striking 
                        ``subsection (b)'' and inserting ``subsection 
                        (b)(1)(A)(ii)''; and
                            (iv) in subparagraph (B)(iii), by striking 
                        ``public or'' before ``non-profit''; and
            (3) in subsection (g)--
                    (A) in paragraph (1)(A), by striking ``(b)(1)(A)'' 
                and inserting ``(b)(1)(A)(ii)(I)''; and
                    (B) in paragraph (3), by striking ``(b)(1)(B)'' and 
                inserting ``(b)(1)(A)(ii)(II)''.

SEC. 3. DIRECT LOAN PROGRAM LOAN FORGIVENESS FOR TEACHERS.

    Section 460 of the Higher Education Act of 1965 (20 U.S.C. 1087j) 
is amended--
            (1) in subsection (b), by amending paragraph (1) to read as 
        follows:
            ``(1) In general.--The Secretary shall carry out a program 
        of canceling the obligation to repay a qualified loan amount in 
        accordance with subsection (c) for Federal Direct Stafford 
        Loans and Federal Direct Unsubsidized Stafford Loans made under 
        this part for any borrower--
                    ``(A) who--
                            ``(i) has been employed as a full-time 
                        elementary school or secondary school teacher 
                        for 5 consecutive complete school years at any 
                        public school; or
                            ``(ii) is a new borrower on or after 
                        October 1, 1998, and who has been employed as a 
                        full-time private school teacher for 5 
                        consecutive complete school years--
                                    ``(I) in a school that qualifies 
                                under section 465(a)(2)(A) for loan 
                                cancellation for Perkins loan 
                                recipients who teach in such schools; 
                                and
                                    ``(II) if employed as an elementary 
                                school or secondary school teacher, is 
                                highly qualified as defined in section 
                                9101 of the Elementary Secondary 
                                Education Act of 1965, or meets the 
                                requirements of subsection (g)(3); and
                    ``(B) who is not in default on a loan for which the 
                borrower seeks forgiveness.'';
            (2) in subsection (c)--
                    (A) by amending paragraph (1) to read as follows:
            ``(1) In general.--Of the loan obligation on a Federal 
        Direct Stafford Loan or a Federal Direct Unsubsidized Stafford 
        Loan that is outstanding after the completion of the fifth 
        complete school year of teaching described in subsection 
        (b)(1)(A), the Secretary shall cancel not more than--
                    ``(A) $25,000 in the aggregate for a borrower 
                described in subsection (b)(1)(A)(i); and
                    ``(B) $5,000 in the aggregate for a borrower 
                described in subsection (b)(1)(A)(ii), except as 
                provided in paragraph (3) of this subsection.''; and
                    (B) in paragraph (3)--
                            (i) in the header, by inserting ``private 
                        school'' before ``teachers'';
                            (ii) in subparagraph (A)(i), by striking 
                        ``subsection (b)(1)'' and inserting 
                        ``subsection (b)(1)(A)(ii)'';
                            (iii) in subparagraph (B)(i), by striking 
                        ``subsection (b)(1)'' and inserting 
                        ``subsection (b)(1)(A)(ii)''; and
                            (iv) in subparagraph (B)(iii), by striking 
                        ``public or'' before ``non-profit''; and
            (3) in subsection (g)--
                    (A) in paragraph (1)(A), by striking ``(b)(1)(A)'' 
                and inserting ``(b)(1)(A)(ii)(I)''; and
                    (B) in paragraph (3), by striking ``(b)(1)(A)(ii)'' 
                and inserting ``(b)(1)(A)(ii)(II)''.
Output: Teacher Education Assistance Creating Hope for Our Future Act of 2008 or the TEACH for Our Future Act of 2008 - Amends the Higher Education Act of 1965 to expand the loan forgiveness available to public elementary and secondary school teachers under the Federal Family Education Loan (FFEL) and Direct Loan (DL) programs.

Makes inapplicable to public school teachers the requirements limiting loan forgiveness to: (1) new borrowers on or after October 1, 1998; and (2) highly qualified teachers in certain schools that serve a high proportion of disadvantaged students. Maintains the requirement that such teachers teach full-time for five consecutive complete school years before becoming eligible for loan forgiveness.

Raises to $25,000 the amount of the FFEL or DL outstanding that may be forgiven after a public school teacher's fifth complete school year of teaching.

Maintains current loan forgiveness eligibility requirements for private elementary and secondary school teachers.