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SECTION 1. SHORT TITLE.

This Act may be cited as the ''Canceling Loans to Allow School
Systems to Attract Classroom Teachers Act''.

SEC. 2. ADDITIONAL QUALIFIED LOAN AMOUNTS FOR STUDENT LOAN FORGIVENESS.

(a) FFEL Loans.--Section 428J(c) of the Higher Education Act of
1965 (20 U.S.C. 1078-10(c)) is amended by adding at the end the
following new paragraph:
''(3) Additional amounts; priority.--
''(A) Larger amounts from appropriated funds.--
Notwithstanding the amount specified in paragraph (1),
the aggregate amount that the Secretary may, from funds
appropriated under subparagraph (C), repay under this
section is a total amount equal to not more than
$17,500.
''(B) Award basis; priority.--The Secretary shall
make payments under this paragraph to elementary or
secondary school teachers who meet the requirements of
subsection (b) on a first-come first-served basis,
subject to the availability of appropriations, but
shall give priority in providing loan repayment under
this paragraph for a fiscal year to teachers who--
''(i)(I) are employed as special education
teachers whose primary responsibility is to
teach or support children with disabilities (as
defined in section 602 of the Individuals with
Disabilities Act); and
''(II) as certified by the chief
administrative officer of the public or
nonprofit private elementary or secondary
school in which the borrower is employed, are
teaching children with disabilities that
correspond with the borrower's training and
have demonstrated knowledge and teaching skills
in the content areas of the elementary or
secondary school curriculum that the borrower
is teaching;
''(ii) are employed as teachers in local
educational agencies that are determined by a
State educational agency under section 2141 of
the Elementary and Secondary Education Act of
1965 to have failed to make progress toward
meeting the annual measurable objectives
described in section 1119(a)(2) of such Act for
2 consecutive years; or
''(iii) are employed as teachers of
mathematics or science.
''(C) Authorization of appropriations.--There are
authorized to be appropriated to carry out this
paragraph such sums as may be necessary for fiscal year
2003 and for each of the 4 succeeding fiscal years.''.
(b) Direct Loans.--Section 460(c) of the Higher Education Act of
1965 (20 U.S.C. 1087j(c)) is amended by adding at the end the following
new paragraph:
''(3) Additional amounts; priority.--
''(A) Larger amounts from appropriated funds.--
Notwithstanding the amount specified in paragraph (1),
the aggregate amount that the Secretary may, from funds
appropriated under subparagraph (C), repay under this
section is a total amount equal to not more than
$17,500.
''(B) Award basis; priority.--The Secretary shall
make payments under this paragraph to elementary or
secondary school teachers who meet the requirements of
subsection (b) on a first-come first-served basis,
subject to the availability of appropriations, but
shall give priority in providing loan repayment under
this paragraph for a fiscal year to teachers who--
''(i)(I) are employed as special education
teachers whose primary responsibility is to
teach or support children with disabilities (as
defined in section 602 of the Individuals with
Disabilities Act); and
''(II) as certified by the chief
administrative officer of the public or
nonprofit private elementary or secondary
school in which the borrower is employed, are
teaching children with disabilities that
correspond with the borrower's training and
have demonstrated knowledge and teaching skills
in the content areas of the elementary or
secondary school curriculum that the borrower
is teaching;
''(ii) are employed as teachers in local
educational agencies that are determined by a
State educational agency under section 2141 of
the Elementary and Secondary Education Act of
1965 to have failed to make progress toward
meeting the annual measurable objectives
described in section 1119(a)(2) of such Act for
2 consecutive years; or
''(iii) are employed as teachers of
mathematics or science.
''(C) Authorization of appropriations.--There are
authorized to be appropriated to carry out this
paragraph such sums as may be necessary for fiscal year
2003 and for each of the 4 succeeding fiscal years.''.

SEC. 3. CANCELLATION OF STUDENT LOAN INDEBTEDNESS FOR SPOUSES,
SURVIVING JOINT DEBTORS, AND PARENTS.

(a) Definitions.--For purposes of this section:
(1) Eligible public servant.--The term ''eligible public
servant'' means an individual who--
(A) served as a police officer, firefighter, other
safety or rescue personnel, or as a member of the Armed
Forces; and
(B) died (or dies) or became (or becomes)
permanently and totally disabled due to injuries
suffered in the terrorist attack on September 11, 2001;
as determined in accordance with regulations of the Secretary.
(2) Eligible victim.--The term ''eligible victim'' means an
individual who died (or dies) or became (or becomes)
permanently and totally disabled due to injuries suffered in
the terrorist attack on September 11, 2001, as determined in
accordance with regulations of the Secretary.
(3) Eligible spouse.--The term ''eligible spouse'' means
the spouse of an eligible public servant, as determined in
accordance with regulations of the Secretary.
(4) Eligible surviving debtor.--The term ''eligible
surviving debtor'' means an individual who owes a Federal
student loan that is a consolidation loan that was used,
jointly by that individual and an eligible victim, to repay the
Federal student loans of that individual and of such eligible
victim.
(5) Eligible parent.--The term ''eligible parent'' means
the parent of an eligible victim if--
''(A) the parent owes a Federal student loan that
is a consolidation loan that was used to repay a PLUS
loan incurred on behalf of such eligible victim; or
''(B) the parent owes a Federal student loan that
is a PLUS loan incurred on behalf of an eligible victim
who became (or becomes) permanently and totally
disabled due to injuries suffered in the terrorist
attack on September 11, 2001.
(6) Secretary.--The term ''Secretary'' means the Secretary
of Education.
(7) Federal student loan.--The term ''Federal student
loan'' means any loan made, insured, or guaranteed under part
B, D, or E of title IV of the Higher Education Act of 1965.
(b) Relief From Indebtedness.--
(1) In general.--The Secretary shall provide for the
discharge or cancellation of--
(A) the Federal student loan indebtedness of an
eligible spouse;
(B) the consolidation loan indebtedness of an
eligible surviving debtor;
(C) the portion of the consolidation loan
indebtedness of an eligible parent that was incurred on
behalf of an eligible victim, if the amount of such
indebtedness with respect to such eligible victim may
be reliably determined on the basis of records
available to the lender; and
(D) the PLUS loan indebtedness of an eligible
parent that was incurred on behalf of an eligible
victim described in subsection (a)(5)(B).
(2) Method of discharge or cancellation.--A loan required
to be discharged or canceled under paragraph (1) shall be
discharged or canceled by the method used under section 437(a),
455(a)(1), or 464(c)(1)(F) of the Higher Education Act of 1965
(20 U.S.C. 1087(a), 1087e(a)(1), 1087dd(c)(1)(F)), whichever is
applicable to such loan.
(c) Facilitation of Claims.--The Secretary shall--
(1) establish procedures for the filing of applications for
discharge or cancellation under this section by regulations
that shall be prescribed and published within 90 days after the
date of enactment of this Act and without regard to the
requirements of section 553 of title 5, United States Code; and
(2) take such actions as may be necessary to publicize the
availability of discharge or cancellation of Federal student
loan indebtedness for eligible spouses, eligible surviving
debtors, and eligible parents under this section.
(d) Availability of Funds for Payments.--Funds available for the
purposes of making payments to lenders in accordance with section
437(a) for the discharge of indebtedness of deceased or disabled
individuals shall be available for making payments under section 437(a)
to lenders of loans to the eligible spouses, eligible surviving
debtors, and eligible parents as required by this section.
(e) Applicable to Outstanding Debt.--The provisions of this section
shall be applied to discharge or cancel only Federal student loans
(including consolidation loans) on which amounts were owed on September
11, 2001.

SEC. 4. INFORMATION ON BENEFITS TO RURAL SCHOOL DISTRICTS.

The Secretary shall--
(1) notify local educational agencies eligible to
participate in the Small Rural Achievement Program authorized
under subpart 1 of part B of Title VI of the Elementary and
Secondary Education of 1965 of the benefits available under the
amendments made by section 2 of this Act to the teachers in the
rural schools of such agencies; and
(2) encourage such agencies to notify their teachers of
such benefits.

Passed the House of Representatives October 1, 2002.

Attest:

JEFF TRANDAHL,

Clerk.
Canceling Loans to Allow School Systems to Attract Classroom Teachers Act - (Sec. 2) Amends the Higher Education Act of 1965 (HEA) to provide for additional amounts of student loan forgiveness for certain elementary and secondary school teachers. Directs the Secretary of Education, in making such additional repayments, to give priority to teachers of: (1) special education for children with disabilities, if they are certified as having knowledge and skills in their content areas and are employed by local educational agencies that have failed to make progress toward meeting certain objectives; or (2) mathematics or science.(Sec. 3) Directs the Secretary of Education to discharge or cancel the Federal student loan indebtedness, under HEA, of spouses, surviving joint debtors, and parents of public servants and other individuals who died (or die) or who became (or become) permanently and totally disabled from injuries suffered in the terrorist attacks on September 11, 2001.(Sec. 4) Requires the Secretary to notify local educational agencies eligible for the Small Rural Achievement Program, under the Elementary and Secondary Education of 1965, of this Act's making available additional amounts of student loan forgiveness to teachers in their rural schools, and to encourage such agencies to notify their teachers of such benefits.