Home > 105th Congressional Bills > H.R. 935 (ih) To amend title 18, United States Code, to impose a penalty upon States that do not give full faith and credit to the protective orders of other States. ...H.R. 935 (ih) To amend title 18, United States Code, to impose a penalty upon States that do not give full faith and credit to the protective orders of other States. ...
108th CONGRESS
1st Session
H. R. 934
To amend the Higher Education Act of 1965 to expand the loan
forgiveness and loan cancellation programs for teachers, to provide
loan forgiveness and loan cancellation programs for nurses, and for
other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 26, 2003
Mrs. McCarthy of New York introduced the following bill; which was
referred to the Committee on Education and the Workforce
_______________________________________________________________________
A BILL
To amend the Higher Education Act of 1965 to expand the loan
forgiveness and loan cancellation programs for teachers, to provide
loan forgiveness and loan cancellation programs for nurses, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Teacher and Nurse Support Act of
2003''.
SEC. 2. FINDINGS AND PURPOSE.
(a) Findings.--Congress finds the following:
(1) According to the National Center for Education
Statistics, over the next 10 years, the United States will need
more than 2,000,000 new teachers to replace the teachers who
are retiring or leaving the classroom for other careers.
(2) The Hart-Rudman National Security Report on education
recommended that the President direct the Department of
Education to work with the States to devise a comprehensive
plan to avert a looming shortage of high-quality teachers.
(3) According to the National Center for Education
Statistics, 20 percent of all new teachers leave the teaching
profession within 3 years. Providing loan forgiveness or loan
cancellation is one step that would help retain high-quality
teachers in schools that need teachers.
(4) The American Hospital Association has reported more
than 126,000 unfilled registered nurse positions in hospitals
in the United States. Additionally, the vacancy rate for
registered nurse positions at nursing homes throughout the
Nation is approaching 20 percent.
(5) College loans are more of a burden than ever for
students and families. According to a recent United States
Public Interest Research Group report, average student loan
debt almost doubled from $9,200 in 1992-1993 to $16,928 in
1999-2000.
(b) Purpose.--The purpose of this Act is to improve access to, and
the delivery of, high-quality educational and health services
throughout the United States by reducing the shortage of qualified
teachers and nurses.
SEC. 3. LOAN FORGIVENESS AND CANCELLATION.
(a) Loan Forgiveness.--Section 428J of the Higher Education Act of
1965 (20 U.S.C. 1078-10) is amended to read as follows:
``SEC. 428J. LOAN FORGIVENESS FOR TEACHERS AND NURSES.
``(a) Statement of Purpose.--It is the purpose of this section to
encourage individuals to enter and continue in the teaching and nursing
professions.
``(b) 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 (c), for any borrower who has 1 or more
loans made under section 428 or 428H after October 1, 1998, and who--
``(1) has been employed--
``(A) as a full-time teacher--
``(i) in a school that qualifies under
section 465(a)(2)(A) for loan cancellation for
Perkins loan recipients who teach in those
schools;
``(ii) if employed as a secondary school
teacher, is teaching a subject area that is
relevant to the borrower's academic major as
certified by the chief administrative officer
of the public or nonprofit private secondary
school in which the borrower is employed; and
``(iii) if employed as an elementary school
teacher, has demonstrated, as certified by the
chief administrative officer of the public or
nonprofit private elementary school in which
the borrower is employed, knowledge and
teaching skills in reading, writing,
mathematics, and other areas of the elementary
school curriculum; or
``(B) as a full-time eligible nurse--
``(i) in a clinical setting; or
``(ii) as a member of the nursing faculty
at an accredited school of nursing (as those
terms are defined in section 801 of the Public
Health Service Act (42 U.S.C. 296)); and
``(2) is not in default on a loan for which the borrower
seeks forgiveness.
``(c) Qualified Loan Amount.--
``(1) In general.--
``(A) Aggregate amount.--The Secretary shall, in
installments in accordance with subparagraph (B), repay
not more than $17,500 in the aggregate of the loan
obligation on a loan made under section 428 or 428H
that is outstanding after the completion of each
complete--
``(i) school year of teaching described in
subsection (b)(1)(A); or
``(ii) year of nursing described in
subsection (b)(1)(B).
``(B) Annual installments.--The Secretary shall
repay the loan obligation on such a loan in annual
installments after each of 5 years of such service not
to exceed the lesser of the remaining outstanding
obligation or--
``(i) $2,000 at the completion of the first
year of such service;
``(ii) $2,500 at the completion of the
second year of such service;
``(iii) $3,500 at the completion of the
third year of such service;
``(iv) $4,500 at the completion of the
fourth year of such service; and
``(v) $5,000 at the completion of the fifth
year of such service.
``(C) Relation to loan cancellation.--No borrower
may receive a reduction of loan obligations under both
this section and section 460.
``(2) 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 the
loan amount was used to repay a Federal Direct Stafford Loan, a
Federal Direct Unsubsidized Stafford Loan, or a loan made under
section 428 or 428H for a borrower who meets the requirements
of subsection (b), as determined in accordance with regulations
prescribed by the Secretary.
``(3) Forbearance on qualified loan amount.--A holder of a
loan on which a borrower is seeking forgiveness under this
section--
``(A) shall grant forbearance, at the request of
the borrower, in annual increments for each of the
years of qualifying service if the holder believes, at
the time of the borrower's annual request, that the
amount expected to be forgiven under this section at
the completion of the period of qualifying service will
satisfy the anticipated remaining outstanding balance
on the loan; and
``(B) may offer other forbearance options to the
borrower.
``(d) Regulations.--The Secretary is authorized to issue such
regulations as may be necessary to carry out the provisions of this
section.
``(e) Construction.--Nothing in this section shall be construed to
authorize any refunding of any repayment of a loan.
``(f) List of Schools.--If the list of schools in which a teacher
may perform service pursuant to subsection (b)(1)(A) is not available
before May 1 of any year, the Secretary may use the list for the year
preceding the year for which the determination is made to make the
service determination.
``(g) Additional Eligibility Provisions.--
``(1) Continued eligibility for teachers.--Any teacher who
performs service in a school that--
``(A) meets the requirements of subsection
(b)(1)(A)(i) in any year during such service; and
``(B) in a subsequent year fails to meet the
requirements of that subsection,
may continue to teach in the school and shall be eligible for
loan forgiveness pursuant to subsection (b).
``(2) Prevention of double benefits.--No borrower may, for
the same service, receive a benefit under both this subsection
and--
``(A) subtitle D of title I of the National and
Community Service Act of 1990 (42 U.S.C. 12571 et
seq.); and
``(B) section 846 of the Public Health Service Act
(42 U.S.C. 297n).
``(h) Definitions.--In this section:
``(1) Eligible nurse.--The term `eligible nurse' means a
nurse who meets all of the following:
``(A) The nurse graduated from--
``(i) an accredited school of nursing (as
those terms are defined in section 801 of the
Public Health Service Act (42 U.S.C. 296));
``(ii) a nursing center; or
``(iii) an academic health center that
provides nurse training.
``(B) The nurse holds a valid and unrestricted
license to practice nursing in the State in which the
nurse practices in a clinical setting.
``(C) The nurse holds 1 or more of the following:
``(i) A graduate degree in nursing or
equivalent degree.
``(ii) A nursing degree from a collegiate
school of nursing (as defined in section 801 of
the Public Health Service Act (42 U.S.C. 296)).
``(iii) A nursing degree from an associate
degree school of nursing (as defined in section
801 of the Public Health Service Act (42 U.S.C.
296)).
``(iv) A nursing degree from a diploma
school of nursing (as defined in section 801 of
the Public Health Service Act (42 U.S.C. 296)).
``(2) Year.--The term `year', where applied to service as a
teacher (or service as a member of an accredited school of
nursing (as those terms are defined in section 801 of the
Public Health Service Act (42 U.S.C. 296))), means an academic
year as defined by the Secretary.''.
(b) Loan Cancellation.--Section 460 of the Higher Education Act of
1965 (20 U.S.C. 1087j) is amended to read as follows:
``SEC. 460. LOAN CANCELLATION FOR TEACHERS AND NURSES.
``(a) Statement of Purpose.--It is the purpose of this section to
encourage individuals to enter and continue in the teaching and nursing
professions.
``(b) Program Authorized.--
``(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 who has 1 or more loans made under
this part after October 1, 1998, and who has been employed--
``(A) as a full-time teacher--
``(i) in a school that qualifies under
section 465(a)(2)(A) for loan cancellation for
Perkins loan recipients who teach in those
schools;
``(ii) if employed as a secondary school
teacher, is teaching a subject area that is
relevant to the borrower's academic major as
certified by the chief administrative officer
of the public or nonprofit private secondary
school in which the borrower is employed; and
``(iii) if employed as an elementary school
teacher, has demonstrated, as certified by the
chief administrative officer of the public or
nonprofit private elementary school in which
the borrower is employed, knowledge and
teaching skills in reading, writing,
mathematics, and other areas of the elementary
school curriculum; or
``(B) as a full-time eligible nurse--
``(i) in a clinical setting; or
``(ii) as a member of the nursing faculty
at an accredited school of nursing (as those
terms are defined in section 801 of the Public
Health Service Act (42 U.S.C. 296)); and
``(2) is not in default on a loan for which the borrower
seeks forgiveness.
``(c) Qualified Loan Amounts.--
``(1) In general.--
``(A) Aggregate amount.--The Secretary shall, in
installments in accordance with subparagraph (B),
cancel not more than $17,500 in the aggregate of the
loan obligation on a Federal Direct Stafford Loan or a
Federal Direct Unsubsidized Stafford Loan that is
outstanding after the completion of each complete--
``(i) school year of teaching described in
subsection (b)(1)(A); or
``(ii) year of nursing described in
subsection (b)(1)(B).
``(B) Annual installments.--The Secretary shall
repay the loan obligation on such a loan in annual
installments after each of 5 years of such service not
to exceed the lesser of the remaining outstanding
obligation or--
``(i) $2,000 at the completion of the first
year of such service;
``(ii) $2,500 at the completion of the
second year of such service;
``(iii) $3,500 at the completion of the
third year of such service;
``(iv) $4,500 at the completion of the
fourth year of such service; and
``(v) $5,000 at the completion of the fifth
year of such service.
``(C) Relation to loan repayment.--No borrower may
receive a reduction of loan obligations under both this
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