Home > 106th Congressional Bills > S. 406 (enr) To amend the Indian Health Care Improvement Act to make permanent the demonstration program that allows for direct billing of medicare, medicaid, and other third party payors, and to expand the eligibility under such program to other tribes a...S. 406 (enr) To amend the Indian Health Care Improvement Act to make permanent the demonstration program that allows for direct billing of medicare, medicaid, and other third party payors, and to expand the eligibility under such program to other tribes a...
108th CONGRESS
1st Session
S. 405
To amend the Higher Education Act of 1965 to improve the loan
forgiveness program for child care providers, including preschool
teachers, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
February 13, 2003
Mr. DeWine (for himself and Mr. Dodd) introduced the following bill;
which was read twice and referred to the Committee on Health,
Education, Labor, and Pensions
_______________________________________________________________________
A BILL
To amend the Higher Education Act of 1965 to improve the loan
forgiveness program for child care providers, including preschool
teachers, 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 ``Paul Wellstone Early Educator Loan
Forgiveness Act''.
SEC. 2. FINDINGS.
Congress finds the following:
(1)(A) The first 5 years of a child's life are a time of
momentous change.
(B) Research shows that a child's brain size doubles
between birth and age 3.
(2) New scientific research shows that the electrical
activity of the brain cells actually changes the physical
structure of the brain, and that without a stimulating
environment, a baby's brain suffers.
(3) Research also indicates that there is a connection
between the cognitive, social, emotional, and physical
stimulation young children receive from their early childhood
teachers and caregivers and success in learning, school
readiness, and intellectual growth. There are important short-
and long-term effects of that stimulation on cognition and
social development.
(4) High quality early childhood education correlates with
better language development, mathematics abilities, and social
skills.
(5) 11,900,000 children younger than age 5 spend part of
their time with a child care provider other than a parent. By
2000, 64 percent of 3- to 5-year-olds were enrolled in some
type of preschool program. Demand for child care is growing as
more mothers enter the workforce.
(6) Good quality child care, in a healthy and safe
environment, with trained, caring providers who provide age-
appropriate, developmentally appropriate, and effective
activities, helps children grow and thrive. Recent research
shows that most child care needs significant improvement.
(7) Good quality child care depends largely on the
provider, yet providers of child care earn on average $7.86 per
hour, or $16,350 per year. Such earnings cause high annual
turnover, up to 31 percent of the staff in some child care
programs. High turnover affects the overall quality of a child
care program and causes anxiety for children.
(8) Children attending lower quality child care programs
and child care programs with high staff turnover are less
competent in language and social development than other
children.
(9) The quality of child care is primarily related to high
staff-to-child ratios, staff education, professional
development, and administrators' prior experience. In addition,
certain characteristics distinguish poor, mediocre, and good
quality child care programs, the most important of which are
teacher wages, education, and specialized training.
(10) Each State requires kindergarten teachers to hold at
least a bachelor's degree and certificate in early childhood
education. Only 20 States and the District of Columbia require
teachers in prekindergarten programs to satisfy those
requirements. Thirty States allow caregivers with no previous
training to work in child care programs.
SEC. 3. LOAN FORGIVENESS FOR CHILD CARE PROVIDERS.
Section 428K of the Higher Education Act of 1965 (20 U.S.C. 1078-
11) is amended to read as follows:
``SEC. 428K. LOAN FORGIVENESS FOR CHILD CARE PROVIDERS.
``(a) Purposes.--The purposes of this section are--
``(1) to bring more highly trained individuals into the
early child care profession; and
``(2) to keep more highly trained child care providers in
the early child care field for longer periods of time.
``(b) Definitions.--In this section:
``(1) Child care facility.--The term `child care facility'
means a facility, including a home, that--
``(A) provides child care services; and
``(B) meets applicable State or local government
licensing, certification, approval, or registration
requirements, if any.
``(2) Child care services.--The term `child care services'
means activities and services provided for the education and
care of children from birth through age 5 by an individual who has a
degree in early childhood education, including a preschool teacher.
``(3) Degree.--The term `degree' means an associate's or
bachelor's degree awarded by an institution of higher
education.
``(4) Early childhood education.--The term `early childhood
education' means education in the area of early child
development and education, or any other educational area
related to early child development and education or child care,
that the Secretary determines to be appropriate.
``(5) Eligible preschool program provider.--The term
`eligible preschool program provider' means a preschool program
provider serving children younger than the age of compulsory
school attendance in the State that is--
``(A) a public or private school;
``(B) a provider that is supported, sponsored,
supervised, or administered by a local educational
agency;
``(C) a Head Start agency designated under the Head
Start Act (42 U.S.C. 9831 et seq.);
``(D) a nonprofit or community-based organization;
or
``(E) a licensed child care center or family child
care provider.
``(6) Institution of higher education.--Notwithstanding
section 102, the term `institution of higher education' has the
meaning given the term in section 101.
``(7) Preschool teacher.--The term `preschool teacher'
means an individual--
``(A) who has received at least an associate's
degree in early childhood education and who is working
toward or who has already received a bachelor's degree
in early childhood education; and
``(B) who works for an eligible preschool program
provider supporting the children's cognitive, social,
emotional, and physical development to prepare the
children for the transition to kindergarten.
``(c) Loan Forgiveness.--
``(1) In general.--The Secretary may carry out a program of
assuming the obligation to repay, pursuant to subsection (d), a
loan made, insured, or guaranteed under this part, part D
(excluding loans made under sections 428B and 428C or
comparable loans made under part D), or part E for any new
borrower after the date of enactment of the Higher Education
Amendments of 1998, who--
``(A) receives a degree in early childhood
education;
``(B) obtains employment in a child care facility,
such as employment as a preschool teacher; and
``(C) has been employed full time, for the 2
consecutive years preceding the year for which the
determination is made, as a provider of child care
services in a child care facility in a low-income
community.
``(2) Low-income community.--In this subsection, the term
`low-income community' means a community in which 70 percent of
households earn less than 85 percent of the State median
household income.
``(3) Award basis; priority.--
``(A) Award basis.--Subject to subparagraph (B),
loan repayment under this section shall be on a first-
come, first-served basis and subject to the
availability of appropriations.
``(B) Priority.--The Secretary shall give priority
in providing loan repayment under this section for a
fiscal year to student borrowers who received loan
repayment under this section for the preceding fiscal
year.
``(4) Regulations.--The Secretary is authorized to
prescribe such regulations as may be necessary to carry out the
provisions of this section.
``(d) Loan Repayment.--
``(1) In general.--The Secretary shall assume the
obligation to repay--
``(A) after the second consecutive year of
employment described in subparagraphs (B) and (C) of
subsection (c)(1), 20 percent of the total amount of
all loans described in subsection (c)(1) and made after
the date of enactment of the Higher Education
Amendments of 1998, to a student;
``(B) after the third consecutive year of such
employment, 20 percent of the total amount of all such
loans; and
``(C) after each of the fourth and fifth
consecutive years of such employment, 30 percent of the
total amount of all such loans.
``(2) Construction.--Nothing in this section shall be
construed to authorize the refunding of any repayment of a loan
made, insured, or guaranteed under this part, part D, or part
E.
``(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 that accrues for such year
shall be repaid by the Secretary.
``(4) Special rule.--In the case in which a student
borrower who is not participating in loan repayment pursuant to
this section returns to an institution of higher education
after graduation from an institution of higher education for
the purpose of obtaining a degree in early childhood education,
the Secretary is authorized to assume the obligation to repay
the total amount of loans described in subsection (c)(1) and
incurred for a maximum of 2 academic years in returning to the
institution of higher education for the purpose of obtaining
the degree in early childhood education. Such loans shall only
be repaid for borrowers who qualify for loan repayment pursuant
to the provisions of this section, and shall be repaid in
accordance with the provisions of paragraph (1).
``(5) 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 and Holders.--The Secretary
shall pay to each eligible lender or holder for each fiscal year an
amount equal to the aggregate amount of the lender's or holder's loans
that 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 of the
second through the fifth consecutive years of qualifying
employment described in subsection (d)(1). The borrower shall
receive forbearance while engaged in qualifying employment
described in subsection (d)(1) unless the borrower is in
deferment while so engaged.
``(g) Evaluation.--
``(1) In general.--The Secretary shall conduct, by grant or
contract, an independent national evaluation of the impact of
the program assisted under this section on the field of early
childhood education.
``(2) Competitive basis.--The grant or contract described
in paragraph (1) shall be awarded on a competitive basis.
``(3) Contents.--The evaluation described in this
subsection shall--
``(A) determine the number of individuals who were
encouraged by the program assisted under this section
to pursue early childhood education;
``(B) determine the number of individuals who
remain employed in a child care facility as a result of
participation in the program;
``(C) identify the barriers to the effectiveness of
the program;
``(D) assess the cost-effectiveness of the program
in improving the quality of--
``(i) early childhood education; and
``(ii) child care services;
``(E) identify the reasons why participants in the
program have chosen to take part in the program;
``(F) identify the number of individuals
participating in the program who received an
associate's degree and the number of such individuals
who received a bachelor's degree; and
``(G) identify the number of years each individual
participated in the program.
``(4) Interim and final evaluation reports.--The Secretary
shall prepare and submit to the President and Congress such
interim reports regarding the evaluation described in this
subsection as the Secretary determines to be appropriate, and
shall prepare and so submit a final report regarding the
evaluation by January 1, 2007.
``(h) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section $25,000,000 for fiscal year
2004, and such sums as may be necessary for each of the 4 succeeding
fiscal years.''.
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