HR 687 IH

To expand the teacher loan forgiveness programs under the Federal Family Education Loan and Federal Direct Loan programs.

February 14, 2001

Mr. MOORE (for himself, Ms. MCKINNEY, Mr. FROST, Ms. MCCARTHY of Missouri, Mr. BENTSEN, Ms. BERKLEY, and Mrs. JONES of Ohio) introduced the following bill; which was referred to the Committee on Education and the Workforce

To expand the teacher loan forgiveness programs under the Federal Family Education Loan and Federal Direct Loan programs.

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 Recruitment and Retention Act of 2001'.

SEC. 2. EXPANSION OF ELIGIBILITY.

(a) ELIMINATION OF NEW BORROWER RESTRICTIONS-

(1) FFEL PROGRAM- Section 428J(b) of the Higher Education Act of 1965 (20 U.S.C. 1078-10(b)) is amended by striking `for any new borrower on or after October 1, 1998, who' and inserting `for any borrower who'.

(2) FEDERAL DIRECT LOAN PROGRAM- Section 460(b)(1) of such Act (20 U.S.C. 1087j(b)(1)) is amended by striking `for any new borrower on or after October 1, 1998, who' and inserting `for any borrower who'.

(b) EXPANSION OF ELIGIBLE TEACHING LOCATIONS AND SUBJECTS; ELIMINATING DELAY IN SERVICE BENEFIT-

(1) FFEL PROGRAM- Section 428J(b)(1) of such Act is amended by striking everything preceding subparagraph (B) and inserting the following:

`(1) has been employed as a full-time teacher--

`(A)(i) in a school that qualifies under section 465(a)(2)(A) for loan cancellation for Perkins loan recipients who teach in such schools;

`(ii) as a full-time special education teacher, as described in section 465(a)(2)(C); or

`(iii) as a full-time teacher of mathematics, science, foreign languages, bilingual education, or any other field of expertise where the State educational agency determines there is a shortage of qualified teachers;'.

(2) FEDERAL DIRECT LOAN PROGRAM- Section 460(b)(1)(A) of such Act (20 U.S.C. 1087j(b)(1)(A)) is amended by striking everything preceding clause (ii) and inserting the following:

`(A) has been employed as a full-time teacher--

`(i)(I) in a school that qualifies under section 465(a)(2)(A) for loan cancellation for Perkins loan recipients who teach in such schools;

`(II) as a full-time special education teacher, as described in section 465(a)(2)(C); or

`(III) as a full-time teacher of mathematics, science, foreign languages, bilingual education, or any other field of expertise where the State educational agency determines there is a shortage of qualified teachers;'.

SEC. 3. AMOUNT AND RATE OF REPAYMENT.

(a) FFEL PROGRAM- Section 428J(c) of the Higher Education Act of 1965 (20 U.S.C. 1078-10(c)) is amended by striking paragraph (1) and inserting the following:

`(1) AMOUNT AND RATE OF REPAYMENT- The Secretary shall repay an amount that is not more than $10,000 in the aggregate of the loan obligation on a loan made under section 428 or 428H that is outstanding after the completion of the first complete school year of teaching described in subsection (b)(1) for which the borrower seeks repayment under this section. Such amount shall be repaid at the rate of 15 percent for the first or second year of such service, 20 percent for the third or fourth year of such service, and 30 percent for the fifth year of such service. No borrower may receive a reduction of loan obligations under both this section and section 460.'.

(b) FEDERAL DIRECT LOAN PROGRAM- Section 460(c) of such Act (20 U.S.C. 1087j(c)) is amended by striking paragraph (1) and inserting the following:

`(1) AMOUNT AND RATE OF REPAYMENT- The Secretary shall cancel an amount that is not more than $10,000 in the aggregate of the loan obligation on a loan made under section 428 or 428H that is outstanding after the completion of the first complete school year of teaching described in subsection (b)(1)(A). Such amount shall be canceled at the rate of 15 percent for the first or second year of such service, 20 percent for the third or fourth year of such service, and 30 percent for the fifth year of such service.'.

END