To recruit and retain more qualified individuals to teach in Tribal Colleges or Universities.

January 27, 2003

Ms. HOOLEY of Oregon (for herself, Mr. BACA, Mr. FALEOMAVAEGA, Mr. FILNER, Mr. HASTINGS of Florida, Mr. MCDERMOTT, Mr. PALLONE, Mr. POMEROY, Mr. UDALL of Colorado, Mr. UDALL of New Mexico, Mr. FRANK of Massachusetts, Ms. MCCOLLUM, Mr. TOWNS, Mr. KILDEE, Mr. ABERCROMBIE, and Mr. BEREUTER) introduced the following bill; which was referred to the Committee on Education and the Workforce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

To recruit and retain more qualified individuals to teach in Tribal Colleges or Universities.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. LOAN REPAYMENT OR CANCELLATION FOR INDIVIDUALS WHO TEACH IN TRIBAL COLLEGES OR UNIVERSITIES.

(a) SHORT TITLE- This Act may be cited as the `Tribal College or University Teacher Loan Forgiveness Act'.

(b) PERKINS LOANS-

(1) AMENDMENT- Section 465(a) of the Higher Education Act of 1965 (20 U.S.C. 1087ee(a)) is amended--

(A) in paragraph (2)--

(i) in subparagraph (H), by striking `or' after the semicolon;

(ii) in subparagraph (I), by striking the period and inserting `; or'; and

(iii) by adding at the end the following:

`(J) as a full-time teacher at a tribal College or University as defined in section 316(b).'; and

(B) in paragraph (3)(A)(i), by striking `or (I)' and inserting `(I), or (J)'.

(2) EFFECTIVE DATE- The amendments made by paragraph (1) shall be effective for service performed during academic year 1998-1999 and succeeding academic years, notwithstanding any contrary provision of the promissory note under which a loan under part E of title IV of the Higher Education Act of 1965 (20 U.S.C. 1087aa et seq.) was made.

(c) FFEL AND DIRECT LOANS- Part G of title IV of the Higher Education Act of 1965 (20 U.S.C. 1088 et seq.) is amended by adding at the end the following:

`SEC. 493C. LOAN REPAYMENT OR CANCELLATION FOR INDIVIDUALS WHO TEACH IN TRIBAL COLLEGES OR UNIVERSITIES.

`(a) PROGRAM AUTHORIZED- The Secretary shall carry out a program, through the holder of a loan, of assuming or canceling the obligation to repay a qualified loan amount, in accordance with subsection (b), for any new borrower on or after the date of enactment of the Tribal College or University Teacher Loan Forgiveness Act, who--

`(1) has been employed as a full-time teacher at a Tribal College or University as defined in section 316(b); and

`(2) is not in default on a loan for which the borrower seeks repayment or cancellation.

`(b) QUALIFIED LOAN AMOUNTS-

`(1) PERCENTAGES- Subject to paragraph (2), the Secretary shall assume or cancel the obligation to repay under this section--

`(A) 15 percent of the amount of all loans made, insured, or guaranteed after the date of enactment of the Tribal College or University Teacher Loan Forgiveness Act to a student under part B or D, for the first or second year of employment described in subsection (a)(1);

`(B) 20 percent of such total amount, for the third or fourth year of such employment; and

`(C) 30 percent of such total amount, for the fifth year of such employment.

`(2) MAXIMUM- The Secretary shall not repay or cancel under this section more than $15,000 in the aggregate of loans made, insured, or guaranteed under parts B and D for any student.

`(3) 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 such loan amount was used to repay a loan made, insured, or guaranteed under part B or D for a borrower who meets the requirements of subsection (a), as determined in accordance with regulations prescribed by the Secretary.

`(c) REGULATIONS- The Secretary is authorized to issue such regulations as may be necessary to carry out the provisions of this section.

`(d) CONSTRUCTION- Nothing in this section shall be construed to authorize any refunding of any repayment of a loan.

`(e) PREVENTION OF DOUBLE BENEFITS- No 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. 12571 et seq.).

`(f) DEFINITION- For purposes of this section, the term `year', when applied to employment as a teacher, means an academic year as defined by the Secretary.'.

SEC. 2. AMOUNTS FORGIVEN NOT TREATED AS GROSS INCOME.

The amount of any loan that is assumed or canceled under an amendment made by this Act shall not, consistent with section 108(f) of the Internal Revenue Code of 1986, be treated as gross income for Federal income tax purposes.

END