To establish a student loan forgiveness program for nurses.

January 29, 2003

Mr. TANCREDO (for himself and Ms. LORETTA SANCHEZ of California) introduced the following bill; which was referred to the Committee on Education and the Workforce

To establish a student loan forgiveness program for nurses.

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 `Nurse Loan Forgiveness Act of 2003'.

SEC. 2. FINDINGS.

The Congress finds the following:

(1) According to 2001 statistics from the American Hospital Association, 126,000 nurses are currently needed to fill vacancies at our nation's hospitals. Today, fully 75 percent of all hospital personnel vacancies are for nurses.

(2) According to the Journal of the American Medical Association (2000), the U.S. will experience a 20 percent shortage in the number of nurses needed in the U.S. health care system by the year 2020. This translates into a shortage of more than 400,000 registered nurses nationwide.

(3) Research indicates that there is a greater need for health care services, especially hospitals and prescription drugs, but there continues to be a 28 percent decrease in national licensure examination for all entry-level registered nurses.

(4) The U.S. Department of Labor projects a 21 percent increase in the need for nurses nationwide from 1998 to 2008, compared with a 14 percent increase for all other occupations.

(5) The General Accounting Office estimates that 40 percent of all registered nurses will be older than age 50 by the year 2010.

(6) Of those registered nurses in 2000, an estimated 18 percent have chosen to pursue other career paths.

(7) According to a 2001 issue of Health Affairs, many nurses report they are dissatisfied with their current position. One out of every 3 hospital nurses under the age of 30 are planning to leave their current job in the next year.

SEC. 3. ESTABLISHMENT OF PROGRAM.

(a) STAFFORD LOANS- Part B of title IV of the Higher Education Act of 1965 is amended by inserting after section 428K (20 U.S.C. 1078-11) the following new section:

`SEC. 428L. LOAN FORGIVENESS FOR NURSES.

`(a) STATEMENT OF PURPOSE- It is the purpose of this section to encourage individuals to enter and continue in the nursing profession.

`(b) PROGRAM AUTHORIZED- From the amount appropriated under subsection (g) for any fiscal year, the Secretary shall, in accordance with subsection (c), 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 for any borrower who--

`(1) has been employed for a calendar year as a full-time registered nurse in a health care facility or a health care setting approved by the Secretary of Health and Human Services for purposes of this section; and

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

`(c) QUALIFIED LOANS AMOUNT-

`(1) IN GENERAL- Of the aggregate of the loan obligation on a loan made under section 428 or 428H that is outstanding to an individual who meets the requirements of subsection (b), the Secretary may, from funds appropriated under subsection (g), repay not more than--

`(A) $2,000 after the first calendar year of employment described in subsection (b)(1);

`(B) $2,500 after the second such year of employment;

`(C) $3,000 after the third such year of employment;

`(D) $4,500 after the fourth such year of employment; and

`(E) $5,000 after the fifth such year of employment.

`(2) AWARD BASIS- The Secretary shall make payments under this subsection on a first-come first-served basis, subject to the availability of appropriations.

`(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 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.

`(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) PREVENTION OF DOUBLE BENEFITS-

`(1) NATIONAL AND COMMUNITY SERVICE- No borrower may, for the same service, receive a benefit under both this subsection and subtitle D of title I of the National and Community Service Act of 1990 (42 U.S.C. 12571 et seq.).

`(2) DIRECT LOAN FORGIVENESS- No borrower may receive a reduction of loan obligations under both this section and section 460A.

`(g) AUTHORIZATION OF APPROPRIATIONS- For fiscal year 2004 and for each of the 9 succeeding fiscal years, there are authorized to be appropriated such sums as may be necessary to repay loans in the amounts specified in subsection (c)(1).'.

(b) DIRECT LOANS- Part D of title IV of the Higher Education Act of 1965 is amended by inserting after section 460 (20 U.S.C. 1087j) the following new section:

`SEC. 460A. LOAN FORGIVENESS FOR NURSES.

`(a) STATEMENT OF PURPOSE- It is the purpose of this section to encourage individuals to enter and continue in the nursing profession.

`(b) PROGRAM AUTHORIZED- From the amount appropriated under subsection (g) for any fiscal year, 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--

`(1) has been employed for a calendar year as a full-time registered nurse in a health care facility or a health care setting approved by the Secretary of Health and Human Services for purposes of this section; and

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

`(c) QUALIFIED LOANS AMOUNT-

`(1) IN GENERAL- Of the aggregate of the loan obligation on a Federal Direct Stafford Loan or a Federal Direct Unsubsidized Stafford Loan that is outstanding to an individual who meets the requirements of subsection (b), the Secretary may, from funds appropriated under subsection (g), repay not more than--

`(A) $2,000 after the first calendar year of employment described in subsection (b)(1);

`(B) $2,500 after the second such year of employment;

`(C) $3,000 after the third such year of employment;

`(D) $4,500 after the fourth such year of employment; and

`(E) $5,000 after the fifth such year of employment.

`(2) AWARD BASIS- The Secretary shall make payments under this subsection on a first-come first-served basis, subject to the availability of appropriations.

`(3) TREATMENT OF CONSOLIDATION LOANS- A loan amount for a Federal Direct Consolidation Loan 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 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.

`(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) PREVENTION OF DOUBLE BENEFITS-

`(1) NATIONAL AND COMMUNITY SERVICE- No borrower may, for the same service, receive a benefit under both this subsection and subtitle D of title I of the National and Community Service Act of 1990 (42 U.S.C. 12571 et seq.).

`(2) STAFFORD LOAN FORGIVENESS- No borrower may receive a reduction of loan obligations under both this section and section 428L.

`(g) AUTHORIZATION OF APPROPRIATIONS- For fiscal year 2004 and for each of the 9 succeeding fiscal years, there are authorized to be appropriated such sums as may be necessary to repay loans in the amounts specified in subsection (c)(1).'.

END