To amend the Elementary and Secondary Education Act of 1965 to provide grants to local educational agencies for teacher recruitment, retention, and training, and to amend the Higher Education Act of 1965 to expand the program of loan forgiveness for teachers.

May 15, 2001

Mr. GRAVES introduced the following bill; which was referred to the Committee on Education and the Workforce

To amend the Elementary and Secondary Education Act of 1965 to provide grants to local educational agencies for teacher recruitment, retention, and training, and to amend the Higher Education Act of 1965 to expand the program of loan forgiveness for teachers.

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

SECTION 1. TEACHER RECRUITMENT, RETENTION, AND TRAINING.

(a) IN GENERAL- Title II of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6601 et seq.) is amended--

(1) by redesignating part E as part F;

(2) by redesignating sections 2401 and 2402 as sections 2501 and 2502, respectively; and

(3) by inserting after part D the following:

`PART E--TEACHER RECRUITMENT, RETENTION, AND TRAINING

`SEC. 2401. PROGRAM AUTHORIZED.

`(a) IN GENERAL- The Secretary is authorized to make grants to local educational agencies to permit such agencies to recruit, retain, and train high-quality teachers by carrying out one or more of the activities described in subsection (b).

`(b) USES OF FUNDS-

`(1) RECRUITMENT, RETENTION, AND TRAINING ACTIVITIES- A local educational agency that receives a grant under this part may use the grant funds for any of the following recruitment, retention, and training activities:

`(A) Providing signing bonuses for teachers.

`(B) Carrying out merit pay programs.

`(C) Providing performance bonuses to teachers.

`(D) Providing scholarships to teachers to pursue advanced course work.

`(E) Providing mentoring programs for teachers.

`(F) Coordinating with institutions of higher education to provide professional development for teachers.

`(G) Any other activity that the local educational agency believes to be effective in recruiting, retaining, or training high-quality teachers.

`SEC. 2402. AUTHORIZATION OF APPROPRIATIONS.

There are authorized to be appropriated to carry out this part such sums as may be necessary for each of fiscal years 2002 through 2004.'.

(b) CONFORMING AMENDMENTS- Section 2003 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6603) is amended--

(1) in subsection (a), by striking `part C)' and inserting `parts C and E)'; and

(2) in subsection (b), by inserting `(other than parts C and E)' after `title'.

SEC. 2. LOAN FORGIVENESS FOR TEACHERS.

(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 in any 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 in any field of expertise where the State educational agency determines there is a shortage of qualified teachers;'.

(c) AMOUNTS SUBJECT TO FORGIVENESS-

(1) 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 $20,000 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.'.

(2) 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 $20,000 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