109th CONGRESS
2d Session
H. R. 5349
To amend the Higher Education Act of 1965 to establish a student
loan forgiveness program for nurses.
IN THE HOUSE OF REPRESENTATIVES
May 10, 2006
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
A BILL
To amend the Higher Education Act of 1965 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 2006'.
SEC. 2. FINDINGS.
The Congress finds the following:
(1) According to 2005 statistics from the American Hospital Association,
118,000 nurses are needed to fill vacancies at our nation's hospitals,
and more than 75 percent of all hospital personnel vacancies are for nurses.
(2) According to a study by the Department of Health and Human Services
in 2002, the United States will experience a 29 percent shortage in the
number of nurses needed in the United States health care system by the
year 2020, which translates into a shortage of more than 400,000 registered
nurses nationwide.
(3) Research indicates that there is a great 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 Department of Labor projects a 29 percent increase in the need
for nurses nationwide from 2004 to 2014, compared with a 13 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 2004, an estimated 16 percent have chosen
to not practice in the field.
SEC. 3. LOAN FORGIVENESS PROGRAM ESTABLISHED.
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) Purposes- The purposes of this section are--
`(1) to encourage individuals to enter and continue in the nursing profession;
and
`(2) to reward such individuals for their service in the nursing profession
by reducing the burden of student debt.
`(1) LOAN FORGIVENESS AUTHORIZED- The Secretary is authorized to forgive,
in accordance with this section, the student loan debt of an eligible
borrower in the amount specified in subsection (d) for each of the first
5 complete years of service described in subsection (c)(1) by such eligible
borrower that occur after the date of enactment of this section.
`(2) METHOD OF LOAN FORGIVENESS- To provide the loan forgiveness authorized
in paragraph (1), the Secretary is authorized to carry out a program--
`(A) through the holder of the loan, to assume the obligation to repay
a qualified loan amount for a loan made under this part; and
`(B) to cancel a qualified loan amount for a loan made under part D
of this title.
`(3) LIMITATION ON CONSOLIDATION LOANS- A loan amount for a loan made
under section 428C may be a qualified loan amount for the purposes of
this section 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 an eligible borrower,
as determined in accordance with regulations prescribed by the Secretary.
`(c) Eligible Borrower- The Secretary is authorized to provide loan forgiveness
under this section to any individual who--
`(1) has been employed for at least one 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 the purposes of this section;
and
`(2) is not in default on a loan for which the borrower seeks forgiveness.
`(d) Loan Forgiveness Amounts- The Secretary may, from funds appropriated
under subsection (j), forgive the loan obligation of an eligible borrower
in accordance with subsection (b)(2) and in the following increments:
`(1) After the first calendar year of employment described in subsection
(c)(1), not more than $2,000.
`(2) After the second such year of employment, not more than $2,500.
`(3) After the third such year of employment, not more than $3,000.
`(4) After the fourth such year of employment, not more than $4,500.
`(5) After the fifth such year of employment, not more than $5,000.
`(e) Application for Loan Forgiveness- An eligible borrower desiring loan
forgiveness 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.
`(f) Priority- The Secretary shall grant loan forgiveness under this section
on a first-come, first-served basis, and subject to the availability of
appropriations.
`(g) Regulations- The Secretary is authorized to prescribe such regulations
as may be necessary to carry out the provisions of this section.
`(h) Construction- Nothing in this section shall be construed to authorize
the refunding of any repayment of any loan.
`(i) 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.).
`(j) Authorization of Appropriations- There are authorized to be appropriated
to carry out this section such sums as may be necessary for fiscal year
2007 and each of the 5 succeeding fiscal years.'.
END
