[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5034 Referred in Senate (RFS)]

  2d Session
                                H. R. 5034


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

           September 27 (legislative day, September 22), 2000

     Received; read twice and referred to the Committee on Health, 
                     Education, Labor, and Pensions

_______________________________________________________________________

                                 AN ACT


 
    To expand loan forgiveness for teachers, and for other purposes.

    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 ``Quality Teacher Recruitment and 
Retention Act of 2000''.

SEC. 2. FINDINGS AND PURPOSE.

    (a) Findings.--Congress makes the following findings:
            (1) Over the next 10 years, a large percentage of teachers 
        will retire, leaving American classrooms, particularly urban 
        and rural classrooms, facing a serious teacher shortage.
            (2) The Nation will need 2,000,000 new teachers over the 
        next 10 years. Unfortunately, in the past this need has been 
        met by admitting some unqualified teachers to the classroom.
            (3) There is also a chronic shortage of fully certified 
        special education teachers, averaging about 27,000 per year. 
        While the demand is ever present, institutes of higher 
        education are graduating fewer teachers qualified in special 
        education.
            (4) High quality teachers are the first vital step in 
        ensuring students receive a high quality education.
            (5) Potentially valuable teacher candidates are often lured 
        into different careers by higher compensation.
            (6) Moreover, the burdensome paperwork and legal 
        requirements are factors which lead special education teachers 
        to leave the profession. More special education teachers move 
        into the general education realm than vice versa.
            (7) High-quality prospective teachers need to be identified 
        and recruited by presenting to them a career that is respected 
        by their peers, is financially and intellectually rewarding, 
        and contains sufficient opportunities for advancement.
            (8) Teacher loan forgiveness gives high-poverty schools an 
        effective incentive for recruiting and retaining much-needed 
        high quality teachers.
            (9) Loan forgiveness for high-need teachers, including 
        special education teachers, can be a critical link in 
        increasing the supply of these essential educators.
    (b) Purpose.--The purpose of this Act is to encourage individuals 
to enter and continue in the teaching profession in order to ensure 
that high quality teachers are recruited and retained in areas where 
they are most needed so students attending school in such areas receive 
a quality education.

SEC. 3. EXPANDED LOAN FORGIVENESS PROGRAM FOR TEACHERS.

    (a) Program.--
            (1) In general.--The Secretary of Education (in this 
        section referred to as the ``Secretary'') shall carry out a 
        program of assuming the obligation to repay, pursuant to 
        subsection (c), a loan made, insured, or guaranteed under part 
        B of title IV of the Higher Education Act of 1965 or part D of 
        such title (excluding loans made under sections 428B and 428C 
        of such Act or comparable loans made under part D of such 
        title) for any borrower who--
                    (A) is a new teacher;
                    (B)(i) is employed, for 3 consecutive complete 
                school years, as a full-time teacher in a school that 
                qualifies under section 465(a)(2)(A) of the Higher 
                Education Act of 1965 (20 U.S.C. 1087ee(a)(2)(A)) for 
                loan cancellation for a recipient of a loan under part 
                E of title IV of such Act who teaches in such schools; 
                or
                    (ii) is employed, for 3 consecutive complete school 
                years, as a full-time special education teacher, or as 
                a full-time teacher of special needs children;
                    (C) satisfies the requirements of subsection (d); 
                and
                    (D) is not in default on a loan for which the 
                borrower seeks forgiveness.
            (2) Award basis; priority.--
                    (A) Award basis.--Subject to subparagraph (B), loan 
                repayment under this section shall be on a first-come, 
                first-serve basis and subject to the availability of 
                appropriations.
                    (B) Priority.--The Secretary shall give priority in 
                providing loan repayment under this section for a 
                fiscal year to student borrowers who received loan 
                repayment under this section for the preceding fiscal 
                year.
            (3) Regulations.--The Secretary is authorized to prescribe 
        such regulations as may be necessary to carry out the 
        provisions of this section.
    (b) Loan Repayment.--
            (1) Eligible amount.--The amount the Secretary may repay on 
        behalf of any individual under this section shall not exceed--
                    (A) the sum of the principal amounts outstanding 
                (not to exceed $5,000) of the individual's qualifying 
                loans at the end of 3 consecutive complete school years 
                of service described in subsection (a)(1)(B);
                    (B) an additional portion of such sum (not to 
                exceed $7,500) at the end of each of the next 2 
                consecutive complete school years of such service; and
                    (C) a total of not more than $20,000.
            (2) Construction.--Nothing in this section shall be 
        construed to authorize the refunding of any repayment of a loan 
        made under part B or D of title IV of the Higher Education Act 
        of 1965.
            (3) Interest.--If a portion of a loan is repaid by the 
        Secretary under this section for any year, the proportionate 
        amount of interest on such loan which accrues for such year 
        shall be repaid by the Secretary.
    (c) Repayment to Eligible Lenders.--The Secretary shall pay to each 
eligible lender or holder for each fiscal year an amount equal to the 
aggregate amount of loans which are subject to repayment pursuant to 
this section for such year.
    (d) Application for Repayment.--
            (1) In general.--Each eligible individual desiring loan 
        repayment 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.
            (2) Years of service.--An eligible individual may apply for 
        loan repayment under this section after completing the required 
        number of years of qualifying employment.
            (3) Fully qualified teachers in public elementary or 
        secondary schools.--An application for loan repayment under 
        this section shall include such information as is necessary to 
        demonstrate that the applicant--
                    (A) if teaching in a public elementary, middle, or 
                secondary school (other than as a teacher in a public 
                charter school), has obtained State certification as a 
                teacher (including certification obtained through 
                alternative routes to certification) or passed the 
                State teacher licensing exam and holds a license to 
                teach in such State; and
                    (B) if teaching in--
                            (i) a public elementary school, holds a 
                        bachelor's degree and demonstrates knowledge 
                        and teaching skills in each of the subject 
                        areas in which he or she provides instruction; 
                        or
                            (ii) a public middle or secondary school, 
                        holds a bachelor's degree and demonstrates a 
                        high level of competency in all subject areas 
                        in which he or she teaches through--
                                    (I) a high level of performance on 
                                a rigorous State or local academic 
                                subject areas test; or
                                    (II) completion of an academic 
                                major in each of the subject areas in 
                                which he or she provides instruction.
            (4) Teachers in nonprofit private elementary or secondary 
        schools or charter schools.--In the case of an applicant who is 
        teaching in a nonprofit private elementary or secondary school, 
        or in a public charter school, an application for loan 
        repayment under this section shall include such information as 
        is necessary to demonstrate that the applicant has knowledge 
        and teaching skills in each of the subject areas in which he or 
        she provides instruction, as certified by the chief 
        administrative officer of the school.
    (e) Treatment of Consolidation Loans.--A loan amount for a 
consolidation loan made under section 428C of the Higher Education Act 
of 1965, or a Federal Direct Consolidation Loan made under part D of 
title IV of such Act, may be a qualified loan amount for the purpose of 
this section only to the extent that such loan amount was used by a 
borrower who otherwise meets the requirements of this section to 
repay--
            (1) a loan made under section 428 or 428H of such Act; or
            (2) a Federal Direct Stafford Loan, or a Federal Direct 
        Unsubsidized Stafford Loan, made under part D of title IV of 
        such Act.
    (f) Additional Eligibility Provisions.--
            (1) Continued eligibility.--Any teacher who performs 
        service in a school that--
                    (A) meets the requirements of subsection (a)(1)(B) 
                in any year during such service; and
                    (B) in a subsequent year fails to meet the 
                requirements of such subsection,
        may continue to teach in such school and shall be eligible for 
        loan forgiveness pursuant to subsection (a).
            (2) 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.).
            (3) Definition of new teacher.--The term ``new teacher'' 
        means an individual who has not previously been employed as a 
        teacher in an elementary or secondary school prior to August 1, 
        2001, excluding employment while engaged in student teaching 
        service or comparable activity that is part of a preservice 
        education program.

SEC. 3. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to carry out this Act such 
sums as may be necessary for fiscal year 2001 and for each of the 4 
succeeding fiscal years.

            Passed the House of Representatives September 26, 2000.

            Attest:

                                                 JEFF TRANDAHL,

                                                                 Clerk.