[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 475 Introduced in Senate (IS)]







106th CONGRESS
  1st Session
                                 S. 475

  To amend the Higher Education Act of 1965 to increase the amount of 
                     loan forgiveness for teachers.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           February 25, 1999

  Mr. Schumer introduced the following bill; which was read twice and 
  referred to the Committee on Health, Education, Labor, and Pensions

_______________________________________________________________________

                                 A BILL


 
  To amend the Higher Education Act of 1965 to increase the amount 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. INCREASE IN LOAN FORGIVENESS FOR TEACHERS.

    (a) Federal Stafford Loans.--
            (1) Amendment.--Section 428J of the Higher Education Act of 
        1965 (20 U.S.C. 1078-10) is amended--
                    (A) in subsection (b)--
                            (i) by redesignating paragraph (2) as 
                        paragraph (4); and
                            (ii) in paragraph (1)--
                                    (I) by amending the matter 
                                preceding subparagraph (A) to read as 
                                follows:
            ``(1) has been employed as a full-time elementary school or 
        secondary school teacher;'';
                                    (II) by striking subparagraph (A);
                                    (III) by redesignating 
                                subparagraphs (B) and (C) as paragraphs 
                                (2) and (3), respectively; and
                                    (IV) in paragraph (2) (as 
                                redesignated by subclause (III)), by 
                                striking ``and'' after the semicolon;
                    (B) in subsection (c), by amending paragraph (1) to 
                read as follows:
            ``(1) In general.--The Secretary shall repay the amount of 
        the loan obligations owed by a borrower on loans made under 
        section 428 or 428H that are outstanding during each of the 
        first 5 years of teaching described in subsection (b). The 
        Secretary shall repay the total amount of all loan obligations 
        owed by a borrower for each loan made under section 428 or 428H 
        that is outstanding after the 5th year of teaching described in 
        subsection (b). No borrower may receive a reduction of loan 
        obligations under both this section and section 460.'';
                    (C) by striking subsections (f) and (g), and 
                inserting the following:
    ``(f) 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).''; and
                    (D) by redesignating subsection (h) as subsection 
                (g).
            (2) Effective date.--The amendments made by paragraph (1) 
        shall take effect as if included in the amendment made by 
        section 424 of the Higher Education Amendments of 1998.
    (b) Direct Loans.--
            (1) Amendment.--Section 460 of the Higher Education Act of 
        1965 (20 U.S.C. 1087j) is amended--
                    (A) in subsection (b)(1)--
                            (i) by redesignating subparagraph (B) as 
                        subparagraph (D); and
                            (ii) in subparagraph (A)--
                                    (I) by amending the matter 
                                preceding clause (i) to read as 
                                follows:
                    ``(A) has been employed as a full-time elementary 
                school or secondary school teacher;'';
                                    (II) by striking clause (i);
                                    (III) by redesignating clauses (ii) 
                                and (iii) as subparagraphs (B) and (C), 
                                respectively; and
                                    (IV) in subparagraph (B) (as 
                                redesignated by subclause (III)), by 
                                striking ``and'' after the semicolon;
                    (B) in subsection (c), by amending paragraph (1) to 
                read as follows:
            ``(1) In general.--The Secretary shall cancel the amount of 
        the loan obligations owed by a borrower on a Federal Direct 
        Stafford Loan or a Federal Direct Unsubsidized Stafford Loan 
        that are outstanding during each of the first 5 years of 
        teaching described in subsection (b). The Secretary shall 
        cancel the total amount of all loan obligations owed by a 
        borrower for each such loan that is outstanding after the 5th 
        year of teaching described in subsection (b).'';
                    (C) by striking subsections (f) and (g), and 
                inserting the following:
    ``(f) 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).''; and
                    (D) by redesignating subsection (h) as subsection 
                (g).
            (2) Effective date.--The amendments made by paragraph (1) 
        shall take effect as if included in the amendment made by 
        section 456 of the Higher Education Amendments of 1998.
                                 <all>