[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5636 Introduced in House (IH)]







107th CONGRESS
  2d Session
                                H. R. 5636

      To establish a student loan forgiveness program for nurses.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 10, 2002

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

_______________________________________________________________________

                                 A BILL


 
      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 
2002''.

SEC. 2. 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 3 consecutive calendar years 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.--Except as provided in paragraph (2), the 
        Secretary may, from funds appropriated under subsection (g)(1), 
        repay not more than $5,000 in the aggregate of the loan 
        obligation on a loan made under section 428 or 428H that is 
        outstanding after the completion of the third complete year of 
        nursing described in subsection (b)(1).
            ``(2) Additional amounts.--Notwithstanding the amount 
        specified in paragraph (1), the aggregate amount that the 
        Secretary may, from funds appropriated under subsection (g)(2), 
        repay is a total amount equal to not more than $12,000 for any 
        registered nurse who, in addition to meeting the requirements 
        of subsection (b), has been employed as required by such 
        subsection for 5 consecutive calendar years.
            ``(3) Award basis.--The Secretary shall make payments under 
        this subsection on a first-come first-served basis, subject to 
        the availability of appropriations.
            ``(4) 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 2003 and 
for each of the 4 succeeding fiscal years, there are authorized to be 
appropriated such sums as may be necessary--
            ``(1) to repay loans in the amount specified in subsection 
        (c)(1); and
            ``(2) to repay loans in the additional amount specified in 
        subsection (c)(2).''.
    (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 3 consecutive calendar years 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.--Except as provided in paragraph (2), the 
        Secretary may, from funds appropriated under subsection (g)(1), 
        cancel not more than $5,000 in the aggregate of the loan 
        obligation on a loan made under section 428 or 428H that is 
        outstanding after the completion of the third complete year of 
        nursing described in subsection (b)(1).
            ``(2) Additional amounts.--Notwithstanding the amount 
        specified in paragraph (1), the aggregate amount that the 
        Secretary may, from funds appropriated under subsection (g)(2), 
        cancel is a total amount equal to not more than $12,000 for any 
        registered nurse who, in addition to meeting the requirements 
        of subsection (b), has been employed as required by such 
        subsection for 5 consecutive calendar years.
            ``(3) Award basis.--The Secretary shall cancel loan amounts 
        under this subsection on a first-come first-served basis, 
        subject to the availability of appropriations.
            ``(4) 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) 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 2003 and 
for each of the 4 succeeding fiscal years, there are authorized to be 
appropriated such sums as may be necessary--
            ``(1) to repay loans in the amount specified in subsection 
        (c)(1); and
            ``(2) to repay loans in the additional amount specified in 
        subsection (c)(2).''.
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