[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 501 Introduced in House (IH)]







108th CONGRESS
  1st Session
                                H. R. 501

      To establish a student loan forgiveness program for nurses.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 29, 2003

   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 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 
2003''.

SEC. 2. FINDINGS.

    The Congress finds the following:
            (1) According to 2001 statistics from the American Hospital 
        Association, 126,000 nurses are currently needed to fill 
        vacancies at our nation's hospitals. Today, fully 75 percent of 
        all hospital personnel vacancies are for nurses.
            (2) According to the Journal of the American Medical 
        Association (2000), the U.S. will experience a 20 percent 
        shortage in the number of nurses needed in the U.S. health care 
        system by the year 2020. This translates into a shortage of 
        more than 400,000 registered nurses nationwide.
            (3) Research indicates that there is a greater 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 U.S. Department of Labor projects a 21 percent 
        increase in the need for nurses nationwide from 1998 to 2008, 
        compared with a 14 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 2000, an estimated 18 
        percent have chosen to pursue other career paths.
            (7) According to a 2001 issue of Health Affairs, many 
        nurses report they are dissatisfied with their current 
        position. One out of every 3 hospital nurses under the age of 
        30 are planning to leave their current job in the next year.

SEC. 3. 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 a 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 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.--Of the aggregate of the loan obligation 
        on a loan made under section 428 or 428H that is outstanding to 
        an individual who meets the requirements of subsection (b), the 
        Secretary may, from funds appropriated under subsection (g), 
        repay not more than--
                    ``(A) $2,000 after the first calendar year of 
                employment described in subsection (b)(1);
                    ``(B) $2,500 after the second such year of 
                employment;
                    ``(C) $3,000 after the third such year of 
                employment;
                    ``(D) $4,500 after the fourth such year of 
                employment; and
                    ``(E) $5,000 after the fifth such year of 
                employment.
            ``(2) Award basis.--The Secretary shall make payments under 
        this subsection on a first-come first-served basis, subject to 
        the availability of appropriations.
            ``(3) 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 2004 and 
for each of the 9 succeeding fiscal years, there are authorized to be 
appropriated such sums as may be necessary to repay loans in the 
amounts specified in subsection (c)(1).''.
    (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 a 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 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.--Of the aggregate of the loan obligation 
        on a Federal Direct Stafford Loan or a Federal Direct 
        Unsubsidized Stafford Loan that is outstanding to an individual 
        who meets the requirements of subsection (b), the Secretary 
        may, from funds appropriated under subsection (g), repay not 
        more than--
                    ``(A) $2,000 after the first calendar year of 
                employment described in subsection (b)(1);
                    ``(B) $2,500 after the second such year of 
                employment;
                    ``(C) $3,000 after the third such year of 
                employment;
                    ``(D) $4,500 after the fourth such year of 
                employment; and
                    ``(E) $5,000 after the fifth such year of 
                employment.
            ``(2) Award basis.--The Secretary shall make payments under 
        this subsection on a first-come first-served basis, subject to 
        the availability of appropriations.
            ``(3) Treatment of consolidation loans.--A loan amount for 
        a Federal Direct Consolidation Loan 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 2004 and 
for each of the 9 succeeding fiscal years, there are authorized to be 
appropriated such sums as may be necessary to repay loans in the 
amounts specified in subsection (c)(1).''.
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