I 108th CONGRESS 2d Session H. R. 5186 IN THE HOUSE OF REPRESENTATIVES September 30, 2004 Mr. Boehner (for himself, Mr. McKeon, and Mr. Wilson of South Carolina) introduced the following bill; which was referred to the Committee on Education and the Workforce A BILL To reduce certain special allowance payments and provide additional teacher loan forgiveness on Federal student loans.

1.

Short title

This Act may be cited as the Taxpayer-Teacher Protection Act of 2004.

2.

Reduction of special allowance payments for loans from the proceeds of tax exempt issues

Section 438(b)(2)(B) (20 U.S.C. 1087–1(b)(2)(B)) is amended— (1)in clause (i), by striking this division and inserting this clause; (2)in clause (ii), by striking division (i) of this subparagraph and inserting clause (i) of this subparagraph; (3)in clause (iv), by inserting or refunded after September 30, 2004, and before October 1, 2005, after October 1, 1993,; and (4)by adding at the end the following new clause: (v)Notwithstanding clauses (i) and (ii), the quarterly rate of the special allowance shall be the rate determined under subparagraph (A), (E), (F), (G), (H), or (I) of this paragraph, or paragraph (4), as the case may be, for a holder of loans that— (I)were made or purchased with funds— (aa)obtained from the issuance of obligations the income from which is excluded from gross income under the Internal Revenue Code of 1986 and which obligations were originally issued before October 1, 1993; or (bb)obtained from collections or default reimbursements on, or interest or other income pertaining to, eligible loans made or purchased with funds described in division (aa), or from income on the investment of such funds; and (II)are— (aa)financed by such an obligation that has matured, or been retired or defeased; (bb)refinanced after September 30, 2004, and before October 1, 2005, with funds obtained from a source other than funds described in subclause (I) of this clause; or (cc)sold or transferred to any other holder after September 30, 2004, and before October 1, 2005..

3.

Loan forgiveness for teachers

(a)

Implementing highly qualified teacher requirements

(1)

Amendments

(A)

FFEL loans

Section 428J(b)(1) of the Higher Education Act of 1965 (20 U.S.C. 1078–10(b)(1)) is amended— (i)in subparagraph (A), by inserting ‘‘and’’ after the semicolon; and (ii)by striking subparagraphs (B) and (C) and inserting the following: (B)if employed as an elementary school or secondary school teacher, is highly qualified as defined in section 9101 of the Elementary Secondary Education Act of 1965; and. (B)

Direct loans

Section 460(b)(1)(A) of such Act (20 U.S.C. 1087j(b)(1)(A)) is amended— (i)in clause (i), by inserting ‘‘and’’ after the semicolon; and (ii)by striking clauses (ii) and (iii) and inserting the following: (ii)if employed as an elementary school or secondary school teacher, is highly qualified as defined in section 9101 of the Elementary and Secondary Education Act of 1965; and. (2)

Transition rule

(A)

Rule

The amendments made by paragraph (1) of this subsection to sections 428J(b)(1) and 460(b)(1)(A) of the Higher Education Act of 1965 shall not be applied to disqualify any individual who, before the date of enactment of this Act, commenced service that met and continues to meet the requirements of such sections as such sections were in effect on the day before the date of enactment of this Act. (B)

Rule not applicable to increased qualified loan amounts

Subparagraph (A) of this paragraph shall not apply for purposes of obtaining increased qualified loan amounts under sections 428J(c)(3) and 460(c)(3) of the Higher Education Act of 1965 as added by subsection (b) of this section. (b)

Additional amounts eligible to be repaid

(1)

FFEL loans

Section 428J(c) of the Higher Education Act of 1965 (20 U.S.C. 1078–10(c)) is amended by adding at the end the following: (3)

Additional amounts for teachers in mathematics, science, or special education

Notwithstanding the amount specified in paragraph (1), the aggregate amount that the Secretary shall repay under this section shall be not more than $17,500 in the case of— (A)a secondary school teacher— (i)who meets the requirements of subsection (b); and (ii)whose qualifying employment for purposes of such subsection is teaching mathematics or science on a full-time basis; and (B)an elementary school or secondary school teacher— (i)who meets the requirements of subsection (b); (ii)whose qualifying employment for purposes of such subsection is as a special education teacher whose primary responsibility is to provide special education to children with disabilities (as those terms are defined in section 602 of the Individuals with Disabilities Education Act); and (iii)who, as certified by the chief administrative officer of the public or non-profit private elementary school or secondary school in which the borrower is employed, is teaching children with disabilities that correspond with the borrower’s special education training and has demonstrated knowledge and teaching skills in the content areas of the elementary school or secondary school curriculum that the borrower is teaching.. (2)

Direct loans

Section 460(c) of the Higher Education Act of 1965 (20 U.S.C. 1087j(c)) is amended by adding at the end the following: (3)

Additional amounts for teachers in mathematics, science, or special education

Notwithstanding the amount specified in paragraph (1), the aggregate amount that the Secretary shall cancel under this section shall be not more than $17,500 in the case of— (A)a secondary school teacher— (i)who meets the requirements of subsection (b)(1); and (ii)whose qualifying employment for purposes of such subsection is teaching mathematics or science on a full-time basis; and (B)an elementary school or secondary school teacher— (i)who meets the requirements of subsection (b)(1); (ii)whose qualifying employment for purposes of such subsection is as a special education teacher whose primary responsibility is to provide special education to children with disabilities (as those terms are defined in section 602 of the Individuals with Disabilities Education Act); and (iii)who, as certified by the chief administrative officer of the public or non-profit private elementary school or secondary school in which the borrower is employed, is teaching children with disabilities that correspond with the borrower’s special education training and has demonstrated knowledge and teaching skills in the content areas of the elementary school or secondary school curriculum that the borrower is teaching.. (3)

Effective date

The amendments made by this subsection shall apply only with respect to eligible individuals who are new borrowers (as such term is defined in 103 of the Higher Education Act of 1965 (20 U.S.C. 1003)) on or after October 1, 1998, and before August 16, 2005.