[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2815 Introduced in House (IH)]
109th CONGRESS
1st Session
H. R. 2815
To amend the Internal Revenue Code of 1986 to expand and enhance the
HOPE and Lifetime Learning Credits, and to amend the Higher Education
Act of 1965 to provide loan forgiveness opportunities for public
service employees.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 8, 2005
Mr. Menendez introduced the following bill; which was referred to the
Committee on Ways and Means, and in addition to the Committee on
Education and the Workforce, for a period to be subsequently determined
by the Speaker, in each case for consideration of such provisions as
fall within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to expand and enhance the
HOPE and Lifetime Learning Credits, and to amend the Higher Education
Act of 1965 to provide loan forgiveness opportunities for public
service employees.
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 ``College Access and Affordability
Act''.
SEC. 2. EXPANSION OF HOPE AND LIFETIME LEARNING CREDITS.
(a) Increase in Per Student Limitation for Hope Scholarship
Credit.--
(1) In general.--Subparagraph (B) of section 25A(b)(1) of
the Internal Revenue Code of 1986 is amended by striking ``the
applicable limit'' and inserting ``$4,000''.
(2) Inflation adjustment.--Paragraph (1) of section 25A(h)
of such Code is amended by redesignating subparagraph (B) as
subparagraph (C) and by inserting after subparagraph (A) the
following new subparagraph:
``(B) $4,000 amount.--In the case of a taxable year
beginning after 2005, the $4,000 amount contained in
subsection (b)(1)(B) shall be increased by an amount
equal to--
``(i) such dollar amount, multiplied by
``(ii) the cost-of-living adjustment
determined under section 1(f)(3) for the
calendar year in which the taxable year begins,
determined by substituting `calendar year 2004'
for `calendar year 1992' in subparagraph (B)
thereof.''.
(3) Conforming amendment.--Subsection (b) of section 25A of
such Code is amended by striking paragraph (4).
(b) Increase in Gross Income Limitation .--
(1) In general.--Clause (ii) of section 25A(d)(2)(A) of
such Code is amended by striking ``$40,000 ($80,000'' and
inserting ``$58,000 (twice such amount''.
(2) Inflation adjustment.--Subparagraph (A) of section
25A(h)(2) of such Code is amended to read as follows:
``(A) In general.--In the case of a taxable year
beginning after 2005, the $58,000 amount in subsection
(d)(2) shall be increased by an amount equal to--
``(i) such dollar amount, multiplied by
``(ii) the cost-of-living adjustment
determined under section 1(f)(3) for the
calendar year in which the taxable year begins,
determined by substituting `calendar year 2004'
for `calendar year 1992' in subparagraph (B)
thereof.''.
(c) Hope Scholarship Credit Available for 4 Years.--Paragraph (2)
of section 25A(b) of such Code is amended by striking ``2'' each place
it appears in subparagraphs (A) and (C) and inserting ``4''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2004.
SEC. 3. LOAN FORGIVENESS FOR PUBLIC SERVICE EMPLOYEES.
Section 428K (20 U.S.C. 1078-11) is amended to read as follows:
``SEC. 428K. LOAN FORGIVENESS FOR PUBLIC SERVICE EMPLOYEES.
``(a) Purposes.--The purposes of this section are--
``(1) to reduce the burden of student debt, particularly
for Americans who dedicate their careers to meeting certain
urgent national needs; and
``(2) to attract more excellent individuals into important
public service careers.
``(b) Loan Forgiveness.--
``(1) In general.--The Secretary shall assume the
obligation to repay, pursuant to subsection (c), a loan made
under section 428 or 428H, a Federal Direct Stafford Loan or
Federal Direct Unsubsidized Stafford Loan, a Federal Direct
Consolidation Loan, or a Federal Perkins Loan for any new
borrower after the date of enactment of the Higher Education
Amendments of 1998, who--
``(A) is employed full time in a qualified public
service position described in paragraph (2); and
``(B) is not in default on a loan for which the
borrower seeks forgiveness.
``(2) Qualified public service positions.--For purposes of
this section, an individual shall be treated as employed in a
qualified public service position if the individual is any of
the following:
``(A) Highly qualified teachers of mathematics,
science, and bilingual and special education and in
low-income communities.--An individual who--
``(i) is highly qualified as such term is
defined in section 9101 of the Elementary and
Secondary Education Act of 1965; and
``(ii)(I) has obtained employment as a
teacher for service in a public or nonprofit
private elementary or secondary school which is
in the school district of a local educational
agency which is eligible in such year for
assistance pursuant to title I of the
Elementary and Secondary Education Act of 1965,
and which for the purpose of this paragraph and
for that year has been determined by the
Secretary (pursuant to regulations and after
consultation with the State educational agency
of the State in which the school is located) to
be a school in which the enrollment of children
counted under section 1113(a)(5) of the
Elementary and Secondary Education Act of 1965
exceeds 40 percent of the total enrollment of
that school; or
``(II) has obtained employment as a full-
time teacher of mathematics, science, or
bilingual or special education.
``(B) First responders in low-income communities.--
An individual who, as determined by the Secretary of
Education by regulation--
``(i) has obtained employment as a
firefighter, police officer, or emergency
medical technician; and
``(ii) serves a low-income community.
``(C) Nurses in low income communities.--An
individual who is an eligible nurse and has obtained
employment--
``(i)(I) in a clinical setting; or
``(II) as a member of the nursing faculty
at an accredited school of nursing (as those
terms are defined in section 801 of the Public
Health Service Act (42 U.S.C. 296)); and
``(ii) serves a low-income or needy
community.
``(D) Child welfare workers.--An individual who--
``(i) has completed a degree in social work
or related field with a focus on serving
children and families (as determined in
accordance with regulations prescribed by the
Secretary); and
``(ii) has obtained employment in public or
private child welfare services.
``(c) Loan Repayment.--
``(1) In general.--The Secretary shall assume the
obligation to repay a total of not more than $20,000 of
principal and interest as follows:
``(A) after each of the first or second years of
service by an individual in a qualified public service
position, 15 percent of the total amount of principal
and interest of the loans described in subsection
(b)(1) to such individual that are outstanding
immediately preceding such first year of such service;
``(B) after each of the third or fourth years of
such service, 20 percent of such total amount; and
``(C) after the fifth year of such service, 30
percent of such total amount.
``(2) Treatment of consolidation loans.--A loan amount for
a loan made under section 428C or 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 loan described in subsection (b)(1)
for a borrower who meets the requirements of subsection (b), as
determined in accordance with regulations prescribed by the
Secretary.
``(3) Construction.--Nothing in this section shall be
construed to authorize the refunding of any repayment of a loan
made under section 428 or 428H, a Federal Direct Stafford Loan
or Federal Direct Unsubsidized Stafford Loan, a Federal Direct
Loan, or a Federal Perkins Loan.
``(4) 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 that accrues for such year
shall be repaid by the Secretary.
``(5) Ineligibility of national service award recipients.--
No student 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. 12601
et seq.).
``(6) Ineligibility for double benefits.--No borrower may
receive a reduction of loan obligations under both this section
and section 428J or 460.
``(7) Continued eligibility of teachers.--Any teacher who
performs service in a school that--
``(A) meets the requirements of subsection
(b)(2)(A)(ii)(I) 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 (b).
``(d) Repayment to Eligible Lenders and Holders.--The Secretary
shall pay to each eligible lender or holder for each fiscal year an
amount equal to the aggregate amount of the lender's or holder's loans
that are subject to repayment pursuant to this section for such year.
``(e) 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) Conditions.--An eligible individual may apply for
loan repayment under this section after completing each of the
consecutive years of qualifying service described in subsection
(c)(1). The borrower may elect to receive forbearance while
engaged in qualifying service described in subsection (c)(1)
unless the borrower is in deferment while so engaged.
``(f) Regulations.--The Secretary is authorized to prescribe such
regulations as may be necessary to carry out the provisions of this
section.
``(g) Definitions.--In this section:
``(1) Child welfare services.--The term `child welfare
services' has the meaning given the term in section 425 of the
Social Security Act.
``(2) Degree.--The term `degree' means an associate's or
bachelor's degree awarded by an institution of higher
education.
``(3) Eligible nurse.--The term `eligible nurse' means a
nurse who meets all of the following:
``(A) The nurse graduated from--
``(i) an accredited school of nursing (as
those terms are defined in section 801 of the
Public Health Service Act (42 U.S.C. 296));
``(ii) a nursing center; or
``(iii) an academic health center that
provides nurse training.
``(B) The nurse holds a valid and unrestricted
license to practice nursing in the State in which the
nurse practices in a clinical setting.
``(C) The nurse holds 1 or more of the following:
``(i) A graduate degree in nursing, or an
equivalent degree.
``(ii) A nursing degree from a collegiate
school of nursing (as defined in section 801 of
the Public Health Service Act (42 U.S.C. 296)).
``(iii) A nursing degree from an associate
degree school of nursing (as defined in section
801 of the Public Health Service Act (42 U.S.C.
296)).
``(iv) A nursing degree from a diploma
school of nursing (as defined in section 801 of
the Public Health Service Act (42 U.S.C. 296)).
``(4) Low-income community.--In this subsection, the term
`low-income community' means a community in which 70 percent of
households earn less than 85 percent of the State median
household income.
``(5) Year.--The term `year', where applied to service as a
teacher (or service as a member of an accredited school of
nursing (as those terms are defined in section 801 of the
Public Health Service Act (42 U.S.C. 296))), means an academic
year as defined by the Secretary.''.
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