[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5349 Introduced in House (IH)]








109th CONGRESS
  2d Session
                                H. R. 5349

 To amend the Higher Education Act of 1965 to establish a student loan 
                    forgiveness program for nurses.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 10, 2006

   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 amend the Higher Education Act of 1965 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 
2006''.

SEC. 2. FINDINGS.

    The Congress finds the following:
            (1) According to 2005 statistics from the American Hospital 
        Association, 118,000 nurses are needed to fill vacancies at our 
        nation's hospitals, and more than 75 percent of all hospital 
        personnel vacancies are for nurses.
            (2) According to a study by the Department of Health and 
        Human Services in 2002, the United States will experience a 29 
        percent shortage in the number of nurses needed in the United 
        States health care system by the year 2020, which translates 
        into a shortage of more than 400,000 registered nurses 
        nationwide.
            (3) Research indicates that there is a great 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 Department of Labor projects a 29 percent increase 
        in the need for nurses nationwide from 2004 to 2014, compared 
        with a 13 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 2004, an estimated 16 
        percent have chosen to not practice in the field.

SEC. 3. LOAN FORGIVENESS PROGRAM ESTABLISHED.

    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) Purposes.--The purposes of this section are--
            ``(1) to encourage individuals to enter and continue in the 
        nursing profession; and
            ``(2) to reward such individuals for their service in the 
        nursing profession by reducing the burden of student debt.
    ``(b) Loan Forgiveness.--
            ``(1) Loan forgiveness authorized.--The Secretary is 
        authorized to forgive, in accordance with this section, the 
        student loan debt of an eligible borrower in the amount 
        specified in subsection (d) for each of the first 5 complete 
        years of service described in subsection (c)(1) by such 
        eligible borrower that occur after the date of enactment of 
        this section.
            ``(2) Method of loan forgiveness.--To provide the loan 
        forgiveness authorized in paragraph (1), the Secretary is 
        authorized to carry out a program--
                    ``(A) through the holder of the loan, to assume the 
                obligation to repay a qualified loan amount for a loan 
                made under this part; and
                    ``(B) to cancel a qualified loan amount for a loan 
                made under part D of this title.
            ``(3) Limitation on consolidation loans.--A loan amount for 
        a loan made under section 428C may be a qualified loan amount 
        for the purposes of this section 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 an eligible borrower, as determined in 
        accordance with regulations prescribed by the Secretary.
    ``(c) Eligible Borrower.--The Secretary is authorized to provide 
loan forgiveness under this section to any individual who--
            ``(1) has been employed for at least one 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 the purposes of this section; and
            ``(2) is not in default on a loan for which the borrower 
        seeks forgiveness.
    ``(d) Loan Forgiveness Amounts.--The Secretary may, from funds 
appropriated under subsection (j), forgive the loan obligation of an 
eligible borrower in accordance with subsection (b)(2) and in the 
following increments:
            ``(1) After the first calendar year of employment described 
        in subsection (c)(1), not more than $2,000.
            ``(2) After the second such year of employment, not more 
        than $2,500.
            ``(3) After the third such year of employment, not more 
        than $3,000.
            ``(4) After the fourth such year of employment, not more 
        than $4,500.
            ``(5) After the fifth such year of employment, not more 
        than $5,000.
    ``(e) Application for Loan Forgiveness.--An eligible borrower 
desiring loan forgiveness 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.
    ``(f) Priority.--The Secretary shall grant loan forgiveness under 
this section on a first-come, first-served basis, and subject to the 
availability of appropriations.
    ``(g) Regulations.--The Secretary is authorized to prescribe such 
regulations as may be necessary to carry out the provisions of this 
section.
    ``(h) Construction.--Nothing in this section shall be construed to 
authorize the refunding of any repayment of any loan.
    ``(i) 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 et seq.).
    ``(j) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary 
for fiscal year 2007 and each of the 5 succeeding fiscal years.''.
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