II 109th CONGRESS 1st Session S. 731 IN THE SENATE OF THE UNITED STATES April 6, 2005 Mr. Conrad (for himself, Mr. Burns, Mr. Johnson, Mr. Dorgan, Mr. Kohl, Mr. Domenici, Mr. Bingaman, and Mr. Thune) introduced the following bill; which was read twice and referred to the Committee on Indian Affairs A BILL To recruit and retain more qualified individuals to teach in Tribal Colleges or Universities.

1.

Short title

This Act may be cited as the Tribal Colleges and Universities Teacher Loan Forgiveness Act .

2.

Loan repayment or cancellation for individuals who teach in Tribal Colleges or Universities

(a)

Perkins loans

(1)

Amendment

Section 465(a) of the Higher Education Act of 1965 (20 U.S.C. 1087ee(a)) is amended— (A) in paragraph (2)— (i) in subparagraph (H), by striking or after the semicolon; (ii) in subparagraph (I), by striking the period and inserting ; or; and (iii) by adding at the end the following: (J) as a full-time teacher at a Tribal College or University as defined in section 316(b). ; and (B) in paragraph (3)(A)(i), by striking or (I) and inserting (I), or (J). (2)

Effective date

The amendments made by paragraph (1) shall be effective for service performed during academic year 2003–2004 and succeeding academic years, notwithstanding any contrary provision of the promissory note under which a loan under part E of title IV of the Higher Education Act of 1965 (20 U.S.C. 1087aa et seq.) was made. (b)

FFEL and direct loans

Part G of title IV of the Higher Education Act of 1965 (20 U.S.C. 1088 et seq.) is amended by adding at the end the following:

493C.

Loan repayment or cancellation for individuals who teach in Tribal Colleges or Universities

(a)

Program authorized

The Secretary shall carry out a program, through the holder of a loan, of assuming or canceling the obligation to repay a qualified loan amount, in accordance with subsection (b), for any new borrower on or after the date of enactment of the Tribal Colleges and Universities Teacher Loan Forgiveness Act, who— (1) has been employed as a full-time teacher at a Tribal College or University as defined in section 316(b); and (2) is not in default on a loan for which the borrower seeks repayment or cancellation. (b)

Qualified loan amounts

(1)

Percentages

Subject to paragraph (2), the Secretary shall assume or cancel the obligation to repay under this section— (A) 15 percent of the amount of all loans made, insured, or guaranteed after the date of enactment of the Tribal Colleges and Universities Teacher Loan Forgiveness Act to a student under part B or D, for the first or second year of employment described in subsection (a)(1); (B) 20 percent of such total amount, for the third or fourth year of such employment; and (C) 30 percent of such total amount, for the fifth year of such employment. (2)

Maximum

The Secretary shall not repay or cancel under this section more than $15,000 in the aggregate of loans made, insured, or guaranteed under parts B and D for any student. (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 loan made, insured, or guaranteed under part B or D for a borrower who meets the requirements of subsection (a), as determined in accordance with regulations prescribed by the Secretary. (c)

Regulations

The Secretary is authorized to issue such regulations as may be necessary to carry out the provisions of this section. (d)

Effect on section

Nothing in this section shall be construed to authorize any refunding of any repayment of a loan. (e)

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. 12601 et seq.). (f)

Definition

For purposes of this section, the term year, when applied to employment as a teacher, means an academic year as defined by the Secretary.

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3.

Loan repayment for nursing instructors at Tribal Colleges or Universities

Section 846(a)(3) of the Public Health Service Act (42 U.S.C. 297n(a)(3)) is amended— (1) by striking (3) and inserting (3)(A); (2) by inserting or after the semicolon; and (3) by adding at the end the following: (B) who is a nursing instructor at a tribally controlled college or university (as such term is defined in section 2 of the Tribally Controlled College or University Assistance Act of 1978 (25 U.S.C. 1801), or any institution listed in section 532 of the Equity in Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 note)); .

4.

Amounts forgiven not treated as gross income

The amount of any loan that is assumed or canceled under an amendment made by this Act shall not, consistent with section 108(f) of the Internal Revenue Code of 1986, be treated as gross income for Federal income tax purposes.