Loan forgiveness for service as an early childhood educator

Section 428K (20 U.S.C. 1078–11) is amended to read as follows:

428K.

Loan forgiveness for service as an early childhood educator

(a)

Purposes

The purposes of this section are— (1)to encourage highly trained individuals to enter and continue in service as early childhood educators; and (2)to reduce the burden of student debt for Americans who dedicate their careers to service as early childhood educators. (b)

Program authorized

(1)

Loan forgiveness authorized

The Secretary is authorized to forgive, in accordance with this section, the student loan obligation of a borrower in the amount specified in subsection (c), for any new borrower after the date of enactment of the Early Educator Loan Forgiveness Act of 2007, who— (A)has been employed full-time for at least 5 consecutive complete school years as an early childhood educator in an eligible preschool program or eligible early childhood education program in a low-income community, and who is involved directly in the care, development, and education of infants, toddlers, or young children through age 5; and (B)is not in default on a loan for which the borrower seeks forgiveness. (2)

Method of loan forgiveness

To provide loan forgiveness under 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, insured, or guaranteed under this part; and (B)to cancel a qualified loan amount for a loan made under part D of this title. (3)

Regulations

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

Qualified loan amount

The Secretary shall forgive not more than $5,000 in the aggregate of the student loan obligation of a borrower that is outstanding after the completion of the fifth consecutive school year of employment described in subsection (b)(1). (d)

Construction

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

Award basis

Loan forgiveness under this section shall be on a first-come, first-served basis and subject to the availability of appropriations. (f)

Ineligibility for double benefits

No borrower may receive a reduction of loan obligations under both this section and section 428J or 460. (g)

Definitions

In this section: (1)

Early childhood educator

The term early childhood educator means an early childhood educator who works directly with children in an eligible preschool program or eligible early childhood education program who has completed a baccalaureate or advanced degree in early childhood development, early childhood education, or in a field related to early childhood education. (2)

Eligible preschool program

The term eligible preschool program means a program that provides for the care, development, and education of infants, toddlers, or young children through age 5, meets any applicable State or local government licensing, certification, approval, and registration requirements, and is operated by— (A)a public or private school that may be supported, sponsored, supervised, or administered by a local educational agency; (B)a Head Start agency serving as a grantee designated under the Head Start Act (42 U.S.C. 9831 et seq.); (C)a nonprofit or community based organization; or (D)a child care program, including a home. (3)

Eligible early childhood education program

The term eligible early childhood education program means— (A)a family child care program, center-based child care program, State prekindergarten program, school program, or other out-of-home early childhood development care program, that— (i)is licensed or regulated by the State; and (ii)serves 2 or more unrelated children who are not old enough to attend kindergarten; (B)a Head Start Program carried out under the Head Start Act (42 U.S.C. 9831 et seq.); or (C)an Early Head Start Program carried out under section 645A of the Head Start Act (42 U.S.C. 9840a). (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. (h)

Authorization of appropriations

There is authorized to be appropriated to carry out this section such sums as may be necessary for fiscal year 2008 and each of the 5 succeeding fiscal years.