[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3634 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 3634

 To establish and determine the eligibility of individuals for a loan 
  forgiveness program for professional engineers in order to provide 
 incentives for engineers currently employed and engineering students 
    and other students pursuing or considering pursuing a degree in 
 science, technology and engineering, and for the support of students 
          pursing such secondary and postsecondary education.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 24, 2007

 Mr. Cleaver introduced the following bill; which was referred to the 
                    Committee on Education and Labor

_______________________________________________________________________

                                 A BILL


 
 To establish and determine the eligibility of individuals for a loan 
  forgiveness program for professional engineers in order to provide 
 incentives for engineers currently employed and engineering students 
    and other students pursuing or considering pursuing a degree in 
 science, technology and engineering, and for the support of students 
          pursing such secondary and postsecondary education.

    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 ``Strategic Technology/Engineering 
Program Act of 2007'' or the ``STEP Act''.

SEC. 2. FINDINGS.

    Congress finds as follows:
            (1) In 1985, the number of bachelor's degrees awarded 
        annually in engineering peaked at 77,572, and that number has 
        decreased every year since 1985. According to the National 
        Science Foundation, the number of people who earned bachelor's 
        degrees in engineering declined to approximately 60,000 in 
        2002.
            (2) In 1996, the number of doctoral degrees awarded 
        annually in engineering peaked at 6,309.
            (3) Since 1983, the unemployment rate for science and 
        engineering jobs has been at least 2 percent lower than the 
        unemployment rate in the United States for all fields of 
        employment.
            (4) In 2004, engineers held 1,400,000 jobs in the United 
        States, and the Department of Labor's Bureau of Labor Studies 
        has projected that 611,000 new engineering jobs will open up 
        during the 10-year period from 2004 through 2014.
            (5) Over one-quarter of the science and engineering 
        workforce is comprised of individuals who are older than age 50 
        and who are expected to retire in the next 15 years.
            (6) The United States is facing a shortage of engineers 
        because the number of engineering graduates is consistently 
        surpassed by the growth in engineering jobs, many engineers are 
        nearing retirement, and many new engineering graduates take 
        jobs in other fields.
            (7) The United States should take advantage of available 
        intellectual resources by recruiting students from the top 
        third of high school graduates to pursue engineering degrees 
        and to become the next generation of engineers.
            (8) The United States should develop education standards, 
        assessments, and curricula that reflect the engineering needs 
        of our Nation now and in the future.
            (9) Most engineering jobs require a bachelor's degree in 
        engineering, and many States require additional years of study 
        beyond a bachelor's degree to qualify for and maintain the 
        Professional Engineer designation.
            (10) The years of study required to be able to perform 
        engineering jobs result in a large financial burden.
            (11) Providing scholarships and loan forgiveness for 
        engineering graduates who work in the engineering field will 
        make it easier for such graduates to enter and continue to work 
        in the engineering profession, a profession that is vital to 
        the United States.

SEC. 3. STRATEGIC TECHNOLOGY AND ENGINEERING PROGRAM (STEP).

    Title VII of the Higher Education Act of 1965 (20 U.S.C. 1133 et 
seq.) is amended by adding at the end the following new part:

                             ``PART E--STEP

``SEC. 771. STRATEGIC TECHNOLOGY/ENGINEERING PROGRAM (STEP).

    ``(a) Program Established.--The Secretary is authorized to 
establish a STEP scholarship program, in accordance with the 
requirements of this section, to award scholarships to individuals who 
enroll in a program of study at institution of higher educations to 
pursue undergraduate and graduate degrees in engineering, technology, 
applied sciences, mathematics, or similar fields.
    ``(b) STEP Scholars.--Individuals awarded scholarships under this 
section shall be known as `STEP Scholars'.
    ``(c) Scholarship Awards.--
            ``(1) Scholarship amount.--
                    ``(A) Yearly and aggregate amounts.--The amount of 
                a STEP scholarship shall be--
                            ``(i) for an undergraduate student, not 
                        more than $9,000 for an academic year, and not 
                        more than $36,000 in the aggregate; and
                            ``(ii) for a graduate student, not more 
                        than $15,000 for an academic year, and not more 
                        than $45,000 in the aggregate.
                    ``(B) Limitation.--In no case shall the total 
                amount of a STEP scholarship awarded to an individual 
                exceed such individual's total cost of attendance for 
                the academic year for which the scholarship is awarded.
                    ``(C) Adjustment for insufficient appropriations.--
                If funds available to carry out this section for an 
                academic year are insufficient to fully fund all 
                scholarships awarded by the Secretary under this 
                section for such academic year, the amount of the 
                scholarship paid to each individual under this section 
                shall be reduced proportionately.
            ``(2) Period of award.--STEP scholarships shall be awarded 
        for a period of one academic year, and may be renewed for 
        subsequent one-year periods during--
                    ``(A) the 4 years of study necessary to obtain an 
                undergraduate degree; and
                    ``(B) the 3 years of study necessary to obtain a 
                graduate degree.
            ``(3) Relation to other assistance.--STEP scholarships 
        shall not be considered for the purpose of awarding Federal 
        grant assistance under title IV of the Higher Education Act of 
        1965 (20 U.S.C. 1070 et seq.), except that in no case shall the 
        total amount of student financial assistance awarded to an 
        individual under this section and title IV of such Act exceed 
        such individual's total cost of attendance.
    ``(d) Eligibility.--To be eligible for a STEP scholarship, an 
individual shall--
            ``(1) be a citizen, national, or permanent resident of the 
        United States;
            ``(2) be an eligible student under section 484;
            ``(3) be enrolled or accepted for enrollment in a program 
        of--
                    ``(A) undergraduate instruction leading to a 
                bachelor's degree with a major in engineering, 
                technology, applied sciences, mathematics, or similar 
                fields at an institution of higher education; or
                    ``(B) graduate instruction leading to a master's or 
                doctoral degree in engineering, technology, applied 
                sciences, mathematics, or similar fields at an 
                institution of higher education;
            ``(4) be enrolled or accepted for enrollment in at least 15 
        credit hours per semester (or the equivalent for a course of 
        study that measures its program length in trimesters, quarters, 
        or clock hours) of courses required to obtain an undergraduate 
        or graduate degree in engineering, technology, applied 
        sciences, mathematics, or similar fields; and
            ``(5) have a grade point average--
                    ``(A) of at least 2.5, cumulatively, (or the 
                equivalent as determined under regulations prescribed 
                by the Secretary) at the end of the secondary school 
                program of study, in the case of an individual enrolled 
                or accepted for enrollment in the first academic year 
                of undergraduate education; or
                    ``(B) of at least 2.5 (or the equivalent as 
                determined under regulations prescribed by the 
                Secretary) for each completed academic semester of 
                undergraduate or graduate education, in the case of an 
                individual enrolled or accepted for enrollment other 
                than in the first academic year of undergraduate 
                education.
    ``(e) Selection.--
            ``(1) Application.--Each eligible individual desiring a 
        STEP scholarship shall submit an application to the Secretary 
        at such time, in such manner, and containing such information 
        as the Secretary may reasonably require.
            ``(2) Award basis.--Subject to paragraph (3), STEP 
        scholarships shall be awarded on a first-come, first-served 
        basis and subject to the availability of appropriations.
            ``(3) Priority.--The Secretary shall give priority in 
        awarding STEP scholarships for an academic year--
                    ``(A) to eligible individuals who received a STEP 
                scholarship for the preceding academic year; and
                    ``(B) to eligible individuals enrolled in an 
                institution of higher education that is an eligible 
                institution under section 312 of this Act.
    ``(f) Conversion to Loan.--
            ``(1) Repayment.--In the event that any recipient of a STEP 
        scholarship fails or refuses to obtain the degree in 
        engineering, technology, applied sciences, mathematics, or 
        similar fields for which the individual was awarded such 
        scholarship within a period prescribed by the Secretary by 
        regulations issued pursuant to this section, the sum of the 
        amounts of such STEP scholarship provided to such recipient 
        shall be treated as a Direct Loan under part D of title IV of 
        the Higher Education Act of 1965 (20 U.S.C. 1087a et seq.), and 
        shall be subject to repayment in accordance with terms and 
        conditions specified by the Secretary in such regulations.
            ``(2) Forgiveness if deceased or disabled.--An individual 
        shall be excused from repayment of any scholarship award 
        required under paragraph (1) if--
                    ``(A) the individual dies or becomes permanently 
                and totally disabled (as determined in accordance with 
                regulations prescribed by the Secretary); or
                    ``(B) recovery under this subsection would be 
                against equity and good conscience or against the 
                public interest.
    ``(g) Regulations.--The Secretary is authorized to prescribe such 
regulations as may be necessary to carry out the provisions of this 
section.
    ``(h) Definitions.--For the purposes of this section:
            ``(1) Engineering, technology, applied sciences, 
        mathematics, or similar fields.--An individual shall be 
        considered to be considered to pursue or obtain a degree in 
        engineering, technology, applied sciences, mathematics, or 
        similar fields if--
                    ``(A) such degree qualifies the individual to be 
                with a professional engineering designation, including 
                any of the following designations: aerospace engineer; 
                agricultural engineer; biomedical engineer; chemical 
                engineer; civil engineer; computer hardware engineer; 
                electrical engineer; electronics engineer; 
                environmental engineer; health and safety engineer; 
                industrial engineer; marine engineer; and naval 
                architects; materials engineer; mechanical engineer; 
                mining and geological engineer; nuclear engineer; and 
                petroleum engineer; and
                    ``(B) such degree is awarded by an institution of 
                higher education program in engineering, technology, 
                applied sciences, mathematics, or similar fields that 
                is accredited by the Accreditation Board for 
                Engineering and Technology (ABET).
            ``(2) Institution of higher education.--The term 
        `institution of higher education' has the meaning given such 
        term in section 102 of the Higher Education Act of 1965 (20 
        U.S.C. 1001(a)), except that the term does not include any 
        institution described in subsection (a)(1)(c) of such section.
            ``(3) Secretary.--The term `Secretary' means the Secretary 
        of Education.
    ``(i) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary 
for fiscal year 2008 and each succeeding fiscal year.''.

SEC. 4. STUDENT LOAN FORGIVENESS FOR ENGINEERS.

    The Higher Education Act of 1965 is amended by inserting after 
section 428K (20 U.S.C. 1078-11) the following:

``SEC. 428L. LOAN FORGIVENESS FOR ENGINEERS.

    ``(a) Program Authorized.--
            ``(1) In general.--For the purpose of encouraging qualified 
        individuals to enter and continue employment as engineers, the 
        Secretary is authorized, from the funds appropriated under 
        subsection (h), to forgive, in accordance with this section, 
        the student loan debt of any borrower, who--
                    ``(A) is employed as an engineer;
                    ``(B) has or is seeking a license as a professional 
                engineer in accordance with the requirements of a State 
                licensing board; and
                    ``(C) is not in default on a loan for which the 
                borrower seeks forgiveness.
            ``(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 (as 
                determined under subsection (b)) for a loan made under 
                this part; and
                    ``(B) to cancel a qualified loan amount (as so 
                determined) for a loan made under part D of this title.
    ``(b) Qualified Loan Amounts.--The Secretary shall forgive the loan 
obligation of the borrower, in accordance with subsection (a)(2), not 
to exceed $150,000 in the aggregate, in the following increments:
            ``(1) For the completion of each of the 8 years of 
        employment as an engineer as specified in the written agreement 
        in subsection (c), 10 percent of the borrower's total loan 
        obligation that is outstanding at the completion of each such 
        year.
            ``(2) For obtaining licensure as a professional engineer in 
        accordance with the requirements of a State licensing board as 
        specified in the written agreement in subsection (c), 20 
        percent of the borrower's total loan obligation that is 
        outstanding at the time of such licensure.
    ``(c) Terms of Agreement.--
            ``(1) In general.--To be eligible to receive forgiveness 
        benefits under this section, a borrower shall enter into a 
        written agreement that specifies that--
                    ``(A) the borrower will remain employed as an 
                engineer for a not less than 8 years;
                    ``(B) the borrower will obtain licensure as a 
                professional engineer in accordance with the 
                requirements of a State licensing board within 8 years 
                after obtaining a degree;
                    ``(C) the borrower will repay the Secretary a 
                proportionate amount, as determined in accordance with 
                regulations of the Secretary, of the benefits received 
                by such borrower under this section if the borrower--
                            ``(i) fails to complete the 8 years of 
                        employment as an engineer under subparagraph 
                        (A) because the borrower is involuntarily 
                        separated from such employment on account of 
                        misconduct, or voluntarily separates from such 
                        employment; or
                            ``(ii) fails to obtain licensure as a 
                        professional engineer under subparagraph (B);
                    ``(D) if the borrower is required to repay an 
                amount to the Secretary under subparagraph (C) and 
                fails to repay such amount, a sum equal to the amount 
                is recoverable by the Government from the borrower (or 
                such borrower's estate, if applicable) by such method 
                as is provided by law for the recovery of amounts owing 
                to the Government;
                    ``(E) the Secretary may waive, in whole or in part, 
                a right of recovery under this subsection if it is 
                shown that recovery would be against equity and good 
                conscience or against the public interest; and
                    ``(F) the Secretary shall provide loan forgiveness 
                in accordance with this section, subject to the 
                availability of appropriations.
            ``(2) Repayment for violation of agreement.--Any amount 
        repaid by, or recovered from, an individual (or an estate) 
        under this subsection shall be credited to the appropriation 
        account from which the amount involved was originally paid or 
        debited. Any amount so credited shall be merged with other sums 
        in such account and shall be available for the same purposes 
        and period, and subject to the same limitations (if any), as 
        the sums with which the amount was merged.
    ``(d) Award Basis; Priority.--
            ``(1) Award basis.--The Secretary shall provide forgiveness 
        benefits under this section on a first-come, first-served basis 
        (subject to paragraph (2)) and subject to the availability of 
        appropriations.
            ``(2) Priority.--The Secretary shall give priority in 
        providing forgiveness benefits under this section for a fiscal 
        year to a borrower who received forgiveness benefits under this 
        section for the preceding fiscal year.
    ``(e) Construction.--Nothing in this section shall be construed to 
authorize the refunding of any repayment of a loan.
    ``(f) Regulations.--The Secretary is authorized to issue such 
regulations as may be necessary to carry out the provisions of this 
section.
    ``(g) Definition.--In this section, the term `engineer' means an 
individual who is qualified to be employed in an occupation with a 
professional engineering designation, including any of the following 
designations: aerospace engineer; agricultural engineer; biomedical 
engineer; chemical engineer; civil engineer; computer hardware 
engineer; electrical engineer; electronics engineer; environmental 
engineer; health and safety engineer; industrial engineer; marine 
engineer; and naval architects; materials engineer; mechanical 
engineer; mining and geological engineer; nuclear engineer; and 
petroleum engineer.
    ``(h) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary 
for fiscal year 2008 and each succeeding fiscal year.''.
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