[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 440 Introduced in Senate (IS)]

113th CONGRESS
  1st Session
                                 S. 440

     To amend the Higher Education Act of 1965 to provide for loan 
   forgiveness for early childhood educators, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 4, 2013

Mr. Reid (for Mr. Begich) introduced the following bill; which was read 
 twice and referred to the Committee on Health, Education, Labor, and 
                                Pensions

_______________________________________________________________________

                                 A BILL


 
     To amend the Higher Education Act of 1965 to provide for loan 
   forgiveness for early childhood educators, and for other purposes.

    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 ``Preparing and Reinvesting in Early 
Education Act of 2013'' or ``PRE ED Act of 2013''.

SEC. 2. EXPANDING FFEL LOAN FORGIVENESS PROGRAM TO EARLY CHILDHOOD 
              EDUCATORS.

    Section 428J of the Higher Education Act of 1965 (20 U.S.C. 1078-
10) is amended--
            (1) in the section heading, by inserting ``early childhood 
        educators and elementary and secondary school'' before 
        ``teachers'';
            (2) by striking subsection (b) and inserting the following:
    ``(b) Program Authorized.--The Secretary shall carry out a program, 
through the holder of the loan, of assuming the obligation to repay a 
qualified loan amount for a loan made under section 428 or 428H, in 
accordance with subsection (c), for any borrower who--
            ``(1)(A) is a new borrower on or after October 1, 1998, and 
        has been employed as a full-time teacher for 5 consecutive 
        complete school years--
                    ``(i) in a school or location that qualifies under 
                section 465(a)(2)(A) for loan cancellation for Perkins 
                loan recipients who teach in such schools or locations; 
                and
                    ``(ii) if employed as an elementary school or 
                secondary school teacher, is highly qualified as 
                defined in section 9101 of the Elementary Secondary 
                Education Act of 1965, or meets the requirements of 
                subsection (g)(3); or
            ``(B)(i) has been employed as a full-time early childhood 
        educator at an early childhood program for 5 consecutive 
        complete school years or a comparable period, as determined by 
        the Secretary; and
            ``(ii) obtained an associate degree or baccalaureate degree 
        in early childhood education from an institution of higher 
        education prior to the beginning of the period described in 
        clause (i); and
            ``(2) is not in default on a loan for which the borrower 
        seeks forgiveness.'';
            (3) by striking paragraph (1) of subsection (c) and 
        inserting the following:
            ``(1) In general.--
                    ``(A) Aggregate amounts.--Of the loan obligation on 
                a loan made under section 428 or 428H that is 
                outstanding after the completion of the fifth complete 
                school year of teaching described in subsection (b)(1) 
                or comparable period (in accordance with subsection 
                (b)(1)(B)(i)), the Secretary shall repay not more 
                than--
                            ``(i) $5,000 in the aggregate for a 
                        borrower described in subsection (b)(1)(A), 
                        except as provided in paragraph (3); and
                            ``(ii) $25,000 in the aggregate for a 
                        borrower described in subsection (b)(1)(B).
                    ``(B) Interaction with direct loan program.--No 
                borrower may receive a reduction of loan obligations 
                under both this section and section 460.''; and
            (4) in subsection (g)--
                    (A) in paragraph (1)(A), by striking ``(b)(1)(A)'' 
                and inserting ``(b)(1)(A)(i)''; and
                    (B) in paragraph (3), by striking ``(b)(1)(B)'' and 
                inserting ``(b)(1)(A)(ii)''.

SEC. 3. EXPANDING FEDERAL DIRECT LOAN CANCELLATION PROGRAM TO EARLY 
              CHILDHOOD EDUCATORS.

    Section 460 of the Higher Education Act of 1965 (20 U.S.C. 1087j) 
is amended--
            (1) in the section heading, by inserting ``early childhood 
        educators and elementary and secondary school'' before 
        ``teachers'';
            (2) by striking subsection (b) and inserting the following:
    ``(b) Program Authorized.--The Secretary shall carry out a program 
of canceling the obligation to repay a qualified loan amount in 
accordance with subsection (c) for Federal Direct Stafford Loans and 
Federal Direct Unsubsidized Stafford Loans made under this part for any 
borrower who--
            ``(1)(A) is a new borrower on or after October 1, 1998 and 
        has been employed as a full-time teacher for 5 consecutive 
        complete school years--
                    ``(i) in a school or location that qualifies under 
                section 465(a)(2)(A) for loan cancellation for Perkins 
                loan recipients who teach in such schools or locations; 
                and
                    ``(ii) if employed as an elementary school or 
                secondary school teacher, is highly qualified as 
                defined in section 9101 of the Elementary Secondary 
                Education Act of 1965, or meets the requirements of 
                subsection (g)(3); or
            ``(B)(i) has been employed as a full-time early childhood 
        educator at an early childhood program for 5 consecutive 
        complete school years or a comparable period, as determined by 
        the Secretary; and
            ``(ii) obtained an associate degree or baccalaureate degree 
        in early childhood education from an institution of higher 
        education prior to the beginning of the period described in 
        clause (i); and
            ``(2) is not in default on a loan for which the borrower 
        seeks forgiveness.'';
            (3) by striking paragraph (1) of subsection (c) and 
        inserting the following:
            ``(1) In general.--
                    ``(A) Aggregate amounts.--Of the loan obligation on 
                a Federal Direct Stafford Loan or a Federal Direct 
                Unsubsidized Stafford Loan that is outstanding after 
                the completion of the fifth complete school year of 
                teaching described in subsection (b)(1) or comparable 
                period (in accordance with subsection (b)(1)(B)(i)), 
                the Secretary shall cancel not more than--
                            ``(i) $5,000 in the aggregate for a 
                        borrower described in subsection (b)(1)(A), 
                        except as provided in paragraph (3); and
                            ``(ii) $25,000 in the aggregate for a 
                        borrower described in subsection (b)(1)(B).
                    ``(B) Interaction with ffel program.--No borrower 
                may receive a reduction of loan obligations under both 
                this section and section 428J.''; and
            (4) in subsection (g)--
                    (A) in paragraph (1)(A), by striking ``(b)(1)(A)'' 
                and inserting ``(b)(1)(A)(i)''; and
                    (B) in paragraph (3), by striking ``(b)(1)(B)'' and 
                inserting ``(b)(1)(A)(ii)''.

SEC. 4. AMENDMENT TO LOAN FORGIVENESS FOR SERVICE IN AREAS OF NATIONAL 
              NEED PROGRAM.

    Section 428K(g)(3)(C) of the Higher Education Act of 1965 (20 
U.S.C. 1078-11(g)(3)(C)) is amended by inserting ``an associate degree 
in early childhood education or'' before ``a baccalaureate''.
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