Teach grants

Subpart 9 of part A of title IV of the Higher Education Act of 1965 (20 U.S.C. 1070g et seq.) is amended to read as follows:

TEACH Grants

420L.

Definitions

For the purposes of this subpart: (1)

Eligible institution

The term eligible institution means an institution of higher education, as defined in section 102, that the Secretary determines— (A) provides high-quality teacher preparation and professional development services, including extensive clinical experience as a part of pre-service preparation; (B) is financially responsible and is not subject to heightened cash monitoring or provisional certification; (C) provides pedagogical coursework, or assistance in the provision of such coursework, including the monitoring of student performance, and formal instruction related to the theory and practices of teaching; and (D) provides supervision and support services to teachers, or assistance in the provision of such services, including mentoring focused on developing effective teaching skills and strategies. (2)

Post-baccalaureate

The term post-baccalaureate means a program of instruction for individuals who have completed a baccalaureate degree that— (A) is offered by an eligible institution that does not offer a baccalaureate degree in education; (B) does not lead to a graduate degree; and (C) consists of courses required by a State in order for a teacher candidate to receive a professional certification or licensing credential that is required for employment as a teacher in an elementary school or secondary school in that State. (3)

Teacher candidate

The term teacher candidate means a student or teacher described in subparagraph (A) or (B) of section 420N(a)(2).

420M.

Program established

(a)

Program authority

(1)

Payments required

The Secretary shall pay to each eligible institution such sums as may be necessary to pay to each teacher candidate who files an application and agreement in accordance with section 420N, and who qualifies under paragraph (2) of section 420N(a), a TEACH Grant in the amount of— (A) in the case of an applicant who is not an applicant under section 420N(a)(2)(B)— (i) $4,000 for each of the first 2 years during which that teacher candidate is in attendance at the institution; and (ii) $5,000 for each of the second 2 years during which that teacher candidate is in attendance at the institution; and (B) in the case of an applicant under section 420N(a)(2)(B), $5,000 for each year during which that individual is in attendance at the institution. (2)

References

Grants made under paragraph (1) shall be known as Teacher Education Assistance for College and Higher Education Grants or TEACH Grants. (b)

Payment methodology

(1)

Prepayment

(A)

In general

Not less than 85 percent of any funds provided to an eligible institution under subsection (a) shall be advanced to the eligible institution prior to the start of each payment period and shall be based upon an amount requested by the institution as needed to pay teacher candidates until such time as the Secretary determines and publishes in the Federal Register, with an opportunity for comment, an alternative payment system that provides payments to institutions in an accurate and timely manner, subject to subparagraph (B). (B)

Reimbursement authority

Subparagraph (A) shall not be construed to limit the authority of the Secretary to place an institution on a reimbursement system of payment. (2)

Direct payment

Nothing in this section shall be interpreted to prohibit the Secretary from paying directly to teacher candidates, in advance of the beginning of the academic term, an amount for which teacher candidates are eligible, in cases in which the eligible institution elects not to participate in the disbursement system required by paragraph (1). (3)

Distribution of grants to teacher candidates

Payments under this subpart shall be made, in accordance with regulations promulgated by the Secretary for such purpose, in such manner as will best accomplish the purposes of this subpart. Any disbursement allowed to be made by crediting the teacher candidate’s account shall be used for any component of the cost of attendance for the teacher candidate, as selected by the teacher candidate. (c)

Reductions in amount

(1)

Part-time students

In any case in which a teacher candidate attends an eligible institution on less than a full-time basis (including a teacher candidate who attends an eligible institution on less than a half-time basis) during any year, the amount of a grant under this subpart for which that teacher candidate is eligible shall be reduced in proportion to the degree to which that teacher candidate is not attending on a full-time basis, in accordance with a schedule of reductions established by the Secretary for the purposes of this subpart, computed in accordance with this subpart. Such schedule of reductions shall be established by regulation and published in the Federal Register in accordance with section 482. (2)

No exceeding cost

The amount of a grant awarded under this subpart, in combination with Federal assistance and other assistance the student may receive, shall not exceed the cost of attendance at the eligible institution at which that teacher candidate is in attendance. (d)

Period of eligibility for grants

(1)

Undergraduate and post-baccalaureate students

The period during which an undergraduate or post-baccalaureate student may receive grants under this subpart shall be the period required for the completion of the first undergraduate baccalaureate or post-baccalaureate course of study being pursued by the teacher candidate at the eligible institution at which the teacher candidate is in attendance, except that— (A) any period during which the teacher candidate is enrolled in a noncredit or remedial course of study as described in paragraph (3) shall not be counted for the purpose of this paragraph; and (B) the total amount that a teacher candidate may receive under this subpart for undergraduate or post-baccalaureate study shall not exceed $18,000. (2)

Graduate students

The period during which a graduate student may receive grants under this subpart shall be the period required for the completion of a master’s degree course of study pursued by the teacher candidate at the eligible institution at which the teacher candidate is in attendance, except that the total amount that a teacher candidate may receive under this subpart for graduate study shall not exceed $10,000. (3)

Remedial course; study abroad

Nothing in this section shall be construed to exclude from eligibility courses of study which are noncredit or remedial in nature (including courses in English language acquisition) that are determined by the eligible institution to be necessary to help the teacher candidate be prepared for the pursuit of a first undergraduate baccalaureate or post-baccalaureate degree or certificate or, in the case of courses in English language instruction, to be necessary to enable the teacher candidate to utilize already existing knowledge, training, or skills. Nothing in this section shall be construed to exclude from eligibility programs of study abroad that are approved for credit by the home institution at which the teacher candidate is enrolled. (e)

Institutional eligibility based on candidates' failure To complete service

(1)

50 percent threshold requirements

Notwithstanding subsections (a) and (b) and beginning for award year 2026–2027 and each subsequent award year, an institution for which, during the period of the 3 preceding consecutive award years (referred to in this subsection as the applicable period), 50 percent or more of the covered TEACH grant recipients (defined, for purposes of this subsection, as TEACH Grant recipients who graduated from such institution and had an outstanding service obligation during the applicable period) have had their grant converted to loans under section 420N(c)(1) during the applicable period shall— (A) for the 3-year period beginning on the last day of the applicable period, be ineligible to offer TEACH Grants to students at the institution who did not receive a TEACH grant from the institution for the preceding award year; and (B) beginning 3 years after the last day of the applicable period, be eligible to submit an application to offer TEACH Grants to students but only in accordance with the requirements of paragraph (2), for 3 award years. (2)

40 percent threshold requirements

Notwithstanding subsections (a) and (b), an institution for which, during an applicable period, 40 percent or more of the covered TEACH Grant recipients have had their TEACH Grants converted to loans under section 420N(c)(1) shall— (A) for a period of 3 award years— (i) not be permitted to offer any student a TEACH Grant during the student's first academic year attending an institution of higher education; (ii) provide a student with student teaching experience prior to offering the student a TEACH Grant; and (iii) be required to provide additional financial aid counseling to students participating in the TEACH Grant program, or who express a desire to participate in the TEACH Grant program; and (B) be required to establish a task force that prepares a plan to— (i) identify contributing factors leading to high loan conversion rates; and (ii) establish measurable objectives and actionable steps, besides counseling students, to improve the loan conversion rate. (3)

Reentry into full eligibility

An institution subject to the requirements of paragraph (2) (including an institution subject to such paragraph as required under paragraph (1)(B)) shall be eligible to apply to the Secretary to restore full eligibility and remove the restrictions under paragraph (2) when— (A) the institution has completed not less than 3 award years of participating as described in such paragraph; (B) during the period of the 3 immediately preceding award years of such participation, less than 40 percent of the covered TEACH grant recipients have had their TEACH grants converted to loans under section 420N(c)(1); and (C) the institution has established the task force and improvement plan as required under paragraph (2)(B), made demonstrable progress on such improvement plan, and continues to engage in review and technical assistance in order to improve the loan conversion rate. (4)

Technical assistance and dissemination of best practices

The Secretary shall— (A) provide technical assistance to institutions seeking to retain or regain eligibility under this section; and (B) disseminate best practices outlined in section 420P(b)(7) for minimizing the conversion of TEACH grants into loans.

420N.

Applications; eligibility

(a)

Applications; demonstration of eligibility

(1)

Filing required

The Secretary shall periodically set dates by which teacher candidates shall file applications for TEACH grants. Each teacher candidate desiring a TEACH grant for any year shall file an application containing such information and assurances as the Secretary may determine necessary to enable the Secretary to carry out the functions and responsibilities of this subpart. (2)

Demonstration of teach grant eligibility

Each application submitted under paragraph (1) shall contain such information as is necessary to demonstrate that— (A) if the applicant is an enrolled student— (i) the student is an eligible student for purposes of section 484; (ii) the student— (I) has a grade point average that is determined, under standards prescribed by the Secretary, to be comparable to a 3.25 average on a zero to 4.0 scale, except that, if the student is in the first year of a program of undergraduate education, such grade point average shall be determined on the basis of the student’s cumulative secondary school grade point average; or (II) displayed high academic aptitude by receiving a score above the 75th percentile on at least one of the batteries in an undergraduate, post-baccalaureate, or graduate school admissions test; and (iii) the student is completing coursework and other requirements necessary to begin a career in teaching, or plans to complete such coursework and requirements prior to graduating; or (B) if the applicant is a current or prospective teacher applying for a grant to obtain a graduate degree— (i) the applicant is a teacher or a retiree from another occupation with expertise in a field in which there is a shortage of teachers, such as mathematics, science, special education, English language acquisition, or another high-need subject; (ii) the applicant is or was a teacher who is using high-quality alternative certification routes; or (iii) the applicant is a practicing teacher in another field and is pursuing an additional credential in a field in which there is a shortage of teachers, such as mathematics, science, special education, English language acquisition, or another high-need subject. (b)

Agreements To serve

Each application under subsection (a) shall contain or be accompanied by an agreement by the applicant that— (1) the applicant will— (A) serve as a full-time teacher for a total of not less than 4 academic years within 8 years after completing the course of study for which the applicant received a TEACH Grant (referred to in this section as the service obligation window); (B) teach in a school described in section 465(a)(2)(A); (C) teach in any of the following fields— (i) mathematics; (ii) science; (iii) a foreign language; (iv) bilingual education; (v) special education; (vi) as a reading specialist; (vii) career and technical education; (viii) school mental health; or (ix) another field or geographic area documented as high-need by the Federal Government, State government, or local educational agency, and approved by the Secretary; (D) submit evidence of such employment in the form of a certification of employment by the chief administrative officer of the school, in accordance with subsection (d)(5), upon completion of each year of such service; and (E) meet all State certification requirements for teaching (which may include meeting such requirements through a certification obtained through alternative routes to teaching); (2) in the event that the applicant is determined to have failed or refused to carry out such service obligation, an amount equal to any TEACH Grants received by such applicant, prorated in accordance with subsection (c)(1)(B), will be treated as a loan and collected from the applicant in accordance with subsection (c) and the regulations thereunder; and (3) contains, or is accompanied by, a plain-language disclosure form developed by the Secretary that clearly describes the nature of the TEACH Grant award, the service obligation, and the loan repayment requirements that are the consequence of the failure to complete the service obligation. (c)

Repayment for failure To complete service

(1)

In general

In the event that any recipient of a TEACH grant fails or refuses to comply with some or all of the service obligation required under the agreement under subsection (b)— (A) the Secretary shall determine the proportion of the total amount of time of the service obligation that the recipient has failed or refused to complete; and (B) the Secretary shall— (i) determine, on a prorated basis based on the proportion described in subparagraph (A), the amounts of any TEACH Grants received by such recipient that shall, upon a determination of such a failure or refusal in such service obligation, be treated as a Federal Direct Stafford Loan under part D (except that such loan shall not begin to accrue interest until the time of conversion); and (ii) ensure that such amounts are subject to repayment, in accordance with terms and conditions specified by the Secretary in regulations under this subpart. (2)

Reconsideration of conversion decisions

(A)

Request to reconsider

In any case where the Secretary has determined that a recipient of a TEACH grant has failed or refused to comply with the service obligation in the agreement under subsection (b) and has converted the grant into a Federal loan in accordance with paragraph (1), (including a TEACH Grant converted to a loan prior to the date of enactment of the Consider Teachers Act of 2021, and including cases where such loans have been fully or partially paid), the recipient may request that the Secretary reconsider such initial determination and may submit additional information to demonstrate satisfaction of the service obligation. Upon receipt of such a request, the Secretary shall reconsider the determination in accordance with this paragraph not later than 90 days after the date that such request was received. (B)

Reconsideration

If, in reconsidering an initial determination under subparagraph (A) regarding a conversion of a TEACH grant into a Federal loan in accordance with paragraph (1) (including reconsideration related to a TEACH Grant that was converted to a loan prior to the date of enactment of the Consider Teachers Act of 2021, and including cases where such loans were fully or partially paid), the Secretary determines that the reason for such determination was the recipient’s failure to timely submit a certification required under subsection (b)(1)(D) (as in effect on the day before the date of enactment of the Consider Teachers Act of 2021), an error or processing delay by the Secretary, a change to the fields considered eligible for fulfillment of the service obligation (as described in subsection (b)(1)(C)), a recipient having previously requested to have the TEACH Grant converted to a loan, or another valid reason determined by the Secretary, and that the recipient has, as of the date of the reconsideration, demonstrated that the recipient did meet, or is meeting, the service obligation in the agreement under subsection (b), the Secretary shall— (i) discharge the Federal loan and reinstate the recipient’s TEACH grant under this subpart; (ii) discharge any interest or fees that may have accumulated during the period that the grant was converted to such Federal loan; (iii) if the recipient has other loans under part D, apply any payments made for such Federal loan during such period to those other loans under part D; (iv) if the recipient does not have other loans under part D, reimburse the recipient for any amounts paid on such loan during such period; (v) request that consumer reporting agencies remove any negative credit reporting due to the conversion of the TEACH Grant to a Federal loan; and (vi) use the additional information provided under subparagraph (A) to determine the progress the recipient has made in meeting the service obligation. (C)

Extension of time to complete service obligation

In the case of a recipient whose TEACH Grant was reinstated in accordance with subparagraph (B), the Secretary shall, upon such reinstatement— (i) extend the time remaining for the recipient to fulfill the service obligation described in subsection (b)(1) to a period of time equal to— (I) 8 years; minus (II) the number of full academic years of teaching that the recipient completed prior to the reconversion of the loan to a TEACH Grant under subparagraph (B), including any years of qualifying teaching completed during the period when the TEACH Grant was in loan status; and (ii) treat any full academic years of teaching described in clause (i)(II) as years that count toward the individual’s service obligation (regardless of whether the TEACH Grant funds were in grant or loan status) if that time otherwise meets the requirements of this section. (d)

Additional administrative provisions

(1)

Change to school or high-need field

(A)

Change of high-need field designation after acquiring degree or expertise

Notwithstanding subsection (b), if a recipient of an initial TEACH grant has acquired an academic degree, or expertise, in a field that was, at the time of the recipient’s application for that grant, designated as high need in accordance with subsection (b)(1)(C)(ix), but is no longer so designated, the grant recipient may fulfill the service obligation described in subsection (b)(1) by teaching in that field and completing the required period of service within the service obligation window. (B)

Change of high-need field or school designation after beginning teaching

Notwithstanding subsection (b), if a recipient of a TEACH grant on or after the effective date of the TEACH Improvement Act of 2026 begins teaching at a school described in subsection (b)(1)(B) and in a field described in subsection (b)(1)(C) during the service obligation window, but such school or field later is no longer designated under subsection (b), the grant recipient may fulfill the service obligation described in subsection (b)(1) by continuing to teach in that school and field and completing the required period of service within the service obligation window. (2)

Extenuating circumstances

The Secretary shall establish, by regulation, categories of extenuating circumstances under which a recipient of a TEACH grant who is unable to fulfill all or part of the recipient’s service obligation may be excused from fulfilling that portion of the service obligation. (3)

Communication with recipients

The Secretary shall notify TEACH grant recipients not less than once per calendar year regarding how to submit the employment certification under subsection (b)(1)(D) and the recommendations and requirements for submitting that certification under paragraph (5). (4)

Qualifying schools and high-need fields

The Secretary shall maintain and annually update a list of qualifying schools as described in subsection (b)(1)(B), and a list of high-need fields as described in subsection (b)(1)(C), and shall make such lists publicly available on the Department’s website in a sortable and searchable format. (5)

Submission of employment certification

(A)

Recommended submissions

The Secretary shall notify TEACH Grant recipients that the Department recommends that TEACH Grant recipients submit the employment certification described in subsection (b)(1)(D) as soon as practicable after the completion of each year of service. (B)

Required submission

A TEACH Grant recipient shall be required to submit to the Department employment certification within the timeframe that would allow that individual to complete their service obligation before the end of the service obligation window. (C)

Notification

The Secretary shall notify TEACH Grant recipients of the required submission deadlines described in this paragraph. (D)

Adjustment of deadline

The Secretary shall adjust the submission deadline described in subparagraph (B) to account for a service obligation window extension. (E)

Alternative to certification

The Secretary shall provide an alternative to the certification of employment described in subsection (b)(1)(D) for recipients who cannot obtain such required certification of employment from the chief administrative officer of the school because the recipient can demonstrate the school is no longer in existence or the school refuses to cooperate.

420O.

Program period and funding

Beginning on July 1, 2008, there shall be available to the Secretary to carry out this subpart, from funds not otherwise appropriated, such sums as may be necessary to provide TEACH Grants in accordance with this subpart to each eligible applicant.

420P.

Reports to authorizing committees

(a)

Program reports

Not later than two years after the date of enactment of the TEACH Improvement Act of 2026, and every two years thereafter, the Secretary shall prepare and submit to the authorizing committees a report on TEACH grants with respect to the schools and students served by recipients of such grants. Such report shall take into consideration information related to— (1) the number of TEACH grant recipients; (2) the degrees obtained by such recipients; (3) the location, including the school, local educational agency, and State, where the recipients completed the service agreed to under section 420N(b), and the field taught; (4) the duration of such service; and (5) any other data necessary to conduct such evaluation. (b)

Annual reports

Not later than 1 year after the date of enactment of the TEACH Improvement Act of 2026, and annually thereafter, the Secretary shall prepare and submit to the authorizing committees a report regarding the 1-year period covered by the report, including the following: (1) The number of TEACH grants converted to loans under section 420N(c)(1)(B). (2) The number of institutions that were subject to the heightened requirements under section 420M(e)(1). (3) The number of institutions that were subject to the heightened requirements under section 420M(e)(2). (4) The number of TEACH grants converted to loans under section 420N(c)(1)(B) that were reconverted to TEACH grants in accordance with section 420N(c)(2). (5) The number of contacts or complaints to the Department of Education or the Consumer Financial Protection Bureau (including through any ombudsman) received from a TEACH grant recipient, and the resolutions of those contacts or complaints. (6) Demographic information about recipients of TEACH grants, including race, ethnicity, and gender. (7) Recommendations on best practices for minimizing the conversion of TEACH grants into loans.

420Q.

Servicer accountability

The Secretary shall prescribe such regulations as may be necessary to ensure accurate administrative oversight and appropriate penalties for third party servicers in order to ensure that— (1) such servicers properly perform their contractual obligations with respect to this subpart; and (2) such servicers are held responsible with respect to the loss of benefits of TEACH grant recipients due to servicer failures.