[Congressional Record Volume 143, Number 102 (Thursday, July 17, 1997)]
[Senate]
[Pages S7714-S7716]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DeWINE (for himself and Mr. Wellstone):
  S. 1029. A bill to provide loan forgiveness for individuals who earn 
a degree in early childhood education, and enter and remain employed in 
the early child care profession, to provide loan cancellation for 
certain child care providers, and for other purposes; to the Committee 
on Labor and Human Resources.


              The Quality Child Care Loan Forgiveness Act

  Mr. DeWINE. Mr. President, I send a bill to the desk now, a bill on 
behalf of myself and Senator Wellstone.
  Mr. President, this bill is the Quality Child Care Loan Forgiveness 
Act and it is intended to, at least in part, deal with a very serious 
problem in this country. That problem simply is that more and more 
children, more and more of our children, are every day in child care. 
There is a real concern about the quality of child care. This bill does 
not solve every problem in regard to child care, but I think it is a 
start and I think it would make a significant impact.
  Today, more than 70 percent of mothers are in the labor force. Almost 
75 percent of married couples with children have both spouses working. 
All of these working parents, plus parents moving from welfare to work, 
have to find someone to care for their children if they are going to go 
out and support their families. Yet today, child care is often very 
hard to find and quality child care is even harder to find. In just 20 
years, the last 20 years, the percentage of children enrolled in some 
form, in some manner, of child care has gone from 30 percent to 70 
percent.
  Quality child care is a concern to virtually every family in this 
country. More and more parents are working. More and more children are 
in child care. I think the very least we can do is to try to assure 
those families that, while they are at work, their children will be 
taken care of by qualified and by competent individuals. This, 
unfortunately, is not always taking place today. There are many 
qualified people in child care. There are very many dedicated people in 
child care. But I think we can do better. This is what this bill 
intends to address.
  Scientists tell us that the largest indicator of a child's 
intelligence is the mother's education level. While a mother is at 
work, then it becomes the education level of the child care provider 
that the child deals with for, sometimes, an extended period of time 
during the day. With all the new research that we see on the brain and 
early childhood development, I think we have to reemphasize this 
particular aspect of child care. We need well-educated, well-trained 
child care providers. One of the ways we can achieve this, one of the 
things that we can do to raise the quality of child care, is to say to 
individuals who are inclined to go into the child care profession that 
we will in fact help them if they want to make this a profession.
  We have to let people know, if they are going to earn a degree to 
take care of our children, we will help them. Our bill, the bill 
introduced today by Senator Wellstone and myself, will do this. Our 
bill would help repay the student loans of an individual who earns an 
early childhood degree and would help repay the loan of that person who 
goes to work in a licensed child care facility. The Quality Child Care 
Loan Forgiveness Act would pay off a student loan at the rate of 15 
percent a year for people who earn an early childhood degree and who 
work in a licensed child care facility.
  This bill will help bring more qualified individuals to the child 
care profession. It would also help to decrease the high turnover 
levels caused, many times, by very low wages.
  Let me conclude. The Quality Child Care Loan Forgiveness Act is an 
important way to improve the quality of child care. American parents 
need it for their peace of mind, and American children need it for 
their mind development.
  I thank the Chair and ask unanimous consent at this time that the 
full text of the bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1029

       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 ``Quality Child Care Loan 
     Forgiveness Act''.

     SEC. 2. FINDINGS.

       Congress makes the following findings:
       (1) New scientific research shows that the electrical 
     activity of brain cells actually changes the physical 
     structure of the brain, and that without a stimulating 
     environment, a baby's brain suffers.
       (2) 12,000,000 children under age 6, and 17,000,000 school-
     aged children of working parents, need child care. Demand for 
     child care is growing as more mothers enter the workforce.
       (3) Good quality child care, in a safe environment, with 
     trained, caring providers who offer stimulating activities 
     appropriate to the child's age, help children grow and 
     thrive. Recent research shows that most child care needs 
     significant improvement.
       (4) Good quality child care depends largely on the 
     provider. Yet providers of child care earn on average only 
     $6.70 per hour or $11,725

[[Page S7715]]

     per year. Such earnings cause high turnover, which affects 
     the overall quality of a child care program and causes 
     anxiety for children.
       (5) Children attending lower-quality child care facilities 
     and child care facilities with high staff turnover are less 
     competent in language and social development.
       (6) Low-income and high-income children are more likely 
     than middle-income children to attend child care facilities 
     providing high quality child care.
       (7) The quality of child care is primarily related to high 
     staff-to-child ratios, staff education, and administrators' 
     prior experience. In addition, certain characteristics 
     distinguish poor, mediocre, and good-quality child care 
     facilities, the most important of which are teacher wages, 
     education, and specialized training.

     SEC. 3. PURPOSES.

       The purposes of this Act are--
       (1) to bring more highly trained individuals into the early 
     child care profession; and
       (2) to keep more highly trained child care providers in the 
     early child care field for longer periods of time.

     SEC. 4. LOAN FORGIVENESS FOR CHILD CARE PROVIDERS.

       Part B of the Higher Education Act of 1965 (20 U.S.C. 1071 
     et seq.) is amended by inserting after section 428J of such 
     Act (20 U.S.C. 1078-10) the following:

     ``SEC. 428I. LOAN FORGIVENESS FOR CHILD CARE PROVIDERS.

       ``(a) Definitions.--In this section:
       ``(1) Child care facility.--The term `child care facility' 
     means a facility that--
       ``(A) provides child care services; and
       ``(B) meets applicable State or local government licensing, 
     certification, approval, or registration requirements, if 
     any.
       ``(2) Child care services.--The term `child care services' 
     means activities and services provided for the education and 
     care of children from birth through age 5 by an individual 
     who has a degree in early childhood education.
       ``(3) Degree.--The term `degree' means an associate's or 
     bachelor's degree awarded by an institution of higher 
     education.
       ``(4) Early childhood education.--The term `early childhood 
     education' means education in the areas of early child 
     education, child care, or any other educational area related 
     to child care that the Secretary determines appropriate.
       ``(5) Institution of higher education.--The term 
     `institution of higher education' has the meaning given the 
     term in section 1201.
       ``(b) Demonstration Program.--
       ``(1) In general.--The Secretary may carry out a 
     demonstration program of assuming the obligation to repay, 
     pursuant to subsection (c), a loan made, insured or 
     guaranteed under this part or part D (excluding loans made 
     under sections 428B and 428C) for any new borrower after 
     October 1, 1994, who completes a degree in early childhood 
     education and obtains full-time employment in a child care 
     facility.
       ``(2) Award basis; priority.--
       ``(A) Award basis.--Subject to subparagraph (B), loan 
     repayment under this section shall be on a first-come, first-
     served basis and subject to the availability of 
     appropriations.
       ``(B) Priority.--The Secretary shall give priority in 
     providing loan repayment under this section for a fiscal year 
     to student borrowers who received loan repayment under this 
     section for the preceding fiscal year.
       ``(3) Regulations.--The Secretary is authorized to 
     prescribe such regulations as may be necessary to carry out 
     the provisions of this section.
       ``(c) Loan Repayment.--
       ``(1) In general.--The Secretary shall assume the 
     obligation to repay 15 percent of the total amount of all 
     loans made after October 1, 1994, to a student under this 
     part or part D for each complete year of employment described 
     in subsection (b)(1).
       ``(2) Construction.--Nothing in this section shall be 
     construed to authorize the refunding of any repayment of a 
     loan made under this part or part D.
       ``(3) Interest.--If a portion of a loan is repaid by the 
     Secretary under this section for any year, the proportionate 
     amount of interest on such loan which accrues for such year 
     shall be repaid by the Secretary.
       ``(4) Special rule.--In the case where a student borrower 
     who is not participating in loan repayment pursuant to this 
     section returns to an institution of higher education after 
     graduation from an institution of higher education for the 
     purpose of obtaining a degree in early childhood education, 
     the Secretary is authorized to assume the obligation to repay 
     the total amount of loans made under this part or part D 
     incurred for a maximum of two academic years in returning to 
     an institution of higher education for the purpose of 
     obtaining a degree in early childhood education. Such loans 
     shall only be repaid for borrowers who qualify for loan 
     repayment pursuant to the provisions of this section, and 
     shall be repaid in accordance with the provisions of 
     paragraph (1).
       ``(5) Ineligibility of national service award recipients.--
     No student borrower may, for the same volunteer 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.).
       ``(d) Repayment to Eligible Lenders.--The Secretary shall 
     pay to each eligible lender or holder for each fiscal year an 
     amount equal to the aggregate amount of loans which are 
     subject to the repayment pursuant to this section for such 
     year.
       ``(e) Application for Repayment.--
       ``(1) In general.--Each eligible individual desiring loan 
     repayment under this section shall submit a complete and 
     accurate application to the Secretary at such time, in such 
     manner, and containing such information as the Secretary may 
     require.
       ``(2) Conditions.--An eligible individual may apply for 
     loan repayment under this section after completing each year 
     of qualifying employment. The borrower shall receive 
     forbearance while engaged in qualifying employment unless the 
     borrower is in deferment while so engaged.
       ``(f) Evaluation.--
       ``(1) In general.--The Secretary shall conduct, by grant or 
     contract, an independent national evaluation of the impact of 
     the demonstration program assisted under this section on the 
     field of early childhood education.
       ``(2) Competitive basis.--The grant or contract described 
     in subsection (a) shall be awarded on a competitive basis.
       ``(3) Contents.--The evaluation described in this 
     subsection shall--
       ``(A) determine the number of individuals who were 
     encouraged by the demonstration program assisted under this 
     section to pursue early childhood education;
       ``(B) determine the number of individuals who remain 
     employed in a child care facility as a result of 
     participation in the program;
       ``(C) identify the barriers to the effectiveness of the 
     program;
       ``(D) assess the cost-effectiveness of the program in 
     improving the quality of--
       ``(i) early childhood education; and
       ``(ii) child care services;
       ``(E) identify the reasons why participants in the program 
     have chosen to take part in the program;
       ``(F) identify the number of individuals participating in 
     the program who received an associate's degree and the number 
     of such individuals who received a bachelor's degree; and
       ``(G) identify the number of years each individual 
     participates in the program.
       ``(4) Interim and final evaluation reports.--The Secretary 
     shall prepare and submit to the President and the Congress 
     such interim reports regarding the evaluation described in 
     this subsection as the Secretary deems appropriate, and shall 
     prepare and so submit a final report regarding the evaluation 
     by January 1, 2002.
       ``(g) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section 
     $10,000,000 for fiscal year 1998, and such sums as may be 
     necessary for each of the 4 succeeding fiscal years.''.

     SEC. 5. LOAN CANCELLATION.

       Section 465(a) of the Higher Education Act of 1965 (20 
     U.S.C. 1087ee(a)) is amended--
       (1) in paragraph (2)--
       (A) by redesignating subparagraphs (G), (H), and (I) as 
     subparagraphs (H), (I), and (J), respectively; and
       (B) by inserting after subparagraph (F), the following:
       ``(G) as a full-time child care provider or educator--
       ``(i) in a child care facility operated by an entity that 
     meets the applicable State or local government licensing, 
     certification, approval, or registration requirements, if 
     any; and
       ``(ii) who has a degree in early childhood education;''; 
     and
       (2) in paragraph (3)(A)--
       (A) in clause (i), by striking ``(G), (H), or (I)'' and 
     inserting ``(H), (I), or (J)''; and
       (B) in clause (ii), by inserting ``or (G)'' after 
     ``subparagraph (B)''.

  Mr. WELLSTONE. Mr. President, I rise today with my colleague from 
Ohio to introduce a bill that is an important step toward protecting 
the lives and the future of this Nation's children. Today in the Labor 
Committee, we will hear from the parents of a 3-month-old baby who lost 
his life after only 2 hours in daycare. We as a society must share some 
of the responsibility for this tragedy with the daycare center that 
neglected Jeremy Fiedelholtz. We as a society have allowed daycares to 
be under funded and understaffed, because we have not valued the 
position of daycare provider. We have not treated that job as a 
profession, we have not respected their responsibilities and considered 
such individuals to have a career worthy of compensation, attention, 
and respect.
  The bill that my colleague and I introduce today would provide loan 
forgiveness for individuals who earn a degree in early childhood 
education, and enter and remain employed in the early child care 
profession. It would also provide forgiveness for some existing child 
care providers who remain in the profession.
  The bill seeks to make child care more affordable and to increase the 
quality of child care by making a career in child care more profitable. 
It would help make the career of caregiver more affordable and more 
feasible for those interested in helping children grow. Nationally, 
child care workers have the following statistics:

[[Page S7716]]

97 percent are female; 33 percent are women of color; 41 percent have 
children; 10 percent are single parents; only 18 percent of child care 
centers offer their workers health coverage.
  In Minnesota child care centers, the average hourly wage for a child 
care provider is $8.72; for an assistant teacher is $6.66; and for an 
aide is $5.69. Minnesota family child care providers, who are never 
covered by the Fair Labor Standards Act, have an average hourly wage of 
$2.79, and make $7,800 a year for a 60-hour work week. With changes 
created by the welfare bill in the Federal child care food program, 
many family child care providers will become ineligible for this 
program; those who don't pass the costs of care on to the parents will 
have negative earnings--they will actually lose $71 a week.
  Nationally, child care teaching staff earn $6.89 an hour and $12,000 
a year. Family child care providers earn $9,500, and unregulated 
providers, $5,100. Although they are better educated than the average 
worker, child care workers earn one-third of the average male salary 
and one-half of the average female salary. It is no surprise that one-
third of them leave their centers every year.
  In the meantime, in Minnesota, there are 8,960 children on the 
waiting list for child care. There are probably another 13,440 children 
who would apply if the waiting list wasn't so long. Mr. President, add 
all this up and you have a recipe for disaster. Child care is without 
question among the most important issues facing the workforce today. 
Parents who can't care for their children, can't work. Child care is 
without question among the most important issues facing the field of 
education today. Children who are not stimulated and cared for during 
the earliest years will never be able to reach his or her full 
potential when they grow up.
  If we don't take the profession seriously and encourage people of 
caliber to enter the profession of caregiving, and reward those who 
remain in the profession, then we are risking our economic future and 
putting at risk millions of children like Jeremy Fiedelholtz. I urge my 
colleagues to join us in this bipartisan effort to invest money where 
it is most needed.
  Let me just say I am very honored to introduce this legislation with 
Senator DeWine. I thoroughly enjoy working with him, and I think we are 
both very committed to this piece of legislation.
  Mr. President, in the Labor Committee today, we are going to hear 
from the parents of a 3-month-old baby who lost his life after only 2 
hours in child care. If you look at the reports, the conditions around 
our country are not what they should be for children, and if you just 
think about the pay scale of women and men--they are mainly women--who 
are child care providers, we have devalued the work of adults who work 
with children. What this piece of legislation does is it provides loan 
forgiveness for individuals who earn a degree in early childhood 
development and then remain employed in this early childhood 
profession. It also would have some forgiveness for existing child care 
providers who remain in the profession.
  What we are simply trying to say here, I say to my colleagues, is 
that the neuroscience evidence is compelling, these early years are 
critical years, we have to get it right, there has to be a nurturing 
care and the intellectual stimulation and, yet, if you look around the 
country, nationally child care teaching staff earn an average of $6.89 
an hour, or about $12,000 a year.
  Actually, in many of our States, people who work in zoos, and by the 
way I love visiting zoos--it is not my point to put down that work--
earn twice as much as women and men who work in child care centers. If 
we really value children and we really understand that pre-K is so 
important, and if we really understand--and we should and we must--that 
we have to make sure that by age 3, children have gotten the nurturing 
care in order for them to be able to go on and do well in school and do 
well in life, then it is terribly important that we attach more value 
to the work that is being done.
  That is what this piece of legislation does, which provides the loan 
forgiveness for women and men I hope will go into this profession. It 
is a small step forward, but it is an extremely important step.
  I am very pleased to introduce this legislation today with my 
colleague, Senator DeWine.
                                 ______