[United States Statutes at Large, Volume 118, 108th Congress, 2nd Session]
[From the U.S. Government Publishing Office, www.gpo.gov]

118 STAT. 2299

Public Law 108-409
108th Congress

An Act


 
To reduce certain special allowance payments and provide additional
teacher loan forgiveness on Federal student loans. NOTE: Oct. 30,
2004 -  [H.R. 5186]

Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, NOTE: Taxpayer-Teacher
Protection Act of 2004. 20 USC 1001 note.

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Taxpayer-Teacher Protection Act of
2004''.

SEC. 2. REDUCTION OF SPECIAL ALLOWANCE PAYMENTS FOR LOANS FROM THE
PROCEEDS OF TAX EXEMPT ISSUES.

Section 438(b)(2)(B) (20 U.S.C. 1087-1(b)(2)(B)) is amended--
(1) in clause (i), by striking ``this division'' and
inserting ``this clause'';
(2) in clause (ii), by striking ``division (i) of this
subparagraph'' and inserting ``clause (i) of this
subparagraph'';
(3) in clause (iv), by inserting ``or refunded after
September 30, 2004, and before January 1, 2006,'' after
``October 1, 1993,''; and
(4) by adding at the end the following new clause:
``(v) Notwithstanding clauses (i) and (ii), the quarterly
rate of the special allowance shall be the rate determined under
subparagraph (A), (E), (F), (G), (H), or (I) of this paragraph,
or paragraph (4), as the case may be, for a holder of loans
that--
``(I) were made or purchased with funds--
``(aa) obtained from the issuance of
obligations the income from which is excluded from
gross income under the Internal Revenue Code of
1986 and which obligations were originally issued
before October 1, 1993; or
``(bb) obtained from collections or default
reimbursements on, or interest or other income
pertaining to, eligible loans made or purchased
with funds described in division (aa), or from
income on the investment of such funds; and
``(II) are--
``(aa) financed by such an obligation that,
after September 30, 2004, and before January 1,
2006, has matured or been retired or defeased;
``(bb) refinanced after September 30, 2004,
and before January 1, 2006, with funds obtained
from a source other than funds described in
subclause (I) of this clause; or

[[Page 2300]]
118 STAT. 2300

``(cc) sold or transferred to any other holder
after September 30, 2004, and before January 1,
2006.''.

SEC. 3. LOAN FORGIVENESS FOR TEACHERS.

(a) Implementing Highly Qualified Teacher Requirements.--
(1) Amendments.--
(A) FFEL loans.--Section 428J(b)(1) of the Higher
Education Act of 1965 (20 U.S.C. 1078-10(b)(1)) is
amended--
(i) in subparagraph (A), by inserting ``and''
after the semicolon; and
(ii) by striking subparagraphs (B) and (C) and
inserting the following:
``(B) 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; and''.
(B) Direct loans.--Section 460(b)(1)(A) of such Act
(20 U.S.C. 1087j(b)(1)(A)) is amended--
(i) in clause (i), by inserting ``and'' after
the semicolon; and
(ii) by striking clauses (ii) and (iii) and
inserting the following:
``(ii) if employed as an elementary school or
secondary school teacher, is highly qualified as
defined in section 9101 of the Elementary and
Secondary Education Act of 1965; and''.
(2) NOTE: 20 USC 1078-10 note. Transition rule.--
(A) Rule.--The amendments made by paragraph (1) of
this subsection to sections 428J(b)(1) and 460(b)(1)(A)
of the Higher Education Act of 1965 shall not be applied
to disqualify any individual who, before the date of
enactment of this Act, commenced service that met and
continues to meet the requirements of such sections as
such sections were in effect on the day before the date
of enactment of this Act.
(B) Rule not applicable to increased qualified loan
amounts.--Subparagraph (A) of this paragraph shall not
apply for purposes of obtaining increased qualified loan
amounts under sections 428J(c)(3) and 460(c)(3) of the
Higher Education Act of 1965 as added by subsection (b)
of this section.

(b) Additional Amounts Eligible to Be Repaid.--
(1) FFEL loans.--Section 428J(c) of the Higher Education Act
of 1965 (20 U.S.C. 1078-10(c)) is amended by adding at the end
the following:
``(3) Additional amounts for teachers in mathematics,
science, or special education.--Notwithstanding the amount
specified in paragraph (1), the aggregate amount that the
Secretary shall repay under this section shall be not more than
$17,500 in the case of--
``(A) a secondary school teacher--
``(i) who meets the requirements of subsection
(b); and

[[Page 2301]]
118 STAT. 2301

``(ii) whose qualifying employment for
purposes of such subsection is teaching
mathematics or science on a full-time basis; and
``(B) an elementary school or secondary school
teacher--
``(i) who meets the requirements of subsection
(b);
``(ii) whose qualifying employment for
purposes of such subsection is as a special
education teacher whose primary responsibility is
to provide special education to children with
disabilities (as those terms are defined in
section 602 of the Individuals with Disabilities
Education Act); and
``(iii) who, as certified by the chief
administrative officer of the public or non-profit
private elementary school or secondary school in
which the borrower is employed, is teaching
children with disabilities that correspond with
the borrower's special education training and has
demonstrated knowledge and teaching skills in the
content areas of the elementary school or
secondary school curriculum that the borrower is
teaching.''.
(2) Direct loans.--Section 460(c) of the Higher Education
Act of 1965 (20 U.S.C. 1087j(c)) is amended by adding at the end
the following:
``(3) Additional amounts for teachers in mathematics,
science, or special education.--Notwithstanding the amount
specified in paragraph (1), the aggregate amount that the
Secretary shall cancel under this section shall be not more than
$17,500 in the case of--
``(A) a secondary school teacher--
``(i) who meets the requirements of subsection
(b)(1); and
``(ii) whose qualifying employment for
purposes of such subsection is teaching
mathematics or science on a full-time basis; and
``(B) an elementary school or secondary school
teacher--
``(i) who meets the requirements of subsection
(b)(1);
``(ii) whose qualifying employment for
purposes of such subsection is as a special
education teacher whose primary responsibility is
to provide special education to children with
disabilities (as those terms are defined in
section 602 of the Individuals with Disabilities
Education Act); and
``(iii) who, as certified by the chief
administrative officer of the public or non-profit
private elementary school or secondary school in
which the borrower is employed, is teaching
children with disabilities that correspond with
the borrower's special education training and has
demonstrated knowledge and teaching skills in the
content areas of the elementary school or
secondary school curriculum that the borrower is
teaching.''.
(3) NOTE: Applicability. 20 USC 1078-10 note. Effective
date.--The amendments made by this subsection shall apply only
with respect to eligible individuals who are new borrowers (as
such term is defined in 103 of the Higher Education Act of 1965
(20 U.S.C. 1003)) on or after October 1, 1998, and before
October 1, 2005.

[[Page 2302]]
118 STAT. 2302

(c) Information NOTE: 20 USC 1078-10 note. Notification. on
Benefits to Rural School Districts.--The Secretary shall--
(1) notify local educational agencies eligible to
participate in the Small Rural Achievement Program authorized
under subpart 1 of part B of title VI of the Elementary and
Secondary Education Act of 1965 of the benefits available under
the amendments made by this section; and
(2) encourage such agencies to notify their teachers of such
benefits.

Approved October 30, 2004.

LEGISLATIVE HISTORY--H.R. 5186:
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CONGRESSIONAL RECORD, Vol. 150 (2004):
Oct. 7, considered and passed House.
Oct. 9, considered and passed Senate.