[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 54 Introduced in House (IH)]
110th CONGRESS
1st Session
H. R. 54
To expand the eligibility of individuals to qualify for loan
forgiveness for teachers in order to provide additional incentives for
teachers currently employed or seeking employment in economically
depressed rural areas, Territories, and Indian Reservations.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 4, 2007
Mrs. Christensen introduced the following bill; which was referred to
the Committee on Education and Labor
_______________________________________________________________________
A BILL
To expand the eligibility of individuals to qualify for loan
forgiveness for teachers in order to provide additional incentives for
teachers currently employed or seeking employment in economically
depressed rural areas, Territories, and Indian Reservations.
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 ``Teacher Recruitment Act of 2007''.
SEC. 2. EXPANSION OF TEACHER LOAN FORGIVENESS PROGRAMS.
(a) Guaranteed Student Loans.--Part B of title IV of the Higher
Education Act of 1965 is amended by--
(1) redesignating section 428K (20 U.S.C. 1078-11) as
section 428L; and
(2) by inserting after section 428J the following new
section:
``SEC. 428K. EXPANDED LOAN FORGIVENESS FOR TEACHERS.
``(a) Purpose.--It is the purpose of this section to expand,
subject to the availability of appropriations therefor, the eligibility
of individuals to qualify for loan forgiveness for teachers beyond that
available under section 428J, in order to provide additional incentives
for such individuals to teach in economically disadvantaged or
depressed and underserved rural areas.
``(b) Program Authorized.--
``(1) In general.--From the sums appropriated pursuant to
subsection (i), 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 new
borrower on or after October 1, 1998, who--
``(A) is employed as a full-time teacher in a
public elementary or secondary school in an
economically disadvantaged or depressed and underserved
rural area;
``(B) has a State certification (which may include
certification obtained through alternative means) or a
State license to teach, and has not failed to comply
with State or local accountability standards; and
``(C) is not in default on a loan for which the
borrower seeks forgiveness.
``(2) Selection of recipients.--The Secretary shall by
regulation establish a formula that ensures fairness and
equality for applicants in the selection of borrowers for loan
repayment under this section, based on the amount available
pursuant to subsection (i).
``(c) Qualified Loans Amount.--
``(1) In general.--The Secretary shall repay not more than
the percentage specified in paragraph (2) of the loan
obligation on a loan made under section 428 or 428H that is
outstanding after the completion of each complete school year
of teaching described in subsection (b)(1). No borrower may
receive a reduction of loan obligations under both this section
and section 460.
``(2) Percentage eligible.--The percent of the loan
obligation which the Secretary shall repay under paragraph (1)
of this subsection is 15 percent for the first or second year
of such service, 20 percent for the third or fourth year of
such service, and 30 percent for the fifth year of such
service.
``(3) Treatment of consolidation loans.--A loan amount for
a loan made under section 428C may be a qualified loan amount
for the purposes of this subsection only to the extent that
such loan amount was used to repay a Federal Direct Stafford
Loan, a Federal Direct Unsubsidized Stafford Loan, or a loan
made under section 428 or 428H for a borrower who meets the
requirements of subsection (b), as determined in accordance
with regulations prescribed by the Secretary.
``(4) Treatment of years of service for continuing
education loans.--For purposes of paragraph (2), the year of
service is determined on the basis of the academic year that
the borrower began the service as a full-time teacher, except
that in the case of a borrower who incurs a loan obligation for
continuing education expenses while teaching, the year of
service is determined on the basis of the academic year
following the academic year for which the loan obligation was
incurred.
``(d) Regulations.--The Secretary is authorized to issue such
regulations as may be necessary to carry out the provisions of this
section.
``(e) Construction.--Nothing in this section shall be construed to
authorize any refunding of any repayment of a loan.
``(f) List.--If the list of schools in which a teacher may perform
service pursuant to subsection (b)(1)(A) is not available before May 1
of any year, the Secretary may use the list for the year preceding the
year for which the determination is made to make such service
determination.
``(g) Additional Eligibility Provisions.--
``(1) Continued eligibility.--Any teacher who performs
service in a school that--
``(A) meets the requirements of subsection
(b)(1)(A) in any year during such service; and
``(B) in a subsequent year fails to meet the
requirements of such subsection,
may continue to teach in such school and shall be eligible for
loan forgiveness pursuant to subsection (b).
``(2) Prevention of double benefits.--No borrower may, for
the same 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. 12571 et seq.).
``(h) Definition.--For purposes of this section:
``(1) Area.--The term `economically disadvantaged or
depressed and underserved rural area' means any of the
following areas in any State:
``(A) A rural area that has a chronically high rate
of unemployment.
``(B) A rural area in which at least 30 percent of
the households have household incomes of less than
$15,000, as determined on the basis of the most recent
decennial census.
``(C) An Indian reservation.
``(D) Any other rural area that, as determined by
regulations, has a significant shortage of educational
and employment opportunities.
``(2) Indian reservation.--The term `Indian reservation'
includes Indian reservations, public domain Indian allotments,
former Indian reservations in Oklahoma, and land held by
incorporated Native Alaskan groups, regional corporations, and
village corporations under the provisions of the Alaska Native
Claims Settlement Act (43 U.S.C. 1601 et seq.).
``(3) Year.--The term `year', where applied to service as a
teacher, means an academic year as defined by the Secretary.
``(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 of the 5 succeeding fiscal years.''.
(b) Direct Student Loans.--Part D of title IV of the Higher
Education Act of 1965 is amended by inserting after section 460 the
following new section:
``SEC. 460A. EXPANDED LOAN FORGIVENESS FOR TEACHERS.
``(a) Purpose.--It is the purpose of this section to expand,
subject to the availability of appropriations therefor, the eligibility
of individuals to qualify for loan forgiveness for teachers beyond that
available under section 460, in order to provide additional incentives
for such individuals to teach in economically disadvantaged or
depressed and underserved rural areas.
``(b) Program Authorized.--
``(1) In general.--From the sums appropriated pursuant to
subsection (i), the Secretary shall carry out 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
new borrower on or after October 1, 1998, but who--
``(A) is employed as a full-time teacher in a
public elementary or secondary school in an
economically disadvantaged or depressed and underserved
rural area;
``(B) has a State certification (which may include
certification obtained through alternative means) or a
State license to teach, and has not failed to comply
with State or local accountability standards; and
``(C) is not in default on a loan for which the
borrower seeks forgiveness.
``(2) Selection of recipients.--The Secretary shall by
regulation establish a formula that ensures fairness and
equality for applicants in the selection of borrowers for loan
repayment under this section, based on the amount available
pursuant to subsection (i).
``(c) Qualified Loans Amount.--
``(1) In general.--The Secretary shall cancel not more than
the percentage specified in paragraph (2) of the loan
obligation on a loan made under this part that is outstanding
after the completion of each complete school year of teaching
described in subsection (b)(1). No borrower may receive a
reduction of loan obligations under both this section and
section 428J.
``(2) Percentage eligible.--The percent of the loan
obligation which the Secretary shall repay under paragraph (1)
of this subsection is 15 percent for the first or second year
of such service, 20 percent for the third or fourth year of
such service, and 30 percent for the fifth year of such
service.
``(3) Treatment of consolidation loans.--A loan amount for
a Federal Direct Consolidation Loan may be a qualified loan
amount for the purposes of this subsection only to the extent
that such loan amount was used to repay a Federal Direct
Stafford Loan, a Federal Direct Unsubsidized Stafford Loan, or
a loan made under section 428 or 428H for a borrower who meets
the requirements of subsection (b), as determined in accordance
with regulations prescribed by the Secretary.
``(4) Treatment of years of service for continuing
education loans.--For purposes of paragraph (2), the year of
service is determined on the basis of the academic year that
the borrower began the service as a full-time teacher, except
that in the case of a borrower who incurs a loan obligation for
continuing education expenses while teaching, the year of
service is determined on the basis of the academic year
following the academic year for which the loan obligation was
incurred.
``(d) Regulations.--The Secretary is authorized to issue such
regulations as may be necessary to carry out the provisions of this
section.
``(e) Construction.--Nothing in this section shall be construed to
authorize any refunding of any repayment of a loan.
``(f) List.--If the list of schools in which a teacher may perform
service pursuant to subsection (b)(1)(A) is not available before May 1
of any year, the Secretary may use the list for the year preceding the
year for which the determination is made to make such service
determination.
``(g) Additional Eligibility Provisions.--
``(1) Continued eligibility.--Any teacher who performs
service in a school that--
``(A) meets the requirements of subsection
(b)(1)(A) in any year during such service; and
``(B) in a subsequent year fails to meet the
requirements of such subsection,
may continue to teach in such school and shall be eligible for
loan forgiveness pursuant to subsection (b).
``(2) Prevention of double benefits.--No borrower may, for
the same 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. 12571 et seq.).
``(h) Definition.--For purposes of this section:
``(1) Area.--The term `economically disadvantaged or
depressed and underserved rural area' means any of the
following areas in any State:
``(A) A rural area that has a chronically high rate
of unemployment.
``(B) A rural area in which at least 30 percent of
the households have household incomes of less than
$15,000, as determined on the basis of the most recent
decennial census.
``(C) An Indian reservation.
``(D) Any other rural area that, as determined by
regulations, has a significant shortage of educational
and employment opportunities.
``(2) Indian reservation.--The term `Indian reservation'
includes Indian reservations, public domain Indian allotments,
former Indian reservations in Oklahoma, and land held by
incorporated Native Alaskan groups, regional corporations, and
village corporations under the provisions of the Alaska Native
Claims Settlement Act (43 U.S.C. 1601 et seq.).
``(3) Year.--The term `year', where applied to service as a
teacher, means an academic year as defined by the Secretary.
``(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 of the 5 succeeding fiscal years.''.
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