H

H. R. 5091

A BILL

To increase the amount of student loan forgiveness available to qualified teachers, 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 `Canceling Loans to Allow School Systems to Attract Classroom Teachers Act'.

SEC. 2. ADDITIONAL QUALIFIED LOAN AMOUNTS FOR STUDENT LOAN FORGIVENESS.

(a) 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 new paragraph:

`(3) ADDITIONAL AMOUNTS; PRIORITY-

`(A) LARGER AMOUNTS FROM APPROPRIATED FUNDS- Notwithstanding the amount specified in paragraph (1), the aggregate amount that the Secretary may, from funds appropriated under subparagraph (C), repay under this section is a total amount equal to not more than $17,500.

`(B) AWARD BASIS; PRIORITY- The Secretary shall make payments under this paragraph to elementary or secondary school teachers who meet the requirements of subsection (b) on a first-come first-served basis, subject to the availability of appropriations, but shall give priority in providing loan repayment under this paragraph for a fiscal year to teachers who--

`(i)(I) are employed as special education teachers whose primary responsibility is to teach or support children with disabilities (as defined in section 602 of the Individuals with Disabilities Act); and

`(II) as certified by the chief administrative officer of the public or nonprofit private elementary or secondary school in which the borrower is employed, are teaching children with disabilities that correspond with the borrower's training and have demonstrated knowledge and teaching skills in the content areas of the elementary or secondary school curriculum that the borrower is teaching;

`(ii) are employed as teachers in local educational agencies that are determined by a State educational agency under section 2141 of the Elementary and Secondary Education Act of 1965 to have failed to make progress toward meeting the annual measurable objectives described in section 1119(a)(2) of such Act for 2 consecutive years; or

`(iii) are employed as teachers of mathematics or science.

`(C) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to carry out this paragraph such sums as may be necessary for fiscal year 2003 and for each of the 4 succeeding fiscal years.'.

(b) 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 new paragraph:

`(3) ADDITIONAL AMOUNTS; PRIORITY-

`(iii) are employed as teachers of mathematics or science.

SEC. 3. CANCELLATION OF STUDENT LOAN INDEBTEDNESS FOR SPOUSES, SURVIVING JOINT DEBTORS, AND PARENTS.

(a) DEFINITIONS- For purposes of this section:

(1) ELIGIBLE PUBLIC SERVANT- The term `eligible public servant' means an individual who--

(A) served as a police officer, firefighter, other safety or rescue personnel, or as a member of the Armed Forces; and

(B) died (or dies) or became (or becomes) permanently and totally disabled due to injuries suffered in the terrorist attack on September 11, 2001;

as determined in accordance with regulations of the Secretary.

(2) ELIGIBLE VICTIM- The term `eligible victim' means an individual who died (or dies) or became (or becomes) permanently and totally disabled due to injuries suffered in the terrorist attack on September 11, 2001, as determined in accordance with regulations of the Secretary.

(3) ELIGIBLE SPOUSE- The term `eligible spouse' means the spouse of an eligible public servant, as determined in accordance with regulations of the Secretary.

(4) ELIGIBLE SURVIVING DEBTOR- The term `eligible surviving debtor' means an individual who owes a Federal student loan that is a consolidation loan that was used, jointly by that individual and an eligible victim, to repay the Federal student loans of that individual and of such eligible victim.

(5) ELIGIBLE PARENT- The term `eligible parent' means the parent of an eligible victim if--

`(A) the parent owes a Federal student loan that is a consolidation loan that was used to repay a PLUS loan incurred on behalf of such eligible victim; or

`(B) the parent owes a Federal student loan that is a PLUS loan incurred on behalf of an eligible victim who became (or becomes) permanently and totally disabled due to injuries suffered in the terrorist attack on September 11, 2001.

(6) SECRETARY- The term `Secretary' means the Secretary of Education.

(7) FEDERAL STUDENT LOAN- The term `Federal student loan' means any loan made, insured, or guaranteed under part B, D, or E of title IV of the Higher Education Act of 1965.

(b) RELIEF FROM INDEBTEDNESS-

(1) IN GENERAL- The Secretary shall provide for the discharge or cancellation of--

(A) the Federal student loan indebtedness of an eligible spouse;

(B) the consolidation loan indebtedness of an eligible surviving debtor;

(C) the portion of the consolidation loan indebtedness of an eligible parent that was incurred on behalf of an eligible victim, if the amount of such indebtedness with respect to such eligible victim may be reliably determined on the basis of records available to the lender; and

(D) the PLUS loan indebtedness of an eligible parent that was incurred on behalf of an eligible victim described in subsection (a)(5)(B).

(2) METHOD OF DISCHARGE OR CANCELLATION- A loan required to be discharged or canceled under paragraph (1) shall be discharged or canceled by the method used under section 437(a), 455(a)(1), or 464(c)(1)(F) of the Higher Education Act of 1965 (20 U.S.C. 1087(a), 1087e(a)(1), 1087dd(c)(1)(F)), whichever is applicable to such loan.

(1) establish procedures for the filing of applications for discharge or cancellation under this section by regulations that shall be prescribed and published within 90 days after the date of enactment of this Act and without regard to the requirements of section 553 of title 5, United States Code; and

(2) take such actions as may be necessary to publicize the availability of discharge or cancellation of Federal student loan indebtedness for eligible spouses, eligible surviving debtors, and eligible parents under this section.

(d) AVAILABILITY OF FUNDS FOR PAYMENTS- Funds available for the purposes of making payments to lenders in accordance with section 437(a) for the discharge of indebtedness of deceased or disabled individuals shall be available for making payments under section 437(a) to lenders of loans to the eligible spouses, eligible surviving debtors, and eligible parents as required by this section.

(e) APPLICABLE TO OUTSTANDING DEBT- The provisions of this section shall be applied to discharge or cancel only Federal student loans (including consolidation loans) on which amounts were owed on September 11, 2001.

SEC. 4. INFORMATION 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 of 1965 of the benefits available under the amendments made by section 2 of this Act to the teachers in the rural schools of such agencies; and

(2) encourage such agencies to notify their teachers of such benefits.