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Bill
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Title II — Teacher loan forgiveness programs

H.R. 3139 · 116th Congress · Jun 5, 2019 · Lineage

II Teacher loan forgiveness programs

Sec. 201 Teacher loan forgiveness programs and grants

(a)
Repayment plan for qualifying teachers—
(1)
In general— Section 455 of the Higher Education Act of 1965 (20 U.S.C. 1087e) is amended by adding at the end the following:

“(r) Repayment plan for qualifying teachers

“(1) In general—The Secretary shall cancel a portion, in accordance with paragraph (2), of the balance of interest and principal due on any eligible Federal Direct Loan not in default for a borrower who, in a 12-month time period—

“(A) has made 12 consecutive on-time monthly payments on the eligible Federal Direct Loan, in an amount equal to or greater than the amount of payments for the borrower under an income-based repayment plan under section 493C (regardless of whether some or all of those payments were made before the effective date of the Supporting the Teaching profession through Revitalizing Investments in Valuable Educators Act); and

“(B)

“(i) is employed in a qualifying teaching position, regardless of subject matter area, at the time of such forgiveness; and

“(ii) has been employed in a qualifying teaching position, regardless of subject matter area, during the period in which the borrower made each of the 12 payments described in subparagraph (A).

“(2) Loan cancellation amount

“(A) In general—The portion to be cancelled under this paragraph shall be—

“(i) for each of—

“(I) the first 5 years that the borrower qualifies under paragraph (1), in the case of a borrower employed for such year in a full-time qualifying teaching position in the subject of English as a second language, science, technology, engineering, mathematics, special education, or career and technical education, 15 percent of the balance of principal and interest due on all of the eligible Federal Direct Loans of the borrower, as of the final day of that 1-year employment period; or

“(II) the first 6 years (or the equivalent calculated under subparagraph (B)(i)) that the borrower qualifies under paragraph (1)—

“(aa) in the case of a borrower employed for such year in a full-time qualifying teaching position in a subject that is not described in subclause (I), 10 percent of the balance of principal and interest due on all of the eligible Federal Direct Loans of the borrower, as of the final day of that 1-year employment period; or

“(bb) in the case of a borrower employed for such year in a part-time qualifying teaching position (regardless of subject), 5 percent of the balance of principal and interest due on all of the eligible Federal Direct Loans of the borrower, as of the final day of that 1-year employment period; and

“(ii) after the borrower has received partial loan cancellation described in clause (i)—

“(I) for 5 years, in the case of a borrower described in clause (i)(I), and then qualifies for loan cancellation under paragraph (1) for a sixth year, all of the borrower's remaining obligation to repay the balance of principal and interest due, as of the date of such calculation, on all of the eligible Federal Direct Loan made to a borrower; or

“(II) for 6 years (or the equivalent calculated under subparagraph (B)(i)), in the case of a borrower described in clause (i)(II), and then qualifies for loan cancellation under paragraph (1) for a seventh year (or the equivalent calculated under subparagraph (B)(ii)), all of the borrower's remaining obligation to repay the balance of principal and interest due, as of the date of such calculation, on all of the eligible Federal Direct Loan made to a borrower.

“(B) Special rule regarding part-time teaching

“(i) General rule—In the case of a borrower who qualifies for loan cancellation under subparagraph (A) for one or more years through a part-time qualifying teaching position, the Secretary shall determine when the equivalent of 6 years of partial cancellation for full-time employment has been met for purposes of subparagraph (A)(ii)(II) by giving the borrower credit for one-half of a year for each year that the borrower receives partial part-time cancellation under subparagraph (A)(i)(II)(bb).

“(ii) Rule for final cancellation—A borrower who wishes to complete the equivalent of the seventh year of teaching necessary for complete cancellation under subparagraph (A)(ii)(II) through employment in a part-time qualifying teaching position—

“(I) shall be required to qualify for loan cancellation through a part-time qualifying teaching position for 2 additional years; and

“(II) notwithstanding subparagraph (A), shall receive partial cancellation, in accordance with subparagraph (A)(i)(II)(bb), for the first of such 2 years.

“(C) Change in subject taught—In any case where a teacher first qualifies for loan cancellation under subparagraph (A)(i)(II) and then, in a subsequent year, teaches in a full-time qualifying teaching position in a subject described in subparagraph (A)(i)(I), the percentage of loan forgiveness provided to the teacher for each academic year of full-time teaching in such a subject shall be 15 percent, until the teacher qualifies for cancellation in the seventh year under subparagraph (A)(ii)(II).

“(3) Eligibility provisions

“(A) Certification—A borrower who desires to participate in the repayment plan under this subsection shall submit to the Secretary an employer certification, as required by the Secretary, of the employment dates for the qualifying service.

“(B) Ineligibility for double benefits

“(i) In general—No borrower may, for the same service, receive a reduction of loan obligations under both this subsection and section 428J, 428K, 428L, or 460.

“(ii) Ineligibility of education award—No borrower may count any payments made from an education award received under subtitle D of title I of the National and Community Service Act of 1990 (42 U.S.C. 12601 et seq.) toward the payments required under paragraph (1).

“(C) Continued eligibility—A teacher who is employed, for consecutive years (excluding a documented medical leave of absence or military service), in a qualifying teaching position at a school that meets the requirements of paragraph (6)(C)(i) for a school year but fails to meet such requirements in subsequent years, shall be deemed to be in a qualifying teaching position, for purposes of this subsection, for all of the consecutive subsequent years during which the teacher remains at the school.

“(4) State certification

“(A) State responsibilities—Each State educational agency that receives assistance under part A of title I of the Elementary and Secondary Education Act of 1965 shall provide to the Secretary an annual list of the elementary schools and secondary schools in the State that meet the requirements of subclauses (I) and (II) of paragraph (6)(C)(i).

“(B) Dissemination of school lists—The Secretary shall—

“(i) in coordination with the Secretary of the Interior, develop a list of elementary schools and secondary schools that meet the requirement of paragraph (6)(C)(i)(III); and

“(ii) make the lists developed under clause (i) and provided under subparagraph (A) easily accessible for applicants and recipients of TEACH Grants.

“(5) Special deferral

“(A) In general—In addition to any deferment for which a borrower of an eligible Federal Direct Loan may be eligible under section 455(f), a borrower shall be eligible for deferment, as described in section 455(f)(1), for a period not in excess of 2 years if—

“(i) the borrower has qualified for partial loan forgiveness under paragraph (1) for the immediately preceding year; and

“(ii) the borrower is unable to continue working in a qualified teaching position during the period of deferment, due to—

“(I) extenuating or unforeseen financial circumstances or health reasons; or

“(II) other extraordinary circumstances as determined by the Secretary.

“(6) Definitions—In this subsection:

“(A) Eligible Federal direct loan—The term eligible Federal Direct Loan means a Federal Direct Stafford Loan, Federal Direct PLUS Loan, Federal Direct Unsubsidized Stafford Loan, or Federal Direct Consolidation Loan.

“(B) Part-time—The term part-time, when used in reference to a teacher for a particular school year, means a teacher who works in such year a number of hours that is not less than 50 percent, but less than 100 percent, of the hours worked by an average full-time teacher in the local educational agency that serves the area where the teacher is employed.

“(C) Qualifying teaching position—The term qualifying teaching position means part-time or full-time employment (not including a short-term substitute teaching assignment)—

“(i) in—

“(I) a public or nonprofit private elementary school or secondary school that, for the purpose of this subparagraph and for that year—

“(aa) has been determined by the Secretary (pursuant to regulations of the Secretary and after consultation with the State educational agency of the State in which the school is located) to be a school in which the number of children meeting a measure of poverty under section 1113(a)(5) of the Elementary and Secondary Education Act of 1965, exceeds 70 percent of the total number of children enrolled in such school; and

“(bb) is in the school district of a local educational agency that is eligible in such year for assistance pursuant to part A of title I of the Elementary and Secondary Education Act of 1965;

“(II) a public or nonprofit private elementary school or secondary school served by an educational service agency, or a location operated by an educational service agency, that, for the purpose of this subparagraph and for that year, has been determined by the Secretary (pursuant to regulations of the Secretary and after consultation with the State educational agency of the State in which the educational service agency operates) to be a school or location at which the number of children taught who meet a measure of poverty under section 1113(a)(5) of the Elementary and Secondary Education Act of 1965, exceeds 30 percent of the total number of children taught at such school or location;

“(III) an elementary school or secondary school that is funded by the Bureau of Indian Education; or

“(IV) in the case of an individual who is an early childhood educator, an early childhood education program;

“(ii) through which the individual provides direct classroom teaching, or classroom-type teaching in a nonclassroom setting, including—

“(I) special education teachers;

“(II) career and technical education teachers;

“(III) teachers in the field of science, technology, engineering, mathematics, or other subjects;

“(IV) early childhood educators;

“(V) English as a second language teachers; and

“(VI) teachers of a Native American language (as defined in section 103 of the Native American Languages Act (25 U.S.C. 2902)); and

“(iii) with respect to which the individual meets the requirements of an effective teacher or effective early childhood educator, as determined by the State in accordance with part A of title I and title II of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6311 et seq., 6601 et seq.).”

(2)
Effective date— The amendment made by this subsection shall be effective on the date that is 1 year after the date of enactment of this Act.
(b)
Tax treatment of cancellation of student loans—
(1)
In general— Subsection (f) of section 108 of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:

“(6) Cancellations under STRIVE Act teacher loan forgiveness programs—In the case of an individual, gross income does not include any amount which (but for this subsection) would be includible in gross income for the taxable year by reasons of the cancellation (in whole or in part) under section 455(r) of the Higher Education Act of 1965 of any eligible Federal Direct Loan (as defined in section 455(r)(6)(A) of such Act).”

(2)
Effective date— The amendment made by this subsection shall apply to cancellations of indebtedness after the date that is 1 year after the date of the enactment of this Act.

Sec. 202 TEACH Grants

(a)
Amendments— Subpart 9 of part A of title IV of the Higher Education Act of 1965 (20 U.S.C. 1070g et seq.) is amended—
(1)
in section 420L (20 U.S.C. 1070g), by striking paragraph (1) and inserting the following:

“(1) Eligible institution—The term eligible institution has the meaning given the term “teacher, principal, or other school leader preparation academy” in section 2002 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6602).”

(2)
in section 420N (20 U.S.C. 1070g–2)—
(A)
in the matter preceding clause (i) of subsection (a)(2)(B), by inserting “, including an early childhood teacher (defined in this section as a teacher who has primary responsibility for the learning and development of children within an early childhood education program),” after “prospective teacher”;
(B)
in subsection (c)—
(i)
by striking “Service” and all that follows through “event” and inserting the following:

“(1) In General—In the event”

(ii)
by inserting “paragraph (2) and the” after “in accordance with”; and
(iii)
by adding at the end the following:

“(2) Partial forgiveness of repayment—In the event that a recipient described in paragraph (1) has fulfilled a portion of the service obligation in the agreement under subsection (b), the amount that is treated as a Federal Direct Unsubsidized Stafford Loan under part D of title IV and subject to repayment (together with the interest thereon) for that recipient shall be reduced by an amount that bears the same ratio to the total amount of the recipient's grant under this subpart as the amount of time the recipient has fulfilled of the recipient's service obligation bears to the total amount of time of the service obligation in the agreement under subsection (b).”

(C)
in subsection (d)—
(i)
by redesignating paragraphs (1) and (2) as paragraphs (2) and (3), respectively;
(ii)
in paragraph (2), as redesignated by clause (i), by striking “subsection (b)(1)(C)(vii)” and inserting “paragraph (1)”; and
(iii)
by inserting before paragraph (2), as redesignated by clause (i), the following:

“(1) High-Need Designation—The Secretary shall develop, periodically update, and publish a list of designated high-need fields for purposes of this subpart.”

(b)
Simplification of the application process and streamlining the TEACH grant dispute process— Section 420P of the Higher Education Act of 1965 (20 U.S.C. 1070g–4) is amended—
(1)
in the section heading, by inserting “; program improvement” after “Program report”;
(2)
by striking “Not later” and inserting the following:

“(a) Program report—Not later”

(3)
by adding at the end the following:

“(b) Program improvement—By not later than 6 months after the date of enactment of the Supporting the Teaching profession through Revitalizing Investments in Valuable Educators Act, and periodically thereafter, the Secretary shall—

“(1) work with States to identify and implement a process for increasing awareness of, and simplifying the application process for—

“(A) TEACH Grants;

“(B) loan forgiveness, in accordance with section 420N(c)(2), for any amount of a TEACH Grant to a student that is converted to a loan under section 420N(c)(1); and

“(C) waivers of the service obligation for TEACH Grants, in accordance with section 420N(d)(3); and

“(2)

“(A) review the procedures, including the dispute resolution procedures, of the process through which the service obligation of a recipient of a TEACH grant is converted to a loan under section 420N(c)(1) or waived under section 420N(d)(3); and

“(B) disseminate and make publicly available and easily accessible to the appropriate audiences clear, consistent information on the procedures, including—

“(i) an explanation that recipients have an option to dispute the conversion or waiver decision;

“(ii) how a recipient can initiate a dispute; and

“(iii) the specific criteria considered in the adjudicating process.”

(c)
Data regarding Federal loan forgiveness and service scholarship programs— Each year, the Secretary of Education shall prepare and make publicly available data on the Federal loan forgiveness and service scholarship programs administered by the Secretary, including, for each program and for the most recent year for which data are available, the rates of loan cancellation under such program, the rates of completion of any service requirement required for the program, and the conversion rate regarding how many grants or scholarships are converted to loans for repayment based on the student's failure to complete the program or any required service obligation.
(d)
Effective date— This section, and the amendments made by this section, shall take effect on July 1, 2020.

Sec. 203 Program To subsidize teacher certification and licensing fees

(a)
In general— Subpart 9 of part A of title IV of the Higher Education Act of 1965 (20 U.S.C. 1070g et seq.), as amended by this title, is further amended by adding at the end the following:

“420Q. Program to subsidize teacher certification and licensing fees

“(a) Definitions—In this section:

“(1) Low-income individual—The term low-income individual has the meaning given the term in section 402A(h).

“(2) Teaching profession—The term “teaching profession” includes elementary education, secondary education, and early childhood education.

“(b) Program authorized—From amounts appropriated under subsection (f), the Secretary shall award grants, from allotments under subsection (c), to institutions of higher education to subsidize teacher certification and licensing fees for low-income individuals who have accepted a teaching position.

“(c) Allotments—For each fiscal year, an institution of higher education that has submitted a complete application under subsection (d) shall receive an allotment that bears the same relation to the amounts appropriated under subsection (f) as the number of low-income students that graduated from the institution of higher education, in the most recent year for which data are available (as determined by the Secretary), bears to the total number of low-income students graduating, in such most recent year, from all institutions of higher education that have submitted applications.

“(d) Application—An institution of higher education desiring an allotment under this section shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require.

“(e) Use of funds

“(1) In general—An institution of higher education receiving funds under this program shall use the funds to reimburse or subsidize the teacher or early childhood educator examination and other certification or licensure fees for low income individuals entering the teaching profession, or in the early stages of their teaching career, who attend a teacher preparation program in the State in which the institution is located, which may include fees for—

“(A) additional certification or licensure for the individual in a high-need field included on the list described in section 420N(d)(1);

“(B) National Board certification;

“(C) maintaining active status with a professional disciplinary organization aligned with the high-need field included on the list described in section 420N(d)(1); or

“(D) in the case of early childhood educators, further education necessary in order to become highly competent and successfully take such examination or obtain such certification or licensure (such as English as a second language classes, community college courses, and continuing and distance education).

“(2) Priority in reimbursement—An institution of higher education receiving an allotment under this section shall, in reimbursing or subsidizing fees in accordance with paragraph (1), give a priority to teachers and early childhood educators who are members of populations underrepresented in the teaching or early childhood care profession, respectively.

“(f) Authorization of appropriations—There are authorized to be appropriated to carry out this section $50,000,000 for fiscal year 2020 and each of the 5 succeeding fiscal years.”

(b)
Effective date— The amendment made by this section shall take effect on July 1, 2020.