Sec. 201. Teacher loan forgiveness programs and grants
1,762 words·~8 min read·
/bill/116/s/1866/is/section-201A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 455 of the Higher Education Act of 1965 ( 20 U.S.C. 1087e ) is amended by adding at the end the following: 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— 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 is employed in a qualifying teaching position, regardless of subject matter area, at the time of such forgiveness; and 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).
The portion to be cancelled under this paragraph shall be— for each of— 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 the first 6 years (or the equivalent calculated under subparagraph (B)(i)) 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 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 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 after the borrower has received partial loan cancellation described in clause (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 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. 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). 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— shall be required to qualify for loan cancellation through a part-time qualifying teaching position for 2 additional years; and notwithstanding subparagraph (A), shall receive partial cancellation, in accordance with subparagraph (A)(i)(II)(bb), for the first of such 2 years. 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). 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. No borrower may, for the same service, receive a reduction of loan obligations under both this subsection and section 428J, 428K, 428L, or 460. 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). 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. 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). The Secretary shall— 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 make the lists developed under clause
(i)and provided under subparagraph
(A)easily accessible for applicants and recipients of TEACH Grants. 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— the borrower has qualified for partial loan forgiveness under paragraph
(1)for the immediately preceding year; and the borrower is unable to continue working in a qualified teaching position during the period of deferment, due to— extenuating or unforeseen financial circumstances or health reasons; or other extraordinary circumstances as determined by the Secretary. In this subsection: 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. 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. The term qualifying teaching position means part-time or full-time employment (not including a short-term substitute teaching assignment)— in— a public or nonprofit private elementary school or secondary school 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 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 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; 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; an elementary school or secondary school that is funded by the Bureau of Indian Education; or in the case of an individual who is an early childhood educator, an early childhood education program; through which the individual provides direct classroom teaching, or classroom-type teaching in a nonclassroom setting, including— special education teachers; career and technical education teachers; teachers in the field of science, technology, engineering, mathematics, or other subjects; early childhood educators; English as a second language teachers; and teachers of a Native American language (as defined in section 103 of the Native American Languages Act ( 25 U.S.C. 2902 )); and 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.). . The amendment made by this subsection shall be effective on the date that is 1 year after the date of enactment of this Act. Subsection
(f)of section 108 of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: 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). . 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.
Connectionstraces to 4
Traces to 4 documents
Citation graph
cites case law
Sec. 201
Teacher loan forgiveness programs and grants
Cites 4Cited by 0 across 0 sources