S. 440 — Introduced in Senate

II 113th CONGRESS 1st Session S. 440 IN THE SENATE OF THE UNITED STATES March 4, 2013 Mr. Reid (for Mr. Begich) introduced the following bill; which was read twice and referred to the Committee on Health, Education, Labor, and Pensions A BILL To amend the Higher Education Act of 1965 to provide for loan forgiveness for early childhood educators, and for other purposes. 1. Short title This Act may be cited as the Preparing and Reinvesting in Early Education Act of 2013 or PRE ED Act of 2013. 2. Expanding FFEL loan forgiveness program to early childhood educators Section 428J of the Higher Education Act of 1965 (20 U.S.C. 1078–10) is amended— (1) in the section heading, by inserting early childhood educators and elementary and secondary school before teachers; (2) by striking subsection (b) and inserting the following: (b) Program authorized 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 borrower who— (1) (A) is a new borrower on or after October 1, 1998, and has been employed as a full-time teacher for 5 consecutive complete school years— (i) in a school or location that qualifies under section 465(a)(2)(A) for loan cancellation for Perkins loan recipients who teach in such schools or locations; and (ii) 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, or meets the requirements of subsection (g)(3); or (B) (i) has been employed as a full-time early childhood educator at an early childhood program for 5 consecutive complete school years or a comparable period, as determined by the Secretary; and (ii) obtained an associate degree or baccalaureate degree in early childhood education from an institution of higher education prior to the beginning of the period described in clause (i); and (2) is not in default on a loan for which the borrower seeks forgiveness. ; (3) by striking paragraph (1) of subsection (c) and inserting the following: (1) In general (A) Aggregate amounts Of the loan obligation on a loan made under section 428 or 428H that is outstanding after the completion of the fifth complete school year of teaching described in subsection (b)(1) or comparable period (in accordance with subsection (b)(1)(B)(i)), the Secretary shall repay not more than— (i) $5,000 in the aggregate for a borrower described in subsection (b)(1)(A), except as provided in paragraph (3); and (ii) $25,000 in the aggregate for a borrower described in subsection (b)(1)(B). (B) Interaction with direct loan program No borrower may receive a reduction of loan obligations under both this section and section 460. ; and (4) in subsection (g)— (A) in paragraph (1)(A), by striking (b)(1)(A) and inserting (b)(1)(A)(i); and (B) in paragraph (3), by striking (b)(1)(B) and inserting (b)(1)(A)(ii). 3. Expanding Federal Direct Loan cancellation program to early childhood educators Section 460 of the Higher Education Act of 1965 (20 U.S.C. 1087j) is amended— (1) in the section heading, by inserting early childhood educators and elementary and secondary school before teachers; (2) by striking subsection (b) and inserting the following: (b) Program authorized The Secretary shall carry out a program of 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 borrower who— (1) (A) is a new borrower on or after October 1, 1998 and has been employed as a full-time teacher for 5 consecutive complete school years— (i) in a school or location that qualifies under section 465(a)(2)(A) for loan cancellation for Perkins loan recipients who teach in such schools or locations; and (ii) 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, or meets the requirements of subsection (g)(3); or (B) (i) has been employed as a full-time early childhood educator at an early childhood program for 5 consecutive complete school years or a comparable period, as determined by the Secretary; and (ii) obtained an associate degree or baccalaureate degree in early childhood education from an institution of higher education prior to the beginning of the period described in clause (i); and (2) is not in default on a loan for which the borrower seeks forgiveness. ; (3) by striking paragraph (1) of subsection (c) and inserting the following: (1) In general (A) Aggregate amounts Of the loan obligation on a Federal Direct Stafford Loan or a Federal Direct Unsubsidized Stafford Loan that is outstanding after the completion of the fifth complete school year of teaching described in subsection (b)(1) or comparable period (in accordance with subsection (b)(1)(B)(i)), the Secretary shall cancel not more than— (i) $5,000 in the aggregate for a borrower described in subsection (b)(1)(A), except as provided in paragraph (3); and (ii) $25,000 in the aggregate for a borrower described in subsection (b)(1)(B). (B) Interaction with FFEL program No borrower may receive a reduction of loan obligations under both this section and section 428J. ; and (4) in subsection (g)— (A) in paragraph (1)(A), by striking (b)(1)(A) and inserting (b)(1)(A)(i); and (B) in paragraph (3), by striking (b)(1)(B) and inserting (b)(1)(A)(ii). 4. Amendment to loan forgiveness for service in areas of national need program Section 428K(g)(3)(C) of the Higher Education Act of 1965 (20 U.S.C. 1078–11(g)(3)(C)) is amended by inserting an associate degree in early childhood education or before a baccalaureate.