,i  #aad? ,,congress  #a/ ,session  ,h4 
,r4 #cibe  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,novemb] #d1 #bjae    
,mrs4 ,davis ( ,cali=nia introduc$ !    
foll[+ bill2 :i* 0 ref]r$ to !          
,committee on ,education & ! ,work=ce   
,a ,,bill  ,to direct ! ,secret>y (     
,education to c>ry out a program (      
cancel+ c]ta9 ,f$]al /ud5t loans (      
pr9cipals 9 high ne$ s*ools4  #a4 ,%ort 
title ,?is ,act may be cit$ z !         
,recruit+ & ,reta9+ ,effective ,s*ool   
,lead]s ,act4  #b4 ,loan =giv5ess =     
pr9cipals 9 high ne$s s*ools ,"p ,d (   
title ,,iv ( ! ,high] ,education ,act ( 
#aife 7#bj ,u4,s4,c4 #ajhg;a et seq47 is
 am5d$ by add+ at ! end ! foll[+3       
#dfj;,a4 ,loan =giv5ess = pr9cipals 9   
high ne$s s*ools  7a7 ,loan =giv5ess    
au?oriz$ ,! ,secret>y %all c>ry out a   
program ( cancel+ ! obligation to repay 
a qualifi$ loan am\nt 9 accordance )    
subsection 7b7 = loans made "u ?is "p1  
:i* 7 fir/ disburs$ on or aft] ,july #a1
 #bjaj1 to any borr[] :o--  7#a7 has    

graduat$ f a high-quality program1 z    
det]m9$ by ! appropriate ,/ate ag5cy =  
high] education1 9 consultation ) !     
,secret>y2  7#b7 has be5 employ$ z a    
full-"t pr9cipal1 z def9$ by1 = n less  
?an #a complete s*ool ye> 9 a s*ool or  
location t qualifies "u section         
#dfe7;a77#b77;,a7 = loan cancellation = 
,p]k9s loan recipi5ts :o tea* 9 su*     
s*ools or locations2 &  7#c7 is n 9     
default on a loan = :i* ! borr[] seeks  
=giv5ess4  7b7 ,qualifi$ loan am\nts    
7#a7 ,9 g5]al  7,a7 ,fir/ #d ye>s       
,subject to p>agraph 7#b71 aft] !       
completion ( s]vice z a pr9cipal z      
describ$ 9 subsection 7a77#b7 = a       
complete s*ool ye> = any s*ool ye> aft] 
! fir/ complete s*ool ye> ( su* s]vice  
?r\gh ! f\r? complete s*ool ye> ( su*   
s]vice1 ! ,secret>y %all cancel--  7i7  
#ae p]c5t ( ! loan obligation on a loan 
made "u ?is "p1 :i* 0 fir/ disburs$ on  
or aft] ,july #a1 #bjaj2 &  7ii7 ! total
 am\nt ( int]e/ t accru$ dur+ su* s*ool 
ye>4  7,b7 ,succe$+ ye>s ,subject to    

p>agraph 7#b71 aft] ! completion (      
s]vice z a pr9cipal z describ$ 9        
subsection 7a77#b7 = a complete s*ool   
ye> = any s*ool ye> aft] ! f\r? complete
 s*ool ye> ( su* s]vice ?r\gh ! sev5?   
complete s*ool ye> ( su* s]vice1 !      
,secret>y %all cancel--  7i7 #bj p]c5t (
 ! loan obligation on a loan made "u ?is
 "p1 :i* 0 fir/ disburs$ on or aft]     
,july #a1 #bjaj2 &  7ii7 ! total am\nt (
 int]e/ t accru$ dur+ su* s*ool ye>4    
7#b7 ,limitations ,to be eligible = loan
 cancellation "u subp>agraph 7,a7 or    
7,b7 ( p>agraph 7#a7 = any s*ool ye>    
aft] ! fir/ complete s*ool ye> ( s]vice1
 a pr9cipal--  7,a7 %all be s]v+ z a    
pr9cipal 9 ! s*ool or location 9 :i* !  
pr9cipal s]v$ = su* fir/ ye>1 except t a
 pr9cipal may s]ve z a pr9cipal 9 a     
diff]5t s*ool or location describ$ 9    
subsection 7a77#b7 = a s*ool ye> aft]   
su* fir/ ye> if ! local educational     
ag5cy involv$ places ! pr9cipal 9 su*   
diff]5t s*ool or location2 &  7,b7 may  
/op s]v+ z a pr9cipal = n m ?an #a      

complete s*ool ye> aft] su* fir/ ye>4   
7#c7 ,treatm5t ( consolidation loans ,a 
loan am\nt = a ,f$]al ,direct           
,consolidation ,loan1 :i* 0 fir/        
disburs$ on or aft] ,july #a1 #bjaj1 may
 be a qualifi$ loan am\nt = ! purposes (
 ?is subsection only to ! ext5t t su*   
loan am\nt 0 us$ to repay a ,f$]al      
,direct ,/af=d ,loan1 a ,f$]al ,direct  
,unsubsidiz$ ,/af=d ,loan1 a ,f$]al     
,direct ,,plus ,loan = enrollm5t 9 a    
graduate or pr(essional program or a    
loan made "u section #dbh1 #dbh;,h1 or  
#dbh;,b = enrollm5t 9 a graduate or     
pr(essional program1 = a borr[] :o meets
 ! requirem5ts ( subsection 7a71 z      
det]m9$ 9 accordance ) regulations      
prescrib$ by ! ,secret>y4  7c7 ,li/ ,if 
! li/ ( s*ools 9 :i* a high ne$ pr9cipal
 may p]=m s]vice pursuant to subsection 
7a77#b7 is n available be=e ,may #a (   
any ye>1 ! ,secret>y may use ! li/ = !  
ye> prec$+ ! ye> = :i* ! det]m9ation is 
made to make su* s]vice det]m9ation4    
7d7 ,cont9u+ eligibility ,any pr9cipal  

:o p]=ms s]vice z 9 a s*ool t-- 7#a7    
meets ! requirem5ts ( subsection 7a77#b7
 9 any ye> dur+ su* s]vice2 &  7#b7 9 a 
subsequ5t ye> fails to meet !           
requirem5ts ( su* subsection1 may       
cont9ue to s]ve z a pr9cipal 9 su* s*ool
 & %all be eligible = loan cancellation 
pursuant to subsection 7a74  7e7        
,=giv5ess n consid]$ income ,! am\nt ( a
 loan1 & int]e/ on a loan1 :i* is       
cancel$ "u ?is section %all n be        
consid]$ income = purposes ( ! ,int]nal 
,rev5ue ,code ( #aihf4  7f7 ,con/ruction
 ,no?+ 9 ?is subsection %all be con/ru$ 
to au?orize refund+ ( any refund+ ( any 
cancel$ loan4  7g7 ,no d\ble b5efit ,no 
borr[] may1 = ! same s]vice1 receive a  
b5efit "u bo? ?is section & subtitle ,d 
( title ,i ( ! ,national & ,community   
,s]vice ,act ( #aiij 7#db ,u4,s4,c4     
#abfja et seq474  7h7 ,regulations ,!   
,secret>y is au?oriz$ to issue su*      
regulations z may be necess>y to c>ry   
out ?is section4  7i7 ,def9itions ,= !  
purpose ( ?is section3 7#a7 ,pr9cipal ,!

 t]m pr9cipal has ! mean+ giv5 su* t]m 9
 section #bajb ( ! ,elem5t>y & ,second>y
 ,education ,act ( #aife 7#bj ,u4,s4,c4 
#ffjb74  7#b7 ,ye> ,! t]m ye> :]e appli$
 to s]vice z a tea*] means an academic  
ye> z def9$ by ! ,secret>y4  4