20 USC 107811 - Loan forgiveness for child care providers

(a) Purpose 
It is the purpose of this section
(1) to bring more highly trained individuals into the early child care profession; and
(2) to keep more highly trained child care providers in the early child care field for longer periods of time.
(b) Definitions 
In this section:

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(1) Child care facility 
The term child care facility means a facility, including a home, that
(A) provides child care services; and
(B) meets applicable State or local government licensing, certification, approval, or registration requirements, if any.
(2) Child care services 
The term child care services means activities and services provided for the education and care of children from birth through age 5 by an individual who has a degree in early childhood education.
(3) Degree 
The term degree means an associates or bachelors degree awarded by an institution of higher education.
(4) Early childhood education 
The term early childhood education means education in the areas of early child education, child care, or any other educational area related to child care that the Secretary determines appropriate.
(5) Institution of higher education 
Notwithstanding section 1002 of this title, the term institution of higher education has the meaning given the term in section 1001 of this title.
(c) Demonstration program 

(1) In general 
The Secretary may carry out a demonstration program of assuming the obligation to repay, pursuant to subsection (d) of this section, a loan made, insured, or guaranteed under this part or part C of this subchapter (excluding loans made under sections 1078–2 and 1078–3 of this title or comparable loans made under part C of this subchapter) for any new borrower after October 7, 1998, who
(A) completes a degree in early childhood education;

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(B) obtains employment in a child care facility; and
(C) has worked full time for the 2 consecutive years preceding the year for which the determination is made as a child care provider in a low-income community.
(2) Low-income community 
For the purposes of this subsection, the term low-income community means a community in which 70 percent of households within the community earn less than 85 percent of the State median household income.
(3) Award basis; priority 

(A) Award basis 
Subject to subparagraph (B), loan repayment under this section shall be on a first-come, first-served basis and subject to the availability of appropriations.
(B) Priority 
The Secretary shall give priority in providing loan repayment under this section for a fiscal year to student borrowers who received loan repayment under this section for the preceding fiscal year.
(4) Regulations 
The Secretary is authorized to prescribe such regulations as may be necessary to carry out the provisions of this section.
(d) Loan repayment 

(1) In general 
The Secretary shall assume the obligation to repay
(A) after the second consecutive year of employment described in subparagraphs (B) and (C) of subsection (c)(1) of this section, 20 percent of the total amount of all loans made after October 7, 1998, to a student under this part or part C of this subchapter;
(B) after the third consecutive year of such employment, 20 percent of the total amount of all such loans; and
(C) after each of the fourth and fifth consecutive years of such employment, 30 percent of the total amount of all such loans.
(2) Construction 
Nothing in this section shall be construed to authorize the refunding of any repayment of a loan made under this part or part C of this subchapter.
(3) Interest 
If a portion of a loan is repaid by the Secretary under this section for any year, the proportionate amount of interest on such loan which accrues for such year shall be repaid by the Secretary.
(4) Special rule 
In the case where a student borrower who is not participating in loan repayment pursuant to this section returns to an institution of higher education after graduation from an institution of higher education for the purpose of obtaining a degree in early childhood education, the Secretary is authorized to assume the obligation to repay the total amount of loans made under this part or part C of this subchapter incurred for a maximum of two academic years in returning to an institution of higher education for the purpose of obtaining a degree in early childhood education. Such loans shall only be repaid for borrowers who qualify for loan repayment pursuant to the provisions of this section, and shall be repaid in accordance with the provisions of paragraph (1).
(5) Ineligibility of national service award recipients 
No student borrower may, for the same volunteer service, receive a benefit under both this section and subtitle D of title I of the National and Community Service Act of 1990 (42 U.S.C. 12601 et seq.).
(e) Repayment to eligible lenders 
The Secretary shall pay to each eligible lender or holder for each fiscal year an amount equal to the aggregate amount of loans which are subject to repayment pursuant to this section for such year.
(f) Application for repayment 

(1) In general 
Each eligible individual desiring loan repayment under this section shall submit a complete and accurate application to the Secretary at such time, in such manner, and containing such information as the Secretary may require.
(2) Conditions 
An eligible individual may apply for loan repayment under this section after completing each year of qualifying employment. The borrower shall receive forbearance while engaged in qualifying employment unless the borrower is in deferment while so engaged.
(g) Evaluation 

(1) In general 
The Secretary shall conduct, by grant or contract, an independent national evaluation of the impact of the demonstration program assisted under this section on the field of early childhood education.
(2) Competitive basis 
The grant or contract described in subsection (b)1 of this section shall be awarded on a competitive basis.
(3) Contents 
The evaluation described in this subsection shall
(A) determine the number of individuals who were encouraged by the demonstration program assisted under this section to pursue early childhood education;
(B) determine the number of individuals who remain employed in a child care facility as a result of participation in the program;
(C) identify the barriers to the effectiveness of the program;
(D) assess the cost-effectiveness of the program in improving the quality of
(i) early childhood education; and
(ii) child care services;
(E) identify the reasons why participants in the program have chosen to take part in the program;
(F) identify the number of individuals participating in the program who received an associates degree and the number of such individuals who received a bachelors degree; and
(G) identify the number of years each individual participates in the program.
(4) Interim and final evaluation reports 
The Secretary shall prepare and submit to the President and the Congress such interim reports regarding the evaluation described in this subsection as the Secretary deems appropriate, and shall prepare and so submit a final report regarding the evaluation by January 1, 2002.
(h) Authorization of appropriations 
There are authorized to be appropriated to carry out this section $10,000,000 for fiscal year 1999, and such sums as may be necessary for each of the 4 succeeding fiscal years.
[1] So in original. Probably should be a reference to paragraph (1).