Indian Country Educational Empowerment Zone Act - Amends the Higher Education Act of 1965 to authorize the Secretary of the Interior to carry out a program of repaying the student loans of any borrower with a bachelor's or graduate degree who obtains employment in Indian country.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5564 Introduced in House (IH)]
109th CONGRESS
2d Session
H. R. 5564
To facilitate economic growth and development and to promote Tribal
sovereignty, by encouraging a dramatic increase in the number of
individuals with higher education degrees working within and for Indian
Country.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 8, 2006
Ms. Herseth introduced the following bill; which was referred to the
Committee on Education and the Workforce
_______________________________________________________________________
A BILL
To facilitate economic growth and development and to promote Tribal
sovereignty, by encouraging a dramatic increase in the number of
individuals with higher education degrees working within and for Indian
Country.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Indian Country Educational
Empowerment Zone Act''.
SEC. 2. FINDINGS.
Congress makes the following findings:
(1) A unique legal and political relationship exists
between the United States and Indian tribes that is reflected
in article I, section 8, clause 3 of the Constitution, various
treaties, Federal statutes, Supreme Court decisions, executive
agreements, and course of dealing.
(2) Native Americans continue to rank at the bottom of
nearly every indicator of social and economic well-being in
America:
(A) Unemployment rates average near 50 percent in
Indian country and hover well over 90 percent on many
reservations.
(B) While the national poverty rate is only 11
percent, over 26 percent of all Native Americans live
in poverty.
(C) In addition, Native Americans have some of the
lowest levels of educational attainment in the United
States.
(3) Numerous external efforts at economic development in
Indian Country have proven unsuccessful. The most successful
efforts have been initiated from within the Native communities
themselves. Efforts that empower the communities and give them
the tools to make their own decisions should be encouraged and
pursued.
(4) Educational achievement continues to be a cyclical
obstacle to economic development in Indian Country. Businesses
are often unwilling to locate to Indian Country because of the
lack of an educated workforce. Over a quarter of all Americans
have a bachelors degree or higher. However, only 12 percent of
all Native Americans nationwide have such a degree, and only 6
percent of those who actually live in Indian Country have a
bachelors or higher. Once Natives are finally able to obtain
higher education, many are not able to return to their
communities because there are no jobs. There needs to be an
intervening factor to help break this damaging cycle.
SEC. 3. LOAN FORGIVENESS FOR EMPLOYMENT IN INDIAN COUNTRY.
Part B of title IV of the Higher Education Act of 1965 is amended
by inserting after section 428K (20 U.S.C. 1078-11) the following:
``SEC. 428L. LOAN FORGIVENESS FOR EMPLOYMENT IN INDIAN COUNTRY.
``(a) Purpose.--It is the purpose of this section--
``(1) to dramatically increase the number of individuals
with higher education degrees working within and for Indian
country;
``(2) to facilitate economic growth and development in
Indian country, and promote Tribal sovereignty;
``(3) to encourage members of Indian tribes with higher
education degrees to return to Indian country;
``(4) to encourage the long-term retention of educated
individuals in Indian country; and
``(5) to encourage public service in Indian country, and to
encourage investment in Indian country through an increase in
the education level of the available workforce.
``(b) Program Authorized.--
``(1) In general.--From the funds appropriated under
subsection (g), the Secretary is authorized to forgive, in
accordance with this section, the student loan debt of any
borrower, who--
``(A) obtains or has obtained a bachelor's or
graduate degree from an institution of higher
education; and
``(B) obtains employment in Indian country.
``(2) Method of loan forgiveness.--To provide the loan
forgiveness authorized in paragraph (1), the Secretary is
authorized to carry out a program--
``(A) through the holder of the loan, to assume the
obligation to repay a qualified loan amount for a loan
made under this part; and
``(B) to cancel a qualified loan amount for a loan
made under part D of this title.
``(3) Award basis; priority.--
``(A) Award basis.--Subject to subparagraph (B),
loan forgiveness under this section shall be on a
first-come, first-served basis, and subject to the
availability of appropriations.
``(B) Priorities.--The Secretary shall, by
regulation, establish a system for giving priority in
providing loan forgiveness under this section to
individuals based on the following factors:
``(i) The level of poverty in the locality
within Indian country where the individual is
employed.
``(ii) Whether the individual is an
enrolled member of an Indian tribe.
``(iii) Whether such enrolled member is
performing employment in the Indian country of
the Indian tribe in which they are enrolled.
``(iv) The ratio of the individual's
student loan debt to the individual's annual
income.
``(v) Whether the individual's employer
will provide an additional amount or a matching
percentage for student loan repayment for the
individual.
``(4) Outreach.--The Secretary shall post a notice on a
Department Internet web site regarding the availability of loan
forgiveness under this section, and shall notify institutions
of higher education (including Tribal Colleges and
Universities) and the Bureau of Indian Affairs regarding the
availability of loan forgiveness under this section.
``(c) Qualified Loan Amounts.--
``(1) Percentages.--Subject to paragraph (2), the Secretary
shall assume or cancel the obligation to repay under this
section--
``(A) 15 percent of the amount of all loans made,
insured, or guaranteed after the date of enactment of
the Indian Country Educational Empowerment Zone Act to
a student under part B or D, for each of the first and
second years of employment in Indian country;
``(B) 20 percent of such total amount, for each of
the third and fourth years of such employment; and
``(C) 30 percent of such total amount, for the
fifth year of such employment.
``(2) Maximum.--The Secretary shall not repay or cancel
under this section more than--
``(A) $20,000 in the aggregate of loans made,
insured, or guaranteed under parts B and D, for any
student with a bachelor's degree, but without a
graduate degree; and
``(B) $20,000 of such loans for each year of
employment, for any student with a graduate degree.
``(3) Treatment of consolidation loans.--A loan amount for
a loan made under section 428C may be a qualified loan amount
for the purposes of this subsection only to the extent that
such loan amount was used to repay a loan made, insured, or
guaranteed under part B or D for a borrower who meets the
requirements of subsection (b)(1), as determined in accordance
with regulations prescribed by the Secretary.
``(d) Additional Requirements.--
``(1) No refunding of previous payments.--Nothing in this
section shall be construed to authorize the refunding of any
repayment of a loan made under this part or part D.
``(2) 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.
``(3) Double benefits prohibited.--
``(A) Ineligibility of national service award
recipients.--No student borrower may, for the same
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.).
``(B) Double forgiveness.--No student borrower may,
for the same service, receive a benefit under both this
section and section 428J, 428K, or 460 of this Act or
section 108 of the Indian Health Care Improvement Act
(25 U.S.C. 1616a).
``(4) 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.
``(e) Application for Repayment.--
``(1) In general.--Each eligible individual desiring loan
forgiveness 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. Such application shall contain verification from the
employer of the employment in Indian country.
``(2) Conditions.--An eligible individual may apply for
loan forgiveness under this section after completing each year
of employment in Indian country. The borrower shall receive
forbearance while engaged in such employment unless the
borrower is in deferment while so engaged.
``(f) Regulations.--The Secretary is authorized to issue such
regulations as may be necessary to carry out the provisions of this
section.
``(g) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section $20,000,000 for fiscal year
2007, and such sums as may be necessary for each of the 4 succeeding
fiscal years.
``(h) Definition of Indian Tribe.--In this section, the term
`Indian tribe' means any Indian tribe, band, nation, or other organized
group or community, including any Alaska Native village, which is
recognized as eligible for the special programs and services provided
by the United States to Indians because of their status as Indians.''.
<all>
Introduced in House
Introduced in House
Sponsor introductory remarks on measure. (CR E1065-1066)
Referred to the House Committee on Education and the Workforce.
Referred to the Subcommittee on 21st Century Competitiveness.
Llama 3.2 · runs locally in your browser
Ask anything about this bill. The AI reads the full text to answer.
Enter to send · Shift+Enter for new line