[Senate Report 110-46]
[From the U.S. Government Publishing Office]
Calendar No. 111
110th Congress Report
SENATE
1st Session 110-46
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RECRUITING AND RETAINING MORE QUALIFIED INDIVIDUALS TO TEACH IN TRIBAL
COLLEGES OR UNIVERSITIES
_______
April 10, 2007.--Ordered to be printed
_______
Mr. Dorgan, from the Committee on Indian Affairs, submitted the
following
R E P O R T
[To accompany S. 481]
The Committee on Indian Affairs, to which was referred the
bill (S. 481), to recruit and retain more qualified individuals
to teach in tribal colleges or universities, having considered
the same, reports favorably thereon and recommends that the
bill do pass.
Purpose
The purpose of S. 481 is to provide recruitment and
retention incentives by authorizing forgiveness for up to five
years on a graduated basis of certain Federal student loans for
qualified faculty members who teach at tribal colleges or
universities.
Background
Tribal Colleges and Universities. In 1968, the Navajo
Nation created the first tribally controlled college. In
response to the need for higher education opportunities by
tribal members and the local communities, several other Indian
tribes followed suit. Today, there are 35 tribal colleges and
universities located in 13 states. Tribal colleges and
universities provide higher education and other supporting
courses to prepare students for their academic progressions,
such as high school completion courses, basic remediation
courses, job training and college preparatory courses and adult
education programs. They also serve other community needs, such
as language and cultural preservation.
Despite many challenges, tribal colleges and universities
have had tremendous success. It is estimated that approximately
30,000 students representing 250 Federally recognized tribes
are enrolled at tribal colleges and universities.\1\ Total
enrollment at tribal colleges and universities grew by 17
percent from 1997 to 2002.\2\
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\1\ Testimony of the American Indian Higher Education Consortium
before the Senate Committee on Indian Affairs, June 16, 2005.
\2\ Status and Trends in the Education of American Indians and
Alaska Natives, National Center for Education Statistics, Department of
Education, 2005.
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Funding. The Federal government has repeatedly recognized
the unique relationship between the United States and Indian
tribes through treaties, executive orders, laws, and court
decisions. As a result of this unique relationship, the Federal
government provides funding to tribal colleges and
universities. In fact, the majority of funding for tribal
colleges and universities is derived from the Federal
government.
Federal funding for tribal colleges and universities is
distributed on a grant basis. Although basic operating funding
is calculated on the number of full-time Indian students, some
funding is distributed evenly on a per institution basis. Non-
Indian students also attend tribal colleges and universities;
however, these students are not included in the calculation of
basic operating funds provided by the Federal government.
Despite the attendance by non-Indian students at tribal
colleges and universities, most states do not provide funding
to tribal colleges and universities for those students, even
though such funding would be available to state schools if
those same students attended state schools. Tribal colleges and
universities have reported to the Committee that when states do
provide funding, it is often minimal. Many of the tribal
colleges and universities are located in tribal communities
that do not have sufficient resources to fund government
operations as well as support tribal colleges.
Unique Challenges. Funding educational services is not the
only challenge facing tribal colleges and universities. These
schools also experience difficulties in recruiting and
retaining qualified faculty. Lower than average salaries at
tribal colleges and universities do not contribute to a
favorable recruiting environment. For example, in academic year
1997-1998, it was reported that the average salary at tribal
colleges was $30,241, whereas the average salary was $45,919 at
other public two-year institutions.\3\ The most recent data
indicate that the average faculty staff size at tribal colleges
and universities is 46, with an average annual salary of
approximately $33,500.\4\
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\3\ Building Strong Communities: Tribal Colleges as Engaged
Institutions. Prepared by: American Indian Higher Education Consortium
& the Institute for Higher Education Policy, April 2001.
\4\ Integrated Post-secondary Education Data, Faculty Salaries
Survey & Employees by Assigned Position, Department of Education, 2004.
(Analysis prepared by the American Indian Higher Education Consortium.)
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Tribal colleges and universities also face frequent
turnover among faculty. Data collected by the American Indian
Higher Education Consortium reveal that in 2000-2001, 56
percent of tribal college and university faculty served for 5
years or less. In 2004, tribal colleges and universities
averaged 11.2 new staff, of which 5.4 were newly hired
faculty.\5\ With the smaller staff sizes, the turnover rates
magnify the challenges. While no uniform model for studying
faculty turnover rates among mainstream colleges and
universities across the country exists, some researchers have
speculated that, on average, a 3.3 percent per year turnover
rate is likely, which over five years means a loss of
approximately 16.5 percent of faculty.\6\
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\5\ Integrated Post-secondary Education Data, Fall Staff,
Department of Education, 2004. (Analysis prepared by the American
Indian Higher Education Consortium).
\6\ Faculty Turnover at the University of Tennessee. Don Scroggins,
Office of Institutional Research and Assessment, January, 2004.
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Tribal colleges and universities are often located in
rural, remote areas, which also impacts the recruitment and
retention efforts. Three tribal colleges or universities are
located in 3 of the 5 poorest counties in the United States. In
addition to the lower salaries, high turnover and remoteness,
tribal colleges and universities have identified other barriers
to recruiting and retaining faculty, including inadequate
housing, high workloads, multiple and fluctuating job
responsibilities, and limited faculty development.
Recruitment and Retention Incentives in S. 481. These
challenges indicate that recruitment and retention incentives
are needed for tribal colleges and universities. Existing law
authorizes Federal Perkins student loans to be canceled on a
graduated basis for certain full-time teachers, including
teachers at public or other nonprofit private elementary and
secondary schools; at certain Head Start programs; and at
public or other nonprofit elementary and secondary schools
which provide special education or other early intervention
services. Moreover, full-time nurses or medical technicians
providing health care services and certain other individuals
are also eligible for a graduated waiver of student loans. S.
481 extends this program to full-time faculty members at tribal
colleges and universities.
The Federal Family Education Loan Program (FFEL) governs
the Federal Stafford Loan Program, the Federal Parent Loans for
Undergraduate Students Program, and the Federal Consolidated
Loan Program. Under this program, certain teachers may be
eligible for a portion of their FFEL loans to be forgiven.
Similarly, this bill would authorize the Secretary of the
Department of Education to forgive, on a graduated basis,
certain FFEL loans made to students who become full-time
faculty members at tribal colleges and universities.
Finally, existing law also authorizes a graduated
cancellation of student loans for individuals who have received
college degrees in nursing and who agree to serve as a nurse
for not less than 2 years at a health care facility with a
critical shortage of nurses. This bill would authorize nurses
who agree to teach as a nursing instructor at a tribal college
or university to also be eligible for student loan cancellation
on a graduated basis.
Section-by-Section Analysis
Section 1. Short title
This section provides the short title of the bill as the
``Tribal Colleges and Universities Faculty Loan Forgiveness
Act.''
Section 2. Loan repayment or cancellation for individuals who teach in
tribal colleges or universities
Subsection (a) authorizes full-time faculty members at
tribal colleges or universities to be eligible for the existing
Perkins loan repayment program in the Higher Education Act as
of academic year 2005-2006.
Subsection (b) authorizes the Secretary of the Department
of Education to assume or cancel FFEL or Direct Loans qualified
loan amounts on a graduated scale for any new borrowers after
the date of enactment of this Act if the borrower is employed
as full-time faculty at a tribal college or university and is
not in default on the loan to be repaid or canceled. Qualified
loan amounts are defined as 15 percent of the total amount of
all loans made, insured, or guaranteed after the date of
enactment of this Act for the first or second year of
employment; 20 percent of the total amount of all loans made,
insured, or guaranteed after the date of enactment of the Act
for the third or fourth years; and 30 percent of such total
amount for the fifth year of employment. The Secretary may not,
however, repay or cancel more than $15,000 in the aggregate of
such total amount for any student.
For consolidated loans, only that portion that was used to
repay a FFEL or Direct Loan shall be eligible for repayment or
cancellation. The Secretary is authorized to issue any
necessary regulations. In addition, this section shall not be
construed as authorizing the refunding of any repayments
already made. No borrower may, for the same service, receive a
benefit under Section 2 or subtitle D of title I of the
National and Community Service Act of 1990.
Section 3. Loan repayment for nursing instructors at tribal colleges or
universities
This section authorizes nursing instructors at tribal
colleges or universities to be eligible for the existing loan
repayment program under the Public Health Service Act.
Section 4. Amounts forgiven not treated as gross income
Any amounts assumed or canceled pursuant to this Act shall
not be treated as gross income for Federal income tax purposes.
Legislative History
Similar legislation was first introduced in the 106th
Congress. At that time, S. 2978 was introduced on July 27, 2000
by Senator Daschle, for himself, and for Senators Akaka,
Baucus, Bingaman, Conrad, Dodd, Johnson, Kennedy, Kerrey, Kohl,
and Reid. Senators Leahy and Lieberman became cosponsors on
September 6, 2000. The bill was referred to the Committee on
Indian Affairs.
Other than adding a section regarding forgiven amounts not
treated as gross income, an identical bill was introduced
during the 107th Congress. S. 340 was introduced on February
15, 2001 by Senator Daschle, for himself, and for Senators
Akaka, Baucus, Bingaman, Conrad, Dodd, Johnson, Kennedy, Leahy,
and Reid. Senator Kohl became a cosponsor on March 1, 2001 and
Senator Wellstone became a cosponsor on June 5, 2001. The bill
was referred to the Committee on Indian Affairs.
During the 108th Congress, S. 378 was introduced on
February 12, 2003, by Senator Daschle for himself, and for
Senators Baucus, Bingaman, Conrad, Dorgan and Kohl. Senators
Johnson and Kohl became cosponsors on February 12, 2003,
Senator Akaka became a cosponsor on February 24, 2003, and
Senator Dorgan became a cosponsor on March 4, 2003. The bill
was referred to the Committee on Indian Affairs.
During the 109th Congress, S. 731 was introduced on April
6, 2005 by Senator Conrad, for himself, and for Senators
Bingaman, Burns, Domenici, Dorgan, Johnson, Kohl, and Thune and
referred to the Committee on Indian Affairs. Senator McCain
became a cosponsor on June 28, 2005. The Committee on Indian
Affairs ordered the bill to be reported with an amendment on
June 29, 2005, but the Senate did not act on the measure.
S. 481 was introduced on February 1, 2007, by Senators
Conrad, for himself, and for Senators Domenici, Dorgan, McCain,
Bingaman, Kohl, and Thune and referred to the Committee on
Indian Affairs. Senator Tester became a cosponsor on February
7, 2007, and Senator Johnson became a cosponsor on March 5,
2007. On February 8, 2007, the Indian Affairs Committee ordered
the bill to be favorably reported to the Senate.
Committee Recommendations and Tabulation of Vote
On February 8, 2007, in an open business meeting, the
Committee ordered the bill to be favorably reported to the
Senate.
Cost and Budgetary Considerations
The cost estimate of the Congressional Budget Office on S.
481 is set forth below:
S. 481--Tribal Colleges and Universities Faculty Loan Forgiveness Act
S. 481 would authorize student loan forgiveness for faculty
at tribal colleges and universities. For teachers at these
institutions, the bill would specify that the Secretary of
Education repay or cancel a certain percentage of their
outstanding student loans for each year of teaching (up to five
years) with a $15,000 limit on the total amount of forgiveness.
It also would exclude the amounts paid or canceled under this
program from gross income for federal income tax purposes. CBO
estimates that enacting the bill would result in a negligible
amount of direct spending annually through 2017. We also
estimate that spending subject to appropriation for
implementing S. 481--for costs of new Perkins loans--would be
less than $500,000 annually for the entire 2008-2017 period.
Finally, the Joint Committee on Taxation (JCT) estimates the
bill would have a negligible impact on revenues.
The bill would authorize the Secretary of Education to
repay or cancel 15 percent of the faculty members' loans in
each of the first and second full years of teaching, 20 percent
in each of the third and fourth years, and 30 percent in the
fifth year. The forgiveness would apply to loans under the
Federal Family Education Loan program, the William D. Ford
Direct Loan program, and the Perkins Loan program. These
provisions would apply prospectively; only students who take
out their first loans after the bill's enactment could
potentially take advantage of the program. Based on data on the
number of new faculty at tribal colleges and on the borrowing
history for new teachers, CBO estimates that over the next
decade about 100 new teachers would become eligible under this
program. This change would raise the subsidy cost of new loans
made or guaranteed by the Department of Education, but the
change in subsidy costs and the resulting change in outlays
would be negligible. Those costs are recorded as direct
spending.
CBO has reviewed the nontax provisions of the bill--
sections 1, 2, and 3--for mandates and has determined that they
contain no intergovernmental or private-sector mandates as
defined by the Unfunded Mandates Reform Act; JCT reports that
section 4 (the portion of the bill that relates to the income
tax treatment of the loan forgiveness) also does not contain
any mandates. The bill would impose no costs on state, local,
or tribal governments.
The CBO staff contact for this estimate is Deborah
Kalcevic. This estimate was approved by Peter H. Fontaine,
Deputy Assistant Director for Budget Analysis.
Executive Communications
The Committee has not received any executive communications
on S. 481.
Regulatory and Paperwork Impact
Paragraph 11(b) of rule XXVI of the Standing Rules of the
Senate require each report accompanying a bill to evaluate the
regulatory and paperwork impact that would be incurred in
carrying out the bill. The Committee believes that S. 481 will
have a minimal impact on regulatory or paperwork requirements.
Changes in Existing Law
In compliance with subsection 12 of rule XXVI of the
Standing Rules of the Senate, the Committee notes the following
changes in existing law made by the bill S. 481, as amended,
are shown as follows (existing law proposed to be omitted is
enclosed in black brackets and new text is printed in italic):
20 U.S.C. Sec. 1087ee(a)(2) is amended as follows:
Loans shall be canceled under paragraph (1) for service--
(H) as a full-time nurse or medical technician providing health
care services; [or] (I) as a full-time employee of a public or
private nonprofit child or family service agency who is
providing, or supervising the provision of, services to high-
risk children who are from low-income communities and the
families of such children--or as a full-time faculty member at
a Tribal College or University as defined in section 316(b).
20 U.S.C. Sec. 1087ee(a)(3) is amended as follows:
(A) The percent of a loan which shall be canceled under
paragraph (1) of this subsection is--(i) in the case of service
described in subparagraph (A), (C), (F), (G), (H), [or (I)] (I)
or (J) of paragraph (2), at the rate of 15 percent for the
first or second year of such service, 20 percent for the third
or fourth year of such service, and 30 percent for the fifth
year of such service;
20 U.S.C. Sec. 1088 et seq. is amended by adding at the end of Title
IV, Part G the following:
SEC. 493C. LOAN REPAYMENT OR CANCELLATION FOR INDIVIDUALS WHO TEACH IN
TRIBAL COLLEGES OR UNIVERSITIES.
(a) Program Authorized.--The Secretary shall carry out a
program, through the holder of a loan, of assuming or canceling
the obligation to repay a qualified loan amount, in accordance
with subsection (b), for any new borrower on or after the date
of enactment of the Tribal Colleges and Universities Faculty
Loan Forgiveness Act, who--
(1) has been employed as a full-time faculty member
at a Tribal College or University as defined in section
316(b); and
(2) is not in default on a loan for which the
borrower seeks repayment or cancellation.
(b) 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 Tribal Colleges and
Universities Faculty Loan Forgiveness Act to a
student under part B or D, for the first or
second year of employment described in
subsection (a)(1);
(B) 20 percent of such total amount, for the
third or fourth year 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 $15,000 in the aggregate
of loans made, insured, or guaranteed under parts B and
D for any student.
(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
(a), as determined in accordance with regulations
prescribed by the Secretary.
(c) Regulations.--The Secretary is authorized to issue such
regulations as may be necessary to carry out the provisions of
this section.
(d) Effect on Section.--Nothing in this section shall be
construed to authorize any refunding of any repayment of a
loan.
(e) Prevention of Double Benefits.--No 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.).
(f) Definition.--For purposes of this section, the term
``year'', when applied to employment as a faculty member means
an academic year as defined by the Secretary.
42 U.S.C. Sec. 297n(a)(3) is amended as follows:
(a) In General.--In the case of any individual--[(3)]
(3)(A) who enters into an agreement with the Secretary to serve
as nurse for a period of not less than two years at a health
care facility with a critical shortage of nurses; or (B) who is
a nursing instructor at a tribally controlled college or
university (as such term is defined in section 2 of the
Tribally Controlled College or University Assistance Act of
1978 (25 U.S.C. 1801), or any institution listed in section 532
of the Equity in Educational Land-Grant Status Act of 1994 (7
U.S.C. 301 note));