Government Relations Action Alert

SECOND, BROADER, LOAN FORGIVENESS BILL INTRODUCED

Congressional Contacts Needed

April 10, 2003

THE ISSUE AT HAND

On March 18, 2003, Rep. George Miller (D-CA) introduced the College Opportunity for a Better America Act (H.R. 1306).  The purpose of the bill is to reduce the burden of student debt, particularly for Americans who dedicate their careers to meeting urgent national needs, and to attract more qualified individuals into important public service careers.

H.R. 1306 is, in many ways, more expansive than the Child Protective Services Student Loan Forgiveness Act (S. 409; H.R. 734) introduced in February by Senator Mike DeWine (R-OH) and Rep. Stephanie Tubbs Jones (D-OH).  For more information on the DeWine-Jones bill, see https://www.socialworkers.org/advocacy/issues/child_welfare.asp.

NASW Member Concerns

The Miller bill addresses some of the concerns raised by NASW members about limitations in the DeWine-Jones bill, including the fact that the bill would limit eligibility to loans awarded after the bill is signed into law (no retroactivity) and to social workers who work in child welfare (rather than multiple fields).  The Miller bill not only widens eligibility in those areas, but also in the types of professionals and the types of loans. 

• Eligible Professionals.  The DeWine-Jones bill limits loan forgiveness to students who obtain a BSW or MSW and work in child welfare.  The Miller bill includes loan forgiveness for a much broader range of public service employees, including:

  (1)    highly qualified teachers in low-income communities, and of mathematics, science, and bilingual and special education

  (2)    early childhood educators

  (3)    nurses

  (4)    child welfare workers **

  (5)    dieticians

  (6)    specialists working with infant and toddlers with disabilities  

  (7)    others who work in a public service profession that suffers from a critical lack of qualified personnel and serves a low-income or needy community

** Note:  Professionals eligible under the “child welfare workers” category would not only include degreed social workers, as in the Jones-DeWine bill, but also students who complete degrees in related fields. 

• Eligible Loans.  The DeWine-Jones bill limits loan forgiveness to Stafford and Ford Direct loans.  The Miller bill includes Direct Stafford Loans, Direct Unsubsidized Stafford Loans, Direct Consolidation Loans, and Perkins Loans.
  
  
• Timeframes for Forgiveness.  Under the DeWine-Jones bill, only loans awarded after the bill is signed into law would be eligible.  The Miller bill provides for some retroactivity by expanding eligibility to loans made after October 7, 1998 (the day the Higher Education Amendments of 1998 were signed into law).    

Under the DeWine-Jones bill forgiveness would not begin until after the third year of employment.  Under the Miller bill, forgiveness would begin after the first year.     

• DeWine-Jones: After the third year, 20 percent would be forgiven; after the fourth year, 30 percent; and after the fifth year, 50 percent
  
  
• Miller: After each of the first or second years, 15 percent would be forgiven; after each of the third or fourth years, 20 percent; and after the fifth year, 30 percent

NASW POSITION

NASW endorsed the DeWine-Jones bill (1) for its recognition of the value of a social work education in improving outcomes for children and families involved with the child welfare system, (2) as part of the solution to the extensive problems in the system of recruitment and retention of qualified staff, and (3) as a way to assist social workers who want to go into child welfare but are saddled with high loan debts and facing salaries not commensurate with their education and expertise. 

NASW also supports the Miller bill (1) for its recognition that a qualified public service workforce is critical to providing high quality services, (2) to assist social workers who want to go into fields other than child welfare and are also saddled with student loans and facing low salaries, and (3) to assist some social workers who have older loans.   

OUTLOOK

Building congressional support for both bills is critical to any loan forgiveness initiative becoming law.  The more awareness raised about the need for such legislation, the better.  Legislators can become cosponsors of one or both bills since support for one does not preclude support for the other.

The Miller bill incorporates provisions from several other loan forgiveness bills introduced in the House and may have an edge, in part, because Rep. Miller is the Ranking Member on the House Education and Workforce Committee, which has jurisdiction over the issue.  His bill was introduced with 64 cosponsors.  A list follows. 

A number of loan forgiveness bills have also been introduced in the Senate, but none as comprehensive as the Miller bill.  Like Rep. Miller, Senator DeWine is in a good position to champion his bill.  Not only does he sit on the committee of jurisdiction, the Senate Health, Education, Labor and Pensions (HELP) Committee, but he is also a member of the majority party. 

Cosponsors of H.R. 1306

Arizona: Raul Grijalva

California: Joe Baca; Anna Eshoo; Sam Farr; Barbara Lee; Zoe Lofgren; Juanita Millender-McDonald; Grace Napolitano; Loretta Sanchez; Hilda Solis; Pete Stark; Diane Watson

Florida: Corrine Brown; Robert Wexler

Georgia: Denise Majette

Hawaii: Neil Abercrombie; Ed Case

Illinois: Danny Davis; Lane Evans; Luis Gutierrez; Janice Schakowsky

Indiana: Julia Carson

Maine: Thomas Allen

Maryland: Elijah Cummings

Massachusetts: Michael Capuano; Barney Frank; Edward Markey; James McGovern; Martin Meehan; Richard Neal; John Olver

Michigan: Dale Kildee

Minnesota: Betty McCollum; James Oberstar; Collin Peterson

New Jersey: Robert Andrews; Donald Payne

New Mexico: Tom Udall

New York: Gary Ackerman; Eliot Engel; Maurice Hinchey; Nita Lowey; Jerrold Nadler; Major Owens; Charles Rangel; Jose Serrano; Edolphus Towns; Anthony Weiner

North Carolina: Bob Etheridge

Ohio: Stephanie Tubbs Jones; Marcy Kaptur; Dennis Kucinich; Timothy Ryan

Oregon: Darlene Hooley

Pennsylvania: Joseph Hoeffel; Tim Holden

Tennessee: Harold Ford Jr.

Texas: Lloyd Doggett; Martin Frost; Gene Green; Ruben Hinojosa; Ciro Rodriguez

Vermont: Bernard Sanders

Washington: Jim McDermott

ACTION NEEDED

All Representatives should be urged to cosponsor both the Jones bill (H.R. 734) and the Miller bill (H.R. 1306).  All Senators should be urged to cosponsor the DeWine bill (S. 409).  Letters for both bills are posted on NASW’s CongressWeb: http://www.socialworkers.org/advocacy/grassroots/congressweb.asp.  They are titled “Loan Forgiveness for Social Workers in Child Welfare” (H.R. 734 & S. 409) and “Loan Forgiveness for Social Workers & Other Public Service Employees” (H.R. 1306).      

TIMING

The loan forgiveness bills are not expected to move through the legislative process as stand-alone bills, but to be incorporated into the reauthorization of the Higher Education Act (HEA).  No timetable has yet been set for moving HEA, but Congress and the White House are soliciting ideas for reauthorization, so letters should be sent as soon as possible. 

Copies of all bills are available from the Library of Congress’ legislative Web site: http://thomas.loc.gov. 

TAKE ACTION NOW!

THANKS FOR YOUR ADVOCACY