GOVERNMENT RELATIONS UPDATE

Summary of the Child Protective Services Student Loan Forgiveness Act

Introduced:

February 13, 2003

Bill numbers:

Senate – S. 409
House – H.R. 734

Sponsors:

Senate

• Senator Mike DeWine (R-OH)

House

• Representative Stephanie Tubbs Jones (D-OH)

Cosponsors:

Senate

Senator Jay Rockefeller (D-WV)

House

• Rep. Dennis Kucinich (D-OH)
• Rep. Jim McDermott (D-WA)
• Rep. Juanita Millender-McDonald (D-CA)
• Rep. Jerrold Nadler (D-NY)
• Rep. Timothy Ryan (D-OH)

Committees with jurisdiction:

Members on these committees will be the key decision-makers on whether the bill will move forward. 

• Senate Health, Education, Labor and Pensions (HELP) Committee - http://www.senate.gov/~labor/committee_members.html.
  - Senator Judd Gregg (R-NH), Chair
  - Senator Edward Kennedy (D-MA), Ranking Member

• House Education and Workforce Committee - http://www.house.gov/ed_workforce/members/108th/mem-fc.htm.
  - Rep. John Boehner (R-OH), Chair
  - Rep. George Miller (D-CA), Ranking Member

Purpose of legislation:

To bring more highly trained individuals into the child welfare system and to keep them in the system for longer periods of time.

Demonstration program:

The Secretary of the U.S. Department of Education is authorized to create a demonstration program providing loan forgiveness for graduates with social work degrees who work in child welfare agencies. 

Funding:

$20 million is “authorized” for the demonstration program in FY 2004 and “such sums as necessary” for FY 2005-2008.  Note: Even if the bill becomes law, Congress would need to take additional action to fund the program through the appropriations process.      

Eligibility:

• To be eligible, individuals must

1. earn a BSW or MSW;
2. obtain employment in a public child welfare agency that administers child welfare programs under Title IV-B, subpart 1 of the Social Security Act, or in a public or private agency that is under contract with the state to provide child welfare services; and
3. work full time as a social worker for two consecutive years prior to the year in which loan forgiveness begins.

• Loans under the Stafford and Ford Direct Loan programs would be eligible for forgiveness.  Federal PLUS loans and Federal Consolidation loans would NOT be eligible. 
• Forgiveness would be offered only on loans made after the date of enactment of the legislation.  Older loans would NOT be eligible for forgiveness

Forgiveness terms:

• After the third consecutive year of employment, 20 percent of the total amount of the loan would be forgiven; after the fourth consecutive year, 30 percent of the total; and after the fifth consecutive year, 50 percent. 
• Eligible individuals may apply for loan repayment after completing each year of qualifying employment and shall receive forbearance while working unless the borrower is in deferment.    
• Forgiveness would be awarded on a first-come, first-served basis and be subject to the availability of appropriations.  

Special rules:

• Students who return to school after graduation to obtain a BSW or MSW would be eligible to receive forgiveness for only two academic years worth of loans. 
• Students who receive National Service Awards under the National and Community Service Act would not be eligible for the loan forgiveness program.

Evaluation:

The Secretary of Education would be required to award a grant or contract for an independent evaluation of the impact of the program on the child welfare services field. 

• The evaluation is to determine –
  1. whether the loan forgiveness program has increased child welfare workers’ education;
  2. whether the program has contributed to increased time on the job for child welfare workers, measured by:
     • the length of time child welfare workers receiving loan forgiveness have worked in the child welfare field; and
     • the length of time such workers continue to work in the field after having met the requirements for loan forgiveness; and
  3. whether the program has increased the experience and quality of child welfare workers and has contributed to increased performance in the outcomes of child welfare services in terms of child well-being, permanency, and safety. 
• The final evaluation report is due by September 30, 2005. 

NASW endorsement: NASW provided input on the legislation and has endorsed its enactment.

For more information: Contact the Government Relations Unit at advocacy@naswdc.org. 

For copies of the bills: Access the Library of Congress’ legislative website at http://thomas.loc.gov.