Service Corps Established

(a) National Educator Service Corps Established The Secretary shall establish a National Educator Service Corps program (referred to in this title as the Corps) in order to alleviate teacher shortages, through which the Secretary shall pay the benefits described in subsection (b) to, or on behalf of, an eligible student who agrees to the service obligation requirements described in subsection (c). (b) Scholarship and stipends (1) In General Subject to paragraph (2), the Secretary shall pay to, or on behalf of, each eligible student who agrees to the service obligation requirements described in subsection (c) the following benefits for each year (for a maximum of 4 years) for which that eligible student is enrolled in an eligible program: (A) Scholarship An amount, not to exceed $15,000 per year, equal to the remaining amount of tuition and fees that the eligible student would be required to pay for attendance at the eligible program after the receipt of any Federal Pell Grant assistance under section 401 of the Higher Education Act of 1965 (20 U.S.C. 1070a). (B) Stipend A monthly living expense stipend for each month during which the eligible student is enrolled full-time in the eligible program, of— (i) $1,500 per month for each eligible student without dependents; and (ii) $2,500 per month for each eligible student dependents to accommodate childcare expenses and other costs. (C) A $25,000 annual stipend for a 1-year clinical residency that is a required element of the eligible program. (2) Inflation adjustment The amounts under paragraph (1) shall be adjusted annually to reflect the change in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor. (3) Eligibility An eligible student may receive the benefits under this subsection for a maximum of 4 years, which may include any combination of baccalaureate and post-baccalaureate years of study in an eligible program, as long as the total does not exceed 4 years. (c) Service requirement and qualifying schools (1) Application Each eligible student desiring to participate in the National Educator Service Corps program shall submit an application to the Secretary at such time, and containing such information and assurances, as the Secretary may require, including the service obligation agreement under paragraph (2). (2) Service obligation agreement The application of each eligible student who desires to join the Corps shall be accompanied by a service obligation agreement through which the applicant will agree to serve, not later than 6 months after completing the program, as a full-time teacher in a high-need field or as a library media specialist, at a qualifying high-need school for a total of not less than 1 academic year for each year of assistance received under subsection (b), or an equivalent time as described in paragraph (3)(C). (3) Special rules (A) Qualifying high-need school In order to count as qualifying employment for purposes of the service obligation under paragraph (2), a school must be a qualifying high-need school at the time the Corps participant begins employment at that school. If the school subsequently is no longer designated as a high-need school, the Corps participant may continue employment at that school in a high-need field and such continued employment shall be counted toward the Corps participant's service obligation. (B) Change of high-need field designation If an eligible student receives the benefits under subsection (b) with respect to enrollment in an eligible program for preparation to teach in a field that is designated as a high-need field at the time the service agreement is entered into, but is no longer so designated, the eligible student may fulfill the service obligation by teaching in that field. (C) Part-time employment If a Corps participant is employed part-time, the Secretary shall extend the service obligation requirement such that the participant will be required to complete the equivalent service described in paragraph (2). For example, the Secretary may determine that a Corps participant shall be required to complete 2 years of part-time employment in a high-need field at a qualifying high-need school for each year of assistance received under subsection (b). (4) Extenuating circumstances The Secretary shall— (A) establish, by regulation, categories of extenuating circumstances under which a Corps participant who is unable to fulfill all or part of the participant's service obligation may be excused from fulfilling that portion of the service obligation; and (B) temporarily suspend a participant's service obligation if that participant is unable to work due to a qualifying event, including family or medical leave, military service, or temporary disability. (5) Permanent discharge The Secretary shall establish, by regulation, categories of circumstances under which a Corps participant would have their obligation permanently discharged, including death and permanent disability. (6) Repayment for failure to complete service The Secretary may require a Corps participant who fails to abide by the service obligation agreement to repay all, or a portion of, the benefits under subsection (b) that such participant has received proportionate to the amount of service completed. Failure to abide by the service obligation agreement may include failure to complete the eligible program, failure to attain regular certification or licensure, or failure to meet employment requirements. In the event that any Corps participant fails or refuses to comply with some or all of the service obligation required under the agreement under subsection (b)— (A) the Secretary shall determine the proportion of the total amount of time of the service obligation that the recipient has failed to complete; and (B) the Secretary shall— (i) determine, on a prorated basis based on the proportion described in subparagraph (A), the amounts of any funds received by such recipient that shall, upon a determination of such a failure in such service obligation, be treated as a Federal Direct Stafford Loan (except that such loan shall not begin to accrue interest until the time of conversion); and (ii) ensure that such amounts are subject to repayment, in accordance with terms and conditions specified by the Secretary in regulations under this title. (7) Reconsideration of conversion decisions (A) Request to reconsider In any case where the Secretary has determined that a recipient has failed to comply with the service obligation in the agreement and has converted the grant into a Federal loan, the recipient may request that the Secretary reconsider such initial determination and may submit additional information to demonstrate satisfaction of the service obligation. Upon receipt of such a request, the Secretary shall reconsider the determination in accordance with this paragraph not later than 90 days after the date that such request was received. (B) Reconsideration If, in reconsidering an initial determination under subparagraph (A) regarding a conversion into a Federal loan, the Secretary determines that the reason for such determination was the recipient’s failure to timely submit a certification, an error or processing delay by the Secretary, a change to the fields considered eligible for fulfillment of the service obligation, or another valid reason determined by the Secretary, and that the recipient has, as of the date of the reconsideration, demonstrated that the recipient did meet, or is meeting, the service obligation in the agreement under subsection (b), the Secretary shall— (i) discharge the Federal loan; (ii) discharge any interest or fees that may have accumulated during the period that the Federal loan was in effect; (iii) if the recipient has other Federal loans, apply any payments made for such Federal loan during such period to those other loans; (iv) if the recipient does not have other loans, reimburse the recipient for any amounts paid on such loan during such period; (v) request that consumer reporting agencies remove any negative credit reporting due to the Federal loan; and (vi) use the additional information provided under subparagraph (A) to determine the progress the recipient has made in meeting the service obligation and extend the time remaining for the recipient to fulfill the service obligation accordingly. (8) Interaction with TEACH grants (A) No double benefits An eligible student may not receive a scholarship under subsection (b) and a TEACH grant under subpart 9 of part A of title IV of the Higher Education Act of 1965 (20 U.S.C. 1070g et seq.) for the same academic year. (B) Concurrent service In the case of a participant in the Corps who, for different academic years, has received a scholarship under subsection (b) and a TEACH grant under subpart 9 of part A of title IV of the Higher Education Act of 1965 (20 U.S.C. 1070g et seq.), any period of service by the participant that satisfies all or part of the service obligation requirement under subsection (c) shall concurrently be deemed to satisfy an equivalent period of the service obligation under section 420N(b) of such Act, if the service occurs during the service obligation window described in paragraph (1)(A) of such section.