SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Early Educator Loan Forgiveness Act 
of 2007''.

SEC. 2. LOAN FORGIVENESS FOR SERVICE AS AN EARLY CHILDHOOD EDUCATOR.

    Section 428K (20 U.S.C. 1078-11) is amended to read as follows:

``SEC. 428K. LOAN FORGIVENESS FOR SERVICE AS AN EARLY CHILDHOOD 
              EDUCATOR.

    ``(a) Purposes.--The purposes of this section are--
            ``(1) to encourage highly trained individuals to enter and 
        continue in service as early childhood educators; and
            ``(2) to reduce the burden of student debt for Americans 
        who dedicate their careers to service as early childhood 
        educators.
    ``(b) Program Authorized.--
            ``(1) Loan forgiveness authorized.--The Secretary is 
        authorized to forgive, in accordance with this section, the 
        student loan obligation of a borrower in the amount specified 
        in subsection (c), for any new borrower after the date of 
        enactment of the Early Educator Loan Forgiveness Act of 2007, 
        who--
                    ``(A) has been employed full-time for at least 5 
                consecutive complete school years as an early childhood 
                educator in an eligible preschool program or eligible 
                early childhood education program in a low-income 
                community, and who is involved directly in the care, 
                development, and education of infants, toddlers, or 
                young children through age 5; and
                    ``(B) is not in default on a loan for which the 
                borrower seeks forgiveness.
            ``(2) Method of loan forgiveness.--To provide loan 
        forgiveness under 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, insured, or guaranteed under this part; and
                    ``(B) to cancel a qualified loan amount for a loan 
                made under part D of this title.
            ``(3) Regulations.--The Secretary is authorized to issue 
        such regulations as may be necessary to carry out the 
        provisions of this section.
    ``(c) Qualified Loan Amount.--The Secretary shall forgive not more 
than $5,000 in the aggregate of the student loan obligation of a 
borrower that is outstanding after the completion of the fifth 
consecutive school year of employment described in subsection (b)(1).
    ``(d) Construction.--Nothing in this section shall be construed to 
authorize the refunding of any repayment of a loan.
    ``(e) Award Basis.--Loan forgiveness under this section shall be on 
a first-come, first-served basis and subject to the availability of 
appropriations.
    ``(f) Ineligibility for Double Benefits.--No borrower may receive a 
reduction of loan obligations under both this section and section 428J 
or 460.
    ``(g) Definitions.--In this section:
            ``(1) Early childhood educator.--The term `early childhood 
        educator' means an early childhood educator who works directly 
        with children in an eligible preschool program or eligible 
        early childhood education program who has completed a 
        baccalaureate or advanced degree in early childhood 
        development, early childhood education, or in a field related 
        to early childhood education.
            ``(2) Eligible preschool program.--The term `eligible 
        preschool program' means a program that provides for the care, 
        development, and education of infants, toddlers, or young 
        children through age 5, meets any applicable State or local 
        government licensing, certification, approval, and registration 
        requirements, and is operated by--
                    ``(A) a public or private school that may be 
                supported, sponsored, supervised, or administered by a 
                local educational agency;
                    ``(B) a Head Start agency serving as a grantee 
                designated under the Head Start Act (42 U.S.C. 9831 et 
                seq.);
                    ``(C) a nonprofit or community based organization; 
                or
                    ``(D) a child care program, including a home.
            ``(3) Eligible early childhood education program.--The term 
        `eligible early childhood education program' means--
                    ``(A) a family child care program, center-based 
                child care program, State prekindergarten program, 
                school program, or other out-of-home early childhood 
                development care program, that--
                            ``(i) is licensed or regulated by the 
                        State; and
                            ``(ii) serves 2 or more unrelated children 
                        who are not old enough to attend kindergarten;
                    ``(B) a Head Start Program carried out under the 
                Head Start Act (42 U.S.C. 9831 et seq.); or
                    ``(C) an Early Head Start Program carried out under 
                section 645A of the Head Start Act (42 U.S.C. 9840a).
            ``(4) Low-income community.--In this subsection, the term 
        `low-income community' means a community in which 70 percent of 
        households earn less than 85 percent of the State median 
        household income.
    ``(h) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section such sums as may be necessary 
for fiscal year 2008 and each of the 5 succeeding fiscal years.''.
Early Educator Loan Forgiveness Act of 2007 - Amends the Higher Education Act of 1965 to replace the loan forgiveness demonstration program for child care providers with a program providing student loan forgiveness or cancellation under the Federal Family Education Loan or Direct Loan programs to borrowers who are employed for at least five consecutive complete school years as early childhood educators who work directly with children in eligible preschool or early childhood education programs in low-income communities.

Requires such educators to have completed a baccalaureate or advanced degree in early childhood development, early childhood education, or in a field related to early childhood education.

Limits such forgiveness or cancellation to no more than $5,000 of the borrower's loan outstanding upon completion of five years of service.
To provide for a loan forgiveness program for certain individuals who serve as early childhood educators.