To amend the Higher Education Act of 1965 to expand and improve the program of loan forgiveness for teachers, and to amend the Elementary and Secondary Education Act of 1965 to focus the expenditure of certain recruitment and professional development funds on high-need local educational agencies.

Amends the Higher Education Act of 1965 to revise student loan forgiveness for teachers under the Federal Family Education Loan and Federal Direct Loan programs. Expands forgiveness eligibility by: (1) eliminating requirements allowing only certain new borrowers to participate; and (2) increasing the types of eligible teaching locations and subjects. Includes, as separate bases for eligibility, full-time teaching in: (1) a school qualifying for Perkins loan cancellation; (2) a school in a high-need local educational agency; (3) special education; or (4) mathematics or science. Eliminates a service requirement that an individual teach at least five consecutive complete school years before being eligible for program benefits. Increases to $20,000 the aggregate amount of an individual teacher's student loan obligation which may be forgiven, and revises the rate of repayment.

Amends the Elementary and Secondary Education Act of 1965 to require State educational agencies to give priority to high-need local educational agencies, under a program of grants to States for preparing, training, and recruiting high-quality teachers and principals.