RENEWAAL Act of 2007

Revitalizing New Orleans by Attracting America's Leaders Act of 2007 or the RENEWAAL Act of 2007 - Directs the Secretary of Education to award grants to Louisiana, Mississippi, and Alabama for their use in providing competitive subgrants to local educational agencies (LEAs) that serve areas in which a major disaster was declared due to Hurricane Katrina or Rita. Gives priority to LEAs having the highest percentage of schools with teacher-student ratios of at least 25 to 1 or closed due to the hurricanes.

Requires each LEA subgrantee to use the funds to: (1) provide annual bonuses to teachers and school leaders for three consecutive school years, with larger bonuses for personnel who teach a subject for which there is a teacher shortage, return after being displaced by the hurricanes, or have a history of boosting student achievement; (2) provide educators with specified relocation and housing payments; (3) partner with nonprofit organizations that recruit and retain outstanding teachers and school leaders who commit to serve in underserved schools; and (4) enhance the abilities of principals and teachers, providing the latter with paid leave to hone their skills. Requires each state grantee to develop a multiple measures of success teacher rating system.

Directs the Secretary, subject to the availability of appropriations, to cover the losses and fund the recovery initiatives of postsecondary educational institutions whose campuses were closed or relocated, enrollments have sagged, and revenues continue to decline due to such hurricanes.

Requires the Secretary to forgive the loans made to students under parts B (Federal Family Education Loan Program) and D (William D. Ford Federal Direct Loan Program) of the Higher Education Act of 1965 who begin employment or return as full-time teachers at public or private elementary or secondary schools in areas affected by such hurricanes.