Strengthening Loan Forgiveness for Public Servants Act
This bill revises the Public Service Loan Forgiveness (PSLF) program to provide for partial loan cancellation based on the length of public service employment.
Specifically, the bill directs the Department of Education (ED) to cancel 15%, 15%, 20%, 20%, and 30% of the amount a borrower owes after 2, 4, 6, 8, and 10 years of public service employment, respectively, on Federal Direct Loans made after the bill's enactment. Under the current PSLF program, ED must cancel the balance of interest and principal due on a borrower's Federal Direct Loans after the borrower makes 120 monthly loan payments while employed in a public service job.
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4724 Introduced in House (IH)]
<DOC>
117th CONGRESS
1st Session
H. R. 4724
To amend the Higher Education Act of 1965 to provide for a percentage
of student loan forgiveness for public service employment, and for
other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 27, 2021
Mr. Swalwell (for himself, Mr. Brendan F. Boyle of Pennsylvania, Ms.
DeGette, Mr. Garamendi, Mrs. Hayes, Ms. Norton, Mr. Moulton, Ms.
Pingree, and Mr. Rush) introduced the following bill; which was
referred to the Committee on Education and Labor
_______________________________________________________________________
A BILL
To amend the Higher Education Act of 1965 to provide for a percentage
of student loan forgiveness for public service employment, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Strengthening Loan Forgiveness for
Public Servants Act''.
SEC. 2. PUBLIC SERVICE LOAN FORGIVENESS PROGRAM.
Section 455(m) of the Higher Education Act of 1965 (20 U.S.C.
1087e(m)) is amended--
(1) in paragraph (1), in the matter preceding subparagraph
(A), by inserting ``, except as provided in paragraph (5),''
after ``on any eligible Federal Direct Loan not in default'';
and
(2) by adding at the end the following:
``(5) Loan cancellation for new loans.--
``(A) In general.--Beginning after the date of
enactment of the Strengthening Loan Forgiveness for
Public Servants Act, after the conclusion of each
employment period in a public service job, as described
in subparagraph (B), the Secretary shall cancel the
percent specified in such subparagraph of the total
amount due on any eligible Federal Direct Loan made
after the date of enactment of the Strengthening Loan
Forgiveness for Public Servants Act for a borrower who
is employed in such public service job and submits an
employment certification form described in subparagraph
(C).
``(B) Percent amount.--The percent of a loan that
shall be canceled under subparagraph (A) is as follows:
``(i) In the case of a borrower who
completes 2 years of employment in a public
service job, 15 percent of the total amount due
on the eligible Federal Direct Loan on the date
the borrower commenced employment in such
public service job.
``(ii) In the case of a borrower who
completes 4 years of employment in a public
service job, 15 percent of the total amount due
on the eligible Federal Direct Loan on the date
the borrower commenced employment in such
public service job.
``(iii) In the case of a borrower who
completes 6 years of employment in a public
service job, 20 percent of the total amount due
on the eligible Federal Direct Loan on the date
the borrower commenced employment in such
public service job.
``(iv) In the case of a borrower who
completes 8 years of employment in a public
service job, 20 percent of the total amount due
on the eligible Federal Direct Loan on the date
the borrower commenced employment in such
public service job.
``(v) In the case of a borrower who
completes 10 years of employment in a public
service job, 30 percent of the total amount due
on the eligible Federal Direct Loan on the date
the borrower commenced employment in such
public service job.
``(C) Employment certification form.--
``(i) In general.--In order to receive loan
cancellation under this paragraph, a borrower
shall submit to the Secretary an employment
certification form that is developed by the
Secretary and includes self-certification of
employment and a separate part for employer
certification that indicates the dates of
employment.
``(ii) Deferment.--If a borrower submits to
the Secretary the employment certification form
described in clause (i), during the period in
which the borrower is employed in a public
service job for which loan cancellation is
eligible under this paragraph, the borrower's
eligible Federal Direct Loan shall be placed in
deferment.
``(D) Interest canceled.--If a portion of a loan is
canceled under this paragraph for any year, the entire
amount of interest on such loan that accrues for such
year shall be canceled.''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Education and Labor.
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