To limit eligibility for public service loan forgiveness to borrowers of Federal student loans with incomes below a certain maximum threshold, and for other purposes.

This bill limits eligibility for the Public Service Loan Forgiveness (PSLF) program to borrowers with adjusted gross incomes below a certain maximum threshold.

Under the current PSLF program, the Department of Education 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 and, at the time of loan forgiveness, the borrower is employed in a public service job. This bill specifies that, in order to count as a qualifying monthly loan payment under the PSLF program, the borrower must have an adjusted gross income that does not exceed $173,000.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8098 Introduced in House (IH)]

<DOC>






117th CONGRESS
  2d Session
                                H. R. 8098

 To limit eligibility for public service loan forgiveness to borrowers 
     of Federal student loans with incomes below a certain maximum 
                   threshold, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 16, 2022

  Mr. Buck (for himself and Mr. Banks) introduced the following bill; 
       which was referred to the Committee on Education and Labor

_______________________________________________________________________

                                 A BILL


 
 To limit eligibility for public service loan forgiveness to borrowers 
     of Federal student loans with incomes below a certain maximum 
                   threshold, 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. INCOME LIMIT FOR PUBLIC SERVICE LOAN FORGIVENESS.

    Section 455(m) of the Higher Education Act of 1965 (20 U.S.C. 
1087e(m)) is amended--
            (1) by redesignating paragraphs (2) through (4) as 
        paragraphs (3) through (5), respectively;
            (2) in paragraph (1), in the matter preceding subparagraph 
        (A), by striking ``paragraph (2)'' and inserting ``paragraph 
        (3)''; and
            (3) by inserting after paragraph (1) the following:
            ``(2) Income limit.--Notwithstanding any other provision of 
        this subsection, a monthly payment made on an eligible Federal 
        Direct Loan during any year in which the adjusted gross income 
        of the borrower exceeds $173,000 shall not be counted for 
        purposes of determining the number of qualifying payments made 
        by the borrower under paragraph (1)(A).''.
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