Student Loan Earned Relief Act

To amend the Higher Education Act of 1965 to provide interest relief under the public service loan forgiveness program, and for other purposes. 1. Short title This Act may be cited as the Student Loan Earned Relief Act 2. PSLF (a) Reduction of payment Section 455(m)(1) of the Higher Education Act of 1965 ( 20 U.S.C. 1087e(m)(1) (1) in the matter preceding subparagraph (A), by striking the balance of interest and principal due 50 percent of the balance of interest and principal due (2) in subparagraph (A), by striking 120 60 (3) in subparagraph (B)(ii), by striking 120 60 (b) Loan cancellation amount; payment of interest accrued Paragraph (2) of section 455(m) of the Higher Education Act of 1965 ( 20 U.S.C. 1087e(m)(2) (2) Loan cancellation amount; payment of interest accrued (A) First employment period After the conclusion of the first employment period described in paragraph (1) during which the borrower has made the first 60 payments described in such paragraph, the Secretary shall— (i) cancel 50 percent of the obligation to repay the balance of principal and interest due as of the time of such cancellation, on the eligible Federal Direct Loans made to the borrower under this part; and (ii) provide the borrower an amount equal to the amount of interest that the borrower has paid on such loans during such first employment period. (B) Second employment period After the conclusion of the second employment period described in paragraph (1) during which the borrower has made the second 60 payments described in such paragraph, the Secretary shall— (i) cancel any remaining obligation to repay the balance of principal and interest due as of the time of such cancellation, on the eligible Federal Direct Loans made to the borrower under this part; and (ii) provide the borrower an amount equal to the amount of interest that the borrower has paid on such loans during such second employment period. . (c) Codifying the Limited PSLF waivers Section 455(m) of the Higher Education Act of 1965 ( 20 U.S.C. 1087e(m) (5) Permanently restoring the promise of PSLF Notwithstanding any other provision of this subsection, the Secretary shall carry out this subsection in a manner consistent with the terms and conditions of the Limited PSLF Waiver program carried out by the Department beginning on October 6, 2021, and authorized by the Higher Education Relief Opportunities for Students Act of 2003 ( 20 U.S.C. 1098aa et seq. .

Summary: Student Loan Earned Relief Act This bill revises the Public Service Loan Forgiveness (PSLF) program by providing for partial loan cancellation and providing statutory authority for certain limited waiver flexibilities. Specifically, the bill directs the Department of Education (ED) to cancel 50% of the principal and interest due on a borrower's Federal Direct Loans after the borrower makes 60 monthly loan payments while employed in a public service job. ED must cancel the remaining balance on these loans after the borrower makes an additional 60 monthly payments. The bill also provides statutory authority for the Limited PSLF Waiver, which was carried out by ED beginning on October 6, 2021, and ending on October 31, 2022. This waiver allowed borrowers to receive credit for certain past periods of repayment on loans that would otherwise not qualify for the PSLF program.