Protecting Access to Loan Forgiveness for Public Servants During the COVID-19 Pandemic Act

To provide for student loan forgiveness for public service workers whose employment may have been affected by the coronavirus disease 2019 (COVID–19) pandemic. 1. Short title This Act may be cited as the Protecting Access to Loan Forgiveness for Public Servants During the COVID–19 Pandemic Act 2. Public Service Loan Forgiveness Program (a) Definitions In this section: (1) Employment disruption The term employment disruption (2) Public service job The term public service job 20 U.S.C. 1087e(m)(3) (3) Qualifying emergency The term qualifying emergency Public Law 116–136 (4) Qualifying individual The term qualifying individual (A) has a loan that qualifies for public service loan forgiveness under section 455(m) of the Higher Education Act of 1965 ( 20 U.S.C. 1087e(m) (B) during the qualifying emergency period— (i) was employed in a public service job; and (ii) experiences an employment disruption with respect to the public service job and no longer is employed in a public service job. (b) In general Subject to subsection (c), during the qualifying emergency, a monthly payment made by a qualifying individual pursuant to a repayment plan listed in section 455(m)(1)(A) of the Higher Education Act of 1965 ( 20 U.S.C. 1087e(m)(1)(A) Public Law 116–136 20 U.S.C. 1087e(m) (c) Special rule Subsection (b) shall only apply to a qualifying individual who resumes employment in any public service job by the date that is 6 months after the last day of the qualifying emergency, except that any qualifying individual who, as a result of the application of subsection (b), would have completed the requirements for loan cancellation under section 455(m)(2) of the Higher Education Act of 1965 ( 20 U.S.C. 1087e(m)(2) (d) Guidance Not later than 60 days after the date of enactment of this Act, the Secretary of Education shall develop and make available guidance for qualifying individuals regarding the assistance available under this section, including a description of any documentation such an individual shall provide to the Secretary to confirm whether the individual’s lapse in employment meets the definition of employment disruption.

Summary: Protecting Access to Loan Forgiveness for Public Servants During the COVID-19 Pandemic Act This bill allows public service employees who are impacted by the COVID-19 (i.e., coronavirus disease 2019) public health emergency to continue to participate, without disruption, in the Public Service Loan Forgiveness (PSLF) program. Specifically, an individual who was employed in a public service job and who experiences lapse in employment (e.g., a furlough, a layoff, or the individual's resignation due to illness or caregiving responsibilities) because of the COVID-19 public health emergency may continue to participate in the PSLF program without disruption. The bill treats such an individual as employed in a public service job during the emergency and deems a monthly payment made by the individual as a qualifying monthly payment toward loan cancellation under the PSLF program. However, unless the individual would have completed requirements for loan cancellation during the public health emergency, the individual must resume employment in a public service job within six months after the end of the emergency. In addition, the bill directs the Department of Education to develop and make available guidance related to the assistance provided by the bill.