PSLF Technical Corrections Act of 2019

To improve the public service loan forgiveness program. 1. Short title This Act may be cited as the PSLF Technical Corrections Act of 2019 2. Amendment to the Higher Education Act of 1965 Section 455(m) of the Higher Education Act of 1965 ( 20 U.S.C. 1087e(m) (1) by redesignating paragraphs (2) through (4) as paragraphs (3) through (5), respectively; (2) in paragraph (1)— (A) in the matter preceding subparagraph (A), by striking paragraph (2) paragraph (3) (B) in subparagraph (A)— (i) in clause (ii), by inserting or (ii) by striking clause (iii); and (iii) by redesignating clause (iv) as clause (iii); (3) by inserting after paragraph (1) the following: (2) Payments in graduated or extended plans (A) In general In addition to canceling the balance of interest and principal due for a borrower described in paragraph (1), the Secretary shall also cancel the balance of interest and principal due, in accordance with paragraph (3), on any eligible Federal Direct Loan not in default for a borrower who— (i) has made 120 qualifying monthly payments, as defined in subparagraph (B), on the eligible Federal Direct Loan after October 1, 2007; (ii) is employed in a public service job at the time of such forgiveness; and (iii) has been employed in a public service job during the period in which the borrower makes each of the 120 payments described in clause (i). (B) Qualifying monthly payment In this paragraph, the term qualifying monthly payment ; (4) in paragraph (3), as redesignated by paragraph (1), by inserting or paragraph (2), as the case may be paragraph (1) (5) by adding at the end the following: (6) Dispute resolution process Not later than July 1, 2019, the Secretary shall establish a process for borrowers to dispute the calculation of the number of monthly payments under paragraph (1) or (2) that count toward loan forgiveness under this subsection following the borrower's submission of a certification of employment or application for forgiveness (or any successor certification or application) under this subsection. (7) Recalculating the number of qualifying payment obligations for current public service loan forgiveness program participants Not later than July 1, 2019, the Secretary shall, for each borrower that has submitted a certification of employment under this subsection before July 1, 2019— (A) calculate the number of monthly payments under paragraph (1) or (2) that count toward loan forgiveness under this subsection, using the criteria under this subsection as in effect on July 1, 2019; and (B) inform the borrower of the changes to the public service loan forgiveness program under this subsection that take effect on or before July 1, 2019, and the number of monthly payments calculated for the borrower in accordance with subparagraph (A). .

Summary: PSLF Technical Corrections Act of 2019 This bill revises the Public Service Loan Forgiveness (PSLF) program under the Federal Direct Loan program. Under current law, the PSLF program forgives the balance of a borrower's student debt after the borrower makes 120 qualifying loan payments under specified repayment plans while employed in a public service job. The bill expands the program to include payments under graduated or extended plans as payments that qualify a borrower for loan forgiveness under the PSLF program. The bill requires the Department of Education (ED) to provide each borrower who has submitted a certification of employment under the PSLF program with a notification related to changes made to the program and a calculation of the borrower's monthly payments that count toward loan forgiveness. It also requires ED to establish a dispute resolution process.