(1) The public service loan forgiveness program 
under section 455(m) of the Higher Education Act 
of 1965 (20 U.S.C. 1087e(m)) was created in 2007 
to attract individuals to public service by forgiving 
an individual’s Federal loans under part D of title 
IV of the Higher Education Act of 1965 (20 U.S.C. 
1071 et seq.; 20 U.S.C. 1087a et seq.) after 10 
years of employment in areas of national need. 
(2) These public service careers, which include 
employment in military, emergency management, 
government, public safety, law enforcement, public 
health, education, child care, social work, services for 
individuals with disabilities, services for the elderly, 
public interest legal services, and library sciences, 
pay substantially less than similar careers in the pri-
vate sector. 
(3) The public sector also repeatedly experi-
ences workforce shortages, especially following the 
COVID–19 pandemic. 
(4) An undergraduate degree, certification, or 
advanced degree is a prerequisite to enter or ad-
vance in these public service careers. Yet, research 
suggests that the prospect of several decades of stu-
dent loan payments often deters individuals from 
pursuing careers in public service. 
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(5) The public service loan forgiveness program 
has substantially failed. In 2018, 99 percent of the 
borrowers who applied for relief under the program 
were denied due to improper type of loans, employ-
ment, or repayment plan, or the number of pay-
ments that they had made. 
(6) Advocates and enforcement agencies, includ-
ing 38 State Attorneys General and the Bureau of 
Consumer Financial Protection, have repeatedly 
found that all of the major Federal student loan 
servicers provided inaccurate information to bor-
rowers who were interested in or relying upon the 
public service loan forgiveness program. They also 
found that servicers repeatedly steered borrowers 
away from public service loan forgiveness into higher 
monthly 
payments 
and 
into 
deferment 
and 
forbearances. 
(7) This has caused millions of public servants 
irreparable economic harm, including preventing 
them from buying a home, opening a small business, 
starting a family, or retiring, because of their stu-
dent debt. 
(8) Despite the recent actions of President 
Biden’s administration to improve the public service 
loan forgiveness program, these actions are limited 
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and will not fully atone for the repeated, pervasive, 
and systemic actions by Federal student loan 
servicers to prevent public servants from fully bene-
fitting from this program. 
SEC. 3. MAKING FORGIVENESS ATTAINABLE FOR PUBLIC 
SECTOR WORKERS. 
Section 455(m) of the Higher Education Act of 1965 
(20 U.S.C. 1087e(m)) is amended— 
(1) by striking paragraph (1) and inserting the 
following: 
‘‘(1) IN GENERAL.—The Secretary shall cancel 
the balance of interest and principal due, in accord-
ance with paragraph (2), on any eligible Federal Di-
rect Loan not in default for a borrower who— 
‘‘(A) obtained an eligible Federal Direct 
Loan on or after January 1, 1994; 
‘‘(B) has been employed full-time in public 
service for a total period of 10 years or more 
after the date on which the first eligible Federal 
Direct Loan was obtained; and 
‘‘(C) while employed full-time in public 
service during the period described in subpara-
graph (B), completes 120 monthly payments on 
the eligible loans of the borrower, pursuant to 
any one or a combination of the following: 
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‘‘(i) Payments under an income-based 
repayment plan under section 493C. 
‘‘(ii) Payments under a standard re-
payment plan under subsection (d)(1)(A), 
based on a 10-year repayment period. 
‘‘(iii) Monthly payments under a re-
payment plan under subsection (d)(1) or 
(g) of not less than the monthly amount 
calculated 
under 
subsection 
(d)(1)(A), 
based on a 10-year repayment period. 
‘‘(iv) Payments under an income con-
tingent repayment plan under subsection 
(d)(1)(D). 
‘‘(v) Any monthly payment that would 
have otherwise been made by the borrower 
on 1 or more eligible loans during a period 
of forbearance, including— 
‘‘(I) discretionary or mandatory 
administrative forbearance; 
‘‘(II) forbearance described in 
section 428(c)(3)(A)(i), including for-
bearance because— 
‘‘(aa) the borrower is serv-
ing in a medical or dental intern-
ship or residency program de-
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scribed 
in 
section 
428(c)(3)(A)(i)(I); 
‘‘(bb) the borrower is serv-
ing in a national service position 
for which the borrower receives a 
national 
service 
educational 
award under the National and 
Community Service Trust Act of 
1993 (42 U.S.C. 12501 et seq.); 
or 
‘‘(cc) the borrower is eligible 
for interest payments to be made 
on such loan for service in the 
Armed 
Forces 
under 
section 
2174 of title 10, United States 
Code, and, pursuant to that eligi-
bility, the interest is being paid 
on such loan under subsection 
(o); 
‘‘(III) forbearance provided be-
cause the borrower is serving in an 
educator residency program; and 
‘‘(IV) forbearance provided to a 
borrower due to the borrower’s quali-
fying National Guard service. 
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‘‘(vi) Any monthly payment that 
would have otherwise been made by the 
borrower on 1 or more eligible loans during 
a period of deferment, including— 
‘‘(I) deferment relating to cancer 
treatment under subsection (f)(3) or 
section 427(a)(2)(C)(v); 
‘‘(II) deferment relating to active 
duty during a war or other military 
operation or national emergency, or 
performing qualifying National Guard 
duty during a war or other military 
operation 
or 
national 
emergency, 
under subsection (f)(2)(C) or section 
428(b)(1)(M)(iii); 
‘‘(III) deferment relating to a pe-
riod of unemployment under sub-
section 
(f)(2)(B) 
or 
section 
428(b)(1)(M)(ii), or of economic hard-
ship under subsection (f)(2)(D) or 
section 428(b)(1)(M)(iv); 
‘‘(IV) deferment provided in con-
nection with services in the Peace 
Corps; and 
‘‘(V) deferment provided— 
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‘‘(aa) while the borrower is 
carrying at least one-half the 
normal full-time work load under 
subsection (f)(2)(A) or section 
427(a)(2)(C) and employed full- 
time in public service; or 
‘‘(bb) in connection with a 
graduate student fellowship or 
while employed by a qualifying 
employer and pursuing a grad-
uate, professional, or certificate 
program or in connection with a 
rehabilitation training program 
under subsection (f)(2)(A) or sec-
tion 427(a)(2)(C). 
‘‘(vii) Any monthly payment that oth-
erwise would have been made by the bor-
rower during a grace period lasting in ex-
cess of 6 consecutive months.’’; 
(2) by redesignating paragraphs (3) and (4) as 
paragraphs (5) and (6), respectively; 
(3) by inserting after paragraph (2) the fol-
lowing: 
‘‘(3) SPECIAL
RULES
RELATING
TO
EMPLOY-
MENT.— 
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‘‘(A) GRACE PERIOD PUBLIC SERVICE EM-
PLOYMENT.—The Secretary shall include any 
payments made by a borrower on an eligible 
Federal Direct Loan during a 6-month grace 
period, as described in section 428(b)(7)(A), 
while the borrower was employed full-time in 
public service, upon notification by the borrower 
of such employment and payments made. 
‘‘(B) AMERICORPS
AND
PEACE
CORPS 
SERVICE.—For purposes of this subsection, vol-
unteer service as an AmeriCorps or Peace 
Corps volunteer, as described in subclause (III) 
or (IV) of paragraph (6)(C)(i), shall be deemed 
to be employment. 
‘‘(4) SPECIAL RULE FOR CERTAIN LOANS AND 
BORROWERS.— 
‘‘(A) PARENT PLUS LOANS.—In the case of 
a borrower of an eligible Federal Direct Loan 
that is on behalf of a student, any public service 
employment required under this subsection may 
be completed by the borrower or by the student 
on whose behalf the loan was made. 
‘‘(B) SPECIAL
RULES
FOR
FEDERAL
DI-
RECT CONSOLIDATION LOANS.— 
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‘‘(i) IN
GENERAL.—A borrower who 
has obtained an eligible Federal Direct 
Loan that is a Federal Direct Consolida-
tion Loan that includes a loan made, in-
sured, or guaranteed under part B or part 
E shall receive credit— 
‘‘(I) under paragraph (1) for any 
years of full-time employment in pub-
lic service that occurred while the bor-
rower had a component loan of the 
Federal Direct Consolidation Loan; 
and 
‘‘(II) under paragraph (1)(C) for 
any monthly payment described in 
such paragraph that was made by, or 
credited to, the borrower on a compo-
nent loan of the Federal Direct Con-
solidation Loan. 
‘‘(ii) SPECIAL RULES FOR JOINT BOR-
ROWERS.—The Secretary shall allow the 
borrowers of a Joint Consolidation Loan or 
a Joint Direct Consolidation Loan who are 
employed in a public service job to consoli-
date such loan into a Federal Direct Con-
solidation Loan in order to receive loan 
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cancellation pursuant to this subsection.’’; 
and 
(4) by striking paragraph (5), as redesignated 
by paragraph (2), and inserting the following: 
‘‘(5) DEFINITIONS.—In this subsection: 
‘‘(A) ELIGIBLE FEDERAL DIRECT LOAN.— 
The term ‘eligible Federal Direct Loan’ means 
a Federal Direct Stafford Loan, Federal Direct 
Unsubsidized Loan, Federal Direct PLUS Loan 
(including such loan made on behalf of a stu-
dent), or Federal Direct Consolidation Loan. 
‘‘(B) FULL-TIME.—The term ‘full-time’, 
when used with respect to employment in public 
service, means working in public service employ-
ment in one or more jobs for a total of— 
‘‘(i) not less than 30 hours a week; 
‘‘(ii) in the case of any form of edu-
cational public service employment that is 
under a contract for not less than 8 
months, not less than 30 hours per week 
during the contract period; or 
‘‘(iii) in the case of employment as an 
adjunct, contingent, or part-time faculty 
member, teacher, or lecturer who is paid 
solely for the credit hours taught at an in-
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stitution of higher education, the equiva-
lent of 30 hours per week determined by 
multiplying each credit or contract hour 
taught per week by 3.35. 
‘‘(C) PUBLIC SERVICE.— 
‘‘(i) IN GENERAL.—The term ‘public 
service’ means— 
‘‘(I) employment with a quali-
fying employer described in clause (i) 
or (ii) of subparagraph (D); 
‘‘(II) employment with a quali-
fying employer described in subpara-
graph (D)(iii) that— 
‘‘(aa) provides direct serv-
ices to the public through its em-
ployees; and 
‘‘(bb) has devoted a majority 
of its full-time equivalent employ-
ees to working in not less than 1 
of the following areas: 
‘‘(AA) Early childhood 
education programs. 
‘‘(BB) Emergency man-
agement. 
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‘‘(CC) 
Law 
enforce-
ment. 
‘‘(DD) Military service. 
‘‘(EE) 
Other 
school- 
based services. 
‘‘(FF) Public education 
(including higher education). 
‘‘(GG) Public health. 
‘‘(HH) Public interest 
law services. 
‘‘(II) 
Public 
library 
services. 
‘‘(JJ) Public safety. 
‘‘(KK) Public services 
for individuals with disabil-
ities or public services for 
the elderly. 
‘‘(LL) School library 
services; 
‘‘(III) satisfactory service as a 
Peace Corps volunteer in accordance 
with section 5 of the Peace Corps Act 
(22 U.S.C. 2504); or 
‘‘(IV) successful service as a par-
ticipant in a position described in sec-
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tion 123 of the National and Commu-
nity Service Act of 1990 (42 U.S.C. 
12573). 
‘‘(ii) ADDITIONAL DEFINITIONS.—For 
purposes of clause (i): 
‘‘(I) EMERGENCY
MANAGEMENT 
SERVICES.—The 
term 
‘emergency 
management services’ means services 
that help remediate, lessen, or elimi-
nate the effects or potential effects of 
emergencies that threaten human life 
or health or real property. 
‘‘(II) LAW ENFORCEMENT.—The 
term ‘law enforcement’ means services 
performed by an employee of a public 
service organization that is publicly 
funded and whose principal activities 
pertain to crime prevention, control or 
reduction of crime, or the enforcement 
of criminal law. 
‘‘(III) MILITARY SERVICE.—The 
term ‘military service’ means pro-
viding service to or on behalf of mem-
bers, veterans, or the families or sur-
vivors of members or veterans of the 
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Armed Forces, including the National 
Guard, that is provided to a person 
because of the person’s status in the 
Armed Forces or National Guard. 
‘‘(IV) 
OTHER
SCHOOL-BASED 
SERVICES.—The term ‘other school- 
based services’ means an employee of 
a State, or of any political division of 
a State, or an employee of a nonprofit 
organization, who works in any grade 
from prekindergarten through grade 
12 in any of the following occupa-
tional specialties: 
‘‘(aa) Paraprofessional serv-
ices, including paraeducator serv-
ices. 
‘‘(bb) Clerical and adminis-
trative services. 
‘‘(cc) Transportation serv-
ices. 
‘‘(dd) Food and nutrition 
services. 
‘‘(ee) Custodial and mainte-
nance services. 
‘‘(ff) Security services. 
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‘‘(gg) Health and student 
services. 
‘‘(hh) Technical services. 
‘‘(ii) Skilled trades. 
‘‘(V) PUBLIC
EDUCATION.—The 
term ‘public education’ means— 
‘‘(aa) the provision of edu-
cational enrichment or support to 
students in a school or a school- 
like setting, including teaching; 
and 
‘‘(bb) teaching as a full-time 
faculty member at a Tribal Col-
lege or University, as defined in 
section 316(b), and other faculty 
teaching in high-needs subject 
areas or areas of shortage (in-
cluding nurse faculty, foreign 
language faculty, and part-time 
faculty at community colleges), 
as determined by the Secretary. 
‘‘(VI) The term ‘public health’ 
means— 
‘‘(aa) services provided by 
physicians, 
nurses 
(including 
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nurses in a clinical setting), and 
nurse practitioners; and 
‘‘(bb) services provided by 
health care practitioner occupa-
tions, health care support occu-
pations, and counselors, social 
workers, and other community 
and social service specialist occu-
pations, as those terms are de-
fined by the Bureau of Labor 
Statistics. 
‘‘(VII) The term ‘public interest 
law’ means legal services or legal ad-
vocacy provided by a nonprofit organi-
zation, but excludes services provided 
by individuals who are registered lob-
byists at the Federal, State, or local 
level. 
‘‘(VIII) The term ‘public library 
services’ means the operation of public 
libraries or services that support their 
operation. 
‘‘(IX) The term ‘public safety 
services’ means services that seek to 
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prevent the need for emergency man-
agement services. 
‘‘(X) The term ‘public services 
for individuals with disabilities’ means 
services performed for, or to assist, 
individuals with disabilities (as de-
fined in section 3 of the Americans 
with Disabilities Act of 1990 (42 
U.S.C. 12102)) that is provided to an 
individual because of the individual’s 
status as an individual with a dis-
ability. 
‘‘(XI) The term ‘public service 
for the elderly’ means services that 
are provided to individuals who are 
aged 59.5 years or older and that are 
provided to an individual because of 
the individual’s status as an individual 
of that age, including services related 
to retirement plans, pensions, social 
security, retiree health plans, or Med-
icaid. 
‘‘(XII) The term ‘school library 
services’ means the operations of 
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school libraries or services that sup-
port their operation. 
‘‘(D) QUALIFYING EMPLOYER.—The term 
‘qualifying employer’ means— 
‘‘(i) a Federal, State, Tribal, local, 
intergovernmental, or regional govern-
mental organization, agency, or entity 
based or headquartered in the United 
States, including the Armed Forces, Na-
tional Guard, Merchant Marines, or Coast 
Guard; 
‘‘(ii) a nonprofit organization that is 
qualified under section 501(c)(3) of the In-
ternal Revenue Code of 1986; or 
‘‘(iii) a nonprofit organization that is 
qualified under section 501(a) of such 
Code, with respect to an employee in public 
service employment.’’. 
SEC. 4. LOAN FORGIVENESS FOR TEACHERS. 
The Higher Education Act of 1965 (20 U.S.C. 1001 
et seq.) is amended— 
(1) in section 428J(g)(2) (20 U.S.C. 1078– 
10(g)(2))— 
(A) in subparagraph (A), by inserting ‘‘or’’ 
after the semicolon at the end; 
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(B) by striking subparagraph (B); and 
(C) by redesignating subparagraph (C) as 
subparagraph (B); 
(2) in paragraph (6) of section 455(m) (20 
U.S.C. 1087e(m)), as redesignated by section 3(2), 
by striking ‘‘both this subsection and section 428J, 
428K, 428L, or 460’’ and inserting ‘‘both this sub-
section and section 428K or 428L’’; and 
(3) 
in 
section 
460(g)(2) 
(20 
U.S.C. 
1087j(g)(2))— 
(A) in subparagraph (A), by inserting ‘‘or’’ 
after the semicolon at the end; 
(B) by striking subparagraph (B); and 
(C) by redesignating subparagraph (C) as 
subparagraph (B). 
Æ 
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