I 
117TH CONGRESS 
2D SESSION 
H. R. 6424 
To amend the Higher Education Act of 1965 to improve loans, and for 
other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 19, 2022 
Mr. DEFAZIO introduced the following bill; which was referred to the Com-
mittee on Education and Labor, and in addition to the Committee on the 
Judiciary, for a period to be subsequently determined by the Speaker, in 
each case for consideration of such provisions as fall within the jurisdic-
tion of the committee concerned 
A BILL 
To amend the Higher Education Act of 1965 to improve 
loans, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Helping Individuals Get a Higher Education while Re-
ducing Education Debt Act’’ or the ‘‘HIGHER ED Act’’. 
(b) TABLE OF CONTENTS.—The table of contents of 
this Act is as follows: 
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Sec. 1. Short title; table of contents. 
TITLE I—REINSTATEMENT OF AUTHORITY TO MAKE FEDERAL 
DIRECT STAFFORD LOANS TO GRADUATE AND PROFESSIONAL 
STUDENTS; DISCHARGING STUDENT LOANS IN BANKRUPTCY 
Sec. 101. Reinstatement of authority to make Federal Direct Stafford Loans 
to graduate and professional students. 
Sec. 102. Discharge student loans in bankruptcy. 
TITLE II—REFINANCING PROGRAMS 
Sec. 201. Program authority. 
Sec. 202. Refinancing program. 
Sec. 203. Income-based repayment. 
TITLE III—LOAN FORGIVENESS 
Sec. 301. Loan forgiveness for adjunct faculty. 
Sec. 302. Amendments to the public service loan forgiveness program. 
Sec. 303. Transition to improved public service loan forgiveness program. 
TITLE IV—INCOME-DRIVEN REPAYMENT PLANS 
Sec. 401. Income-based repayment plan. 
Sec. 402. Termination of certain repayment plan options. 
Sec. 403. Notification and automatic enrollment procedures for borrowers who 
are delinquent on loans. 
Sec. 404. Automatic recertification for income-driven repayment plans. 
TITLE 
I—REINSTATEMENT 
OF 
AUTHORITY TO MAKE FED-
ERAL 
DIRECT 
STAFFORD 
LOANS TO GRADUATE AND 
PROFESSIONAL 
STUDENTS; 
DISCHARGING 
STUDENT 
LOANS IN BANKRUPTCY 
SEC. 101. REINSTATEMENT OF AUTHORITY TO MAKE FED-
ERAL DIRECT STAFFORD LOANS TO GRAD-
UATE AND PROFESSIONAL STUDENTS. 
(a) AMENDMENTS.—Section 455(a)(3) of the Higher 
Education Act of 1965 (20 U.S.C. 1087e(a)(3)) is amend-
ed— 
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(1) in the paragraph heading, by inserting 
‘‘TEMPORARY’’ before ‘‘TERMINATION’’; and 
(2) in subparagraph (A), in the matter pre-
ceding clause (i), by inserting ‘‘, and ending on or 
before June 30, 2021’’ after ‘‘2012’’. 
(b) INAPPLICABILITY
OF RULEMAKING REQUIRE-
MENTS.—Sections 482(c) and 492 of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1089(c); 1098a) shall not 
apply to the regulations under this section. 
SEC. 102. DISCHARGE STUDENT LOANS IN BANKRUPTCY. 
(a) EXCEPTION TO DISCHARGE.—Section 523(a) of 
title 11, United States Code, is amended— 
(1) by striking paragraph (8); and 
(2) by redesignating paragraphs (9) through 
(14B) as paragraphs (8) through (14A), respec-
tively. 
(b) CONFORMING AMENDMENTS.—Title 11, United 
States Code, is amended— 
(1) in section 704(c)(1)(C)(iv)(I) by striking 
‘‘(14A)’’ and inserting ‘‘(14)’’; 
(2) in section 1106(c)(1)(C)(iv)(I) by striking 
‘‘(14A)’’ and inserting ‘‘(14)’’; 
(3) in section 1202(c)(1)(C)(iv)(I) by striking 
‘‘(14A)’’ and inserting ‘‘(14)’’; and 
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(4) in section 1328(a)(2) by striking ‘‘(8), or 
(9)’’ and inserting ‘‘or (8)’’. 
(c) EFFECTIVE DATE; APPLICATION
OF AMEND-
MENTS.— 
(1) EFFECTIVE DATE.—Except as provided in 
subsection (b), this section and the amendments 
made by this section shall take effect on the date of 
the enactment of this Act. 
(2) 
APPLICATION
OF
AMENDMENTS.—The 
amendments made by this section shall apply only 
with respect to cases commenced under title 11 of 
the United States Code on or after the date of the 
enactment of this Act. 
TITLE II—REFINANCING 
PROGRAMS 
SEC. 201. PROGRAM AUTHORITY. 
Section 451(a) of the Higher Education Act of 1965 
(20 U.S.C. 1087a(a)) is amended— 
(1) by striking ‘‘and (2)’’ and inserting ‘‘(2)’’; 
and 
(2) by inserting ‘‘; and (3) to make loans under 
section 460A and section 460B’’ after ‘‘section 
459A’’. 
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SEC. 202. REFINANCING PROGRAM. 
Part D of title IV of the Higher Education Act of 
1965 (20 U.S.C. 1087a et seq.) is amended by adding at 
the end the following: 
‘‘SEC. 460A. REFINANCING FFEL AND FEDERAL DIRECT 
LOANS. 
‘‘(a) IN GENERAL.—Beginning not later than 180 
days after the date of enactment of the Helping Individ-
uals Get a Higher Education while Reducing Education 
Debt Act, the Secretary shall establish a program under 
which the Secretary, upon the receipt of an application 
from a qualified borrower, makes a loan under this part, 
in accordance with the provisions of this section, in order 
to permit the borrower to obtain the interest rate provided 
under subsection (c). 
‘‘(b) REFINANCING DIRECT LOANS.— 
‘‘(1) FEDERAL DIRECT LOANS.—Upon applica-
tion of a qualified borrower, the Secretary shall 
repay a Federal Direct Stafford Loan, a Federal Di-
rect Unsubsidized Stafford Loan, a Federal Direct 
PLUS Loan, or a Federal Direct Consolidation 
Loan of the qualified borrower, for which the first 
disbursement was made, or the application for the 
consolidation loan was received, before July 1, 2022, 
with the proceeds of a refinanced Federal Direct 
Stafford Loan, a Federal Direct Unsubsidized Staf-
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ford Loan, a Federal Direct PLUS Loan, or a Fed-
eral Direct Consolidation Loan, respectively, issued 
to the borrower in an amount equal to the sum of 
the unpaid principal, accrued unpaid interest, and 
late charges of the original loan. 
‘‘(2) REFINANCING FFEL PROGRAM LOANS AS 
REFINANCED FEDERAL DIRECT LOANS.—Upon ap-
plication of a qualified borrower for any loan that 
was made, insured, or guaranteed under part B and 
for which the first disbursement was made, or the 
application for the consolidation loan was received, 
before July 1, 2010, the Secretary shall make a loan 
under this part, in an amount equal to the sum of 
the unpaid principal, accrued unpaid interest, and 
late charges of the original loan to the borrower in 
accordance with the following: 
‘‘(A) The Secretary shall pay the proceeds 
of such loan to the eligible lender of the loan 
made, insured, or guaranteed under part B, in 
order to discharge the borrower from any re-
maining obligation to the lender with respect to 
the original loan. 
‘‘(B) A loan made under this section that 
was originally— 
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‘‘(i) a loan originally made, insured, 
or guaranteed under section 428 shall be a 
Federal Direct Stafford Loan; 
‘‘(ii) a loan originally made, insured, 
or guaranteed under section 428B shall be 
a Federal Direct PLUS Loan; 
‘‘(iii) a loan originally made, insured, 
or guaranteed under section 428H shall be 
a Federal Direct Unsubsidized Stafford 
Loan; and 
‘‘(iv) a loan originally made, insured, 
or guaranteed under section 428C shall be 
a Federal Direct Consolidation Loan. 
‘‘(C) The interest rate for each loan made 
by the Secretary under this paragraph shall be 
the rate provided under subsection (c). 
‘‘(c) INTEREST RATES.— 
‘‘(1) IN GENERAL.—The interest rate for the 
refinanced Federal Direct Stafford Loans, Federal 
Direct Unsubsidized Stafford Loans, Federal Direct 
PLUS Loans, and Federal Direct Consolidation 
Loans, shall be a rate equal to— 
‘‘(A) in any case where the original loan 
was a loan under section 428 or 428H, a Fed-
eral Direct Stafford loan, or a Federal Direct 
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Unsubsidized Stafford Loan, that was issued to 
an undergraduate student, a rate equal to the 
rate for Federal Direct Stafford Loans and 
Federal Direct Unsubsidized Stafford Loans 
issued to undergraduate students for the 12- 
month period beginning on July 1, 2016, and 
ending on June 30, 2017; 
‘‘(B) in any case where the original loan 
was a loan under section 428 or 428H, a Fed-
eral Direct Stafford Loan, or a Federal Direct 
Unsubsidized Stafford Loan, that was issued to 
a graduate or professional student, a rate equal 
to the rate for Federal Direct Unsubsidized 
Stafford Loans issued to graduate or profes-
sional students for the 12-month period begin-
ning on July 1, 2016, and ending on June 30, 
2017; 
‘‘(C) in any case where the original loan 
was a loan under section 428B or a Federal Di-
rect PLUS Loan, a rate equal to the rate for 
Federal Direct PLUS Loans for the 12-month 
period beginning on July 1, 2016, and ending 
on June 30, 2017; and 
‘‘(D) in any case where the original loan 
was a loan under section 428C or a Federal Di-
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rect Consolidation Loan, a rate calculated in ac-
cordance with paragraph (2). 
‘‘(2) INTEREST
RATES
FOR
CONSOLIDATION 
LOANS.— 
‘‘(A) 
METHOD
OF
CALCULATION.—In 
order to determine the interest rate for any re-
financed Federal Direct Consolidation Loan 
under paragraph (1)(D), the Secretary shall— 
‘‘(i) determine each of the component 
loans that were originally consolidated in 
the loan under section 428C or the Federal 
Direct Consolidation Loan, and calculate 
the proportion of the unpaid principal bal-
ance of the loan under section 428C or the 
Federal Direct Consolidation Loan that 
each component loan represents; 
‘‘(ii) use the proportions determined 
in accordance with clause (i) and the inter-
est rate applicable for each component 
loan, as determined under subparagraph 
(B), to calculate the weighted average of 
the interest rates on the loans consolidated 
into the loan under section 428C or the 
Federal Direct Consolidation Loan; and 
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‘‘(iii) apply the weighted average cal-
culated under clause (ii) as the interest 
rate for the refinanced Federal Direct Con-
solidation Loan. 
‘‘(B) INTEREST
RATES
FOR
COMPONENT 
LOANS.—The interest rates for the component 
loans of a loan made under section 428C or a 
Federal Direct Consolidation Loan shall be the 
following: 
‘‘(i) The interest rate for any loan 
under section 428 or 428H, Federal Direct 
Stafford Loan, or Federal Direct Unsub-
sidized Stafford Loan issued to an under-
graduate student shall be a rate equal to 
the lesser of— 
‘‘(I) the rate for Federal Direct 
Stafford Loans and Federal Direct 
Unsubsidized Stafford Loans issued 
to undergraduate students for the 12- 
month period beginning on July 1, 
2016, and ending on June 30, 2017; 
or 
‘‘(II) the original interest rate of 
the component loan. 
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‘‘(ii) The interest rate for any loan 
under section 428 or 428H, Federal Direct 
Stafford Loan, or Federal Direct Unsub-
sidized Stafford Loan issued to a graduate 
or professional student shall be a rate 
equal to the lesser of— 
‘‘(I) the rate for Federal Direct 
Unsubsidized Stafford Loans issued 
to graduate or professional students 
for the 12-month period beginning on 
July 1, 2016, and ending on June 30, 
2017; or 
‘‘(II) the original interest rate of 
the component loan. 
‘‘(iii) The interest rate for any loan 
under section 428B or Federal Direct 
PLUS Loan shall be a rate equal to the 
lesser of— 
‘‘(I) the rate for Federal Direct 
PLUS Loans for the 12-month period 
beginning on July 1, 2016, and end-
ing on June 30, 2017; or 
‘‘(II) the original interest rate of 
the component loan. 
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‘‘(iv) The interest rate for any compo-
nent loan that is a loan under section 
428C or a Federal Direct Consolidation 
Loan shall be the weighted average of the 
interest rates that would apply under this 
subparagraph for each loan comprising the 
component consolidation loan. 
‘‘(v) The interest rate for any eligible 
loan that is a component of a loan made 
under section 428C or a Federal Direct 
Consolidation Loan and is not described in 
clauses (i) through (iv) shall be the inter-
est rate on the original component loan. 
‘‘(3) FIXED RATE.—The applicable rate of in-
terest determined under paragraph (1) for a refi-
nanced loan under this section shall be fixed for the 
period of the loan. 
‘‘(d) TERMS AND CONDITIONS OF LOANS.— 
‘‘(1) IN GENERAL.—A loan that is refinanced 
under this section shall have the same terms and 
conditions as the original loan, except as otherwise 
provided in this section. 
‘‘(2) NO
AUTOMATIC
EXTENSION
OF
REPAY-
MENT PERIOD.—Refinancing a loan under this sec-
tion shall not result in the extension of the duration 
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of the repayment period of the loan, and the bor-
rower shall retain the same repayment term that 
was in effect on the original loan. Nothing in this 
paragraph shall be construed to prevent a borrower 
from electing a different repayment plan at any time 
in accordance with section 455(d)(3). 
‘‘(e) DEFINITION OF QUALIFIED BORROWER.— 
‘‘(1) IN GENERAL.—For purposes of this sec-
tion, the term ‘qualified borrower’ means a bor-
rower— 
‘‘(A) of a loan under this part or part B 
for which the first disbursement was made, or 
the application for a consolidation loan was re-
ceived, before July 1, 2021; and 
‘‘(B) who meets the eligibility requirements 
based on income or debt-to-income ratio estab-
lished by the Secretary. 
‘‘(2) INCOME REQUIREMENTS.—Not later than 
180 days after the date of enactment of the Helping 
Individuals Get a Higher Education while Reducing 
Education Debt Act, the Secretary shall establish 
eligibility requirements based on income or debt-to- 
income ratio that take into consideration providing 
access to refinancing under this section for bor-
rowers with the greatest financial need. 
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‘‘(f) NOTIFICATION TO BORROWERS.—The Secretary, 
in coordination with the Director of the Bureau of Con-
sumer Financial Protection, shall undertake a campaign 
to alert borrowers of loans that are eligible for refinancing 
under this section that the borrowers are eligible to apply 
for such refinancing. The campaign shall include the fol-
lowing activities: 
‘‘(1) Developing consumer information mate-
rials about the availability of Federal student loan 
refinancing. 
‘‘(2) Requiring servicers of loans under this 
part or part B to provide such consumer information 
to borrowers in a manner determined appropriate by 
the Secretary, in consultation with the Director of 
the Bureau of Consumer Financial Protection. 
‘‘SEC. 460B. FEDERAL DIRECT REFINANCED PRIVATE LOAN 
PROGRAM. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) ELIGIBLE PRIVATE EDUCATION LOAN.— 
The term ‘eligible private education loan’ means a 
private education loan, as defined in section 140(a) 
of the Truth in Lending Act (15 U.S.C. 1650(a)), 
that— 
‘‘(A) was disbursed to the borrower before 
July 1, 2022; and 
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‘‘(B) was for the borrower’s own postsec-
ondary educational expenses for an eligible pro-
gram at an institution of higher education par-
ticipating in the loan program under this part, 
as of the date that the loan was disbursed. 
‘‘(2) FEDERAL DIRECT REFINANCED PRIVATE 
LOAN.—The term ‘Federal Direct Refinanced Pri-
vate Loan’ means a loan issued under subsection 
(b)(1). 
‘‘(3) PRIVATE
EDUCATIONAL
LENDER.—The 
term ‘private educational lender’ has the meaning 
given the term in section 140(a) of the Truth in 
Lending Act (15 U.S.C. 1650(a)). 
‘‘(4) QUALIFIED BORROWER.—The term ‘quali-
fied borrower’ means an individual who— 
‘‘(A) has an eligible private education loan; 
‘‘(B) has been current on payments on the 
eligible private education loan for the 6 months 
prior to the date of the qualified borrower’s ap-
plication for refinancing under this section, and 
is in good standing on the loan at the time of 
such application; 
‘‘(C) is not in default on the eligible pri-
vate education loan or on any loan made, in-
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sured, or guaranteed under this part or part B 
or E; and 
‘‘(D) meets the eligibility requirements de-
scribed in subsection (b)(2). 
‘‘(b) PROGRAM AUTHORIZED.— 
‘‘(1) IN GENERAL.—The Secretary, in consulta-
tion with the Secretary of the Treasury, shall carry 
out a program under which the Secretary, upon ap-
plication by a qualified borrower who has an eligible 
private education loan, shall issue such borrower a 
loan under this part in accordance with the fol-
lowing: 
‘‘(A) The loan issued under this program 
shall be in an amount equal to the sum of the 
unpaid principal, accrued unpaid interest, and 
late charges of the private education loan. 
‘‘(B) The Secretary shall pay the proceeds 
of the loan issued under this program to the 
private educational lender of the private edu-
cation loan, in order to discharge the qualified 
borrower from any remaining obligation to the 
lender with respect to the original loan. 
‘‘(C) The Secretary shall require that the 
qualified borrower undergo loan counseling that 
provides all of the information and counseling 
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required under clauses (i) through (viii) of sec-
tion 485(b)(1)(A) before the loan is refinanced 
in accordance with this section, and before the 
proceeds of such loan are paid to the private 
educational lender. 
‘‘(D) The Secretary shall issue the loan as 
a Federal Direct Refinanced Private Loan, 
which shall have the same terms, conditions, 
and benefits as a Federal Direct Unsubsidized 
Stafford Loan, except as otherwise provided in 
this section. 
‘‘(2) BORROWER ELIGIBILITY.—Not later than 
180 days after the date of enactment of the Helping 
Individuals Get a Higher Education while Reducing 
Education Debt Act, the Secretary, in consultation 
with the Secretary of the Treasury and the Director 
of the Bureau of Consumer Financial Protection, 
shall establish eligibility requirements— 
‘‘(A) based on income or debt-to-income 
ratio that take into consideration providing ac-
cess to refinancing under this section for bor-
rowers with the greatest financial need; 
‘‘(B) to ensure eligibility only for bor-
rowers in good standing; 
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‘‘(C) to minimize inequities between Fed-
eral Direct Refinanced Private Loans and other 
Federal student loans; 
‘‘(D) to preclude windfall profits for pri-
vate educational lenders; and 
‘‘(E) to ensure full access to the program 
authorized in this subsection for borrowers with 
private loans who otherwise meet the criteria 
established in accordance with subparagraphs 
(A) and (B). 
‘‘(c) INTEREST RATE.— 
‘‘(1) IN
GENERAL.—The interest rate for a 
Federal Direct Refinanced Private Loan is— 
‘‘(A) in the case of a Federal Direct Refi-
nanced Private Loan for a private education 
loan originally issued for undergraduate post-
secondary educational expenses, a rate equal to 
the rate for Federal Direct Stafford Loans and 
Federal Direct Unsubsidized Stafford Loans 
issued to undergraduate students for the 12- 
month period beginning on July 1, 2016, and 
ending on June 30, 2017; and 
‘‘(B) in the case of a Federal Direct Refi-
nanced Private Loan for a private education 
loan originally issued for graduate or profes-
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sional degree postsecondary educational ex-
penses, a rate equal to the rate for Federal Di-
rect Unsubsidized Stafford Loans issued to 
graduate or professional students for the 12- 
month period beginning on July 1, 2016, and 
ending on June 30, 2017. 
‘‘(2) COMBINED UNDERGRADUATE AND GRAD-
UATE
STUDY
LOANS.—If a Federal Direct Refi-
nanced Private Loan is for a private education loan 
originally issued for both undergraduate and grad-
uate or professional postsecondary educational ex-
penses, the interest rate shall be a rate equal to the 
rate for Federal Direct PLUS Loans for the 12- 
month period beginning on July 1, 2016, and ending 
on June 30, 2017. 
‘‘(3) FIXED RATE.—The applicable rate of in-
terest determined under this subsection for a Fed-
eral Direct Refinanced Private Loan shall be fixed 
for the period of the loan. 
‘‘(d) NO INCLUSION IN AGGREGATE LIMITS.—The 
amount of a Federal Direct Refinanced Private Loan, or 
a Federal Direct Consolidated Loan to the extent such 
loan was used to repay a Federal Direct Refinanced Pri-
vate Loan, shall not be included in calculating a bor-
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rower’s annual or aggregate loan limits under section 428 
or 428H. 
‘‘(e) NO ELIGIBILITY FOR SERVICE-RELATED RE-
PAYMENT.—Notwithstanding 
sections 
428K(a)(2)(A), 
428L(b)(2), 455(m)(3)(A), and 460(b), a Federal Direct 
Refinanced Private Loan, or any Federal Direct Consoli-
dation Loan to the extent such loan was used to repay 
a Federal Direct Refinanced Private Loan, shall not be 
eligible for any loan repayment or loan forgiveness pro-
gram under section 428K, 428L, or 460 or for the repay-
ment plan for public service employees under section 
455(m). 
‘‘(f) PRIVATE EDUCATIONAL LENDER REPORTING 
REQUIREMENT.— 
‘‘(1) REPORTING
REQUIRED.—Not later than 
180 days after the date of enactment of the Helping 
Individuals Get a Higher Education while Reducing 
Education Debt Act, the Secretary, in consultation 
with the Secretary of the Treasury and the Director 
of the Bureau of Consumer Financial Protection, 
shall establish a requirement that private edu-
cational lenders report the data described in para-
graph (2) to the Secretary, to Congress, to the Sec-
retary of the Treasury, and to the Director of the 
Bureau of Consumer Financial Protection, in order 
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to allow for an assessment of the private education 
loan market. 
‘‘(2) CONTENTS
OF
REPORTING.—The data 
that private educational lenders shall report in ac-
cordance with paragraph (1) shall include each of 
the following about private education loans (as de-
fined in section 140(a) of the Truth in Lending Act 
(15 U.S.C. 1650(a))): 
‘‘(A) The total amount of private education 
loan debt the lender holds. 
‘‘(B) The total number of private edu-
cation loan borrowers the lender serves. 
‘‘(C) The average interest rate on the out-
standing private education loan debt held by the 
lender. 
‘‘(D) The proportion of private education 
loan borrowers who are in default on a loan 
held by the lender. 
‘‘(E) The proportion of the outstanding 
private education loan volume held by the lend-
er that is in default. 
‘‘(F) The proportions of outstanding pri-
vate education loan borrowers who are 30, 60, 
and 90 days delinquent. 
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‘‘(G) The proportions of outstanding pri-
vate education loan volume that is 30, 60, and 
90 days delinquent. 
‘‘(g) NOTIFICATION
TO
BORROWERS.—The Sec-
retary, in coordination with the Secretary of the Treasury 
and the Director of the Bureau of Consumer Financial 
Protection, shall undertake a campaign to alert borrowers 
about the availability of private student loan refinancing 
under this section.’’. 
SEC. 203. INCOME-BASED REPAYMENT. 
Section 493C of the Higher Education Act of 1965 
(20 U.S.C. 1098e) is amended by adding at the end the 
following: 
‘‘(f) SPECIAL RULE FOR REFINANCED LOANS.— 
‘‘(1) REFINANCED FEDERAL DIRECT AND FFEL 
LOANS.—In calculating the period of time during 
which a borrower of a loan that is refinanced under 
section 460A has made monthly payments for pur-
poses of subsection (b)(7), the Secretary shall deem 
the period to include all monthly payments made for 
the original loan, and all monthly payments made 
for the refinanced loan, that otherwise meet the re-
quirements of this section. 
‘‘(2) FEDERAL DIRECT REFINANCED PRIVATE 
LOANS.—In calculating the period of time during 
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which a borrower of a Federal Direct Refinanced 
Private Loan under section 460B has made monthly 
payments for purposes of subsection (b)(7), the Sec-
retary shall include only payments— 
‘‘(A) that are made after the date of the 
issuance of the Federal Direct Refinanced Pri-
vate Loan; and 
‘‘(B) that otherwise meet the requirements 
of this section.’’. 
TITLE III—LOAN FORGIVENESS 
SEC. 301. LOAN FORGIVENESS FOR ADJUNCT FACULTY. 
Section 455(m)(3)(B)(ii) of the Higher Education 
Act of 1965 (20 U.S.C. 1087e(m)(3)(B)(ii)) is amended— 
(1) by striking ‘‘teaching as’’ and inserting the 
following: ‘‘teaching— 
‘‘(I) as’’; 
(2) by striking ‘‘, foreign language faculty, and 
part-time faculty at community colleges), as deter-
mined by the Secretary.’’ and inserting ‘‘and foreign 
language faculty), as determined by the Secretary; 
or’’; and 
(3) by adding at the end the following: 
‘‘(II) as a part-time faculty mem-
ber or instructor who— 
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‘‘(aa) teaches not less than 
1 course at an institution of 
higher education (as defined in 
section 101(a)), a postsecondary 
vocational institution (as defined 
in section 102(c)), or a Tribal 
College or University (as defined 
in section 316(b)); and 
‘‘(bb) is not employed on a 
full-time basis by any other em-
ployer.’’. 
SEC. 302. AMENDMENTS TO THE PUBLIC SERVICE LOAN 
FORGIVENESS PROGRAM. 
(a) PUBLIC SERVICE LOAN FORGIVENESS.— 
(1) IN GENERAL.—Section 455(m) of the High-
er Education Act of 1965 (20 U.S.C. 1087e(m)) is 
amended to read as follows: 
‘‘(m) LOAN FORGIVENESS FOR FEDERAL STUDENT 
LOAN BORROWERS EMPLOYED IN PUBLIC SERVICE.— 
‘‘(1) DEFINITIONS.—In this subsection: 
‘‘(A) CERTIFICATION OF EMPLOYMENT.— 
The term ‘certification of employment’ means a 
certification of employment under paragraph 
(4). 
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‘‘(B) FULL-TIME.—The term ‘full-time’, 
when used with respect to employment, means 
employment— 
‘‘(i) with a qualifying employer for not 
less than 30 hours per week; or 
‘‘(ii) with 2 or more qualifying em-
ployers for a total of not less than 30 
hours per week. 
‘‘(C) QUALIFYING EMPLOYER.—The term 
‘qualifying employer’ means— 
‘‘(i) a Federal, State, local, or Tribal 
government organization or instrumen-
tality, including any organization estab-
lished in law as a body politic; 
‘‘(ii) an organization that is described 
in section 501(c)(3) of the Internal Rev-
enue Code of 1986, and exempt from tax-
ation under section 501(a) of such Code; 
‘‘(iii) an organization— 
‘‘(I) not described in clause (ii) 
that is a not-for-profit organization 
under other Federal or State law; 
‘‘(II) that is not a labor organi-
zation or partisan political organiza-
tion; and 
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‘‘(III) whose purpose is to di-
rectly provide any of the following 
services, as defined in regulations pro-
mulgated by the Secretary: 
‘‘(aa) Emergency manage-
ment and disaster response. 
‘‘(bb) Military service. 
‘‘(cc) Public safety services, 
including fire prevention and 
suppression, rescue services, haz-
ardous materials response, ambu-
lance services, and emergency 
medical services. 
‘‘(dd) Law enforcement. 
‘‘(ee) Public health, includ-
ing service through organizations 
that employ nurses, nurse practi-
tioners, nurses in a clinical set-
ting, or professionals engaged in 
health care practitioner occupa-
tions and health care support oc-
cupations, as such terms are de-
fined by the Bureau of Labor 
Statistics, or organizations at 
which individuals engaged in 
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such occupations provide service, 
but who are prohibited from 
being employed directly by such 
an organization or other health 
care facility by State law. 
‘‘(ff) Public education, in-
cluding the provision of edu-
cational enrichment or support 
directly to students or their fami-
lies, employment with a Tribal 
College or University (as defined 
in section 316(b)), and employ-
ment as an adjunct faculty mem-
ber or instructor for an edu-
cational institution. 
‘‘(gg) Public interest law 
services, including prosecution or 
public defense or legal advocacy 
on behalf of low-income commu-
nities at a not-for-profit organi-
zation. 
‘‘(hh) Early childhood edu-
cation, including licensed or regu-
lated childcare, Head Start pro-
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grams, and State funded pre-
kindergarten. 
‘‘(ii) Public service for indi-
viduals with disabilities. 
‘‘(jj) Public service for the 
elderly. 
‘‘(kk) Public and school- 
based library sciences. 
‘‘(ll) School-based services, 
including the provision of non-
educational enrichment or sup-
port directly to students or their 
families. 
‘‘(mm) Social work, includ-
ing child or family services. 
‘‘(nn) Veteran or military 
services organization; or 
‘‘(iv) a farm or ranch that, with re-
spect to a fiscal year, has earnings of gross 
revenue during such year from the sale of 
agricultural products equal to or greater 
than— 
‘‘(I) 
in 
the 
case 
of 
2022, 
$35,000; or 
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‘‘(II) in the case of any suc-
ceeding year, the amount applicable 
under this subparagraph for the pre-
vious year, increased by the estimated 
percentage change in the Consumer 
Price Index for the most recent year 
preceding such year. 
‘‘(D) QUALIFYING MONTHLY PAYMENT OB-
LIGATION.—The term ‘qualifying monthly pay-
ment obligation’ means a monthly payment obli-
gation due on a loan under the repayment plan 
of the borrower— 
‘‘(i) that was satisfied by the borrower 
through a payment made after October 1, 
2007; and 
‘‘(ii) attributable to a period during 
which the borrower was employed full-time 
by a qualifying employer. 
‘‘(E) LOAN
MADE
UNDER
THIS
PART.— 
The term ‘loan made under this part’ includes 
a Federal Direct Stafford Loan, Federal Direct 
PLUS Loan, Federal Direct Unsubsidized Staf-
ford Loan, or Federal Direct Consolidation 
Loan refinanced under section 460A. 
‘‘(2) CANCELLATION AUTHORIZED.— 
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‘‘(A) IN GENERAL.—Beginning on July 1, 
2022, the Secretary shall, on an annual basis, 
cancel an amount of interest and principal due, 
in accordance with subparagraph (B), on any 
loan made under this part that is not in default 
for a borrower who— 
‘‘(i) has satisfied 12 qualifying month-
ly payment obligations on such loan; and 
‘‘(ii) submits a certification of employ-
ment that meets the requirements of para-
graph (3) for the period in which the bor-
rower makes each of the 12 payment obli-
gations described in subparagraph (A). 
‘‘(B) CANCELLATION AMOUNT.—The Sec-
retary shall cancel— 
‘‘(i) after the conclusion of each of the 
first 9, 12-month periods described in sub-
paragraph (A), an amount equal to 10 per-
cent of the balance of interest and prin-
cipal due, on the loans made to the bor-
rower under this part, as of the date on 
which the borrower satisfies the first quali-
fying monthly payment obligation under 
this subsection on such loans; and 
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‘‘(ii) after the conclusion of the tenth, 
12-month period described in subpara-
graph (A), the obligation to repay any re-
maining balance of principal and interest 
due as of the time of such cancellation, on 
the loans made to the borrower under this 
part. 
‘‘(3) CERTIFICATION
OF
EMPLOYMENT
RE-
QUIREMENTS.— 
‘‘(A) IN
GENERAL.—In order to receive 
loan cancellation under this subsection, a bor-
rower of a loan made under this part shall sub-
mit to the Secretary a certification of employ-
ment. 
‘‘(B) CONTENT OF CERTIFICATION.—The 
Secretary shall— 
‘‘(i) develop, and make easily acces-
sible, the certification of employment; and 
‘‘(ii) ensure that the method of certifi-
cation— 
‘‘(I) allows for the employer to 
indicate and certify the dates of the 
borrower’s employment; and 
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‘‘(II) provides electronic signa-
ture options for the employer and for 
the borrower. 
‘‘(C) BORROWER ACCESS.—The Secretary 
shall ensure that a borrower may submit a cer-
tification of employment to the Secretary elec-
tronically through any information system 
through which the Secretary permits borrowers 
to take self-service actions with respect to their 
loans. 
‘‘(D) 
EXCEPTION
FOR
SELF-CERTIFI-
CATION.—The Secretary shall provide a self- 
certification option for the certification of em-
ployment for borrowers who have extenuating 
circumstances preventing the borrowers from 
obtaining the qualifying employer signature and 
certification 
required 
under 
subparagraph 
(B)(ii), as determined by the Secretary pursu-
ant to rulemaking and including situations 
where an employer is no longer in existence or 
refuses to cooperate. 
‘‘(E) PERIODIC REVIEW OF CERTIFICATION 
OF EMPLOYMENT.—For each borrower of a loan 
made under this part who has submitted a cer-
tification of employment, the Secretary shall— 
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‘‘(i) by not later than 30 days after 
receipt of the certification of employ-
ment— 
‘‘(I) review the certification of 
employment and determine the num-
ber of qualifying monthly payment ob-
ligations satisfied on the loan during 
the period of employment covered by 
the certification of employment; and 
‘‘(II) inform the borrower of the 
number of qualifying monthly pay-
ment obligations satisfied; and 
‘‘(ii) periodically, but not less than 
twice annually, notify the borrower, using 
the most recent calculation of qualifying 
monthly payment obligations, of— 
‘‘(I) the number of qualifying 
monthly payment obligations satisfied, 
as of the date of the notice; 
‘‘(II) any steps the borrower can 
take to convert non-qualifying month-
ly payment obligations into qualifying 
monthly payment obligations, includ-
ing the options to provide payments to 
satisfy monthly payment obligations 
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for past public service under para-
graph (4)(C); and 
‘‘(III) 
the 
dispute 
resolution 
process for the Secretary’s determina-
tion of qualifying monthly payment 
obligations, as described in paragraph 
(7). 
‘‘(4) QUALIFYING MONTHLY PAYMENT OBLIGA-
TIONS.— 
‘‘(A) IN GENERAL.—For purposes of this 
subsection, the number of qualifying monthly 
payment obligations satisfied on a loan is the 
number of monthly payments, during the period 
of employment and based on the repayment 
plan selected by the borrower for such period, 
that would be satisfied based on applying the 
total amount of payments made by the bor-
rower on the loan at any time during such pe-
riod. 
‘‘(B) ADJUSTMENT OF PAYMENT OBLIGA-
TION STATUS.— 
‘‘(i) HOLD HARMLESS AGAINST RET-
ROACTIVE DETERMINATIONS.—If the Sec-
retary has classified a payment obligation 
satisfied by a borrower of a loan made 
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under this part as a qualifying monthly 
payment obligation and later determines 
that the payment obligation does not qual-
ify, the Secretary shall deem the payment 
obligation to be a qualifying monthly pay-
ment obligation to be counted for purposes 
of paragraph (2). 
‘‘(ii) EXPLANATION
OF
NON-QUALI-
FYING PAYMENT OBLIGATION DETERMINA-
TIONS.—If the Secretary determines that 
payments made by a borrower of a loan 
made under this part for a period of full- 
time employment with a qualifying em-
ployer cannot be applied toward the total 
number of qualifying monthly payment ob-
ligations for purposes of paragraph (2), 
the Secretary shall provide a borrower with 
an explanation and allow the borrower to 
correct the reason for such determination, 
to the extent possible. Such borrower reme-
diation shall include, at a minimum, pro-
viding a borrower with the opportunity to 
reimburse the Secretary for any under-
payment. 
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‘‘(C) SATISFYING PREVIOUSLY NON-QUALI-
FYING MONTHLY PAYMENT OBLIGATIONS.— 
‘‘(i) IN GENERAL.—A borrower of a 
loan made under this part who has a pe-
riod during which the borrower was em-
ployed full-time with a qualifying employer 
but did not satisfy one or more qualifying 
monthly payment obligations during such 
period, such as a borrower who was in 
deferment or forbearance, may satisfy one 
or more monthly payment obligations of 
that period at a later date by paying the 
additional amount needed to satisfy the 
qualifying monthly payment obligation, in 
accordance with a process established by 
the Secretary. 
‘‘(ii) DETERMINATION PROCESS.—The 
amount of past monthly payment obliga-
tions satisfied by a payment under this 
subparagraph for a period of employment 
shall be determined using the amount of 
the borrower’s monthly payment, based on 
any repayment plan, as selected by the 
borrower, that could have been selected by 
the borrower during such period. The Sec-
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