the excess number of individuals in poverty 
in a State, means the number that rep-
resents the number of individuals in pov-
erty in the State in excess of 8 percent of 
the total number of individuals in the 
State for whom the poverty status is deter-
mined. 
‘‘(C) CARRYOVER
OF
LOAN
REPAYMENT 
CREDITS.—Any loan repayment credits allotted 
to a State and not obligated to a borrower dur-
ing the award year during which such credits 
were allotted shall— 
‘‘(i) be retained by the State during 
the period covered by the State plan; and 
‘‘(ii) may be allocated by the State to 
a borrower at any point during such pe-
riod. 
‘‘(3) MANDATORY
FUNDS
FOR
FISCAL
YEAR 
2021.—For fiscal year 2021, there shall be available 
to the Secretary, from funds not otherwise appro-
priated, funds to be obligated to States receiving an 
allotment under this section for administrative costs 
under this section not to exceed $50,000,000. 
‘‘(c) STATE IMPLEMENTATION PLAN.— 
VerDate Sep 11 2014 
02:52 Oct 30, 2019
Jkt 099200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H4851.IH
H4851
pamtmann on DSKBC07HB2PROD with BILLS
‘‘(1) IN GENERAL.—To be eligible for an allot-
ment of loan repayment credits under this section, 
a State shall submit to the Secretary a State imple-
mentation plan every 5 years. 
‘‘(2) CONTENTS.—Each State implementation 
plan shall cover a period of 5 award years and in-
clude the following: 
‘‘(A) The State entity responsible for ad-
ministering the program under this section. 
‘‘(B) A description of how the State will 
identify the workforce and public service needs 
(as defined by the State) to be addressed 
through the program, including descriptions of 
how the State— 
‘‘(i) will use State, regional, or local 
labor market data to determine workforce 
needs; 
‘‘(ii) will consider particular occupa-
tions that support the economic develop-
ment of rural and underserved commu-
nities (which may include farmers), as de-
termined by the State; 
‘‘(iii) will determine the occupations 
for which borrowers shall be eligible to re-
ceive loan repayment credits; 
VerDate Sep 11 2014 
03:32 Nov 01, 2019
Jkt 099200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H4851.IH
H4851
pamtmann on DSKBC07HB2PROD with BILLS
‘‘(iv) will determine the amount of 
loan repayment credits to be annually allo-
cated to borrowers in each occupation de-
termined under clause (iii); and 
‘‘(v) will project the total amount of 
loan repayment credits to be awarded an-
nually to borrowers eligible for such cred-
its, and use this projection to ensure the 
State has been allotted sufficient loan re-
payment credits to meet the State’s obliga-
tions under clauses (iii) and (iv). 
‘‘(C) A description of how the State will 
administer the program under this section, in-
cluding descriptions of— 
‘‘(i) how the State will promote such 
program, and publicly announce to the 
general public in the State the list of eligi-
ble occupations and the annual amount of 
loan repayment credits to be awarded for 
such occupations during the period covered 
by the plan; 
‘‘(ii) the borrower-friendly application 
process for borrowers to apply to the State 
for loan repayment credits; 
VerDate Sep 11 2014 
02:52 Oct 30, 2019
Jkt 099200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H4851.IH
H4851
pamtmann on DSKBC07HB2PROD with BILLS
‘‘(iii) the process the State will use to 
verify the State-determined eligibility fac-
tors of each applicant and how such appli-
cation will be seamlessly submitted under 
subsection (d)(1)(C) to the Secretary for 
Federal verification of the State’s deter-
mination of the amount of loan repayment 
credits to be allocated; and 
‘‘(iv) how the State will determine if 
the State has sufficient loan repayment 
credits to add occupations to the list of eli-
gible occupations or increase the amount of 
loan repayment credits to be awarded to 
borrowers in eligible occupations, and how 
the State will inform the general public in 
the State of such changes. 
‘‘(D) An assurance that following the pub-
lic release of the State determined eligible occu-
pations and loan repayment credit amounts, 
such occupations and credit amounts will not be 
reduced or become unavailable for allocation to 
borrowers eligible for such credits in the State 
for the period covered by the plan. 
‘‘(E) An assurance that the State will com-
ply with subsection (d)(2)(C) to use non-Fed-
VerDate Sep 11 2014 
02:52 Oct 30, 2019
Jkt 099200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H4851.IH
H4851
pamtmann on DSKBC07HB2PROD with BILLS
eral funds to provide the full State-determined 
amount of loan repayment credits in accordance 
with such subsection. 
‘‘(F) An assurance that no borrower will 
receive more than $10,000 in loan repayment 
credits for an award year. 
‘‘(3) PLAN APPROVAL.—The Secretary shall ap-
prove a plan submitted under this section that meets 
the requirements of paragraph (2). 
‘‘(d) BORROWER APPLICATION PROCESS.— 
‘‘(1) STATE REQUIREMENTS.—Each State re-
ceiving an allotment of loan repayment credits under 
this section shall— 
‘‘(A) upon receipt of approval of the 
State’s plan under subsection (c)(3), carry out 
the announcement and promotion requirements 
described in subsection (c)(2)(C)(i); 
‘‘(B) require each borrower seeking such 
credits to submit an application to the State at 
such time, in such manner, and containing such 
information as may be required by such State; 
and 
‘‘(C) upon State verification of eligibility of 
a borrower for an allocation of loan repayment 
credits (including employment in an eligible oc-
VerDate Sep 11 2014 
02:52 Oct 30, 2019
Jkt 099200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H4851.IH
H4851
pamtmann on DSKBC07HB2PROD with BILLS
cupation and the application requirements 
under subparagraph (B)), the State shall sub-
mit to the Secretary— 
‘‘(i) the application of the borrower; 
and 
‘‘(ii) a determination of the number of 
such credits that should be allocated to the 
borrower. 
‘‘(2) SECRETARY APPROVAL.— 
‘‘(A) FULL AMOUNT.— 
‘‘(i) IN
GENERAL.—Subject to sub-
paragraphs (B) and (C), upon a deter-
mination that a borrower meets the re-
quirements of clause (ii), the Secretary 
shall cancel an amount equal to the 
amount of credits allocated to the borrower 
under paragraph (1)(C)(ii) of the out-
standing balance of principal or interest on 
the eligible Federal loans of such borrower. 
‘‘(ii) BORROWER REQUIREMENTS.—A 
borrower meets the requirements of this 
clause if the borrower— 
‘‘(I) has entered repayment on 
any eligible Federal loan and such 
VerDate Sep 11 2014 
02:52 Oct 30, 2019
Jkt 099200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H4851.IH
H4851
pamtmann on DSKBC07HB2PROD with BILLS
loans are less than 90 days delin-
quent; 
‘‘(II) whose total number of loan 
repayment credits under this section 
has resulted in the cancellation of less 
than $50,000 on the borrower’s eligi-
ble Federal loans; and 
‘‘(III) earned an adjusted gross 
income of less than $120,000 during 
the prior calendar year. 
‘‘(B) PARTIAL AMOUNT.— 
‘‘(i) IN GENERAL.—In the case of a 
borrower whose allocation amount under 
subparagraph (A) would result in the bor-
rower receiving greater than a total of 
$50,000 in loan repayment credits under 
the program under this section, the Sec-
retary shall cancel an amount described in 
clause (ii) of the outstanding balance on 
the eligible Federal loans of the borrower. 
‘‘(ii) 
AMOUNT.—The 
amount 
de-
scribed in this clause is an amount that 
would result in the borrower receiving a 
total of $50,000 in loan cancellation under 
this section. 
VerDate Sep 11 2014 
02:52 Oct 30, 2019
Jkt 099200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H4851.IH
H4851
pamtmann on DSKBC07HB2PROD with BILLS
‘‘(C) INSUFFICIENT CREDITS.—In the case 
of a State that does not have a sufficient allot-
ment of loan repayment credits to allocate the 
number of credits to a borrower in an amount 
determined under paragraph (1)(C)(ii) for such 
borrower, the Secretary shall, with respect to 
the outstanding balance of the borrower’s eligi-
ble Federal loans— 
‘‘(i) cancel an amount equal to the 
amount of such credits that are remaining 
in the State’s allotment; and 
‘‘(ii) notify the State of its obligation 
to use non-Federal funds to cancel an 
amount equal to the difference between the 
allocation amount determined for the bor-
rower and the amount cancelled under 
clause (i). 
‘‘(e) FUNDING.—There are authorized to be appro-
priated, and there are appropriated to carry out this sec-
tion (in addition to any other amounts appropriated to 
carry out this section and out of any money in the Treas-
ury not otherwise appropriated)— 
‘‘(1) for each of the first and second award 
years that begin on or after the date of enactment 
of the State Workforce Incentive Act, an amount 
VerDate Sep 11 2014 
02:52 Oct 30, 2019
Jkt 099200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H4851.IH
H4851
pamtmann on DSKBC07HB2PROD with BILLS
equal to 0.01 of the loans made under part D and 
first disbursed during the preceding award year; 
‘‘(2) for each of the third and fourth award 
years that begin after the date of enactment of the 
State Workforce Incentive Act, an amount equal to 
0.02 of the loans made under part D and first dis-
bursed during the preceding award year; 
‘‘(3) for each of the fifth and sixth award years 
that begin after the date of enactment of the State 
Workforce Incentive Act, an amount equal to 0.03 of 
the loans made under part D and first disbursed 
during the preceding award year; and 
‘‘(4) for the seventh award year that begins 
after the date of enactment of the State Workforce 
Incentive Act and each succeeding award year, an 
amount equal to 0.04 of the loans made under part 
D and first disbursed during the preceding award 
year. 
‘‘(f) DEFINITIONS.—In this section: 
‘‘(1) LOAN
REPAYMENT
CREDIT.—The term 
‘loan repayment credit’ means a credit for the out-
standing balance of principal or interest on eligible 
Federal loans that shall be cancelled on such loans, 
at the rate of 1 credit equals $1 of such principal 
or interest. 
VerDate Sep 11 2014 
03:32 Nov 01, 2019
Jkt 099200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H4851.IH
H4851
pamtmann on DSKBC07HB2PROD with BILLS
‘‘(2) ELIGIBLE FEDERAL LOAN.—The term ‘eli-
gible Federal loan’ means a loan made under part 
D, other than— 
‘‘(A) a Federal Direct PLUS Loan made 
on behalf of a dependent student; or 
‘‘(B) a Federal Consolidation Loan, if the 
proceeds of such loan were used to discharge 
the liability on a loan described in subpara-
graph (A).’’. 
SEC. 3. SUNSET OF PUBLIC SERVICE LOAN FORGIVENESS. 
Section 455(m) of the Higher Education Act of 1965 
(20 U.S.C. 1087e(m)) is amended by adding at the end 
the following: 
‘‘(5) SUNSET.—The Secretary shall not have 
the authority to cancel under this subsection the ob-
ligation to repay the balance of principal and inter-
est due on the eligible Federal Direct Loans made 
under this part to a new borrower on or after July 
1, 2020.’’. 
Æ 
VerDate Sep 11 2014 
02:52 Oct 30, 2019
Jkt 099200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6301
E:\BILLS\H4851.IH
H4851
pamtmann on DSKBC07HB2PROD with BILLS