Simplifying and Strengthening Public Service Loan Forgiveness Act
Bill: S.4345 | Sponsor: Sen. Whitehouse, Sheldon (D-RI)
Policy area: Education

Summary:
Simplifying and Strengthening Public Service Loan Forgiveness Act
This bill makes changes to the Public Service Loan Forgiveness (PSLF) program, including by (1) lowering the number of monthly payments required for loan forgiveness from 120 to 60; and (2) making permanent certain limited waivers, such as a waiver that allowed certain late or partial loan payments to count as qualifying payments for PSLF loan forgiveness.

To amend the Higher Education Act of 1965 to amend the public service 
                       loan forgiveness program.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Simplifying and Strengthening Public 
Service Loan Forgiveness Act''.

SEC. 2. PUBLIC SERVICE LOAN FORGIVENESS REFORM.

    (a) Reducing Payments.--
            (1) In general.--Section 455(m)(1) of the Higher Education 
        Act of 1965 (20 U.S.C. 1087e(m)(1)) is amended--
                    (A) in subparagraph (A), by striking ``120'' and 
                inserting ``60''; and
                    (B) in subparagraph (B)(ii), by striking ``120'' 
                and inserting ``60''.
            (2) Effective date.--The amendments made by paragraph (1) 
        shall apply with respect to any eligible Federal Direct Loan 
        which is in repayment status on or after the date of enactment 
        of this Act.
    (b) Making Waivers Permanent.--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) Counting prior payments; simplifying program.--
        Notwithstanding paragraph (1), in carrying out this section, 
        the Secretary shall comply with the following:
                    ``(A) The Secretary shall consider as a monthly 
                payment under this subsection, any monthly payment made 
                while the borrower was employed in a public service job 
                on a loan made, insured, or guaranteed under this title 
                before, on, or after the date of enactment of this 
                paragraph pursuant to any repayment plan authorized 
                under this Act.
                    ``(B) The Secretary shall consider as a monthly 
                payment under this subsection, a payment described in 
                subparagraph (A) that was late or was for less than the 
                full amount of the monthly payment.
                    ``(C) The Secretary shall count as a monthly 
                payment under this subsection, a month for which a 
                borrower is serving on active duty (as described in 
                section 101(d)(1) of title 10, United States Code) or 
                serving in the Peace Corps, even if the borrower's loan 
                was in deferment or forbearance and not in active 
                repayment.
                    ``(D) The Secretary shall allow a borrower of a 
                Federal PLUS Loan, made on behalf of a dependent 
                student, under section 428B who is employed in a public 
                service job to consolidate such loan into a Federal 
                Direct Consolidation Loan in order to receive loan 
                cancellation pursuant to this subsection.
                    ``(E) 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 consolidate such loan into a Federal Direct 
                Consolidation Loan in order to receive loan 
                cancellation pursuant to this subsection.''.
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