Public Service Loan Forgiveness Modernization Act
Bill: H.R.4666 | Sponsor: Rep. Panetta, Jimmy (D-CA)
Policy area: Education

Summary:
Public Service Loan Forgiveness Modernization Act
This bill revises provisions related to the Public Service Loan Forgiveness (PSLF) program.
Specifically, the bill requires the Department of Education (ED) to establish and regularly update a comprehensive database identifying each qualified public service employer and each position offered by such employer that is a public service job. ED must also establish a process whereby an employer may submit a certification that it is a qualified public service employer.
In addition, the bill prohibits ED from requiring a borrower to apply for and be denied loan cancellation pursuant to the PSLF program as a condition of eligibility for loan forgiveness under the Temporary Expanded Public Service Loan Forgiveness program. ED must also develop and make publicly available an online tool for borrowers to learn more about the expanded program, determine their eligibility for forgiveness, and identify any requirements for participation.

To amend the Higher Education Act of 1965 to modernize and improve the 
    public service loan forgiveness program, and for other purposes.

    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 ``Public Service Loan Forgiveness 
Modernization Act''.

SEC. 2. REPAYMENT PLAN FOR PUBLIC SERVICE EMPLOYEES.

    Section 455(m) of the Higher Education Act of 1965 (20 U.S.C. 
1087e(m)) is amended--
            (1) by redesignating paragraph (3) as paragraph (4); and
            (2) by inserting after paragraph (2), the following:
            ``(3) Program modernization.--
                    ``(A) Database of public service employers.--
                            ``(i) Establishment.--The Secretary, in 
                        consultation with the Commissioner of the 
                        Internal Revenue Service, shall establish and 
                        regularly update a comprehensive database that 
                        identifies--
                                    ``(I) each qualified public service 
                                employer; and
                                    ``(II) each position offered by 
                                such employer that is a public service 
                                job.
                            ``(ii) Accessibility.--The database 
                        established under clause (i) shall be made 
                        available in an easily searchable format on a 
                        publicly accessible website of the Department 
                        of Education and via a free and secure mobile 
                        software application.
                    ``(B) Employer self-certification.--
                            ``(i) In general.--The Secretary shall 
                        establish a process through which an employer 
                        may electronically submit to the Secretary a 
                        certification that the employer is a qualified 
                        public service employer.
                            ``(ii) Secretarial review and 
                        verification.--The Secretary shall review each 
                        self-certification submitted under clause (i) 
                        to verify whether the employer concerned is a 
                        qualified public service employer.
                            ``(iii) PSLF certification seal.--An 
                        employer verified by the Secretary under clause 
                        (ii) shall receive permission to use, for 
                        informational and marketing purposes, a graphic 
                        seal-of-approval developed by the Secretary to 
                        indicate the employer's status as a qualified 
                        public service employer.
                    ``(C) Certification of employment.--
                            ``(i) Forms and signatures.--The Secretary 
                        shall ensure that any forms required to certify 
                        a borrower's employment in a public service job 
                        are available to borrowers and employers--
                                    ``(I) on a publicly accessible 
                                website of the Department of Education;
                                    ``(II) via a free and secure mobile 
                                software application; and
                                    ``(III) in traditional hard copy 
                                format.
                            ``(ii) Electronic signature and 
                        submission.--The Secretary shall establish a 
                        process that enables borrowers and employers--
                                    ``(I) to electronically sign any 
                                forms required to certify a borrower's 
                                employment in a public service job; and
                                    ``(II) to submit such forms to the 
                                Department of Education through an 
                                online portal or via a free and secure 
                                mobile software application.
                            ``(iii) Notice of recertification.--In the 
                        case of a borrower who has previously submitted 
                        an annual certification of employment under 
                        this section, the Secretary shall provide 
                        notice to the borrower of the option to 
                        recertify such employment not later than 60 
                        days before the expiration of the one year 
                        period following the date of the borrower's 
                        most recently submitted employment 
                        certification. The Secretary shall provide such 
                        notice to a borrower via email and regular 
                        mail.
                    ``(D) Statement of qualifying payments.--On an 
                annual basis, the Secretary shall provide to each 
                borrower of an eligible Federal Direct Loan who has 
                submitted an annual certification of employment under 
                this section the following information:
                            ``(i) The number of monthly payments made 
                        by the borrower on each eligible Federal Direct 
                        Loan of the borrower.
                            ``(ii) The number of such payments that 
                        qualify as monthly payments under paragraph 
                        (1)(A).
                            ``(iii) The number of monthly payments 
                        under paragraph (1)(A) remaining on such loan 
                        before the borrower is eligible for loan 
                        cancellation under paragraph (2).
                    ``(E) Definitions.--In this paragraph:
                            ``(i) The term `Secretary' means the 
                        Secretary of Education acting through the Chief 
                        Operating Officer of the Office of Federal 
                        Student Aid.
                            ``(ii) The term `qualified public service 
                        employer' means an employer that offers 
                        employment in a position that is a public 
                        service job.''.

SEC. 3. APPLICATION PROCESS FOR TEMPORARY EXPANDED PUBLIC SERVICE LOAN 
              FORGIVENESS.

    (a) In General.--Notwithstanding any other provision of law, the 
Secretary of Education shall not require a borrower to apply for and be 
denied loan cancellation under section 455(m) of the Higher Education 
Act of 1965 (20 U.S.C. 1087e(m)) as a condition of eligibility for loan 
forgiveness under the programs specified in subsection (b).
    (b) Programs Specified.--The programs specified in this subsection 
are the programs of student loan forgiveness commonly known as 
``Temporary Expanded Public Service Loan Forgiveness'' established 
under the following provisions of law:
            (1) Section 313 of the Department of Defense and Labor, 
        Health and Human Services, and Education Appropriations Act, 
        2019 and Continuing Appropriations Act, 2019 (Public Law 115-
        245).
            (2) Section 315 of the Consolidated Appropriations Act, 
        2018 (Public Law 115-141).
    (c) Online Help Tool.--Not later than 180 days after the date of 
the enactment of this Act, the Secretary of Education shall develop, 
and make available on a publicly accessible website, an online tool 
designed to help borrowers--
            (1) learn more about the Temporary Expanded Public Service 
        Loan Forgiveness Program;
            (2) determine their eligibility for forgiveness under the 
        program; and
            (3) identify any requirements for participation in the 
        program, including any application requirements.
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