Strengthening Loan Forgiveness for Public Servants Act
Bill: H.R.4724 | Sponsor: Rep. Swalwell, Eric (D-CA)
Policy area: Education

Summary:
Strengthening Loan Forgiveness for Public Servants Act
This bill revises the Public Service Loan Forgiveness (PSLF) program to provide for partial loan cancellation based on the length of public service employment.
Specifically, the bill directs the Department of Education (ED) to cancel 15%, 15%, 20%, 20%, and 30% of the amount a borrower owes after 2, 4, 6, 8, and 10 years of public service employment, respectively, on Federal Direct Loans made after the bill's enactment. Under the current PSLF program, ED must cancel the balance of interest and principal due on a borrower's Federal Direct Loans after the borrower makes 120 monthly loan payments while employed in a public service job.

To amend the Higher Education Act of 1965 to provide for a percentage 
  of student loan forgiveness for public service employment, 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 ``Strengthening Loan Forgiveness for 
Public Servants Act''.

SEC. 2. PUBLIC SERVICE LOAN FORGIVENESS PROGRAM.

    Section 455(m) of the Higher Education Act of 1965 (20 U.S.C. 
1087e(m)) is amended--
            (1) in paragraph (1), in the matter preceding subparagraph 
        (A), by inserting ``, except as provided in paragraph (5),'' 
        after ``on any eligible Federal Direct Loan not in default''; 
        and
            (2) by adding at the end the following:
            ``(5) Loan cancellation for new loans.--
                    ``(A) In general.--Beginning after the date of 
                enactment of the Strengthening Loan Forgiveness for 
                Public Servants Act, after the conclusion of each 
                employment period in a public service job, as described 
                in subparagraph (B), the Secretary shall cancel the 
                percent specified in such subparagraph of the total 
                amount due on any eligible Federal Direct Loan made 
                after the date of enactment of the Strengthening Loan 
                Forgiveness for Public Servants Act for a borrower who 
                is employed in such public service job and submits an 
                employment certification form described in subparagraph 
                (C).
                    ``(B) Percent amount.--The percent of a loan that 
                shall be canceled under subparagraph (A) is as follows:
                            ``(i) In the case of a borrower who 
                        completes 2 years of employment in a public 
                        service job, 15 percent of the total amount due 
                        on the eligible Federal Direct Loan on the date 
                        the borrower commenced employment in such 
                        public service job.
                            ``(ii) In the case of a borrower who 
                        completes 4 years of employment in a public 
                        service job, 15 percent of the total amount due 
                        on the eligible Federal Direct Loan on the date 
                        the borrower commenced employment in such 
                        public service job.
                            ``(iii) In the case of a borrower who 
                        completes 6 years of employment in a public 
                        service job, 20 percent of the total amount due 
                        on the eligible Federal Direct Loan on the date 
                        the borrower commenced employment in such 
                        public service job.
                            ``(iv) In the case of a borrower who 
                        completes 8 years of employment in a public 
                        service job, 20 percent of the total amount due 
                        on the eligible Federal Direct Loan on the date 
                        the borrower commenced employment in such 
                        public service job.
                            ``(v) In the case of a borrower who 
                        completes 10 years of employment in a public 
                        service job, 30 percent of the total amount due 
                        on the eligible Federal Direct Loan on the date 
                        the borrower commenced employment in such 
                        public service job.
                    ``(C) Employment certification form.--
                            ``(i) In general.--In order to receive loan 
                        cancellation under this paragraph, a borrower 
                        shall submit to the Secretary an employment 
                        certification form that is developed by the 
                        Secretary and includes self-certification of 
                        employment and a separate part for employer 
                        certification that indicates the dates of 
                        employment.
                            ``(ii) Deferment.--If a borrower submits to 
                        the Secretary the employment certification form 
                        described in clause (i), during the period in 
                        which the borrower is employed in a public 
                        service job for which loan cancellation is 
                        eligible under this paragraph, the borrower's 
                        eligible Federal Direct Loan shall be placed in 
                        deferment.
                    ``(D) Interest canceled.--If a portion of a loan is 
                canceled under this paragraph for any year, the entire 
                amount of interest on such loan that accrues for such 
                year shall be canceled.''.
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