Title: Public Service Pays Off Act
Policy area: Education

Summary:
Public Service Pays Off Act
This bill requires the Department of Education to incrementally cancel a percentage of the obligation to repay the balance on eligible Federal Direct Loans for a borrower who, while employed in public service, makes qualifying payments for 2, 4, 6, 8, and 10 years.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4113 Introduced in House (IH)]

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116th CONGRESS
  1st Session
                                H. R. 4113

 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.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 30, 2019

Ms. Kendra S. Horn of Oklahoma introduced the following bill; which was 
            referred to the Committee on Education and Labor

_______________________________________________________________________

                                 A BILL


 
 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 ``Public Service Pays Off 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 ``or paragraph (5), as applicable,'' after 
        ``paragraph (2)'';
            (2) in paragraph (2), by striking ``After'' and inserting 
        ``Except as provided in paragraph (5), after''; and
            (3) by adding at the end the following:
            ``(5) Loan cancellation for partial service.--
                    ``(A) In general.--Notwithstanding paragraph (2), 
                beginning on the date of enactment of the Public 
                Service Pays Off Act, the Secretary shall cancel the 
                obligation to repay the balance of principal and 
                interest due on the eligible Federal Direct Loans made 
                to a borrower under this part in accordance with this 
                paragraph.
                    ``(B) New monthly payments.--For a borrower of an 
                eligible Federal Direct Loan who begins making 
                qualifying monthly payments under paragraph (1) on or 
                after the date of enactment of the Public Service Pays 
                Off Act and who is employed in a public service job and 
                submits an employment certification form described in 
                clause (F), the Secretary shall cancel, after the 
                conclusion of each employment period in such public 
                service job, as described in clause (D)--
                            ``(i) the percent specified in such 
                        subclause (D) of the total amount due on the 
                        eligible Federal Direct Loans made to the 
                        borrower under this part, based on the length 
                        of such employment period; and
                            ``(ii) the applicable amount of interest 
                        that accrued during such employment period, in 
                        accordance with subclause (E).
                    ``(C) Prior monthly payments.--
                            ``(i) Election.--A borrower of an eligible 
                        Federal Direct Loan who has made one or more 
                        monthly payments under paragraph (1) before the 
                        date of enactment of the Public Service Pays 
                        Off Act and who is employed in a public service 
                        job may elect to have the Secretary cancel such 
                        eligible Federal Direct Loan through partial 
                        repayments after completion of each employment 
                        period in accordance with this paragraph 
                        (including submission of an employment 
                        certification form described in clause (F)), or 
                        in full after the completion of the required 
                        employment period and 120 monthly payments in 
                        accordance with paragraph (2).
                            ``(ii) No double cancellation.--A borrower 
                        shall not have eligible Federal Direct Loans 
                        cancelled under both paragraph (2) and this 
                        paragraph, but a borrower who was determined to 
                        be ineligible for cancellation under paragraph 
                        (2) before the date of enactment of the Public 
                        Service Pays Off Act may submit an employment 
                        certification form described in clause (F) and 
                        request cancellation for a public service job 
                        under this paragraph.
                    ``(D) Percent amount.--The percent of a loan that 
                shall be canceled under this paragraph for an 
                employment period 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, the amount remaining of the total 
                        amount due on the eligible Federal Direct Loan 
                        on the date the borrower commenced employment 
                        in such public service job.
                    ``(E) Interest canceled.--If a portion of a loan is 
                canceled under this paragraph for a period of 
                employment in a public service job, the entire amount 
                of interest on such loan that accrued during such 
                period shall be canceled.
                    ``(F) Employment certification form.--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.''.
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