Title: Strengthening Loan Forgiveness for Public Servants During the COVID–19 Crisis Act
Policy area: Education

Summary:
Strengthening Loan Forgiveness for Public Servants During the COVID-19 Crisis 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. It also allows public service employees who are impacted by the COVID-19 (i.e., coronavirus disease 2019) public health emergency to continue to participate, without disruption, in the PSLF program.
First, 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.
In addition, an individual who was employed in a public service job and who experiences lapse in employment (e.g., a furlough, a layoff, or the individual's resignation due to illness or caregiving responsibilities) because of the COVID-19 public health emergency may continue to participate in the PSLF program without disruption. The bill treats such an individual as employed in a public service job during the emergency and deems a monthly payment made by the individual as a qualifying monthly payment toward loan cancellation under the PSLF program. However, unless the individual would have completed requirements for partial or full loan cancellation during the public health emergency, the individual must resume employment in a public service job within six months after the end of the emergency.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 3760 Introduced in Senate (IS)]

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116th CONGRESS
  2d Session
                                S. 3760

 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 SENATE OF THE UNITED STATES

                              May 19, 2020

  Mr. Blumenthal (for himself, Mr. Udall, Mr. Booker, Ms. Warren, Ms. 
  Smith, Mr. Cardin, Mr. Markey, Mrs. Feinstein, Ms. Hirono, and Mr. 
Leahy) introduced the following bill; which was read twice and referred 
       to the Committee on Health, Education, Labor, and Pensions

_______________________________________________________________________

                                 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 ``Strengthening Loan Forgiveness for 
Public Servants During the COVID-19 Crisis Act''.

SEC. 2. SENSE OF THE SENATE.

    It is the sense of the Senate that--
            (1) the novel coronavirus of 2019 (COVID-19) is imposing a 
        burden on many individuals, including doctors, nurses, and 
        teachers, who are participating in the public service loan 
        forgiveness program under section 455(m) of the Higher 
        Education Act of 1965 (20 U.S.C. 1087e(m)); and
            (2) restructuring the loan forgiveness provided through 
        such program and accommodating disruptions that might occur due 
        to the impact of the novel coronavirus of 2019 (COVID-19) are 
        necessary.

SEC. 3. PUBLIC SERVICE LOAN FORGIVENESS PROGRAM.

    (a) In General.--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 During the COVID-19 Crisis 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 
                During the COVID-19 Crisis 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.''.
    (b) Special Rule for COVID-19 Employment Disruptions.--
            (1) Definitions.--In this subsection:
                    (A) Employment disruption.--The term ``employment 
                disruption'' means a lapse in an individual's 
                employment that is related to the novel coronavirus 
                disease of 2019 (COVID-19), such as a furlough or 
                reduction in force by the employer or the individual's 
                resignation due to illness or family caregiving 
                responsibilities.
                    (B) Public service job.--The term ``public service 
                job'' has the meaning given the term in section 
                455(m)(3) of the Higher Education Act of 1965 (20 
                U.S.C. 1087e(m)(3)).
                    (C) Qualifying emergency.--The term ``qualifying 
                emergency'' has the meaning given the term in section 
                3502 of division A of the Coronavirus Aid, Relief, and 
                Economic Security Act (Public Law 116-136).
                    (D) Qualifying individual.--The term ``qualifying 
                individual'' means an individual who--
                            (i) has a loan that qualifies for public 
                        service loan forgiveness under section 455(m) 
                        of the Higher Education Act of 1965 (20 U.S.C. 
                        1087e(m)); and
                            (ii) during the qualifying emergency 
                        period--
                                    (I) was employed in a public 
                                service job; and
                                    (II) experiences an employment 
                                disruption with respect to the public 
                                service job and no longer is employed 
                                in a public service job.
            (2) In general.--Subject to paragraph (3), in administering 
        the public service loan forgiveness program under section 
        455(m) of the Higher Education Act of 1965 (20 U.S.C. 1087e(m)) 
        with respect to periods of employment and payments due during 
        the qualifying emergency--
                    (A) each qualifying individual shall be deemed an 
                individual employed in a public service job during the 
                period of the qualifying emergency for purposes of such 
                program; and
                    (B) any monthly payment made by a qualifying 
                individual during the qualifying emergency (including a 
                payment deemed made under section 3513(c) of the 
                Coronavirus Aid, Relief, and Economic Security Act 
                (Public Law 116-136)) shall be deemed to be a monthly 
                payment made by an individual employed in a public 
                service job for purposes of such program.
            (3) Special rule.--Paragraph (2) shall only apply to a 
        qualifying individual who resumes employment in any public 
        service job by the date that is 6 months after the last day of 
        the qualifying emergency, except that any qualifying individual 
        who, as a result of the application of paragraph (2), would 
        have completed the requirements for full or partial loan 
        cancellation under paragraph (2) or (5) of section 455(m) of 
        the Higher Education Act of 1965 (as amended by this Act) 
        during the qualifying emergency, shall receive such loan 
        cancellation without any required resumption of public service 
        job employment.
            (4) Guidance.--Not later than 30 days after the date of 
        enactment of this Act, the Secretary of Education shall develop 
        and make available guidance for qualifying individuals 
        regarding the assistance available under this subsection.
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