Title: Public Service Loan Forgiveness Inclusion Act of 2021
Policy area: Education

Summary:
Public Service Loan Forgiveness Inclusion Act of 2021
This bill allows the first 60 monthly payments made by a borrower under a graduated repayment or extended repayment plan to become qualifying payments under the Public Service Loan Forgiveness (PSLF) program. However, the borrower must transfer to an eligible repayment plan, such as an income-based or standard repayment plan, for the remaining 60 monthly payments made under the PSLF program.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1633 Introduced in House (IH)]

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117th CONGRESS
  1st Session
                                H. R. 1633

  To amend the Higher Education Act of 1965 to allow certain payments 
    made by public service employees to qualify for public service 
                   repayment, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 8, 2021

 Mr. Foster (for himself, Mr. Fitzpatrick, Ms. Clarke of New York, Ms. 
Norton, Mr. Garcia of Illinois, Mr. Carson, Ms. Lee of California, Mr. 
   Keating, and Ms. Wexton) 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 allow certain payments 
    made by public service employees to qualify for public service 
                   repayment, 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 
Inclusion Act of 2021''.

SEC. 2. QUALIFYING PAYMENTS.

    (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)(A) by inserting ``subject to paragraph 
        (5),'' before ``has made''; and
            (2) by adding at the end the following:
            ``(5) First 60 monthly payments.--
                    ``(A) In general.--For the purpose of meeting the 
                requirement under subparagraph (A) of paragraph (1), 
                the first 60 monthly payments may be payments under a 
                repayment plan under subsection (d)(1) or (g).
                    ``(B) Applicability.--This paragraph shall apply to 
                borrowers who on or after the date of the enactment of 
                this paragraph have made less than 120 monthly payments 
                under paragraph (1)(A).''.
    (b) Notification to Borrowers.--Not later than 180 days after the 
date of the enactment of this Act, the Secretary of Education shall--
            (1) inform each borrower of a loan made under part D of 
        title IV of the Higher Education Act of 1965 (20 U.S.C. 1087a 
        et seq.) of--
                    (A) paragraph (5) of section 455(m) of the Higher 
                Education Act of 1965 (20 U.S.C. 1087e(m)), as amended 
                by this Act; and
                    (B) the effect of such paragraph on loan 
                cancellation under such section 455(m) (20 U.S.C. 
                1087e(m)); and
            (2) provide information to such borrowers on how to change 
        repayment plans.
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