Simplifying and Strengthening Public Service Loan Forgiveness Act

Bill: 117-s-4345
Sponsor: full_name: Sen. Whitehouse, Sheldon [D-RI]
Introduced: 2022-05-26
Policy area: Education
Latest action: action_date: 2022-05-26
text: Read twice and referred to the Committee on Health, Education, Labor, and Pensions.

Summaries:
action_date: 2022-05-26
action_desc: Introduced in Senate
text: <p><strong>Simplifying and Strengthening Public Service Loan Forgiveness Act</strong></p> <p>This bill makes changes to the Public Service Loan Forgiveness (PSLF) program, including by (1) lowering the number of monthly payments required for loan forgiveness from 120 to 60; and&nbsp;(2) making permanent certain limited waivers, such as a waiver that allowed certain late or partial loan payments to count as qualifying payments for PSLF loan forgiveness.</p>

tv_txt: II 117th CONGRESS 2d Session S. 4345 IN THE SENATE OF THE UNITED STATES May 26, 2022 Mr. Whitehouse (for himself and Mr. Merkley ) 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 amend the public service loan forgiveness program.

1. Short title This Act may be cited as the Simplifying and Strengthening Public Service Loan Forgiveness Act . 2. Public service loan forgiveness reform (a) Reducing payments (1) In general Section 455(m)(1) of the Higher Education Act of 1965 ( 20 U.S.C. 1087e(m)(1) ) is amended— (A) in subparagraph (A), by striking 120 and inserting 60 ; and (B) in subparagraph (B)(ii), by striking 120 and inserting 60 . (2) Effective date The amendments made by paragraph (1) shall apply with respect to any eligible Federal Direct Loan which is in repayment status on or after the date of enactment of this Act. (b) Making waivers permanent Section 455(m) of the Higher Education Act of 1965 ( 20 U.S.C. 1087e(m) ) is amended by adding at the end the following: (5) Counting prior payments; simplifying program Notwithstanding paragraph (1), in carrying out this section, the Secretary shall comply with the following: (A) The Secretary shall consider as a monthly payment under this subsection, any monthly payment made while the borrower was employed in a public service job on a loan made, insured, or guaranteed under this title before, on, or after the date of enactment of this paragraph pursuant to any repayment plan authorized under this Act. (B) The Secretary shall consider as a monthly payment under this subsection, a payment described in subparagraph (A) that was late or was for less than the full amount of the monthly payment. (C) The Secretary shall count as a monthly payment under this subsection, a month for which a borrower is serving on active duty (as described in section 101(d)(1) of title 10, United States Code) or serving in the Peace Corps, even if the borrower's loan was in deferment or forbearance and not in active repayment. (D) The Secretary shall allow a borrower of a Federal PLUS Loan, made on behalf of a dependent student, under section 428B who is employed in a public service job to consolidate such loan into a Federal Direct Consolidation Loan in order to receive loan cancellation pursuant to this subsection. (E) The Secretary shall allow the borrowers of a Joint Consolidation Loan or a Joint Direct Consolidation Loan who are employed in a public service job to consolidate such loan into a Federal Direct Consolidation Loan in order to receive loan cancellation pursuant to this subsection. .