Strengthening Loan Forgiveness for Public Servants Act

Bill: 118-s-5586
Sponsor: full_name: Sen. Blumenthal, Richard [D-CT]
Introduced: 2024-12-18
Policy area: Education
Latest action: action_date: 2024-12-18
text: Read twice and referred to the Committee on Health, Education, Labor, and Pensions.

Summaries:

tv_txt: II 118th CONGRESS 2d Session S. 5586 IN THE SENATE OF THE UNITED STATES December 18 (legislative day, December 16), 2024 Mr. Blumenthal (for himself, Mr. Cardin , Ms. Warren , Ms. Hirono , and Ms. Smith ) 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.

1. Short title This Act may be cited as the Strengthening Loan Forgiveness for Public Servants Act . 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 (i) In general 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. (ii) Interest canceled during review The Secretary shall cancel any interest that accrues that is not otherwise canceled pursuant to this paragraph for a borrower who receives loan cancellation under this paragraph during the period beginning on the date the borrower submits an application for loan cancellation under this paragraph until the date the borrower receives loan cancellation pursuant to such application that is approved. .