H.R. 3267: Public Service Loan Forgiveness Payment Completion Fairness Act

This bill, known as the Public Service Loan Forgiveness Payment Completion Fairness Act, aims to clarify and enhance eligibility for the Public Service Loan Forgiveness (PSLF) program for borrowers who work in public service jobs. Here is a breakdown of the key points of the bill:

Purpose

The main goal of the bill is to ensure that individuals who have worked in qualifying public service positions are eligible for loan forgiveness under the PSLF program. It seeks to make the criteria for eligibility clearer and more accessible.

Key Amendments

Specifically, the bill proposes an amendment to Section 455(m)(1)(B) of the Higher Education Act of 1965. The amendment involves the removal of certain language that specifies eligibility requirements related to employment status. Here are the main changes:

• The phrase "is employed" and the subsequent conditions outlining employment status for qualification are to be removed.
• Replaced with a more straightforward requirement that focuses solely on whether the borrower "has been" engaged in qualifying public service, thereby simplifying the process.

Intended Impact

The changes proposed by the bill are intended to relieve complications for borrowers who have dedicated their careers to public service, helping more individuals qualify for loan forgiveness. By eliminating restrictive language around employment, the bill aims to facilitate fair access to loan forgiveness for those who meet the public service criteria.

Implementation

If the bill is passed, the amendments would update the PSLF program's eligibility rules, potentially benefiting current and future borrowers who serve in various roles in public service, including education, public health, law enforcement, and non-profit organizations.

Relevant Companies

None found