H.R. 6284: Strengthening Loan Forgiveness for Public Service Workers Act (119th Congress) Bill Summary

This legislation, known as the **Strengthening Loan Forgiveness for Public Service Workers Act**, proposes changes to the existing Public Service Loan Forgiveness (PSLF) program under the Higher Education Act of 1965. The intent of the bill is to enhance access to loan forgiveness for individuals employed in public service roles. Below are the key provisions of the bill:

Loan Cancellation for New Loans

The bill establishes a framework for partial loan cancellation for new Federal Direct Loans taken out after the act's enactment. The details include:

Borrowers who work in public service jobs and make a specific number of monthly payments (typically leading to a total of 120 payments) will qualify for loan cancellation based on the following payment milestones:
After 24 payments: 15% of the total loan amount will be canceled.
After 48 payments: An additional 15% will be canceled.
After 72 payments: An additional 15% will be canceled.
After 96 payments: An additional 15% will be canceled.
After completing 120 payments: The remaining loan balance will be fully canceled.

Automatic Loan Deferment

For borrowers who reach the milestone of 120 payments and qualify for loan cancellation, the bill mandates that their loans be placed in deferment. This means that borrowers will not have to make payments while their loan cancellation is processed.

Employment Certification

The bill streamlines the employment certification process, allowing for easier verification of employment in qualifying public service roles. The Secretary of Education can certify employment without requiring extensive documentation if they can confirm the information independently. If independent verification isn't possible, borrowers must submit a simplified form that includes self-certification of employment and confirmation from their employer regarding their employment dates.

Interest Cancellation

Under this legislation, if a borrower has part of their loan canceled, all interest that accrues on that loan for the year will also be canceled. Further, for borrowers whose loans are canceled after they apply for cancellation, any interest accrued during the review period leading up to the cancellation will also be canceled.

Implementation Timeline

The provisions of this act would begin to apply to Federal Direct Loans that are issued after the act’s enactment date, affecting new borrowers in public service roles moving forward.

Impact on Existing Programs

The bill proposes to amend existing laws regarding the PSLF, affecting how loans are managed and forgiven for future borrowers, while also providing clarity and additional pathways for public service employees seeking loan forgiveness.