Bill > S3277

This bill proposes significant changes to the Public Service Loan Forgiveness (PSLF) program by creating a new loan cancellation structure for federal student loans. Under the proposed legislation, borrowers working in public service jobs who have new federal direct loans would be eligible for incremental loan forgiveness: 15% of their total loan amount would be cancelled after 24 monthly payments, with additional 15% cancellations at 48, 72, and 96 monthly payments. Upon completing 120 monthly payments while continuously employed in a public service job, the remaining loan balance would be entirely cancelled. The bill also streamlines the employment certification process, allowing automatic verification when possible and creating a simplified self-certification form when direct verification is not feasible. Additionally, the bill provides that all interest accrued during the years of qualifying payments would be cancelled, and borrowers would receive an automatic deferment during the loan cancellation processing period. This legislation aims to make student loan forgiveness more accessible and predictable for public service workers by creating a more structured path to complete loan elimination.

Health and Social Services

https://www.congress.gov/bill/119th-congress/senate-bill/3277/all-info