Increased Student Loan Forgiveness for Public Service Employment
This bill introduces a system for partial forgiveness of federal student loans for individuals working in public service. The changes apply to loans taken out after the law's enactment and allow for gradual debt cancellation (from 15% to 30%) after every 2, 4, 6, 8, and 10 years of service. During the period of public service employment, eligible loans will be placed in deferment upon submission of the required form.
Key points
New Forgiveness Structure: Allows for partial loan cancellation after 2, 4, 6, 8, and 10 years of public service employment.
Financial Benefit: Up to 100% of the loan can be canceled after 10 years of public service (15%+15%+20%+20%+30%).
Deferment and Interest Cancellation: Eligible loans will be placed in deferment during public service employment upon submission of a form, and accrued interest for that period will be canceled.
Applies to New Loans: These changes apply to Federal Direct Loans taken out after the date the Strengthening Loan Forgiveness for Public Servants Act is enacted.
Status:
Expired
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