Accelerated Student Loan Forgiveness for Public Service Workers
This Act modifies the Public Service Loan Forgiveness (PSLF) program, allowing new borrowers to receive partial debt cancellation every two years, starting with 15% after 24 months of public service. The bill applies to eligible Federal Direct Loans made after the date of enactment, aiming to provide incremental relief rather than requiring a full 10-year wait for any reduction.
Key points
Incremental Loan Forgiveness: New borrowers can receive 15% debt cancellation after every 24 months of public service employment (at months 24, 48, 72, and 96), with the remaining balance canceled after 120 months.
Interest Cancellation: If a portion of the loan is canceled for any year, the entire amount of interest accrued on that loan for that year is also canceled.
Simplified Employment Certification: The Secretary may certify employment without borrower submission if data is available, otherwise via a certification form.
Automatic Deferment: The Secretary shall automatically place the loan in deferment while processing the final loan cancellation after 120 qualifying payments.
Introduced
Citizen Poll