[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 1203 Introduced in Senate (IS)]
<DOC>
116th CONGRESS
1st Session
S. 1203
To amend the Higher Education Act of 1965 in order to improve the
public service loan forgiveness program, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
April 11, 2019
Mrs. Gillibrand (for herself, Mr. Kaine, Ms. Warren, Mr. Blumenthal,
Ms. Klobuchar, Mr. Durbin, Ms. Harris, Mr. Van Hollen, Mr. Booker, Mrs.
Shaheen, Mr. Merkley, Ms. Hassan, Ms. Duckworth, Mr. Sanders, Ms.
Baldwin, Mr. Bennet, Mr. Casey, and Ms. Rosen) introduced the following
bill; which was read twice and referred to the Committee on Health,
Education, Labor, and Pensions
_______________________________________________________________________
A BILL
To amend the Higher Education Act of 1965 in order to improve the
public service loan forgiveness program, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``What You Can Do For Your Country
Act''.
SEC. 2. AMENDMENTS TO THE PUBLIC SERVICE LOAN FORGIVENESS PROGRAM.
(a) Public Service Loan Forgiveness.--
(1) In general.--Section 455(m) of the Higher Education Act
of 1965 (20 U.S.C. 1087e(m)) is amended to read as follows:
``(m) Loan Forgiveness for Federal Student Loan Borrowers Employed
in Public Service.--
``(1) Definitions.--In this subsection:
``(A) Certification of employment.--The term
`certification of employment' means a certification of
employment under paragraph (4).
``(B) Full-time.--The term `full-time', when used
with respect to employment, means employment--
``(i) with a qualifying employer for not
less than 30 hours per week; or
``(ii) with 2 or more qualifying employers
for a total of not less than 30 hours per week.
``(C) Qualifying employer.--The term `qualifying
employer' means--
``(i) a Federal, State, local, or Tribal
government organization or instrumentality,
including any organization established in law
as a body politic;
``(ii) an organization that is described in
section 501(c)(3) of the Internal Revenue Code
of 1986, and exempt from taxation under section
501(a) of such Code; or
``(iii) an organization--
``(I) not described in clause (ii)
that is a not-for-profit organization
under other Federal or State law;
``(II) that is not a labor
organization or partisan political
organization; and
``(III) whose purpose is to
directly provide any of the following
services, as defined in regulations
promulgated the Secretary:
``(aa) Emergency management
and disaster response.
``(bb) Military service.
``(cc) Public safety
services, including fire
prevention and suppression,
rescue services, hazardous
materials response, ambulance
services, and emergency medical
services.
``(dd) Law enforcement.
``(ee) Public health,
including service through
organizations that employ
nurses, nurse practitioners,
nurses in a clinical setting,
or professionals engaged in
health care practitioner
occupations and health care
support occupations, as such
terms are defined by the Bureau
of Labor Statistics.
``(ff) Public education,
including the provision of
educational enrichment or
support directly to students or
their families, employment with
a Tribal College or University
(as defined in section 316(b)),
and employment as an adjunct
faculty member or instructor
for an educational institution.
``(gg) Public interest law
services, including prosecution
or public defense or legal
advocacy on behalf of low-
income communities at a not-
for-profit organization.
``(hh) Early childhood
education, including licensed
or regulated childcare, Head
Start programs, and State
funded prekindergarten.
``(ii) Public service for
individuals with disabilities.
``(jj) Public service for
the elderly.
``(kk) Public and school-
based library sciences.
``(ll) School-based
services, including the
provision of noneducational
enrichment or support directly
to students or their families.
``(mm) Social work,
including child or family
services.
``(D) Qualifying monthly payment obligation.--The
term `qualifying monthly payment obligation' means a
monthly payment obligation due on a loan under the
repayment plan of the borrower--
``(i) that was satisfied by the borrower
through a payment made after October 1, 2007;
and
``(ii) attributable to a period during
which the borrower was employed full-time by a
qualifying employer.
``(2) In general.--Beginning on July 1, 2019, the Secretary
shall forgive the applicable percentage described in paragraph
(3) of the balance of principal and interest due on a loan made
under this part for a borrower who has satisfied 60 or 120
qualifying monthly payment obligations on a loan made under
this part and submitted any certification of employment
required under this subsection.
``(3) Loan forgiveness after 60 payment obligations and 120
payment obligations.--The applicable percentages under this
paragraph shall be--
``(A) in the case of a borrower who satisfies 60
qualifying monthly payment obligations on a loan made
under this part that is not in default (as defined in
section 435), 50 percent of the total amount of the
balance of principal and interest due on such loan as
of the date of the loan forgiveness; and
``(B) in the case of a borrower who satisfies 120
qualifying monthly payment obligations on a loan made
under this part that is not in default, 100 percent of
the balance of principal and interest due on such loan
as of the date of the loan forgiveness.
``(4) Certification of employment requirements.--
``(A) In general.--In order to receive loan
forgiveness under this subsection, a borrower of a loan
made under this part shall submit to the Secretary a
certification of employment.
``(B) Content of certification.--The Secretary
shall--
``(i) develop, and make easily accessible,
the certification of employment; and
``(ii) ensure that the method of
certification--
``(I) allows for the employer to
indicate and certify the dates of the
borrower's employment; and
``(II) provides electronic
signature options for the employer and
for the borrower.
``(C) Borrower access.--The Secretary shall ensure
that a borrower may submit a certification of
employment to the Secretary electronically through any
information system through which the Secretary permits
borrowers to take self-service actions with respect to
their loans.
``(D) Exception for self-certification.--The
Secretary shall provide a self-certification option for
the certification of employment for borrowers who have
extenuating circumstances preventing the borrowers from
obtaining the qualifying employer signature and
certification required under subparagraph (B)(ii), as
determined by the Secretary pursuant to rulemaking and
including situations where an employer is no longer in
existence or refuses to cooperate.
``(E) Periodic review of certification of
employment.--For each borrower of a loan made under
this part who has submitted a certification of
employment, the Secretary shall--
``(i) by not later than 30 days after
receipt of the certification of employment--
``(I) review the certification of
employment and determine the number of
qualifying monthly payment obligations
satisfied on the loan during the period
of employment covered by the
certification of employment;
``(II) inform the borrower of the
number of qualifying monthly payment
obligations satisfied; and
``(III) inform the borrower of the
number of remaining qualifying monthly
payment obligations to be satisfied in
order for the borrower to receive
partial loan forgiveness under
paragraph (3)(A), and such number
needed to receive full loan forgiveness
under paragraph (3)(B); and
``(ii) periodically, but not less than
twice annually, notify the borrower, using the
most recent calculation of qualifying monthly
payment obligations, of--
``(I) the number of qualifying
monthly payment obligations satisfied,
as of the date of the notice;
``(II) the number of remaining
qualifying monthly payment obligations
to be satisfied in order for the
borrower to receive partial loan
forgiveness under paragraph (3)(A), and
such number needed to receive full loan
forgiveness under paragraph (3)(B);
``(III) any steps the borrower can
take to convert non-qualifying monthly
payment obligations into qualifying
monthly payment obligations, including
the options to provide payments to
satisfy monthly payment obligations for
past public service under paragraph
(5)(C); and
``(IV) the dispute resolution
process for the Secretary's
determination of qualifying monthly
payment obligations, as described in
paragraph (7).
``(5) Qualifying monthly payment obligations.--
``(A) In general.--For purposes of this subsection,
the number of qualifying monthly payment obligations
satisfied on a loan is the number of monthly payments,
during the period of employment and based on the
repayment plan selected by the borrower for such
period, that would be satisfied based on applying the
total amount of payments made by the borrower on the
loan at any time during such period.
``(B) Adjustment of payment obligation status.--
``(i) Hold harmless against retroactive
determinations.--If the Secretary has
classified a payment obligation satisfied by a
borrower of a loan made under this part as a
qualifying monthly payment obligation and later
determines that the payment obligation does not
qualify, the Secretary shall deem the payment
obligation to be a qualifying monthly payment
obligation to be counted for purposes of
paragraph (2).
``(ii) Explanation of non-qualifying
payment obligation determinations.--If the
Secretary determines that payments made by a
borrower of a loan made under this part for a
period of full-time employment with a
qualifying employer cannot be applied toward
the total number of qualifying monthly payment
obligations for purposes of paragraph (2), the
Secretary shall provide a borrower with an
explanation and allow the borrower to correct
the reason for such determination, to the
extent possible. Such borrower remediation
shall include, at a minimum, providing a
borrower with the opportunity to reimburse the
Secretary for any underpayment.
``(C) Satisfying previously non-qualifying monthly
payment obligations.--
``(i) In general.--A borrower of a loan
made under this part who has a period during
which the borrower was employed full-time with
a qualifying employer but did not satisfy one
or more qualifying monthly payment obligations
during such period, such as a borrower who was
in deferment or forbearance, may satisfy one or
more monthly payment obligations of that period
at a later date by paying the additional amount
needed to satisfy the qualifying monthly
payment obligation, in accordance with a
process established by the Secretary.
``(ii) Determination process.--The amount
of past monthly payment obligations satisfied
by a payment under this subparagraph for a
period of employment shall be determined using
the amount of the borrower's monthly payment,
based on any repayment plan, as selected by the
borrower, that could have been selected by the
borrower during such period. The Secretary may
require a borrower wishing to satisfy past
monthly payment obligations under this
subparagraph to submit any additional
information necessary to calculate the amount
of the past payments.
``(iii) Limit.--A borrower may not satisfy
more than 36 past monthly payment obligations
under this subparagraph.
``(6) Special rules relating to federal direct
consolidation loans.--
``(A) Review of any new consolidation loan
application.--
``(i) Public service loan forgiveness
option on consolidation application.--Beginning
on July 1, 2019, the Secretary shall include,
in any application for a Federal Direct
Consolidation Loan, the option for the borrower
to indicate that the borrower is consolidating
for the purpose of using the public service
loan forgiveness program under this subsection.
``(ii) Review.--Beginning on July 1, 2019,
the Secretary shall, after issuing any Federal
Direct Consolidation Loan to a borrower who
indicated an interest in the public service
loan forgiveness program on the loan
application--
``(I) request that the borrower
submit a certification of employment;
and
``(II) after receiving a complete
certification of employment, review the
borrower's past payments on all
component loans comprising the Federal
Direct Consolidation Loan and inform
the borrower--
``(aa) of the number of
monthly payment obligations
satisfied by the borrower
before the date of
consolidation that are
qualifying monthly payment
obligations, in accordance with
subparagraph (B); or
``(bb) if no payment
obligations are satisfied, that
the borrower will not receive
any credit towards public
service loan forgiveness under
this subsection for the Federal
Direct Consolidation Loan.
``(B) Qualifying payment obligations on all
component loans and loan types through consolidation.--
In the case of a borrower of one or more loans eligible
for consolidation, including loans made under part B,
who applies for, and receives, a Federal Direct
Consolidation Loan, the Secretary shall request the
borrower submit a certification of employment for any
qualifying employment and, after receiving the
certification of employment, shall--
``(i) review the borrower's payment history
on each of the component loans comprising the
Federal Direct Consolidation Loan, including
each loan made under part B; and
``(ii) for each component loan--
``(I) calculate the weighted factor
of the component loan, which shall be
the factor that represents the ratio
between the amount of the component
loan and the amount of the Federal
Direct Consolidation Loan, as
determined by the Secretary;
``(II) determine the number of
equivalent monthly payment obligations
toward the Federal Direct Consolidation
Loan satisfied on the component loan by
multiplying the weighted factor for the
component loan by the number of
qualifying monthly payment obligations
that the borrower satisfied on the
component loan; and
``(III) after rounding the number
determined under subclause (II) to the
nearest whole number, deem that number
of equivalent monthly payment
obligations to be qualifying monthly
payment obligations on the Federal
Direct Consolidation Loan.
``(C) Applicability of borrower protections and
rights.--A borrower of one or more loans eligible for
consolidation, including loans made under part B, who
applies for and receives a Federal Direct Consolidation
Loan shall receive all the protections and rights
provided under subparagraphs (B) and (C) of paragraph
(5) for the loan, and for any component loan, in the
same manner as provided to any other borrower of a loan
made under this part.
``(7) Notice of qualifying payment obligations.--
``(A) Initial notice.--Upon receiving any verbal or
written contact by a borrower on or after July 1, 2019,
expressing interest in the public service loan
forgiveness program under this subsection, the
Secretary, or an eligible lender or guaranty agency
under part B, shall provide the borrower, by not later
than 30 days after the contract, with a notice that--
``(i) explains the requirements of the
program, including whether the borrower needs
to consolidate some or all of the borrower's
loans to receive forgiveness under this
subsection;
``(ii) includes a copy of, or a link to,
information about the certification of
employment process described in paragraph (4);
``(iii) includes an estimate of the
qualifying monthly payment obligations that
would be satisfied by the borrower based on the
borrower's payment history, as of the date of
notice, if the borrower was a full-time
employee of a qualifying employer and met the
requirements of paragraph (2); and
``(iv) includes an estimate of the number
of remaining qualifying monthly payment
obligations to be satisfied in order for the
borrower to receive partial loan forgiveness
under paragraph (3)(A), and such number needed
to receive full loan forgiveness under
paragraph (3)(B).
``(B) Subsequent notices.--After providing an
initial notice under subparagraph (A), the Secretary,
or an eligible lender or guaranty agency under part B,
shall annually provide the borrower with a notice
containing the information described in such
subparagraph for each subsequent year that the borrower
has an outstanding loan, unless the borrower receives
notices under paragraph (4)(E)(ii) or requests that the
notices be discontinued.
``(8) Dispute resolution process.--By not later than July
1, 2019, the Secretary shall establish a process for borrowers
to dispute the calculation of qualifying monthly payment
obligations, or the determination of full or partial loan
forgiveness under paragraph (2), following the submission of a
certification of employment or application for forgiveness or
any successor certification or application.
``(9) Database of qualifying employers.--
``(A) In general.--Not later than July 1, 2019, the
Secretary shall--
``(i) establish a database that will
include all employers from which the Secretary
has received a certification of employment; and
``(ii) use such database to aid the
Secretary in processing a certification of
employment and in providing the notices
required under subsection (r)(3).
``(B) Data matching agreements.--
``(i) In general.--The Secretary shall
enter into data matching agreements with
relevant Federal agencies who possess records
about the status of employers or the status of
borrowers as employees of qualifying employers
for the purpose of eliminating, to the extent
practicable, the need for a borrower or
employer to submit a certification of
employment to the Secretary.
``(ii) Specific federal agencies.--
Notwithstanding any Federal law, the Secretary
of Labor, the Commissioner of Internal Revenue,
and the Commissioner of Social Security shall
disclose any relevant records to the Secretary
for the purposes of meeting the Secretary's
obligations to reduce barriers to certification
of employment as described in clause (i).
``(iii) Notice to borrowers.--If the
Secretary receives employer or employment
information regarding a borrower from a Federal
agency pursuant to this subparagraph, the
Secretary shall timely notify the borrower
that--
``(I) the Secretary received the
information; and
``(II) the borrower, for the
duration of the borrower's employment
by the employer--
``(aa) is not required to
submit a certification of
employment for the employer
under paragraph (4); or
``(bb) if the information
is not complete, only needs to
submit a reduced set of
information to the Secretary
for the certification of
employment.
``(10) Ineligibility.--
``(A) No double benefits.--No borrower may, for the
same service, receive a reduction of loan obligations
under both this subsection and section 428J, 428K,
428L, or 460.
``(B) Federal elected service excluded.--No
borrower may receive loan forgiveness under this
subsection for service as a Member of Congress or
President or Vice President of the United States.''.
(2) FFEL program amendments.--Part B of the Higher
Education Act of 1965 (20 U.S.C. 1071 et seq.) is amended--
(A) in section 428 (20 U.S.C. 1078), by adding at
the end the following:
``(p) Repayment History Information and Public Service Loan
Forgiveness Information.--A guaranty agency shall--
``(1) provide, in a timely manner, any necessary borrower
repayment history information that the Secretary requests in
order to determine the borrower's eligibility for the public
service loan forgiveness program under section 455(m), or the
number of qualifying monthly payment obligations satisfied for
purposes of the program, including such information from all
servicers involved in servicing the borrower's loan; and
``(2) carry out the requirements of section 455(m)(7) upon
receiving any verbal or written contact by a borrower on or
after July 1, 2019, expressing interest in the public service
loan forgiveness program under section 455(m).''; and
(B) in section 433 (20 U.S.C. 1083)--
(i) by redesignating subsection (f) as
subsection (g); and
(ii) by inserting after subsection (e) the
following:
``(f) Repayment History Information.--An eligible lender shall--
``(1) provide, in a timely manner, any necessary borrower
repayment history information that the Secretary requests in
order to determine the borrower's eligibility for the public
service loan forgiveness program under section 455(m), or the
number of qualifying monthly payment obligations satisfied for
purposes of the public service loan forgiveness program under
section 455(m), including such information from all servicers
involved in servicing the borrower's loan; and
``(2) carry out the requirements of section 455(m)(7) upon
receiving any verbal or written contact by a borrower on or
after July 1, 2019, expressing interest in the public service
loan forgiveness program under section 455(m).''.
(b) Notification To Direct Loan Borrowers Regarding All Options for
Loan Forgiveness.--Section 455 of the Higher Education Act of 1965 (20
U.S.C. 1087e) is amended by adding at the end the following:
``(r) Annual Notice Regarding Loan Forgiveness Options.--
``(1) In general.--The Secretary shall annually provide a
written or electronic disclosure to each borrower of a loan
under this part--
``(A) notifying the borrower--
``(i) of any loan forgiveness option
available under this title that might apply to
a loan under this part held by the borrower,
including the public service loan forgiveness
program under subsection (m); and
``(ii) in the case of a borrower who is a
full-time employee of a Federal agency and has
not expressed interest in or submitted a
certification of employment for the public
service loan forgiveness program--
``(I) that the borrower is employed
by a qualifying employer;
``(II) the number of payment
obligations satisfied by the borrower
that the Secretary has determined could
be qualifying monthly payment
obligations on eligible Federal Direct
Loan for purposes of the public service
loan forgiveness program; and
``(III) the steps necessary for the
borrower to submit a certification of
employment and to obtain forgiveness
under subsection (m)(2);
``(B) informing the borrower that the loan
forgiveness options described in subparagraph (A) are
provided free of charge; and
``(C) including, for each loan forgiveness option,
information regarding how the borrower should proceed,
including contact information, if the borrower wishes
to pursue such loan forgiveness option.
``(2) Exclusions.--Notwithstanding paragraph (1), the
Secretary shall not provide a notification under this
subsection to a borrower of a loan under this part if--
``(A) the borrower is also receiving a notification
under subsection (m)(7); or
``(B) the borrower has requested that the Secretary
no longer provide the notifications under this
subsection.''.
(c) Effective Date.--The amendments made by this section shall take
effect on July 1, 2019.
SEC. 3. TRANSITION TO IMPROVED PUBLIC SERVICE LOAN FORGIVENESS PROGRAM.
(a) Review of Borrowers Currently Participating in Public Service
Loan Forgiveness.--
(1) Calculating the number of qualifying payment
obligations for current public service loan forgiveness program
participants.--By not later than July 1, 2019, the Secretary
shall, for each borrower that has submitted a certification of
employment under the public service loan forgiveness program
under section 455(m) of the Higher Education Act of 1965 (20
U.S.C. 1087e) before July 1, 2019--
(A) calculate the number of qualifying payment
obligations under such section satisfied by the
borrower, using the criteria of such section as in
effect on July 1, 2019; and
(B) inform the borrower of the changes in the
public service loan forgiveness program and the number
of qualifying payment obligations that the borrower
will have satisfied for purposes of the program,
beginning on July 1, 2019.
(2) Retroactive partial loan forgiveness.--By not later
than July 1, 2019, the Secretary shall take such steps as are
necessary to provide partial loan forgiveness under section
455(m)(3)(A)(i) of the Higher Education Act of 1965 (20 U.S.C.
1087e(m)(3)(A)(i)), as in effect on such date, to borrowers
with outstanding balance of principal and interest on a loan
made under this part who met the criteria for partial loan
forgiveness under such section, as in effect on July 1, 2019,
before such date but on or after October 1, 2007.
(3) Applicability of other provisions.--In carrying out
paragraphs (1) and (2), and in any other case where the
Secretary is applying the loan forgiveness provisions of
section 455(m) of the Higher Education Act of 1965 (20 U.S.C.
1087e(m)), as in effect on July 1, 2019, to a borrower for whom
one or more payment obligations were satisfied before July 1,
2019, the Secretary shall determine the number of payment
obligations satisfied by applying all of the provisions of such
section as in effect on July 1, 2019, including the calculation
of payment obligations under section 455(m)(5) of such Act and
the inclusion of payment obligations satisfied through the
component loans of a Federal Direct Consolidation Loan under
section 455(m)(6), without regard as to the date on which the
payment obligation was satisfied.
(b) Special PSLF Program Funds.--
(1) Definition of special pslf program funds.--In this
section, the term ``special PSLF program funds'' means the
amounts appropriated for public service loan forgiveness under
section 315 of division H of the Consolidated Appropriations
Act, 2018 (Public Law 115-141; March 23, 2018) or under section
313 of division B of the Department of Defense and Labor,
Health and Human Services, and Education Appropriations Act,
2019 and Continuing Appropriations Act, 2019 (Public Law 115-
245; September 28, 2018).
(2) Rescission.--Upon the effective date described in
section 2(c), all special PSLF program funds that remain
unexpended on such date shall be rescinded.
(3) Transition.--The Secretary of Education shall establish
a process through which the Secretary shall--
(A) review the applications of borrowers who
applied for the loan forgiveness program carried out
with special PSLF program funds but had not received
loan forgiveness through such program before July 1,
2019; and
(B) assist such borrowers in pursuing loan
forgiveness under section 455(m) of the Higher
Education Act of 1965 (20 U.S.C. 1087e(m)), as in
effect on July 1, 2019.
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