117 S4345 IS: Simplifying and Strengthening Public Service Loan Forgiveness Act U.S. Senate 2022-05-26 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

II117th CONGRESS2d SessionS. 4345IN THE SENATE OF THE UNITED STATESMay 26, 2022Mr. Whitehouse (for himself and Mr. Merkley) introduced the following bill; which was read twice and referred to the Committee on Health, Education, Labor, and PensionsA BILLTo amend the Higher Education Act of 1965 to amend the public service loan forgiveness program.

1.

Short title

This Act may be cited as the Simplifying and Strengthening Public Service Loan Forgiveness Act.

2.

Public service loan forgiveness reform

(a)

Reducing payments

(1)

In general

Section 455(m)(1) of the Higher Education Act of 1965 (20 U.S.C. 1087e(m)(1)) is amended—(A)in subparagraph (A), by striking 120 and inserting 60; and(B)in subparagraph (B)(ii), by striking 120 and inserting 60.(2)

Effective date

The amendments made by paragraph (1) shall apply with respect to any eligible Federal Direct Loan which is in repayment status on or after the date of enactment of this Act. (b)

Making waivers permanent

Section 455(m) of the Higher Education Act of 1965 (20 U.S.C. 1087e(m)) is amended by adding at the end the following:(5)

Counting prior payments; simplifying program

Notwithstanding paragraph (1), in carrying out this section, the Secretary shall comply with the following:(A)The Secretary shall consider as a monthly payment under this subsection, any monthly payment made while the borrower was employed in a public service job on a loan made, insured, or guaranteed under this title before, on, or after the date of enactment of this paragraph pursuant to any repayment plan authorized under this Act.(B)The Secretary shall consider as a monthly payment under this subsection, a payment described in subparagraph (A) that was late or was for less than the full amount of the monthly payment.(C)The Secretary shall count as a monthly payment under this subsection, a month for which a borrower is serving on active duty (as described in section 101(d)(1) of title 10, United States Code) or serving in the Peace Corps, even if the borrower's loan was in deferment or forbearance and not in active repayment.(D)The Secretary shall allow a borrower of a Federal PLUS Loan, made on behalf of a dependent student, under section 428B who is employed in a public service job to consolidate such loan into a Federal Direct Consolidation Loan in order to receive loan cancellation pursuant to this subsection. (E)The Secretary shall allow the borrowers of a Joint Consolidation Loan or a Joint Direct Consolidation Loan who are employed in a public service job to consolidate such loan into a Federal Direct Consolidation Loan in order to receive loan cancellation pursuant to this subsection..