Public Service Appreciation Through Loan Forgiveness Act

I 117TH CONGRESS 1ST SESSION H. R. 251 To amend the Higher Education Act of 1965 to create a reduction schedule for public service loan forgiveness, and for other purposes. IN THE HOUSE OF REPRESENTATIVES JANUARY 11, 2021 Mr. KRISHNAMOORTHI introduced the following bill; which was referred to the Committee on Education and Labor A BILL To amend the Higher Education Act of 1965 to create a reduction schedule for public service loan forgiveness, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Public Service Appre- 4 ciation Through Loan Forgiveness Act’’. 5 SEC. 2. DEPARTMENT ACTIVITIES. 6 Not later than 180 days after the date of the enact- 7 ment of this Act, the Secretary of Education shall— 8 (1) develop informational materials with respect 9 to the eligibility requirements of the public service 10 VerDate Sep 11 2014 00:59 Feb 05, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H251.IH H251 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 251 IH loan forgiveness program under section 455(m) of 1 the Higher Education Act of 1965 (20 U.S.C. 2 1087e(m)); 3 (2) make such informational materials available 4 on the website of the Department of Education; 5 (3) conduct outreach to not-for-profit institu- 6 tions and government organizations that regularly 7 employ individuals eligible for such public service 8 loan forgiveness program benefits to inform such in- 9 stitutions and organization of such informational 10 materials; and 11 (4) establish an online portal for borrowers to 12 submit employment certification forms to certify em- 13 ployment in a public service job (as defined in such 14 section 455(m)(3)). 15 SEC. 3. PUBLIC SERVICE LOAN FORGIVENESS REDUCTION 16 SCHEDULE. 17 Section 455(m) of the Higher Education Act of 1965 18 (20 U.S.C. 1087e(m)) is amended by adding at the end 19 the following: 20 ‘‘(5) REDUCTION SCHEDULE.— 21 ‘‘(A) 10 PERCENT CANCELLATION.—The 22 Secretary shall cancel 10 percent of the balance 23 of interest and principal due on any eligible 24 VerDate Sep 11 2014 00:59 Feb 05, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H251.IH H251 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 251 IH Federal Direct Loan not in default for a bor- 1 rower who— 2 ‘‘(i) has made 48 monthly payments 3 described in paragraph (1)(A); 4 ‘‘(ii) is employed in a public service 5 job at the time of such cancellation; and 6 ‘‘(iii) has been employed in a public 7 service job during the period in which the 8 borrower makes each of the 48 payments 9 described in clause (i). 10 ‘‘(B) 20 PERCENT CANCELLATION.—The 11 Secretary shall cancel 20 percent of the balance 12 of interest and principal due on any eligible 13 Federal Direct Loan not in default for a bor- 14 rower who— 15 ‘‘(i) has made 72 monthly payments 16 described in paragraph (1)(A); 17 ‘‘(ii) is employed in a public service 18 job at the time of such cancellation; and 19 ‘‘(iii) has been employed in a public 20 service job during the period in which the 21 borrower makes each of the 72 payments 22 described in clause (i). 23 ‘‘(C) 50 PERCENT CANCELLATION.—The 24 Secretary shall cancel 50 percent of the balance 25 VerDate Sep 11 2014 00:59 Feb 05, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H251.IH H251 kjohnson on DSK79L0C42PROD with BILLS 4 •HR 251 IH of interest and principal due on any eligible 1 Federal Direct Loan not in default for a bor- 2 rower who— 3 ‘‘(i) has made 96 monthly payments 4 described in paragraph (1)(A); 5 ‘‘(ii) is employed in a public service 6 job at the time of such cancellation; and 7 ‘‘(iii) has been employed in a public 8 service job during the period in which the 9 borrower makes each of the 96 payments 10 described in clause (i). 11 ‘‘(D) ELIGIBILITY FOR FURTHER REDUC- 12 TIONS ALLOWED.—A borrower may, for the 13 same service, receive a reduction of loan obliga- 14 tions— 15 ‘‘(i) under each of subparagraphs (A), 16 (B), and (C) of this paragraph; and 17 ‘‘(ii) under paragraph (1).’’. 18 Æ VerDate Sep 11 2014 00:59 Feb 05, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\H251.IH H251 kjohnson on DSK79L0C42PROD with BILLS