PSLF Payment Completion Fairness Act

Public Service Loan Forgiveness Payment Completion Fairness Act or the PSLF Payment Completion Fairness Act

This bill removes the requirement that a borrower must be employed in a public service job at the time of loan forgiveness under the Public Service Loan Forgiveness (PSLF) program.

Under the current PSLF program, the Department of Education must cancel the balance of interest and principal due on a borrower's Federal Direct Loans after the borrower makes 120 monthly loan payments while employed in a public service job and, at the time of loan forgiveness, the borrower is employed in a public service job. This bill removes the requirement that the borrower must be working in a public service job at the time of loan forgiveness.

Bill 117 hr 7465, also known as the PSLF Payment Completion Fairness Act, aims to address issues related to the Public Service Loan Forgiveness (PSLF) program. The PSLF program was established to forgive the remaining balance on federal student loans for borrowers who have made 120 qualifying payments while working in public service jobs.

The PSLF Payment Completion Fairness Act seeks to provide relief to borrowers who have been making payments towards their loans under the assumption that they would qualify for loan forgiveness, only to later find out that their payments did not count towards the 120 required payments. This discrepancy has led to frustration and financial hardship for many borrowers who believed they were on track to have their loans forgiven.

The bill proposes to address this issue by allowing borrowers who have made payments under a non-qualifying repayment plan to have those payments retroactively counted towards the 120 required payments. This would provide much-needed relief to borrowers who have been making payments in good faith, only to later discover that they were not on track to have their loans forgiven. Overall, the PSLF Payment Completion Fairness Act aims to ensure that borrowers who have been working in public service jobs and making payments towards their student loans are able to receive the loan forgiveness they were promised. By retroactively counting non-qualifying payments towards the 120 required payments, this bill seeks to provide fairness and relief to borrowers who have been unfairly burdened by the current system.