Strengthening Loan Forgiveness for Public Servants Act

Hozzl · 2022-12-31T05:05:00Z

Explore the details of House Bill 4724 Strengthening Loan Forgiveness for Public Servants Act currently in Congress. Get insights into its purpose, current status, sponsors, and potential impact on Education. Stay informed on legislative developments.

12/31/2022, 5:05 AM

Summary of Bill HR 4724

Bill 117 HR 4724, also known as the Strengthening Loan Forgiveness for Public Servants Act, aims to improve the Public Service Loan Forgiveness (PSLF) program for individuals working in public service professions. The bill seeks to address the challenges and inconsistencies that have arisen with the current PSLF program, which was created to forgive the student loans of individuals who work in public service jobs after making 120 qualifying payments.

The Strengthening Loan Forgiveness for Public Servants Act proposes several key changes to the PSLF program. Firstly, it aims to simplify the application process for loan forgiveness by creating a single, standardized application form that all borrowers can use. This would help to streamline the process and reduce confusion for borrowers.

Additionally, the bill seeks to expand the types of loans that are eligible for forgiveness under the PSLF program. Currently, only Direct Loans are eligible for forgiveness, but the bill would allow borrowers with Federal Family Education Loans (FFEL) and Perkins Loans to qualify for loan forgiveness as well. Furthermore, the Strengthening Loan Forgiveness for Public Servants Act aims to address the issue of loan servicers providing inaccurate information to borrowers about their eligibility for loan forgiveness. The bill would require loan servicers to provide accurate and up-to-date information to borrowers about their eligibility for the PSLF program. Overall, the Strengthening Loan Forgiveness for Public Servants Act seeks to improve the PSLF program and make it more accessible and effective for individuals working in public service professions. By simplifying the application process, expanding the types of loans eligible for forgiveness, and holding loan servicers accountable for providing accurate information, the bill aims to ensure that public servants receive the loan forgiveness they have earned through their service to their communities.

Congressional Summary of HR 4724

Strengthening Loan Forgiveness for Public Servants Act

This bill revises the Public Service Loan Forgiveness (PSLF) program to provide for partial loan cancellation based on the length of public service employment.

Specifically, the bill directs the Department of Education (ED) to cancel 15%, 15%, 20%, 20%, and 30% of the amount a borrower owes after 2, 4, 6, 8, and 10 years of public service employment, respectively, on Federal Direct Loans made after the bill's enactment. Under the current PSLF program, ED 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.

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Current Status of Bill HR 4724

Bill HR 4724 is currently in the status of Bill Introduced since July 27, 2021. Bill HR 4724 was introduced during Congress 117 and was introduced to the House on July 27, 2021. Bill HR 4724's most recent activity was Referred to the House Committee on Education and Labor. as of July 27, 2021

Bipartisan Support of Bill HR 4724

Total Number of Sponsors

Democrat Sponsors

Republican Sponsors

Unaffiliated Sponsors

Total Number of Cosponsors

Democrat Cosponsors

Republican Cosponsors

Unaffiliated Cosponsors

Policy Area and Potential Impact of Bill HR 4724

Primary Policy Focus

Education

Alternate Title(s) of Bill HR 4724

To amend the Higher Education Act of 1965 to provide for a percentage of student loan forgiveness for public service employment, and for other purposes.

Strengthening Loan Forgiveness for Public Servants Act