H.R.3096: Strengthening Loan Forgiveness for Public Servants Act

Overview

H.R. 3096 would amend the Higher Education Act to provide an increasing percentage of federal student loan forgiveness based on number of years of public service, or other eligible employment:
• After 2 years of employment, 15% of the total amount due on eligible loans at the time the employee commenced employment;
• After 4 years of employment, 15% of the total amount due on eligible loans at the time the employee commenced employment;
• After 6 years of employment, 20% of the total amount due on eligible loans at the time the employee commenced employment;
• After 8 years of employment, 20% of the total amount due on eligible loans at the time the employee commenced employment;
• After 10 years of employment, 30% of the total amount due on eligible loans at the time the employee commenced employment.

Under this system, if all criteria are met, 100% of the total eligible loans would be forgiven once a borrower has completed 10 years of public service employment.

A similar certification to the current Public Service Loan Forgiveness (PSLF) program would be established.

Further, once public service employment has been certified, the borrower’s eligible federal loans are placed in deferment for the duration of the time of public service employment.

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Talking Points

  • The National Assembly supports this bill because, unlike the current PSLF program, this legislation would allow public service employees to receive partial loan forgiveness for fewer than 10 years of public service employment.
  • Moreover, because eligible loans are deferred while a borrower is employed in public service, borrowers could potentially avoid paying down any portion of their loans while employed in a public service job.

Our Stance

Support

Priority

High

Bill Number

H.R.3096

Date Introduced

June 04, 2019

Committee

House Education and Labor Committee

Bill Status

Introduced or Prefiled