The SERVICE Act would make significant changes to the Public Service Loan Forgiveness program, which forgives remaining federal student loan debt for borrowers who work in public service jobs. The bill reduces the number of qualifying monthly payments required for loan cancellation from 120 to 96 payments, making forgiveness achievable four years sooner. It expands what counts toward forgiveness by allowing certain periods of deferment and forbearance (such as military service, unemployment, and economic hardship) to count as qualifying payments, and it creates a "buyback" process that lets borrowers pay a lump sum to count previous months of public service employment toward their forgiveness total. The legislation also includes provisions to prevent interest from capitalizing after forbearance periods end, establishes an online portal where borrowers can track their progress toward forgiveness and apply for cancellation, creates a searchable database of public service jobs, and expands eligibility to include independent contractors. Additionally, the bill modifies teacher loan forgiveness programs and requires a government study on whether employment data matching agreements could simplify the certification process. The bill does not include specific funding amounts or implementation timelines beyond requiring the Government Accountability Office to report its findings within one year of enactment.
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