State Workforce Incentive Act

State Workforce Incentive Act

This bill establishes a state-directed program of loan repayment credits to replace the public service loan forgiveness program.

Specifically, the bill provides each state with an annual allotment of loan repayment credits, and it tasks states with determining the occupations for which a borrower shall be able to receive such credits (i.e., occupations that fill state-specific workforce and public service needs). Upon a determination that a borrower has met certain requirements, the Department of Education shall cancel an amount of the borrower's outstanding balance on their federal student loans that is equal to the amount of credits allocated to the borrower by their state under this program.