Public Service Reward Act
This bill makes changes to the Public Service Loan Forgiveness (PSLF) program. Among these changes, the bill (1) directs the Department of Education to provide partial loan forgiveness to a borrower for every 12 months of qualifying payments and employment, and (2) makes additional loan types (e.g., Federal Family Education Loans and Perkins Loans) eligible for forgiveness under the PSLF program.
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9097 Introduced in House (IH)]
<DOC>
117th CONGRESS
2d Session
H. R. 9097
To expand and improve the Public Service Loan Forgiveness Program, and
for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 30, 2022
Mr. Clyburn (for himself and Mr. Brendan F. Boyle of Pennsylvania)
introduced the following bill; which was referred to the Committee on
Education and Labor, and in addition to the Committee on Ways and
Means, for a period to be subsequently determined by the Speaker, in
each case for consideration of such provisions as fall within the
jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To expand and improve the Public Service Loan Forgiveness Program, and
for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Public Service Reward Act''.
SEC. 2. PUBLIC SERVICE LOAN FORGIVENESS EXPANSION AND IMPROVEMENTS.
Section 455(m) of the Higher Education Act of 1965 (20 U.S.C.
1087e(m)) is amended--
(1) by amending paragraph (1) to read as follows:
``(1) Forgiveness for public service.--
``(A) In general.--The Secretary shall forgive the
appropriate amount of the balance due (as determined in
accordance with paragraph (2)) on any eligible Federal
loan not in default for a borrower who, after October
1, 2007--
``(i) has been employed full-time in a
public service job for 12 months; and
``(ii) for each of the 12 months of
employment described in clause (i), has made a
monthly payment on the eligible Federal loan.
``(B) Method of loan forgiveness.--To provide loan
forgiveness under this paragraph, the Secretary is
authorized to carry out a program--
``(i) through the holder of the loan, to
assume the obligation to repay a qualified loan
amount for a loan made, insured, or guaranteed
under part B of this title;
``(ii) to cancel a qualified loan amount
for a loan made under this part; and
``(iii) to cancel a qualified loan amount
for a loan made under part E, and to make
payments to institutions of higher education
for an amount equal to the aggregate of the
amounts of loans from its student loan fund
which are canceled pursuant to this subsection,
in accordance with the requirements of section
465(b).
``(C) Special rules.--
``(i) Forgiveness of parent plus loans.--A
borrower of a loan under section 428B, or a
Federal Direct PLUS loan, made on behalf of a
dependent student may receive loan forgiveness
under this subsection for such loan made on
behalf on a dependent student if the borrower
meets the requirements under this subsection.
``(ii) No disruption for consolidation.--
With respect to a borrower who is employed
full-time in a public service job, monthly loan
payments made by the borrower on an eligible
Federal loan before such loan is consolidated
into a consolidation loan that is an eligible
Federal loan under this subsection shall be
considered to be qualifying monthly loan
payments on such consolidation loan for the
purpose of calculating the number of months
that the borrower has been making qualifying
payments on such consolidation loan under
subparagraph (A)(ii).
``(D) Rules of construction.--Nothing in this
subsection shall be construed to--
``(i) require that a borrower perform the
12 months of employment or make the 12 monthly
payments described in subparagraph (A)
consecutively in order to qualify for loan
forgiveness under this subsection;
``(ii) require that a borrower be employed
in a public service job at the time that the
borrower receives forgiveness under this
subsection; or
``(iii) authorize the refunding of any
repayment of a loan, except that a borrower may
be reimbursed for any payment made after the
date on which the borrower has been approved
for forgiveness under this subsection and
before the date on which the Secretary carries
out such forgiveness.
``(E) Loan forgiveness not taxable income.--The
amount of a loan, including interest on a loan,
forgiven under this subsection shall not be considered
income for purposes of the Internal Revenue Code of
1986.
``(F) Standard procedures.--Not later than 180 days
after the date of enactment of the Public Service
Reward Act, the Secretary shall develop and make
publicly available the procedures the Secretary
(including the contractors and servicers involved) will
use to--
``(i) determine whether a borrower meets
the requirements for loan forgiveness under
this subsection;
``(ii) determine the amount of forgiveness
for which a borrower is eligible under
paragraph (2); and
``(iii) inform any borrower who applies for
and is denied loan forgiveness under this
subsection of--
``(I) the reason the borrower's
application was denied; and
``(II) the procedures necessary for
the borrower to appeal the denial; and
``(iv) accept and evaluate an appeal from a
borrower who is denied loan forgiveness under
this subsection.'';
(2) by amending paragraph (2) to read as follows:
``(2) Loan forgiveness amounts.--
``(A) In general.--After completion by a borrower
of 12 months of employment and qualifying payments
described in paragraph (1)(A), the Secretary shall
forgive an appropriate amount of the balance due on the
eligible Federal loans made to the borrower, as
determined in accordance with subparagraphs (B) and
(C), except that in no case shall the total amount
forgiven by the Secretary under this paragraph exceed
the outstanding balance of principal and interest due
on the eligible Federal loans of the borrower on the
date the borrower is approved for such forgiveness.
``(B) Forgiveness amounts.--The appropriate amount
of forgiveness provided by the Secretary to a borrower
for completing 12 months of employment and qualifying
payments described in paragraph (1)(A) shall be--
``(i) for each of the first, second, third,
fourth, and fifth times the borrower completes
12 months of such employment and qualifying
payments, an amount equal to the total amount
of interest that accrued on each of the
eligible Federal loans of the borrower during
each of such 12 months;
``(ii) for each of the sixth, seventh,
eighth, and ninth times the borrower completes
12 months of such employment and qualifying
payments, an amount equal to the sum of--
``(I) the total amount of interest
that accrued on each of the eligible
Federal loans of the borrower during
each of such 12 months; and
``(II) 5 percent of the total
amount outstanding (including principal
and interest) on each of the eligible
Federal loans of the borrower on the
date each such loan first entered
repayment; and
``(iii) for the tenth time the borrower
completes 12 months of such employment and
qualifying payments, 100 percent of the
outstanding balance of principal and interest
due on each of the eligible Federal loans of
the borrower on the date the borrower is
approved for such forgiveness.
``(C) Calculation of forgiveness amounts for past
public service.--In the case of a borrower who has
completed at least 12 months of employment and
qualifying payments described in paragraph (1)(A)
(including monthly loan payments before consolidation,
as described in paragraph (1)(C)(ii)) prior to the date
of enactment of this subsection, the appropriate amount
of forgiveness provided by the Secretary shall be--
``(i) in the case of a borrower who has
completed 12 months of such employment and
qualifying payments at least 10 times, but who
has not received loan cancellation under this
subsection (as it was in effect on the day
before the date of enactment of the Public
Service Reward Act), 100 percent of the
outstanding balance of principal and interest
due on each of the eligible Federal loans of
the borrower on the date the borrower is
approved for such forgiveness; and
``(ii) in the case of a borrower who has
completed 12 months of such employment and
qualifying payments at least one time but not
more than 9 times, for each such time the
borrower completed 12 months of such employment
and qualifying payments in accordance with
subparagraph (B), an amount equal to the total
amount of interest that accrued on each of the
eligible Federal loans of the borrower during
each of such 12 months.
``(D) Past service determination.--A borrower who
has completed at least 12 months of employment and
qualifying payments described in subparagraph (C) shall
be eligible for forgiveness under this subsection
regardless of whether the borrower would have been
eligible for cancellation as a result of such
employment and payments under this subsection as it was
in effect on the day before the date of enactment of
the Public Service Reward Act.'';
(3) in paragraph (3)--
(A) by amending subparagraph (A) to read as
follows:
``(A) Eligible federal loan.--The term `eligible
Federal Loan' means any loan made, insured, or
guaranteed under part B, this part, or part E.'';
(B) by redesignating subparagraph (B) as
subparagraph (C), and by inserting before subparagraph
(C) (as so redesignated) the following:
``(B) Monthly payment.--The term `monthly payment'
means a loan payment of not less than the minimum
monthly amount due, as required by law or the terms of
the loan, based on the repayment plan applicable to the
loan.''; and
(C) by adding at the end the following:
``(D) Temporary expanded pslf program.--The term
`temporary expanded PSLF program' includes each loan
cancellation program under the following provisions of
law:
``(i) section 315 of title III of division
H of the Consolidated Appropriations Act, 2018
(Public Law 115-141; 132 Stat. 752 et seq.);
``(ii) section 313 of title III of division
B the Department of Defense and Labor, Health
and Human Services, and Education
Appropriations Act, 2019 and Continuing
Appropriations Act, 2019 (Public Law 115-245);
``(iii) section 312 of title III of
division A of the Further Consolidated
Appropriations Act, 2020 (Public Law 116-94);
and
``(iv) section 310 of Title III of division
H of the Omnibus Appropriations Act, 2021
(Public Law 116-260).''; and
(4) by adding at the end the following new paragraphs:
``(5) Notices regarding pslf expansion and requirements.--
``(A) General notice.--Not later than one year
after the date of enactment of the Public Service
Reward Act, the Secretary shall make publicly
available, in simple and understandable terms,
information about the loan forgiveness program under
this subsection, the changes made to the program by the
Public Service Reward Act, and how such changes may
affect the eligibility of borrowers of eligible Federal
loans for loan forgiveness under this subsection. Such
information shall be easily accessible through the
website of the Department of Education.
``(B) Notice to all eligible federal loan
borrowers.--Not later than 6 months after the date of
enactment of the Public Service Reward Act, the
Secretary of Education shall notify all eligible
Federal loan borrowers of the changes made to the
program under this subsection by the Public Service
Reward Act, and how such changes may affect the
eligibility of borrowers for loan forgiveness under
this subsection.
``(C) Notices for borrowers denied loan
cancellation or loan forgiveness.--Not later than 6
months after the date of enactment of the Public
Service Reward Act, the Secretary shall--
``(i) identify and inform each borrower who
applied for and was denied loan cancellation
under this subsection (as in effect on the day
before the date of enactment of the Public
Service Reward Act) of--
``(I) the reason the borrower's
application was denied; and
``(II) the changes made to the
program under this subsection by the
Public Service Reward Act, and how such
changes may affect the eligibility of
the borrower for loan forgiveness under
this subsection;
``(ii) determine whether each such borrower
qualifies for loan forgiveness under this
subsection, and if so, forgive the borrower's
loans in accordance with this subsection (as in
effect on the date of such forgiveness);
``(iii) in the case of such a borrower who
does not qualify for loan forgiveness under
this subsection, notify the borrower of--
``(I) any options to qualify for
loan forgiveness under this subsection,
and how to successfully pursue such
options; and
``(II) the procedures necessary for
the borrower to appeal the
determination that the borrower does
not qualify for such loan forgiveness;
and
``(iv) develop a process to inform any
borrower who applies for and is denied loan
forgiveness under this subsection after the
date of enactment of the Public Service Reward
Act of--
``(I) the reason the borrower's
application was denied; and
``(II) the procedures necessary for
the borrower to appeal the denial.
``(D) Notice to employers.--With respect to each
employer listed in the database described in paragraph
(6), the Secretary shall, on an annual basis and in a
manner that is consistent with Federal laws on data
privacy--
``(i) provide each such employer with
standardized information on the program under
this subsection, including eligibility
requirements; and
``(ii) encourage the employer to provide
such information to employees.
``(E) Notice to institutions of higher education.--
With respect to each institution of higher education
participating in any program under this title, the
Secretary shall, on an annual basis, provide each such
institution with standardized information on the
program under this subsection, including eligibility
requirements for loan forgiveness.
``(F) Accessibility of notices to borrowers.--In
carrying out subparagraphs (A), (B), and (C), the
Secretary shall--
``(i) in conjunction with the Bureau of the
Census, determine the most common languages
spoken by English learner students and their
parents in the United States;
``(ii) develop and make publicly available
versions of such notices in not fewer than 5 of
the most common languages determined under
clause (i) and make such versions available and
accessible to borrowers in paper and electronic
formats; and
``(iii) ensure that such notices are
available in formats accessible to individuals
with disabilities and compliant with the most
recent Web Content Accessibility Guidelines, or
successor guidelines.
``(6) Database of public service jobs; data matching.--
``(A) Database.--Not later than 18 months after the
date of enactment of the Public Service Reward Act, the
Secretary shall establish and maintain a publicly
accessible database of employers that employ
individuals in public service jobs. In establishing
such database, the Secretary shall consult with
relevant Federal agencies that possess records about
the status of borrowers of eligible Federal loans as
employees in public service jobs.
``(B) Data matching agreements.--
``(i) In general.--The Secretary shall
enter into data matching agreements with
relevant Federal agencies that possess records
about the status of borrowers of eligible
Federal loans as employees in public service
jobs for the purpose of eliminating, to the
extent practicable, the need for a borrower or
an employer to submit a certification of
employment to the Secretary. Such data matching
agreements may--
``(I) permit the Secretary to
identify and notify borrowers of
potential eligibility for loan
forgiveness under this subsection; and
``(II) include identifying
borrowers using employer identification
numbers.
``(ii) Specific federal agencies.--
Notwithstanding any Federal law, the Secretary
of Labor, the Commissioner of Internal Revenue,
and the Commissioner of Social Security shall
disclose any relevant records to the Secretary
for the purposes of meeting the Secretary's
obligations to reduce barriers to certification
of employment as described in subparagraph (A).
``(iii) Notice to borrowers.--If the
Secretary receives employer or employment
information regarding a borrower from a Federal
agency pursuant to this paragraph, the
Secretary shall timely notify the borrower that
the Secretary received such information.
``(C) Report.--Not later than 180 days after the
date of enactment of the Public Service Reward Act, the
Secretary, jointly with the heads of relevant Federal
agencies, shall report to the authorizing committees on
the progress being made to create the database required
under subparagraph (A) and to implement the data
matching agreements required under subparagraph (B).
``(7) Online portal.--
``(A) Borrowers.--Not later than 18 months after
the date of enactment of the Public Service Reward Act,
the Secretary shall ensure that borrowers have access
to an online portal that provides each borrower who
signs on to such portal with the following:
``(i) Instructions on how to access the
database under paragraph (6) so that the
borrower can determine whether the borrower is
employed in a public service job.
``(ii) An identification of the loans of
the borrower that are eligible Federal loans.
``(iii) With respect to each such eligible
Federal loan, the number of monthly payments on
such loan that qualify as a monthly payment
under paragraph (1)(A), and the estimated
number of monthly payments under paragraph
(1)(A) remaining on such loan before the
borrower may be eligible for loan forgiveness
under this subsection.
``(iv) With respect to each loan of the
borrower that is not eligible for loan
forgiveness under this subsection, an
explanation of why the loan is not so eligible
and instructions on what, if anything, the
borrower may do to make the loan so eligible.
``(v) Instructions for the submission of
any forms associated with such loan
forgiveness, and an ability for the borrower to
use the portal to electronically sign and
submit such forms.
``(B) Employers.--The Secretary shall ensure that
an employer of a borrower has the ability to
electronically sign and submit any forms associated
with loan forgiveness under this subsection.
``(C) Information.--The Secretary shall ensure that
any information provided through the online portal
described in this paragraph--
``(i) is up-to-date information; and
``(ii) is provided in a written format,
through email or regular mail, if so requested
by the borrower or employer.
``(8) Reports.--
``(A) Final report on loan cancellation.--Not later
than 180 days after the date of enactment of the Public
Service Reward Act, the Secretary shall submit to the
authorizing committees and make publicly available a
final report on loan cancellation under this subsection
on and before such date of enactment, including--
``(i) the number of borrowers who received
loan cancellation under this subsection (as in
effect on the day before such date of
enactment) on or before such date of enactment,
and the number and percentage of such borrowers
whose application for such loan cancellation
had been previously denied before receiving
such cancellation;
``(ii) the total number of borrowers whose
application for loan cancellation under this
subsection (as in effect on the day before such
date of enactment) that was submitted on or
before such date of enactment was denied, and a
description of why each such application was so
denied;
``(iii) the number of borrowers described
in clause (ii) who contacted the Secretary (on
or before such date of enactment) to determine
how to qualify for such loan cancellation or
for loan cancellation under the temporary
expanded PSLF program; and
``(iv) a list of reasons why certain
payments made on eligible Federal Direct loans
did not qualify as one of the monthly payments
described in paragraph (1)(A) (as such
paragraph was in effect on the day before such
date of enactment).
``(B) Annual report on loan forgiveness.--Beginning
in fiscal year 2024 and annually thereafter, the
Secretary shall submit to the authorizing committees an
annual report with respect to the preceding fiscal
year, on--
``(i) the number of borrowers who received
loan forgiveness under this subsection after
the date of enactment of the Public Service
Reward Act;
``(ii) the number and percentage of
borrowers described in clause (i) whose
application for loan cancellation under this
subsection (as in effect on the day before such
date of enactment) was denied on or before such
date of enactment; and
``(iii) the number and percentage of
borrowers whose application for loan
forgiveness under this subsection was denied,
including--
``(I) a description of why each
such application was so denied; and
``(II) whether each such borrower
had, on or before such date of
enactment, submitted an application for
loan cancellation under this subsection
(as in effect on the day before such
date of enactment) that was denied.''.
SEC. 3. AUTHORIZATION OF DISCLOSURE BY SECRETARY OF THE TREASURY.
(a) In General.--Section 6103(l)(13) of the Internal Revenue Code
of 1986 is amended by adding at the end the following new subparagraph:
``(G) Public service loan forgiveness.--The
Secretary shall, upon written request from the
Secretary of Education, disclose to any authorized
person, only for the purpose of (and to the extent
necessary in) discharging loans, maintaining the public
service jobs database, and entering into data matching
agreements under section 455(m) of the Higher Education
Act of 1965, the following return information from
returns (for any taxable year specified by the
Secretary of Education as relevant to such purpose) of
an individual:
``(i) The return information described in
clauses (i) and (vi) of subparagraph (A).
``(ii) The employer identification number
of each employer employing the individual
during a specified taxable year.
``(iii) Verification of whether an
individual was employed by an employer during a
specified taxable year.
``(iv) The name of each employer employing
the individual during a specified taxable year.
``(v) The type indicator of the employer
employing the individual during a specified
taxable year.''.
(b) Conforming Amendments.--
(1) Section 6103(p) of such Code is amended--
(A) in paragraph (3)(A), by inserting ``(13)(G),''
before ``(14)'', and
(B) in paragraph (4) by inserting ``(13)(G),''
after ``(13)(D)(i),'' each place it appears.
(2) Section 7213(a)(2) of such Code is amended by inserting
``(13)(G),'' after ``(10), (12),''.
(c) Effective Date.--The amendments made by this section shall
apply to disclosures made on or after the date of the enactment of this
Act.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Education and Labor, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Education and Labor, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
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