Sponsors (5)
The bill makes it easier and more predictable for qualifying reservists and veterans to get PSLF credit by automating and clarifying service counting, but it raises federal costs, leaves gaps for those without matching payments, and depends on reliable DoD–ED data matching to work smoothly.
Reserve service members and veterans with Direct Loans who made matching monthly payments will have those months automatically counted toward Public Service Loan Forgiveness (PSLF), speeding their path to loan forgiveness.
Borrowers who qualify will no longer need to submit paperwork for service certification because DoD–ED annual data matches automate certification, reducing administrative burden on service members.
Using the DoD point system to define full- and partial-year service creates clearer, more objective rules for counting qualifying months, improving predictability for affected borrowers.
Taxpayers may face higher federal costs if more borrowers reach PSLF sooner, increasing government loan-forgiveness outlays.
Reserve members who did not make matching monthly payments during service (for example, due to deferment or forbearance) will not receive the automatic credit and may remain ineligible for PSLF absent other remedies.
The requirement for regular DoD–ED data sharing creates implementation and operational risks—matching errors or delays could slow certification, produce appeals, and cause confusion for borrowers.
Based on analysis of 2 sections of legislative text.
Counts qualifying reserve service months as PSLF-eligible payment months when borrowers made corresponding Direct Loan payments, using DoD–Education data matches to certify service.
Introduced August 5, 2025 by Seth Magaziner · Last progress August 5, 2025
Deems months of qualifying reserve component service as qualifying payment months for Public Service Loan Forgiveness (PSLF)-type credit when the borrower made the corresponding monthly payment on an eligible Federal Direct Loan. The Departments of Education and Defense must perform an initial data match within one year and annually thereafter to identify eligible reserve members, certify full and partial years of covered service, and count qualifying payments automatically without additional action by the individual. Full-year and partial-year service are defined by the points system in federal law (full year = at least 80 points; partial year = 50–79 points). For a covered full year, each month may be counted as a qualifying payment month if a corresponding payment was made; for a covered partial year, up to six months may be counted at the Secretary of Education’s discretion.