Sponsors (10)
The bill expands and clarifies what counts toward PSLF and improves borrower notice—easing the path to forgiveness for many public service workers—at the cost of higher federal spending, increased administrative burden, and some unequal retroactive relief outcomes.
Public service borrowers — including part-time, low-payment, and other students — will have more months count toward Public Service Loan Forgiveness (PSLF): the first 60 monthly payments count regardless of amount, months on standard repayment plans now qualify, and months spent in administrative forbearance count if the borrower remains in public service.
Borrowers will get clearer, time-bound information about the rule changes and how to switch repayment plans (notice within 180 days), improving transparency and borrowers' ability to take actionable steps toward forgiveness.
Taxpayers could face higher federal costs because broader counting rules will likely increase the number of borrowers who qualify for PSLF and receive loan forgiveness.
Some borrowers who already made many low payments (e.g., those with 120+ qualifying payments before enactment) may not receive retroactive relief, producing unequal outcomes between similar borrowers.
Implementing new counting rules may create additional administrative complexity for loan servicers, risking delays or errors in account reconciliation and in borrowers receiving accurate payment/forgiveness records.
Based on analysis of 2 sections of legislative text.
Expands what counts as qualifying monthly payments for PSLF: first 60 months count regardless of amount, adds standard plan, counts administrative forbearance months, and requires borrower notice.
Official title: To amend the Higher Education Act of 1965 to allow certain payments made by public service employees to qualify for public service repayment, and for other purposes.
Introduced September 4, 2026 by Bill Foster · Last progress September 4, 2026
Makes changes to the Public Service Loan Forgiveness (PSLF) qualifying payments rules so more months count toward forgiveness. It ensures the borrower's first 60 monthly payments count regardless of amount, adds the standard repayment plan as qualifying, allows administrative forbearance months to count when the borrower is in public service, and requires borrower notification within 180 days. The rule change for the first 60 payments applies to borrowers who, on or after enactment, have made fewer than 120 qualifying monthly payments; the Secretary of Education must notify borrowers about the changes and how to switch repayment plans within 180 days.