Sponsors (9)
The bill delivers targeted, automatic graduated loan forgiveness and administrative safeguards for new federal loans held by public-service workers, but it excludes existing borrowers, may raise federal costs, and introduces administrative rules that could delay or reduce benefits for some borrowers.
Borrowers employed in certified public service jobs: receive automatic, graduated loan cancellation (15% after 24, 48, 72, 96 payments; full cancellation after 120), reducing outstanding federal student debt and monthly payment burden.
Eligible borrowers (those receiving partial cancellation in a year): have interest accrued for that year canceled as well, lowering the total cost of borrowing.
Borrowers undergoing forgiveness processing: are protected by automatic deferment while the Secretary processes cancellation and benefit from an automatic certification option plus a streamlined employer-verification form, reducing paperwork, preventing new payment obligations during processing, and improving access to forgiveness.
Existing Federal Direct Loan holders (loans disbursed before enactment): are excluded from the new graduated cancellation, leaving millions ineligible and creating unequal relief across borrowers.
Taxpayers and federal budget: could face higher costs from expanded forgiveness for new loans, potentially increasing taxpayer burden or creating pressure to reduce funding for other programs.
Borrowers with incomplete or hard-to-document employment records: may face administrative complexity and delays because certification is tied to particular payment periods, risking postponed or missed forgiveness.
Based on analysis of 2 sections of legislative text.
Clarifies continuous public service employment for PSLF and creates automatic, graduated cancellation for new Direct Loans (15% at four milestones; full forgiveness after 120 payments).
Introduced November 21, 2025 by Eric Swalwell · Last progress November 21, 2025
Amends the Public Service Loan Forgiveness (PSLF) rules to require that borrowers be employed in a qualifying public service job for the period when each of their 120 qualifying payments was made, and creates an automatic, graduated schedule of loan cancellation for Federal Direct Loans made after enactment. Borrowers would receive 15% cancellation after 24, 48, 72, and 96 qualifying payments (each percentage measured against the loan balance due when repayment began) and full cancellation of remaining principal and interest after 120 qualifying payments; the Department must certify employment and cancel any interest that accrues on portions approved for cancellation.