Sponsors (9)
The bill provides meaningful, automatic graduated loan relief and administrative protections for new federal loans held by public-service borrowers, but it excludes millions with older loans, raises federal costs, and introduces certification rules that could create administrative delays or uneven benefits.
Students and other borrowers in certified public service jobs receive automatic, graduated federal loan cancellation (15% after 24, 48, 72, 96 qualifying payments; full cancellation after 120), and interest accrued in any year with a portion canceled is also wiped out, lowering outstanding balances and monthly burdens for eligible borrowers.
Borrowers eligible for full cancellation are automatically deferred while the Secretary processes forgiveness after 120 payments, preventing new payment obligations, delinquencies, or collection actions during processing.
Borrowers and schools face less paperwork because the bill authorizes automatic certification using Secretary records, a streamlined borrower form, and employer verification, which should improve access and reduce administrative barriers to forgiveness.
Millions of existing Federal Direct Loan borrowers (loans disbursed before enactment) are excluded from the new graduated forgiveness schedule, so many people with older loans get no benefit from this change.
Expanding targeted forgiveness for new loans will raise federal costs, potentially increasing the taxpayer burden or adding pressure to cut other federal programs or raise revenue.
Tying employment certification to specific payment-periods and relying on records may create administrative complexity and delays for borrowers with incomplete employment histories, risking slower or missed forgiveness.
Based on analysis of 2 sections of legislative text.
Requires employment during each qualifying payment for PSLF and creates automatic, staged loan cancellation for new Federal Direct Loans culminating in full cancellation after 120 qualifying payments.
Official title: To amend the Higher Education Act of 1965 to provide for a percentage of student loan forgiveness for public service employment, and for other purposes.
Introduced November 21, 2025 by Eric Swalwell · Last progress November 21, 2025
Clarifies eligibility for Public Service Loan Forgiveness (PSLF) by requiring borrowers to have been employed in public service during each month they make qualifying payments, and creates an automatic, graduated cancellation schedule for new Federal Direct Loans made after enactment: 15% principal cancellation after 24, 48, 72, and 96 qualifying payments and full cancellation of remaining principal and interest after 120 qualifying payments, with automatic deferment while cancellations are processed. The Secretary of Education must certify employment using existing data or a new form with borrower and employer certification; interest that accrued during canceled portions or while waiting for approval is also canceled.