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Adds a new section (section 494A) to Part G of title IV of the Higher Education Act establishing public school teacher loan forgiveness for eligible Federal undergraduate loans.
Redesignates existing paragraphs (6) and (7) as (7) and (8), respectively, and inserts a new paragraph (6) providing a deferment for borrowers serving as public school teachers (and the 6 months after such service) during which principal installments need not be paid and interest shall not accrue.
Adds an additional clause to the list of circumstances in which interest accrues or deferment applies, specifying coverage for periods during which the borrower is serving as a public school teacher (as defined in section 494A) and the 6 months after such period, with related punctuation changes to preceding clauses.
Adds an additional clause to the enumerated list in subsection (b)(1)(M) specifying coverage for periods during which the borrower is serving as a public school teacher (as defined in section 494A) and the 6 months after such period, with related punctuation changes to preceding clauses.
Modifies clause punctuation and inserts a new clause (vii) specifying that deferment applies during periods the borrower is serving as a public school teacher (as defined in section 494A) and for the 6 months after such period.
Adds a new subparagraph (G) (titled 'Public teacher loan forgiveness') to 26 U.S.C. 6103 authorizing the Secretary of the Treasury, upon written request from the Secretary of Education, to disclose specified return information (items (i)–(v)) to authorized persons for the purpose of discharging loans under section 494A of the Higher Education Act of 1965.
Makes conforming amendments to 26 U.S.C. 6103(p) by inserting text into paragraph (3)(A) and paragraph (4) as described in the bill's conforming amendments provision.
Makes a conforming amendment to 26 U.S.C. 7213(a)(2) by inserting additional text as specified in the bill's conforming amendments provision.
This bill forgives federal undergraduate student loans for public school teachers. If you work full-time as a teacher in a public elementary or secondary school for 8 straight years, the government cancels your remaining balance, including interest, and the forgiven amount is not counted as taxable income. You can use this benefit along with other programs, like teacher loan forgiveness, Public Service Loan Forgiveness, or AmeriCorps, even for the same years of service.
While you are teaching, you can pause payments and no interest will build up; this protection also lasts for six months after you stop teaching. It covers Direct, FFEL, and Perkins loans, and it applies to new loans and many loans already in repayment when the law takes effect. To make the process smoother, the IRS may share basic employer information with the Education Department to confirm a teacher’s employment for loan discharge purposes.
Referred to the Committee on Education and Workforce, 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.
Introduced September 2, 2025 by Cleo Fields · Last progress September 2, 2025
Referred to the Committee on Education and Workforce, 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.
Introduced in House