Sponsors
Introduced September 2, 2025 by Cleo Fields · Last progress September 2, 2025
The bill provides targeted and substantial loan relief and administrative streamlining for public-school teachers and PSLF applicants—reducing individual borrower burdens and improving program accuracy—at the cost of increased federal spending, new privacy risks from IRS data sharing, and implementation and equity challenges.
Public K–12 public school teachers who complete 8 consecutive years of full-time service can have outstanding federal undergraduate loan principal and interest fully forgiven, and forgiven amounts are excluded from gross income; the program covers a broad set of federal loans, increasing eligibility.
Teachers serving in public schools receive a deferment while teaching and for six months afterward (with interest not accruing), providing immediate payment relief for borrowers already in repayment when the law takes effect.
Reduced near-term payments and the prospect of loan cancellation lower financial stress for teachers, which can improve teacher retention and classroom stability for students.
Taxpayers will bear substantial increased federal outlays—due to forgiven loan balances, payments for institution-held cancellations, foregone interest during deferments, and implementation costs—raising fiscal costs.
Sharing IRS tax returns and employer/employment data with the Department of Education increases privacy risks and the chance of unauthorized disclosure of sensitive taxpayer information.
Requiring eight consecutive years of full-time teaching delays relief and excludes teachers who leave, have breaks in service, or work part-time from receiving forgiveness.
Based on analysis of 4 sections of legislative text.
Establishes 8-year public school teacher undergraduate loan forgiveness, creates a teacher service+6-month deferment, and allows limited IRS-to-Education data sharing to verify eligibility.
Creates an 8-year public elementary and secondary school teacher undergraduate loan forgiveness program that cancels outstanding principal and interest on eligible Federal undergraduate loans for teachers who work full time for eight consecutive years, and excludes forgiven amounts from gross income. Adds a deferment for borrowers serving as public school teachers (covering service and the six months after service) for Direct, FFEL, and Perkins loans, and authorizes limited IRS-to-Education Department tax data sharing to verify employment and administer the program.