Congressman Joe Courtney Introduces Bill to Simplify and Strengthen Public Service Loan Forgiveness (PSLF) Program

Strategic Insights -

Congressman Joe Courtney (CT-02) has introduced a bill to make it easier for Americans pursuing careers in public service to receive the student loan forgiveness they were promised under the Public Service Loan Forgiveness (PSLF) program. The Simplifying and Strengthening PSLF Act would make permanent the recent improvements to the PSLF program under the Biden Administration and implement other commonsense reforms to help America's public servants lower the cost of higher education.

Key Takeaways:

  • Congressman Joe Courtney's Simplifying and Strengthening PSLF Act aims to make permanent the recent improvements to the Public Service Loan Forgiveness (PSLF) program and implement other commonsense reforms.
  • The bill would reduce the number of payments needed to qualify for PSLF loan forgiveness from 120 payments over 10 years to 60 payments over 5 years, while working for an eligible employer.
  • The bill would also clarify eligibility of active-duty military and Peace Corps volunteers whose loans were in deferment during their service tenure to expand participation in the program.
  • The bill would allow any prior period of repayment to count as a qualifying payment, regardless of federal loan type, repayment plan, or whether payments were made in full or on time.
  • The bill has drawn support from nationwide non-profit organizations representing teachers, social workers, military service members, and other public service professions.
  • Congressman Courtney's bill has 6 original co-sponsors, including Representatives Jahana Hayes (CT-05), Alma Adams (NC-12), Adam Smith (WA-09), Federica Wilson (FL-24), and Jamaal Bowman (NY-09).

Statistics:

  • Since the first cohort of public service workers became eligible for the PSLF program in 2017, 98% of those who applied have been rejected.
  • In October 2021, the Department of Education approved $7.3 billion in loan forgiveness for over 127,000 borrowers through the PSLF program.
  • The Department only discharged a total of $1.4 billion for 18,000 borrowers from 2017 to October 2021.
  • The Simplifying and Strengthening PSLF Act would make permanent the October 2021 changes to PSLF and implement other reforms to address the concerns of PSLF applicants.

Sources:

  • Congressman Joe Courtney (CT-02)
  • Representative Jahana Hayes (CT-05)
  • Representative Alma Adams (NC-12)
  • Representative Adam Smith (WA-09)
  • Representative Federica Wilson (FL-24)
  • Representative Jamaal Bowman (NY-09)
  • Modern Military Association of America
  • Peace Corps Association
  • National Association of Social Workers (NASW)
  • Council on Social Work Education
  • American Federation of Teachers (AFT)
  • National Association for College Admission Counseling (NACAC)
  • National Education Association
  • Connecticut Nonprofit Alliance
  • MIL OSI USA News (http://milnz.co.nz/mil-osi-aggregation/)
  • Contify.com