IN THE SENATE OF THE UNITED STATES
April 11, 2019
Mr. Whitehouse (for himself and Mr. Kaine) introduced the following bill; which was read twice and referred to the Committee on Health, Education, Labor, and Pensions
To improve the public service loan forgiveness program.
This Act may be cited as the
PSLF Technical Corrections Act of 2019.
Amendment to the Higher Education Act of 1965
Section 455(m) of the Higher Education Act of 1965 (20 U.S.C. 1087e(m)) is amended—
by redesignating paragraphs (2) through (4) as paragraphs (3) through (5), respectively;
in paragraph (1)—
in the matter preceding subparagraph (A), by striking
paragraph (2) and inserting
paragraph (3); and
in subparagraph (A)—
in clause (ii), by inserting
or after the semicolon;
by striking clause (iii); and
by redesignating clause (iv) as clause (iii);
by inserting after paragraph (1) the following:
Payments in graduated or extended plans
In addition to canceling the balance of interest and principal due for a borrower described in paragraph (1), the Secretary shall also cancel the balance of interest and principal due, in accordance with paragraph (3), on any eligible Federal Direct Loan not in default for a borrower who—
has made 120 qualifying monthly payments, as defined in subparagraph (B), on the eligible Federal Direct Loan after October 1, 2007;
is employed in a public service job at the time of such forgiveness; and
has been employed in a public service job during the period in which the borrower makes each of the 120 payments described in clause (i).
Qualifying monthly payment
In this paragraph, the term qualifying monthly payment means any payment made under any repayment plan that is not described in clause (i), (ii), or (iii) of paragraph (1)(A) that satisfied the monthly amount the borrower was required to pay at the time the monthly amount due was billed to the borrower.
in paragraph (3), as redesignated by paragraph (1), by inserting
or paragraph (2), as the case may be after
paragraph (1); and
by adding at the end the following:
Dispute resolution process
Not later than July 1, 2019, the Secretary shall establish a process for borrowers to dispute the calculation of the number of monthly payments under paragraph (1) or (2) that count toward loan forgiveness under this subsection following the borrower's submission of a certification of employment or application for forgiveness (or any successor certification or application) under this subsection.
Recalculating the number of qualifying payment obligations for current public service loan forgiveness program participants
Not later than July 1, 2019, the Secretary shall, for each borrower that has submitted a certification of employment under this subsection before July 1, 2019—
calculate the number of monthly payments under paragraph (1) or (2) that count toward loan forgiveness under this subsection, using the criteria under this subsection as in effect on July 1, 2019; and
inform the borrower of the changes to the public service loan forgiveness program under this subsection that take effect on or before July 1, 2019, and the number of monthly payments calculated for the borrower in accordance with subparagraph (A).