SBy Ryan Kelley tudents who choose a career in
public service after graduation could
have an easier path to student loan
forgiveness thanks to a bill introduced
by Democratic senators in April.
The legislation, the What Can You
Do For Your Country Act, would significantly
expand the number of student loan borrowers who
qualify for the Public Service Loan Forgiveness
Act (PSLF). The current program, signed into law
in 2007 by President George W. Bush, allows
certain government and non-profit employees to
have their student loans cancelled after 10 years
of on-time payments, but it has failed to meet
expectations.
The bill is carried by Senators Tim Kaine and
Kirsten Gillibrand, and it is co-sponsored by
Elizabeth Warren, Bernie Sanders, and nine other
senators.
“The current Public Service Loan Forgiveness
program is a bureaucratic nightmare, and the
Department of Education is failing to meet its
obligation to help ease the student debt burden for
our nation’s public servants,” Gillibrand said in a
statement. Gillibrand, Warren and Sanders are all
running for president in 2020.
Of the 76,002 teachers, social workers,
members of the military, first responders, nurses,
public defenders and many more public officials
who have applied, only 864 have had their loans
forgiven under the program, according to the most
recently released Department of Education data.
The vast changes to the PSLF could make
millions of college graduates eligible for the
program. Most notably, it would allow all types
of federal loans to qualify for forgiveness. Under
the current law, borrowers who took out Federal
Family Education Loans (FEEL) have been deemed
ineligible. The bill would also apply to all types of
federal repayment plans, while the current system
generally deems “extended” or “graduated”
repayment plans ineligible.
“This bill is an opportunity to ease the burden of
debt on our public servants by simplifying the loan
forgiveness program,” said Senator Kaine. “I hope
my colleagues will join Senator Gillibrand and me
to pass this legislation and provide those who
serve their community and our nation the relief
they deserve.”
The What Can You Do For Your Country Act would
also require the Department of Education to provide
clearer information to public servants seeking
forgiveness, including guidance on whether they
qualify, how many payments are counted and
why, and how to dispute any issue with how their
progress is being determined. The Education
Department would also be required to create an
electronic system to upload and process all forms
to streamline the process, as well as establish a
database of federal and state employees to help
those who automatically qualify.
The most appealing feature, however, is that the
bill would offer forgiveness to half of a borrowers
loans after five years, while forgiving the remaining
balance after 10 years. This would likely encourage
more people to pursue careers in public service.
The bill is endorsed by dozens of unions
and civic associations, including the National
Education Association (NEA).
“The Public Service Loan Forgiveness Program
is intended to encourage college graduates to
enter professions that benefit America,” said
NEA Director of Government Relations Marc Egan.
“The NEA is proud to support Senators Kaine
and Gillibrand in closing the loan forgiveness
program’s loopholes to ensure public servants
receive the benefits they deserve for entering
professions we all depend on.”
Senators
create bill
to drastically
expand loan
forgiveness
bill
QNS.COM
10 SUMMER 2019
/QNS.COM