Public Service Loan Forgiveness Inclusion Act of 2026
- Sponsor
- Rep. Foster, Bill [D-IL-11]
- Committees
- Education and Workforce Committee (primary)
- Last action
- Sep 4, 2026
Bottom line
This bill broadens eligibility for the Public Service Loan Forgiveness program by making more types of payments and periods of administrative forbearance count towards the required 120 payments, potentially accelerating forgiveness for many public service workers.
What it actually does
This bill amends the Higher Education Act of 1965 to expand eligibility for the Public Service Loan Forgiveness (PSLF) program. It allows the first 60 monthly payments under certain repayment plans to qualify for PSLF regardless of their amount, includes payments made under the standard repayment plan, and counts periods of administrative forbearance towards qualifying payments if the borrower was employed in a public service job during that time. The bill also mandates the Secretary of Education to notify affected borrowers of these changes.
Proponents argue
Supporters argue that the current PSLF program has been overly restrictive and confusing, leading to high denial rates and failing to deliver on its promise to public servants. This bill would simplify the rules, ensure more public servants receive the forgiveness they were promised, and make public service careers more attractive by providing clearer pathways to debt relief.
Opponents contend
Opponents might argue that expanding PSLF eligibility could significantly increase the cost to taxpayers, especially by allowing lower or no payments during forbearance periods to count. They may also contend that it retroactively changes the terms of loan agreements, potentially creating moral hazard or unfairness to those who diligently followed the original, stricter rules.
The bill is very short and easy to read, allowing for a quick understanding of its provisions.
Section 2(a)(1), amending 20 U.S.C. 1087e(m)(1)(A)(iii)
First 60 Monthly Payments Qualify Regardless of Amount
This provision modifies the Public Service Loan Forgiveness (PSLF) program to allow the first 60 monthly payments made under income-driven repayment plans (subsection (d)(1) or (g)) to count towards the required 120 payments, regardless of the actual payment amount. After these initial 60 payments, subsequent payments must meet the standard 10-year repayment amount. This change aims to simplify eligibility and ensure more payments count towards forgiveness.
Supporters argue
Supporters argue this provision addresses a major point of confusion and frustration for borrowers, many of whom were making payments they believed qualified but were later denied due to technicalities regarding payment amounts. This change provides a more forgiving on-ramp to PSLF.
Critics contend
Critics might argue that allowing payments "without regard to the amount" for five years could significantly increase the cost of the PSLF program, as borrowers could make minimal payments for an extended period while still progressing towards forgiveness.
Tradeoffs
Balances the goal of simplifying PSLF and providing debt relief to public servants against concerns about program cost and potential for borrowers to make very low payments for an extended period.
Section 2(a)(4), adding 20 U.S.C. 1087e(m)(1)(A)(vi)
Standard Repayment Plan Payments Qualify
This provision adds monthly payments made under the standard repayment plan (subsection (d)(7)(A)(i)) to the list of qualifying payments for Public Service Loan Forgiveness. Previously, only payments made under specific income-driven repayment plans or the 10-year standard repayment plan (which is often confused with the general standard repayment plan) qualified. This clarifies and expands qualifying payment types.
Section 2(b), adding 20 U.S.C. 1087e(m)(3)(C)
Forbearance Periods for Public Service Employees Count
This provision specifies that periods during which a borrower's loan repayment was suspended due to administrative forbearance will count as qualifying monthly payments for PSLF, provided the borrower was employed in a public service job during that time. This addresses a common issue where borrowers in forbearance, often due to administrative errors or processing delays, lost progress towards forgiveness.
Section 2(c)
Notification to Borrowers and Applicability Rules
This section mandates that the Secretary of Education must inform all affected borrowers within 180 days of the bill's enactment about the changes to PSLF eligibility, specifically regarding the first 60 payments and administrative forbearance. It also clarifies that the changes to the first 60 monthly payments apply to borrowers who have made fewer than 120 monthly payments on or after the enactment date.