VALOR Act of 2025
The VALOR Act of 2025 (Veteran and Active Loan Obligation Relief Act of 2025) would modify the Public Service Loan Forgiveness (PSLF) program to make it easier for service members and certain federal civilian personnel to qualify for forgiveness. Specifically, it creates a new special rule for borrowers with covered active duty service (including National Guard duty and full-time duty in the NOAA Commissioned Corps) that treats certain military-related deferments and forbearances as qualifying payments, and it relaxes timing requirements for forgiveness. It also allows forgiveness to proceed for those who meet the criteria regardless of when they enrolled in PSLF. The bill redefines covered active duty service to include active military service (as defined by law) and full-time NOAA Commissioned Corps duty. In short, the bill aims to reduce barriers to PSLF for military personnel and related federal service members who faced deployment, forbearances, or other interruptions, by counting their time in service toward PSLF and removing timing constraints in some cases.
Key Points
- 1Short title: The bill is titled the Veteran and Active Loan Obligation Relief Act of 2025 (VALOR Act of 2025).
- 2New special rules for covered active duty service: The bill adds a dedicated subsection to PSLF rules that applies specifically to borrowers whose public service includes covered active duty service (including National Guard service).
- 3Counting deferments and forbearances as qualifying payments: Monthly payments that were deferred due to certain military-active-duty deferments or forbearances, or would have been due during forbearance, would be treated as qualifying PSLF payments.
- 4Waiver of timing requirements: If the borrower completed 10 years of full-time employment in covered active duty service during the life of the loan, the PSLF payment requirement (partial-year employment or timing constraints) can be waived.
- 5Enrollment timing flexibility: A borrower who has covered active duty service and meets the new requirements can receive PSLF without regard to when they enrolled in PSLF.
- 6Definition of covered active duty service: Covers active military service (as defined by federal law) and full-time duty in the NOAA Commissioned Corps’ active service.