PSLF Payment Completion Fairness Act
The Public Service Loan Forgiveness Payment Completion Fairness Act (H.R. 3267) would broaden who can qualify for Public Service Loan Forgiveness (PSLF). Specifically, it amends the Higher Education Act to modify the employment eligibility criterion for PSLF. The current rule generally requires the borrower to be employed full-time in a qualifying public service job at the time of applying for PSLF. The bill changes this requirement to use the wording “has been,” effectively allowing forgiveness for borrowers who have previously been employed full-time in a qualifying public service position, even if they are not employed in such a job at the time they apply. The core goal is to ensure that borrowers who have performed qualifying public service receive PSLF, addressing fairness for those who have left or moved away from public service but previously met the program’s service criteria. This change, if enacted, would still operate within the PSLF framework that generally requires 120 qualifying monthly payments under a qualifying repayment plan, but it broadens the eligibility trigger related to current employment in public service.
Key Points
- 1Short title: The bill is titled the PSLF Payment Completion Fairness Act (also called PSLF Payment Completion Fairness Act).
- 2Core change to PSLF eligibility: Amends 20 U.S.C. 1087e(m)(1)(B) by replacing the current wording that hinges on being currently employed in a qualifying public service job with language that allows the condition to be satisfied if the borrower “has been” employed full-time in a qualifying public service position.
- 3Intent: To ensure that borrowers who have performed qualifying public service are eligible for PSLF, even if they are not currently employed in a qualifying public service role at the time they seek loan forgiveness.
- 4Status and process: Introduced in the 119th Congress (May 8, 2025) by Rep. Houlahan, with Rep. Fitzpatrick as a co-sponsor; referred to the Education and Workforce Committee.
- 5Scope of effect: The amendment targets the PSLF eligibility criterion; it does not, in the text provided, explicitly modify the 120 qualifying payments requirement, but it broadens the employment condition under which those payments qualify for forgiveness.