Congressman Lipinski Introduces Legislation to Increase Student Loan Forgiveness for Employees Who Enter Public Service

Press Release

Employees who enter public service would be eligible for increased student loan forgiveness to pay off long-term debt under new legislation introduced this week by Congressman Dan Lipinski (IL-03).

Lipinski's bill, the Public Service Appreciation Through Loan Forgiveness Act (H.R. 6087), would implement a partial loan forgiveness schedule for qualified employees and raise awareness about the Public Service Loan Forgiveness Program.

"The costs of higher education are particularly burdensome for students who choose to give back to their communities and pursue lower-paying public service careers," Congressman Lipinski said. "We are indebted to the public servants who provide essential everyday services in our communities, including teachers, police officers, public defenders, municipal workers and librarians, to name a few. Many of these careers struggle to attract and retain the talented workers our communities need. I am introducing this bill to recognize public service workers and show our appreciation to them."

The Public Service Loan Forgiveness program was enacted in 2007 to erase federal student loan debt for borrowers who have made regular on-time payments while working in certain public or non-profit jobs for 10 years. Critics of the program indicate that the rules for qualification are confusing and must be strictly followed for the full 10 years.

Under Congressman Lipinski's legislation, eligible employees would begin to benefit from the program after just four years of regular payments. The bill would implement a partial forgiveness program so that the eligible participants would have their balance and interest reduced by 10% after just 4 years of regular, on-time payments while working in public service. After 6 years, the balance and interest would be further reduced 20%, followed by a 50% reduction after 8 years. The program would continue to completely forgive debts of eligible borrowers after 10 years of regular, on-time payments.

The bill would also require the Department of Education to develop informational materials to be made available to non-profit and government institutions that regularly hire individuals eligible for the loan forgiveness program. In addition, the Department of Education would be required to maintain a process in which employees may certify whether they are eligible for Public Service Loan Forgiveness benefits, accessible by an online portal.

The Public Service Appreciation Through Loan Forgiveness Act has been endorsed by the National Education Association and the American Federation of Government Employees.

"The public service student loan forgiveness program shows the importance of public service and rewards those who take that career path and make a long term commitment to it," said Everett Kelley, National President of the American Federation of Government Employees. "I applaud Congressman Lipinski for proposing important updates to the program that reward people who commit at least 4 years to public service with a partial loan forgiveness. The federal government and many other public service employers struggle to recruit and retain young people, and I believe this legislation will offer an incentive for people to enter public service and stick with it for a number of years, even if they aren't able to commit a decade to public service to realize their full student loan forgiveness."

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