Source: United States Senator for New Jersey Bob Menendez
WASHINGTON, D.C. – U.S. Senator Bob Menendez (D-N.J.) and Congressman Donald Norcross (D-N.J.-01) today introduced the Second Chance At Public Service Loan Forgiveness Act, bicameral legislation that would fix long-standing problems with the Public Service Loan Forgiveness Program (PSLF) and enable millions of previously ineligible public servants, such as teachers, firefighters, nurses, and social workers to have their student loans forgiven.
This bill codifies key provisions of the PSLF temporary waiver announced last year and additional flexibilities announced earlier this year by the Biden Administration. It also fixes a number of issues that many borrowers and advocacy groups have raised about the PSLF program including: allowing public servants with loans or public service prior to 2007 to qualify, replacing the 120-payment requirement with ten years of public service, ensuring that Parent PLUS loans qualify, specifying that employees that work 30 hours a week are eligible for PSLF, and provides additional definitions for types of public service employment.
Launched in 2007, the PSLF program set out to reward public service with student loan forgiveness as a way to encourage professionals to enter and remain in careers that serve the general public. However, since its inception, the program floundered with less than 10 percent of applicants being approved prior to the waiver announced last year.
“From day one, the Public Service Loan Forgiveness Program has been plagued with issues and inadequate oversight, resulting in less than ten percent of applicants being approved for loan forgiveness despite their dedicated service to our nation,” said Sen. Menendez. “This legislation aims to fix these long-standing issues and deliver on the promise of the Public Service Loan Forgiveness Program by repaying those who dedicate their lives to serve and improve our communities with student loan forgiveness. This legislation will also improve recruitment and retention in key public service fields that have and continue to experience severe workforce shortages.”
“Every single one of us relies on public servants, whether it’s the public school bus drivers who get our kids to school safely or the firefighters who put their lives on the line when danger calls. Some public servants pursued a degree to better their lives, but due to flaws in the Public Service Loan Forgiveness program they’re unable to benefit,” said Congressman Norcross. “This law will fix those flaws and make the program more effective.”
Among its key provisions, the Second Chance At Public Service Loan Forgiveness Act would:
- Allow for public servants with loans or public service before 2007 to qualify for PSLF.
- Eliminate the 120-payment requirement and require ten years of public service employment—aligning with Congressional intent.
- Expand the current PSLF waiver and flexibilities beyond October 31, 2022.
- Specify that borrowers or parents covered by a parent PLUS loan may qualify for PSLF forgiveness based on their public service.
- Clarify that full-time employment is not less than 30 hours per week and ensures that educational public servants on contract as well as adjunct, contingent, or part-time higher education faculty are eligible for PSLF.
- Provide definitions for types of public service employment that aligns with Congressional intent—including changes to the definition of other school-based services, public interest law, and public service for the elderly.
- Allow for teachers to qualify for both the Teacher Loan Forgiveness Program and PSLF, simultaneously.
The legislation has been endorsed by the American Federation of Teachers (AFT), National Education Association (NEA), American Federation of Government Employees (AFGE), American Federation of Labor and Congress of Industrial Organizations (AFL-CIO), American Federation of State, County & Municipal Employees (AFSCME), Communication Workers of America (CWA), International Association of Fire Fighters (IAFF), International Association of Machinists & Aerospace Workers (IAM), International Brotherhood of Teamsters (IBT), National Federation of Federal Employees (NFEE), National Treasury Employees Union (NTEU), Service Employees International Union (SEIU), United Food and Commercial Workers Union (UFCW), and the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, and Allied Industrial and Service Workers International Union (USW).
“Too many hardworking people are pauperized by student loan debt, including those providing vital public services. During the last administration, the AFT had to sue Betsy DeVos to try to get the Public Service Loan Forgiveness program to work as intended. Thankfully, the Biden administration is using its authority to fix the system through temporary waivers and the rulemaking process,” said Randi Weingarten, President of the American Federation of Teachers. “The Second Chance at Public Service Loan Forgiveness Act would codify and build on these fixes to make PSLF work for the people who need it most, including educators. This bill would allow teachers to count the same years of service toward both Teacher Loan Forgiveness and PSLF, and would make sure adjunct professors’ time is properly credited toward full-time employment. The AFT supports this bill and will continue to work to strengthen and improve PSLF.”
“Members of the National Education Association applaud Sen. Menendez and Rep. Norcross for their leadership in drafting the Second Chance at PSLF Act,” said Marc Egan, Director of Government Relations at the National Education Association. “More than 145,000 educators and public servants have already received forgiveness due to the Department of Education’s Limited PSLF Waiver. It is clear that permanent change is needed and this legislation does just that. The Second Chance at PSLF Act builds on the success of the Limited Waiver and upholds the promise of PSLF for millions of public servants, as Congress intended when the program was created in 2007.”
“CWA has continuously engaged in the fight to address the ongoing student debt crisis that is crippling working families, including thousands of CWA members. This new legislation is a step in the right direction to help relieve public service employees from hobbling student loan debt. Our public sector members provide essential services our communities rely on,” said Christopher Shelton, President of CWA. “Often, they do so while being underpaid and undervalued. We ought to ensure that our public servants are treated fairly and recognized for their dedication and commitment to our communities. CWA will continue to support our allies in Congress and state governments to end this crisis.”
Earlier this month, Sen. Menendez urged U.S. Education Secretary Miguel Cardona to expand current flexibilities to allow all public servants, including those who improperly received in-school deferments, to be eligible for the PSLF program. In May, Sen. Menendez called on the Department of Education to step up its oversight of student loan servicers particularly in regards to public service forgiveness loans. He has long-advocated for reform of the Public Service Loan Forgiveness (PSLF) program, which has faced scrutiny for mismanagement since its inception in 2007, with only 1 to 2 percent of PSLF applicants being approved each year prior to the Biden Administration proposing a sweeping overhaul of the PSLF program. Sen. Menendez has also called for the Biden Administration to further extend the student loan pause – beyond August 31st – to fix longstanding issues with PSLF, income based repayment (IBR), and issues regarding federal student loan servicers.
Find a copy of the Second Chance At Public Service Loan Forgiveness Act HERE.
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