Public Service Loan Forgiveness Payment Completion Fairness Act; PSLF Payment Completion Fairness Act
Summary
The Public Service Loan Forgiveness Payment Completion Fairness Act aims to amend Section 455(m)(1)(B) of the Higher Education Act of 1965. The amendment simplifies the eligibility criteria for Public Service Loan Forgiveness (PSLF). It removes the requirement that borrowers must be employed at the time of application and have been employed during the qualifying period, replacing it with a simple requirement that they have been employed.
Expected Effects
The likely effect of this bill is to broaden access to the Public Service Loan Forgiveness program. By removing the 'is employed' clause, it allows more public servants to qualify even if they have left public service at the time of application. This change could reduce the administrative burden and potential for denial based on employment status at the time of application.
Potential Benefits
- Simplifies eligibility criteria for PSLF.
- Broadens access to loan forgiveness for public servants.
- Reduces the risk of denial due to employment status at the time of application.
- Potentially encourages more individuals to enter and remain in public service.
- Reduces administrative burden associated with verifying current employment status.
Most Benefited Areas:
Potential Disadvantages
- May increase the overall cost of the PSLF program.
- Could potentially lead to forgiveness for individuals who no longer contribute to public service.
- May require additional oversight to prevent abuse or fraud.
- Could create a perception of unfairness among those who do not qualify for PSLF.
- The long-term impact on the workforce and public service is uncertain.
Most Disadvantaged Areas:
Constitutional Alignment
The bill appears to align with the general welfare clause of the Constitution, as it aims to support individuals in public service. Specifically, the 'promote the general Welfare' clause in the preamble suggests that Congress has the power to enact laws that benefit society as a whole, which could include incentivizing public service through loan forgiveness programs. However, the constitutionality of the Higher Education Act itself, and subsequent amendments, has not been directly challenged on federalism grounds, but could be subject to debate regarding the scope of federal power over education.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).