Section 1 Short title
This Act may be cited as the “Student Loan Earned Relief Act”.
Student Loan Earned Relief Act
A BILL
To amend the Higher Education Act of 1965 to provide interest relief under the public service loan forgiveness program, and for other purposes.
Sec. 2 Pslf
Reduction of payment— Section 455(m)(1) of the Higher Education Act of 1965 (20 U.S.C. 1087e(m)(1)) is amended—
in the matter preceding subparagraph (A), by striking “the balance of interest and principal due” and inserting “50 percent of the balance of interest and principal due”;
in subparagraph (A), by striking “120” and inserting “60”; and
in subparagraph (B)(ii), by striking “120” and inserting “60”.
Loan cancellation amount; payment of interest accrued— Paragraph (2) of section 455(m) of the Higher Education Act of 1965 (20 U.S.C. 1087e(m)(2)) is amended to read as follows:
“(2) Loan cancellation amount; payment of interest accrued
“(A) First employment period—After the conclusion of the first employment period described in paragraph (1) during which the borrower has made the first 60 payments described in such paragraph, the Secretary shall—
“(i) cancel 50 percent of the obligation to repay the balance of principal and interest due as of the time of such cancellation, on the eligible Federal Direct Loans made to the borrower under this part; and
“(ii) provide the borrower an amount equal to the amount of interest that the borrower has paid on such loans during such first employment period.
“(B) Second employment period—After the conclusion of the second employment period described in paragraph (1) during which the borrower has made the second 60 payments described in such paragraph, the Secretary shall—
“(i) cancel any remaining obligation to repay the balance of principal and interest due as of the time of such cancellation, on the eligible Federal Direct Loans made to the borrower under this part; and
“(ii) provide the borrower an amount equal to the amount of interest that the borrower has paid on such loans during such second employment period.”
Codifying the Limited PSLF waivers— Section 455(m) of the Higher Education Act of 1965 (20 U.S.C. 1087e(m)), as amended by this Act, is further amended by adding at the end the following:
“(5) Permanently restoring the promise of PSLF—Notwithstanding any other provision of this subsection, the Secretary shall carry out this subsection in a manner consistent with the terms and conditions of the Limited PSLF Waiver program carried out by the Department beginning on October 6, 2021, and authorized by the Higher Education Relief Opportunities for Students Act of 2003 (20 U.S.C. 1098aa et seq.), except that the application and consolidation deadlines for such program shall not apply to the provisions of this subsection.”