Congressman Raja Krishnamoorthi Introduces The Public Service Appreciation Through Loan Forgiveness Act
WASHINGTON, D.C. — Today, Congressman Raja Krishnamoorthi introduced the Public Service Appreciation Through Loan Forgiveness Act which would allow employees who enter public service to be eligible for increased student loan forgiveness under the Public Service Loan Forgiveness Program.
“The Public Service Loan Forgiveness Program is crucial to employees in lower-paying public service careers such as teachers, police officers, municipal workers, and employees at nonprofits or charities who dedicate their lives to improving their communities,” said Congressman Raja Krishnamoorthi “My legislation would reduce the burden of student loans for these public servants by reducing the delays they currently face in receiving debt relief through the Public Sector Loan Forgiveness Program.”
Recipients that qualify for the Public Service Loan Forgiveness program include government organizations at any level (U.S. federal, state, local, or tribal) and not-for-profit organizations that are tax-exempt under Section 501(c)(3) of the Internal Revenue Code. Under this bill, those employees would begin to benefit from the Public Service Loan Forgiveness program after just four years – instead of 10 years – of regular payments. Eligible participants would have their balance and interest reduced by 10% after four years of regular, on-time payments while working in public service, 20% after six years, and 50% after eight years. The program would continue to completely forgive debts of eligible borrowers after 10 years of regular, on-time payments. The Public Service Appreciation Through Loan Forgiveness Act will make the Public Service Loan Forgiveness program more beneficial to working families by providing them with financial freedom earlier in their careers. This legislation will also encourage public service careers and assist in eliminating student loan debt for many Americans.