Menendez, Norcross Introduce Second Chance at Public Service Loan Forgiveness Act

Press Release

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.

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