H.R.3267 - Public Service Loan Forgiveness Payment Completion Fairness Act; PSLF Payment Completion Fairness Act (119th Congress)
Summary
H.R.3267, 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 seeks to ensure that borrowers who have performed qualifying public service are eligible for Public Service Loan Forgiveness (PSLF). It modifies the eligibility criteria by removing a specific clause related to employment status during the qualifying period.
Expected Effects
The likely effect of this bill is to broaden the eligibility criteria for the Public Service Loan Forgiveness program. This change could allow more public service employees to qualify for loan forgiveness, simplifying the requirements related to employment status during the repayment period. Ultimately, this could reduce the financial burden on individuals working in public service.
Potential Benefits
- Increased Eligibility: More public service employees may qualify for loan forgiveness.
- Simplified Requirements: The bill removes a potentially confusing clause related to employment status.
- Financial Relief: Borrowers in public service could experience reduced financial strain.
- Attraction and Retention: May incentivize individuals to pursue and remain in public service careers.
- Fairness: Addresses potential inequities in the original PSLF program.
Potential Disadvantages
- Increased Costs: Expanding eligibility could increase the overall cost of the PSLF program to taxpayers.
- Potential for Abuse: Simplified requirements might create opportunities for individuals to exploit the system.
- Unintended Consequences: Removing the employment clause could have unforeseen effects on program integrity.
- Administrative Burden: Implementing the changes may require adjustments to program administration.
- Moral Hazard: Some may argue that it creates a moral hazard by forgiving loans that borrowers willingly took on.
Most Disadvantaged Areas:
Constitutional Alignment
The bill appears to align with the general welfare clause of the Constitution (Preamble), as it aims to support individuals working in public service. Article I, Section 8, Clause 1 grants Congress the power to lay and collect taxes to provide for the general welfare of the United States. This bill could be seen as an exercise of that power to incentivize public service.
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).