S.1863 - Veteran and Active Loan Obligation Relief Act of 2025; VALOR Act of 2025 (119th Congress)
Summary
S.1863, the Veteran and Active Loan Obligation Relief Act of 2025 (VALOR Act of 2025), aims to amend the Higher Education Act of 1965. The bill focuses on modifying the eligibility requirements for the Public Service Loan Forgiveness (PSLF) program. This modification specifically targets certain members of the Armed Forces, the National Guard, and the commissioned corps of the National Oceanic and Atmospheric Administration (NOAA).
Expected Effects
The bill would ease the requirements for PSLF for eligible service members. It would deem certain deferred or forbearance periods as qualifying payments. It would also waive the full-time employment requirement if 10 years of covered active duty service are completed.
Potential Benefits
- Makes public service loan forgiveness more accessible to veterans and active duty service members.
- Recognizes the unique challenges and sacrifices of military service by easing loan repayment burdens.
- Deems certain periods of deferment or forbearance as qualifying payments, reducing the overall repayment period.
- Waives the full-time employment requirement after 10 years of covered active duty.
- Potentially improves the financial stability of veterans and active duty personnel.
Potential Disadvantages
- May increase the overall cost of the Public Service Loan Forgiveness program.
- Could create a perception of unfairness among other public service employees who do not receive the same preferential treatment.
- Requires careful implementation to prevent fraud or abuse.
- Might not address the underlying issues of high tuition costs and student loan debt.
- Could lead to increased borrowing if students anticipate easier loan forgiveness.
Most Disadvantaged Areas:
Constitutional Alignment
The bill appears to align with the constitutional power of Congress to provide for the common defense and general welfare (Article I, Section 8). Providing benefits to military personnel can be seen as supporting national defense. The bill does not appear to infringe upon any specific constitutional rights or limitations.
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).