Congress·In Committee·H.R. 2829

SERVICE Act

Rep. Courtney Introduces SERVICE Act to Cut Public Service Loan Forgiveness Requirement to 8 Years

12 months ago·View on Congress.gov·Read full text

The SERVICE Act is currently in the early stages of the legislative process after being referred to the House Committee on Education and Workforce. It is considered active, but no further hearings or votes have been scheduled yet. There is no companion bill currently associated with this legislation.

Legislative Progress

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Senate

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Law

Key Points

The bill cuts the number of qualifying payments needed for Public Service Loan Forgiveness from 120 (10 years) to 96 (8 years), letting public workers get their remaining student loan balances canceled two years sooner.
From policy text
“has made 96 qualifying monthly payments on the eligible Federal Direct Loan after October 1, 2007”
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Independent contractors working in public service jobs would now qualify for PSLF, and the definition of full-time is clarified as averaging at least 30 hours per week. Non-tenure-track college instructors get a special formula based on credit hours taught.
Many types of deferment and forbearance periods — including cancer treatment, military service, unemployment, and economic hardship — would count as qualifying monthly payments toward the 96-payment threshold.
From policy text
“in lieu of a payment described in clause (i), the borrower is in one of the following periods of deferment or forbearance”
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A new 'buyback' option lets borrowers who were in public service but didn't make qualifying payments during certain months pay a lump sum to have those months count toward forgiveness. Interest can no longer be capitalized after deferment or forbearance periods end.
From policy text
“The Secretary shall establish a buyback payment process under which a qualified borrower of an eligible Federal Direct Loan may make a buyback payment in order to have eligible months of the borrower's public service employment period during which the borrower did not make a qualifying monthly payment on such loan be treated as if the borrower had made a qualifying monthly payment on such loan.”
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The Department of Education must build an online portal where borrowers can track qualifying payments, check job eligibility, submit forms electronically, and manage appeals. A searchable database of qualifying public service jobs must also be created with the Department of Labor.
From policy text
“The Secretary shall establish an online portal that provides to borrowers of eligible Federal Direct Loans the following information”
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If a borrower's forgiveness application is denied, they get a 90-day forbearance period without interest capitalization and a formal reconsideration process. Once a payment is counted as qualifying, the government cannot retroactively take it away.
From policy text
“any payment or period of deferment or forbearance that is determined to be a qualifying monthly payment may not, at a later time, be determined not to be a qualifying monthly payment”
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EducationLabor Employment

Impact Analysis

Personal Impact

Who is affectedScoreImpactCertaintyScopeDurationSentiment

Scores: 1 = low, 5 = highSentiment: -5 to +5 (net benefit)

Milestones

2 milestones2 actions

Apr 10, 2025House

Referred to the House Committee on Education and Workforce.

Apr 10, 2025

Introduced in House

What Happens Next

Projected impacts based on AI analysis

1-2 years after enactment

Online portal and public service job database are built

Borrowers would be able to check if their job qualifies, track their qualifying payments, and submit forgiveness applications electronically — replacing the current confusing paper-based process.

1 year after enactment

GAO report on automatic data matching for PSLF is due

Congress would receive recommendations on whether the government can automatically verify public service employment — potentially eliminating the need for borrowers to submit annual certification forms.

Upon enactment

96-payment forgiveness threshold takes effect

Public service workers with at least 8 years of qualifying payments could apply for forgiveness instead of waiting the current 10 years, getting their remaining loan balances canceled two years sooner.

Related News

3 articles

The Hill·12 months ago

Rep. Courtney Fights to Protect Bedrock Student Loan Programs that Make College Affordable

Rep. Joe Courtney (D-CT) reintroduced the SERVICE Act to overhaul the Public Service Loan Forgiveness (PSLF) program. The bill proposes shortening the forgiveness timeline from 10 years to 8 years (96 payments) and expanding eligibility to independent contractors and part-time workers, while also addressing interest capitalization issues.

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Politico·12 months ago

Democrats push to expand student loan forgiveness as Trump administration targets program

Congressional Democrats, led by Rep. Joe Courtney, are moving to protect and expand the Public Service Loan Forgiveness program through the SERVICE Act. The legislation comes as the Trump administration issues executive orders to limit eligibility, with the bill seeking to lower the payment requirement to 96 months and count periods of military service and cancer treatment toward forgiveness.

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New bill aims to speed up student loan forgiveness for public servants

NBC News·12 months ago

New bill aims to speed up student loan forgiveness for public servants

The SERVICE Act, introduced by Rep. Joe Courtney, would reduce the time required for teachers, nurses, and first responders to receive student loan forgiveness. By lowering the threshold to 96 payments, the bill aims to make the program more accessible and provide relief two years earlier than the current 10-year requirement.

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