Congress·In Committee·H.R. 3267

Congress moves to protect loan forgiveness eligibility for borrowers who completed qualifying public service

PSLF Payment Completion Fairness Act

11 months ago·View on Congress.gov

Part of: Congress Moves to Reform PSLF Requirements for Past Public Service

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Stalled

No legislative action in over 90 days.

Legislative Progress

House

Senate

President

Law

Key Points

This bill aims to make sure people who did qualifying public service work can still qualify for Public Service Loan Forgiveness.
It changes the rules so eligibility focuses on whether a borrower has performed qualifying public service, not just whether they are currently employed in that job at a specific moment.
This could help borrowers who worked in public service but later changed jobs, took a break, or had gaps in employment after doing the qualifying work.
If it becomes law, it may reduce “gotcha” denials where someone did the public service but is told they don’t qualify because of timing or paperwork about current employment.

EducationLabor Employment

Impact Analysis

Personal Impact

How this policy affects specific groups of people

Positive Impacts(1)

Student Loans

Helps

Milestones

2 milestones2 actions

May 8, 2025House

Referred to the House Committee on Education and Workforce.

May 8, 2025

Introduced in House

What Happens Next

Projected impacts based on AI analysis

After the bill is enacted and signed into law

Education Department updates PSLF rules, forms, and guidance to remove the “employed at the time of forgiveness” requirement.

Borrowers who already completed qualifying public service and payments could apply (or re-apply) without staying in a qualifying job until the final approval.

Once updated processing begins

PSLF forgiveness decisions start being made under the new “has been employed” standard.

People who left qualifying public service after meeting the payment requirement would be less likely to get denied for a last-step technicality.