Bill aims to clarify PSLF eligibility for borrowers who completed service
H.R. 3267 — PSLF Payment Completion Fairness Act · Filed by Chrissy Houlahan (D-PA) · 30 cosponsors · Introduced May 8, 2025 · Referred to committee
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What it does
This bill amends the Public Service Loan Forgiveness (PSLF) program to clarify that borrowers who have completed qualifying public service work are eligible for loan forgiveness, regardless of their current employment status. It removes language that may have created ambiguity about whether borrowers must still be employed in public service at the time of forgiveness.
Why we flagged it
The bill's sole function is to amend the PSLF statute to remove ambiguous language that may have barred eligible borrowers from receiving promised forgiveness. It is a technical fix to clarify and expand access to an existing federal benefit program.
What the text implies
- The amendment's effect depends entirely on what language is being struck from § 455(m)(1)(B) — the bill text itself is damaged or incomplete (see analysis_notes), so the precise scope of the change cannot be fully assessed from this document alone.
- If the struck language currently requires borrowers to be employed in public service at the time of forgiveness application, removing it could significantly increase the number of borrowers eligible for relief, with corresponding fiscal impact on the federal student loan account.
The full analysis lists 3 implications of this text.
Who stands to gain
student loan borrowers (individuals)