SERVICE Act

Expanded Payment Credits: The bill allows certain periods of deferment or forbearance—such as those for cancer treatment, military service, unemployment, or economic hardship—to count as qualifying monthly payments toward forgiveness (Section 2(c)(2)(A)(ii)).

Buyback Option: Borrowers who worked in public service but did not make enough qualifying monthly payments can make a lump sum "buyback" payment to count those months toward their forgiveness goal (Section 2(c)(2)(C)).

Recognition of Independent Contractors: The bill expands the definition of employment to include work performed as an independent contractor in a public service job (Section 3(a)).

Improved Information Access: A new online portal will provide borrowers with specific details regarding their loan eligibility, the number of payments made, and estimated remaining payments needed (Section 4(A)(i)).

Job Discovery Tools: The Secretary will establish a database of public service jobs to help people determine if their work qualifies (Section 4(A)(B)).

Protection Against Interest Capitalization: For loans in a period of forbearance, interest may not be capitalized after the period ends (Section 5(a)).

Streamlined Forgiveness for Teachers: The bill amends existing sections to impact how loan forgiveness is handled for teachers (Section 7).

Strict Full-Time Definitions: To qualify as "full-time," a person must work a minimum average of 30 hours per week for at least 8 months in a 12-month period (Section 3(b)(D)).

Finality of Decisions: Once the Secretary makes a decision on a borrower's request for reconsideration, that decision is considered final, and no additional reconsideration will be provided (Section 2(e)(5)(C)(i)(II)).

Buyback Limitations: The buyback process cannot be used for consolidation loans to buy back months that occurred before the date of the loan's consolidation (Section 2(c)(2)(C)(iii)(III)).