Strengthening Loan Forgiveness for Public Service Workers Act

Incremental Loan Forgiveness: Borrowers can receive a 15 percent cancellation of their total loan amount at specific milestones: after 24, s48, 72, and 96 monthly payments, provided they were employed in a public service job during those periods (Section 2, paragraph 5, subparagraph B).

Full Balance Cancellation: After making 120 monthly payments while employed in a public service job, the Secretary shall cancel the remaining balance of principal and interest due on the eligible loan (Section 2, paragraph 5, subparagraph C, clause i).

Interest Protection: When a portion of a loan is canceled, the entire amount of interest that accrues for that year is also canceled (Section 2, paragraph 5, subparagraph E, clause i). Additionally, interest is canceled during the time the Secretary is processing a loan cancellation application (Section 2, paragraph 5, subparagraph E, clause ii).

Streamlined Employment Verification: The Secretary can certify a borrower's employment without requiring the borrower to submit information if the Secretary is able to confirm the requirements independently (Section 2, paragraph 5, subparagraph D, clause i).

Loan Eligibility Restrictions: The new cancellation provisions apply only to eligible Federal Direct Loans made after the date of the Act's enactment (Section 2, paragraph 5, subparagraph A).

Employment Requirement Burdens: To receive the cancellation, a borrower must have been employed in a public service job during the specific period of the monthly payments being credited (Section 2, paragraph 5, subparagraph B).

Administrative Requirements for Certification: If the Secretary cannot confirm employment independently, the borrower must submit an employment certification form that includes self-certification and an employer certification section (Section 2, paragraph 5, subparagraph D, clause ii).