Student Loan Forgiveness for Farmers and Ranchers Act

Student Loan Forgiveness: The Secretary will cancel the remaining balance of principal and interest on eligible Federal Direct Loans after the specified employment period is completed (Section 2(b) and 2(c)).

Support for Diverse Agricultural Workers: The bill targets specific groups for assistance, including beginning farmers or ranchers, individuals from underrepresented populations such as minorities or women, socially disadvantaged farmers or ranchers, and veteran farmers or ranchers (Section 2(b)(1)(B)).

Flexibility for Specific Employment Types: The plan provides benefits for those working as farmers or ranchers, as well as those serving as full-time employees or managers of a qualified farm or ranch (Section 2(b)(1)).

Strict Employment Requirements: To keep the forgiveness, borrowers must maintain full-time employment as an employee or manager of a qualified farm or ranch; failure to do so can result in being removed from the program (Section 2(b)(3) and 2(d)(1)).

Risk of Program Removal: If a borrower was under 40 when they entered the program, they can be removed if they fail to maintain full-time employment for more than 7 cumulative years; those 40 or older face removal if they fail to maintain employment for more than 3 cumulative years (Section 2(d)(1)).

Difficult Readmission: Once a borrower is removed from the program due to employment gaps, they are prohibited from being readmitted unless the Secretary finds exceptional circumstances (Section 2(d)(3)).