WASHINGTON, D.C. – Today, Senator Andy Kim (D-N.J.) introduced the Public Service Loan Forgiveness (PSLF) Payment Completion Fairness Act to celebrate the value of public service and remove a burdensome provision in the PSLF program that requires an applicant to be employed in a public service job at the precise time of forgiveness. This fix would prevent more public servants, from teachers to first responders, from completing all 120 required loan payments and years of service, only to become ineligible because they’ve retired or moved onto a different job.  

“Service should not be a synonym for sacrifice. When Americans step up to serve others, they shouldn’t have to fight through red tape to get the support they deserve,” said Senator Kim. “This legislation is a commonsense tweak that would make a sizable impact for dedicated Americans who have completed at least a decade of meaningful service. Let’s use this as a tool to celebrate all public servants do and help give back for all they give our communities and country.” 

This legislation is the Senate companion to bipartisan legislation introduced this Congress by Congresswoman Chrissy Houlahan (D-PA) and Congressman Brian Fitzpatrick (R-PA). 

“When Pennsylvanians and Americans dedicate a decade or more of their lives to serving our communities, they deserve our support to cut through bureaucratic delays and receive the student loan forgiveness we have promised,” said Representative Houlahan. “Our community, Commonwealth, and country are made stronger because of dedicated public servants, and as a former AmeriCorps teacher, I’m proud to introduce this commonsense reform to help our nation’s teachers, law enforcement officers, first responders, nurses, and others.”   

“Those who choose public service—whether in a classroom, a squad car, or a hospital ward—do so out of a sense of duty, not personal gain. They sacrifice, they serve, and many take on student debt to do it. Our bill ensures they’re not denied loan forgiveness because of a technicality. If we want to recruit and retain the best in public service, we must show service is respected, and commitments made will be commitments kept,” said Representative Fitzpatrick.  

The PSLF Payment Completion Fairness Act would remove a needless roadblock to eligibility and help deliver public servants the support they deserve and access to federal benefits they’ve earned. The PSLF program was created under President George W. Bush to support dedicated public servants by forgiving the remaining balance of their individual direct student loans after they’ve completed 10 years of service and payments. Under current law, the program needlessly requires that applicants be employed in a public service role at the time of forgiveness. This provision unfairly disqualifies public servants who have completed at least 10 years of dedicated service and meet all other requirements but have simply retired or switched jobs by the time their applications are approved. 

This PSLF Payment Completion Fairness Act would take a step forward to alleviate unnecessary burden for deserving applicants and ensure that PSLF continues to be a key tool for recruiting and retaining talent in government and nonprofit roles. Recent reports showed that only 5.48% of applications for the PSLF program are approved and in 2023, an average of 1.04 million PSLF applications were pending at any given time. Because of these significant delays, it is possible for applicants to have gone well beyond the required ten years of service and 120 payments by the time their applications are even processed. 

The legislation is endorsed by the American Federation of Teachers, Fraternal Order of Police, International Association of Firefighters, National Association of College Admission Counseling, National Association of Social Workers, National Council of Nonprofits, PSLF Coalition, and Third Way. 

“An officer’s route for advancement is highly dependent on education, which can be a large hurdle for entry level officers who may not be able to afford higher education. The PSLF Payment Completion Fairness Act would eliminate a technicality in the law that requires an applicant to be employed in a public service job at the time of forgiveness. Correcting the statute in this way would enable our nation’s public servants, who serve and protect their communities, to receive a better education and, in turn, will help them to be better law enforcement officers, first responders, and teachers,” said Patrick Yoes, National President of the Fraternal Order of Police. 

“Public Service Loan Forgiveness has a proven track record of helping local, charitable nonprofits recruit and retain the high-performing workforce they need to provide essential services to the American people every day,” said Diane Yentel, President and CEO of the National Council of Nonprofits. “I applaud Senator Kim for introducing the PSLF Completion Fairness Act to make it easier for nonprofit employees to earn loan forgiveness after dedicating a decade of service to the nonprofit sector.” 

“The Public Service Loan Forgiveness program was created to ensure that those who dedicate their lives to serving our communities can build a stable future without being crushed by student debt. The PSLF Payment Completion Fairness Act is about keeping that promise.  As we face unprecedented attacks on the program’s foundation and delays in processing applications and forgiveness, this legislation simplifies and improves the program for borrowers.  The PSLF Coalition, which includes more than 120 organizations, is proud to stand with the millions of public service workers who serve our communities every day,” said the PSLF Coalition. 

As a former career public servant, Senator Kim is committed to legislation and reforms that uplift the power of service in our country. This legislation continues to build on Senator Kim’s “Answer the Call Agenda” to renew a call to service for Americans of all ages and backgrounds. The agenda aims to uplift programs and reforms that can boost national service, create more pathways to serve, and uplift Americans for making a different in their local communities and country. Within this agenda, Senator Kim also introduced the TALENTS Act to codify the Presidential Management Fellows (PMF) Program, which attracts thousands of young, talented professionals into public service. 

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