Student Loan Earned Relief Act
This bill revises the Public Service Loan Forgiveness (PSLF) program by providing for partial loan cancellation and providing statutory authority for certain limited waiver flexibilities.
Specifically, the bill directs the Department of Education (ED) to cancel 50% of the principal and interest due on a borrower's Federal Direct Loans after the borrower makes 60 monthly loan payments while employed in a public service job. ED must cancel the remaining balance on these loans after the borrower makes an additional 60 monthly payments.
The bill also provides statutory authority for the Limited PSLF Waiver, which was carried out by ED beginning on October 6, 2021, and ending on October 31, 2022. This waiver allowed borrowers to receive credit for certain past periods of repayment on loans that would otherwise not qualify for the PSLF program.
To amend the Higher Education Act of 1965 to provide interest relief 
   under the public service loan forgiveness program, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Student Loan Earned Relief Act''.

SEC. 2. PSLF.

    (a) Reduction of Payment.--Section 455(m)(1) of the Higher 
Education Act of 1965 (20 U.S.C. 1087e(m)(1)) is amended--
            (1) in the matter preceding subparagraph (A), by striking 
        ``the balance of interest and principal due'' and inserting 
        ``50 percent of the balance of interest and principal due'';
            (2) in subparagraph (A), by striking ``120'' and inserting 
        ``60''; and
            (3) in subparagraph (B)(ii), by striking ``120'' and 
        inserting ``60''.
    (b) Loan Cancellation Amount; Payment of Interest Accrued.--
Paragraph (2) of section 455(m) of the Higher Education Act of 1965 (20 
U.S.C. 1087e(m)(2)) is amended to read as follows:
            ``(2) Loan cancellation amount; payment of interest 
        accrued.--
                    ``(A) First employment period.--After the 
                conclusion of the first employment period described in 
                paragraph (1) during which the borrower has made the 
                first 60 payments described in such paragraph, the 
                Secretary shall--
                            ``(i) cancel 50 percent of the obligation 
                        to repay the balance of principal and interest 
                        due as of the time of such cancellation, on the 
                        eligible Federal Direct Loans made to the 
                        borrower under this part; and
                            ``(ii) provide the borrower an amount equal 
                        to the amount of interest that the borrower has 
                        paid on such loans during such first employment 
                        period.
                    ``(B) Second employment period.--After the 
                conclusion of the second employment period described in 
                paragraph (1) during which the borrower has made the 
                second 60 payments described in such paragraph, the 
                Secretary shall--
                            ``(i) cancel any remaining obligation to 
                        repay the balance of principal and interest due 
                        as of the time of such cancellation, on the 
                        eligible Federal Direct Loans made to the 
                        borrower under this part; and
                            ``(ii) provide the borrower an amount equal 
                        to the amount of interest that the borrower has 
                        paid on such loans during such second 
                        employment period.''.
    (c) Codifying the Limited PSLF Waivers.--Section 455(m) of the 
Higher Education Act of 1965 (20 U.S.C. 1087e(m)), as amended by this 
Act, is further amended by adding at the end the following:
            ``(5) Permanently restoring the promise of pslf.--
        Notwithstanding any other provision of this subsection, the 
        Secretary shall carry out this subsection in a manner 
        consistent with the terms and conditions of the Limited PSLF 
        Waiver program carried out by the Department beginning on 
        October 6, 2021, and authorized by the Higher Education Relief 
        Opportunities for Students Act of 2003 (20 U.S.C. 1098aa et 
        seq.), except that the application and consolidation deadlines 
        for such program shall not apply to the provisions of this 
        subsection.''.
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Student Loan Earned Relief Act
To amend the Higher Education Act of 1965 to provide interest relief under the public service loan forgiveness program, and for other purposes.
Student Loan Earned Relief Act
Rep. McNerney, Jerry