Public Service Loan Forgiveness Inclusion Act of 2026

The Public Service Loan Forgiveness Inclusion Act of 2026 aims to significantly broaden the scope of qualifying payments for the Public Service Loan Forgiveness (PSLF) program, amending the Higher Education Act of 1965 to make it easier for public service employees to achieve student loan forgiveness. A key provision allows the first 60 monthly payments made under income-driven repayment plans to count towards PSLF, irrespective of the actual payment amount. After these initial 60 payments, subsequent payments must meet the standard 10-year repayment amount to qualify. The bill also explicitly includes monthly payments made under the standard repayment plan as qualifying for PSLF. Furthermore, the legislation addresses periods of payment suspension, stipulating that "monthly payments" will now include those that would have been made during periods of administrative forbearance , provided the borrower was actively employed in a public service job during that time. The Secretary of Education is mandated to inform eligible borrowers about these changes and provide guidance on switching repayment plans within 180 days of enactment. These changes apply to borrowers who have made fewer than 120 monthly payments on or after the bill's enactment date.