New Bill Seeks to Broaden Student-Loan Forgiveness for Public Servants

The Public Service Loan Forgiveness Inclusion Act of 2026 was introduced in the House on September 4 by Democrat Bill Foster of Illinois and Republican Brian Fitzpatrick of Pennsylvania. The bill would allow payments made under Graduated, Extended, and new Tiered Standard Repayment Plans to count toward the first 60 qualifying payments required for Public Service Loan Forgiveness (PSLF). It also would grant PSLF credit to borrowers who initially enrolled in repayment options that currently do not qualify. After referral to the House Education and the Workforce Committee, the measure could face markup, a full-House vote, Senate consideration, and a presidential signature.

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PSLF currently forgives remaining Direct Loan balances after 120 qualifying monthly payments made while working full-time for a qualifying nonprofit or government employer. Income-driven plans such as IBR, ICR, Pay As You Earn (PAYE), and Repayment Assistance Plan (RAP) already qualify, but many borrowers discover years later that they were on a non-qualifying plan, resulting in months of payments that do not count. Foster’s office reports that 97 % of public-service applicants have historically been denied. The broader federal student-loan landscape is shifting under the One Big Beautiful Bill Act, which created new repayment structures and mandates the phase-out of PAYE and ICR by July 1, 2028.

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• “I'm less optimistic about its immediate chances of becoming law. It has bipartisan sponsorship, which helps, but right now that bipartisanship is pretty thin,” — Michael Ryan, a finance expert and the founder of MichaelRyanMoney

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• 120 qualifying monthly payments are required for full forgiveness.

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• The bill would expand countable payments to the first 60 months for Graduated, Extended, and Tiered Standard plans.

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• 97 % denial rate for PSLF applicants, per Foster’s office.

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The proposal must clear the House Education and the Workforce Committee, survive possible amendments, and secure votes in both chambers before reaching the president for signature. Until then, borrowers remain subject to existing PSLF rules and the pending phase-out of certain income-driven plans.

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