Student Loan Bill Could See Forgiveness Expanded for Thousands

A group of lawmakers wants to make student loan forgiveness easier for veterans and serving members of the military, a move that could expand the plan for thousands of borrowers.

A bipartisan group of representatives has introduced a new bill that, if passed, would automatically enroll servicemen and women in the Public Service Loan Forgiveness (PSLF) program without any action requested from the borrowers themselves.

The move comes amid attempts by the Biden administration to cancel student debt. The policy, known as the Saving on a Valuable Education (SAVE) plan, calculates monthly income and family size to potentially lower the monthly payment for federal student loans.

Borrowers on lower incomes could see their monthly repayments slashed to zero, but they only have a limited time left to apply. Take-up across the country has varied. The plan has been derided by Republicans, who say it is too costly and unfair to American taxpayers who did not attend college but will now foot the bill for others.

Following the SAVE rollout, Congressman Scott Peters, a Democrat who represents California's 50th Congressional District, has joined fellow Representatives Derrick Van Orden, a Republican from Wisconsin, Don Davis, a Democrat from North Carolina, and Elise Stefanik, a Republican from New York, in introducing the new bill.

Newsweek reached out to Peters for comment.

The group hopes to create an automated system to ensure veterans and current servicemen and women benefit from PSLF. The bill would mean members of the military are automatically registered with the program that forgives student loans for employees of various non-profit organizations or the government. They also want the U.S. Defense and Education Departments to be required to share data on military members' loans.

"Military members have earned these benefits through blood, sweat, and service for their country, but far too many never receive the student loan forgiveness owed to them because of bureaucratic hurdles," Peters said.

"The federal government knows exactly who these benefits apply to — it just needs to share that data across agencies. Our bill will ensure servicemembers receive their benefits without any delay or burdensome paperwork."

Currently, to qualify for PSLF, military members or veterans need their current or former superior officers to help prove they are in or were in the service. This is particularly challenging for older veterans not in touch with their former units, or whose superiors may have retired or left the military.

Peters presented the "Ensuring Military Access to Higher Education Benefits Act" of 2024 in front of the Veterans' Museum in San Diego's Balboa Park on Monday.

"When I joined the Marine Corps in 2012 after earning my college degree, I still had student loan debt from my undergraduate education," Marine Corps veteran Janessa Goldbeck said at the event. "While I was serving my country in uniform, a portion of my paycheck every month was going back to pay federal loans that allowed me to earn my degree."

President Joe Biden's bid to forgive some student debt has proved controversial with some Republicans, such as Virginia Representative Bob Good who has argued the move will be too expensive for taxpayers.

Newsweek reached out to Good via email for comment.