Imagine working for 10 years toward Public Service Loan Forgiveness (PSLF) only to have your application denied at the last minute. That’s the reality for 97% of PSLF applicants, according to Bill Foster, a Democratic Representative from Illinois who’s aiming to address that problem.
Along with Brian Fitzpatrick (R-Pa.), Foster introduced the bipartisan Public Service Loan Forgiveness Inclusion Act of 2026 in the House on Sept. 4. This bill aims to expand which repayment plans are eligible for PSLF during a borrower’s first 60 months.
If it’s passed, the act could make it easier for teachers, nurses, and other public-service workers to stay on track for loan forgiveness. Here’s a closer look at the proposed legislation and what it would mean for borrowers.
What is the Public Service Loan Forgiveness Inclusion Act of 2026?
Introduced in early September by Reps. Bill Foster (D-IL) and Brian Fitzpatrick (R-PA), the Public Service Loan Forgiveness Inclusion Act of 2026 is a bipartisan bill that would expand which student loan repayment plans qualify for PSLF.
“The rising cost of higher education is forcing more Americans to take on significant student debt. This financial burden can often discourage talented individuals from pursuing a career in public service,” said Rep. Foster in a statement. “It’s past time to expand which student loan repayment plans qualify for forgiveness and make the process easier to navigate.”
The bill is supported by various organizations, including the American Council on Education, the American Association of Colleges and Universities, and the American Federation of Teachers. It has been referred to the House Committee on Education and Workforce.
How would the bill change Public Service Loan Forgiveness?
Under the current rules, you need to make 120 payments on an income-driven repayment plan to qualify for PSLF, along with working for 10 years in public service at an eligible organization. Qualifying plans currently include:
- Income-Based Repayment
- Repayment Assistance Plan
- Pay As You Earn (PAYE)
- Income-Contingent Repayment
The 10-year Standard Plan also technically qualifies, but you wouldn’t have any balance left to forgive after 10 years on this plan. Any payments you make under other plans, like the Tiered Standard Plan, Graduated Repayment, or Extended Repayment, don’t count toward the 120-payment requirement for PSLF.
This bill would allow payments made under a broader range of payment plans to count toward PSLF, though only for your first 60 months. You’d still need to make 120 payments on your student loans in total, so this bill wouldn’t shorten your overall path to forgiveness.
But it would loosen the rules during the first half of that timeline so you’re less likely to waste years of progress in the wrong repayment plan.
Who could benefit from the proposed PSLF changes?
If it passed, this bill would give current and future borrowers more flexibility when choosing a repayment plan for PSLF. This flexibility could be especially helpful as federal repayment options have recently shrunk.
The SAVE plan officially ended in early 2026, and PAYE and ICR are scheduled to be eliminated by July 2028. Anyone who borrows federal student loans after July 1, 2026 only has one income-driven option, RAP, which may be more expensive than previous plans.
For some borrowers, the Extended, Graduated, or Tiered Standard repayment plan may offer more affordable monthly payments than an income-driven plan. Keep in mind that the expanded rules would only apply to your first 60 months; after that, you’d have to use an income-driven plan or the 10-year Standard Plan to qualify for PSLF.
What should PSLF borrowers do now?
While the bill has bipartisan support, it’s still in the early stages and has no guarantee of becoming law. Rather than basing any financial decisions around this proposal, you should continue following the current rules for PSLF.
Some steps you can take include:
Check that you’re using income-driven repayment: Sign into your account on your loan servicer’s website or Federal Student Aid to confirm you’re repaying your loans on a qualifying plan.
Plan to switch away from ICR or PAYE: Both of these plans are going away by mid-2028, so prepare yourself to change to IBR or RAP before that date. You can use the federal student loan Repayment Calculator to compare your payments and interest costs on different plans.
Confirm that your employer is eligible: Qualifying for PSLF is less about what you do and more about where you work. You can use the PSLF Employer Search tool to confirm that your employer is eligible.
Submit a PSLF form each year: Although not strictly required, it’s worth filling out and submitting the PSLF form annually to make sure you’re on track. You should also submit the form each time you change employers.
Keep records of your PSLF progress: Hold on to copies of student loan statements, employment certifications, and any communications with your loan servicer. They might come in handy when your 10 years are up and it’s time to apply.
Explore the PSLF Buyback program This program may allow you to “buy back” months you spent in deferment or forbearance after you’ve completed 10 years in public service. It may be especially helpful for SAVE borrowers who spent years in administrative forbearance while the legal challenges against the plan played out in court.
The PSLF program can provide major relief for federal loan borrowers who work in public service, but it can be tricky to navigate its complex requirements. The Public Service Loan Forgiveness Inclusion Act is intended to simplify the process, but it’s still in its early stages and may not become law. For now, continue following the current PSLF rules around eligible employment and student loan repayment plans.
