A new bill introduced by U.S. Rep. Joe Courtney, D-2nd District, would codify and expand a loan forgiveness program for public service.

The program applies to military service members, Peace Corps volunteers, teachers, social workers and other professions. Courtney’s bill, which he introduced this past week, would make the updated Public Service Loan Forgiveness program, passed into law in 2007, a permanent fixture rather than being decided upon at the whims of presidents and secretaries of education.

The new bill also would halve payments needed to qualify for PSLF loan forgiveness from 120 over 10 years to 60 over five years, and would “Clarify eligibility of active-duty military and Peace Corps volunteers whose loans were in deferment during their service tenure,” thereby expanding the program, according to his office.

In October 2021, at Courtney’s behest, new U.S. Secretary of Education Miguel Cardona implemented a waiver to correct U.S. Department of Education practices involving applications by active-duty military service members for loan forgiveness. The waiver program expires in October.

The rules that had been in place had prevented a number of members who had deployed far away from their families from applying their full period of service toward forgiveness, meaning they had to tack on time to their service in order to qualify.

Since the shift last year, the department has approved $7.3 billion in loan forgiveness for more than 127,000 borrowers. In Connecticut, as of this May, at least 1,480 public service workers have received more than $92 million in loan forgiveness.

Last year’s PSLF program overhaul allowed active-duty service members to count the full length of their deployment toward student loan forgiveness, which stemmed from a bill introduced by Courtney last year.

“The program was Secretary Cardona’s effort to address the complete breakdown of PSLF discharge process that was passed into law in 2007,” Courtney said. “President (George W.) Bush signed it into law, there was a strong bipartisan vote, but later on, 98% of those who applied for loan forgiveness were rejected.”

The program also allows people who work in other qualifying jobs — nurses, teachers, police, firefighters, for example — to enroll in income-driven repayment plans that will end in student loan forgiveness after 10 years of qualifying service. The Department of Education’s overhaul last year extended coverage to new groups of military members, including deployed active-duty and National Guard members.

Courtney said he expects support for the new bill. U.S. Sen. Sheldon Whitehouse, D-R.I., introduced a companion bill in the Senate, “since the clock is ticking on the waiver program.”

“In my opinion this is one area of the student debt that I think has strong majority support in the country, and the (2007) law passed overwhelmingly,” Courtney said. “It helps military service members, teachers, people who work in nonprofits, and in many instances they opted for this type of profession and career knowing that they maybe were giving up other opportunities to earn more money, particularly for military service members and some of the other public sector professions.”

The bill Courtney introduced July 12 is co-sponsored by U.S. Rep. Jahana Hayes, D-5th District.

“Like many, I relied on student loans to pursue my dream of becoming a teacher and returning to my high needs community to teach,” Hayes said in a news release. “I know the crushing burden of student loan payments on a teacher salary. Our federal laws should incentivize people to enter public service—not create unnecessary burdens that keep them from serving their communities. I applaud Congressman Courtney for his leadership in improving the Public Service Forgiveness Program and making careers in public service more attainable for all.”

s.spinella@theday.com