Teacher Loan Forgiveness Enhancement Act
- Bill Number
- H.R. 5084
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Education
- Status
- Introduced
- Latest Action
- 2025-09-02: Referred to the Committee on Education and Workforce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- Last Updated
- 2025-09-22T15:33:56Z
AI-Generated Summary
Teacher Loan Forgiveness Enhancement Act (H.R. 5084)
Purpose
This legislation amends the Higher Education Act of 1965 to establish a new program that forgives eligible undergraduate federal student loans for individuals employed full-time as public school teachers for at least 8 consecutive years. It also introduces related deferment options and authorizes limited sharing of tax information to support program administration.
Key Provisions
- Loan Forgiveness: The Secretary of Education forgives the full balance of principal and interest on eligible federal undergraduate loans (made under parts B, D, or E of the Higher Education Act) upon completion of 8 consecutive years of full-time teaching at a public elementary or secondary school.
- Forgiveness Process: The Department assumes repayment obligations for loans under part B, cancels loans under parts D and E, and provides payments to institutions for canceled Perkins loans.
- Tax Treatment: Forgiven amounts, including interest, are not considered taxable income under the Internal Revenue Code.
- Combination of Benefits: Borrowers may receive forgiveness under this program alongside existing benefits from sections 428K, 460, 455(m), or the National and Community Service Act.
- Deferment Options: Borrowers serving as public school teachers qualify for deferment on Direct Loans, FFEL Loans, and Perkins Loans, during which principal payments are not required and interest does not accrue; this covers the teaching period plus 6 months afterward and applies to both new and existing loans in repayment.
- Information Sharing: The Treasury Department may disclose specific return information (such as employer details and employment verification) to the Department of Education upon request to verify eligibility for loan forgiveness.
Significant Changes to Existing Law
- Introduces a new section 494A in part G of title IV of the Higher Education Act, creating a dedicated undergraduate loan forgiveness pathway for public school teachers.
- Adds new deferment categories in sections 455(f), 427(a)(2)(C), 428(b)(1)(M), and 464(c)(2)(A) of the Higher Education Act.
- Amends section 6103 of the Internal Revenue Code to permit targeted disclosures of taxpayer information for program administration, with conforming changes to confidentiality and penalty provisions.
- Expands eligibility for loan relief beyond prior programs by focusing exclusively on undergraduate loans and requiring 8 consecutive years of service.
Potential Impacts
- Government Agencies: Increases administrative responsibilities for the Department of Education in processing forgiveness and deferments; requires coordination with the Treasury Department for employment verification; may affect Perkins loan funds held by higher education institutions.
- Citizens: Provides financial relief to qualifying public school teachers by eliminating undergraduate loan balances after 8 years and pausing repayment during service; does not extend to graduate loans or non-public school teachers.
- International Relations: No direct impacts identified.
Main Stakeholders Affected
- Public school teachers seeking undergraduate loan relief.
- The Department of Education and Treasury Department (for administration and data sharing).
- Higher education institutions holding Perkins loans.
- Current and future student loan borrowers in the public education sector.
Notable Legal, Constitutional, or Political Implications
- Establishes non-taxable treatment of forgiven amounts, aligning with certain existing forgiveness programs but limited to undergraduate loans.
- Authorizes specific taxpayer data disclosures, subject to existing privacy protections under the Internal Revenue Code.
- Creates a new pathway for combining benefits with other federal service programs, potentially increasing overall relief available to eligible teachers.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Recent Actions
- 2025-09-02: Referred to the Committee on Education and Workforce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2025-09-02: Referred to the Committee on Education and Workforce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2025-09-02: Introduced in House
- 2025-09-02: Introduced in House
Bill Versions
- Teacher Loan Forgiveness Enhancement Act — issued 2025-09-02 — PDF (8 pages)