SERVICE Act

The SERVICE Act reduces the required number of qualifying monthly payments for Public Service Loan Forgiveness from 120 to 96. It expands what counts as a qualifying payment to include certain periods of deferment (like military service, medical treatment, or Peace Corps work) and forbearance, and creates a "buyback" process allowing borrowers to pay to count months of public service employment without making qualifying payments. The bill also adds an online portal for borrowers to track their progress toward loan forgiveness, clarifies treatment of independent contractors as public service workers, and improves the reconsideration process for denied applications. This directly affects borrowers with Federal Direct Loans who work in public service jobs, including those who may have missed payments due to circumstances like military service, medical treatment, or other qualifying deferments. The changes aim to make loan forgiveness more accessible by simplifying the process and expanding eligibility criteria.