Teacher Loan Forgiveness Enhancement Act

HR 5084, the Teacher Loan Forgiveness Enhancement Act, creates a new program to forgive federal undergraduate student loans for public school teachers after 8 years of full-time service. It directly affects public elementary and secondary school teachers who meet the 8-year employment requirement, forgiving the remaining principal and interest on their eligible federal undergraduate loans (including those made, insured, or guaranteed under specific parts of the Higher Education Act). Crucially, the forgiven amount is not considered taxable income under federal tax law. The bill also adds deferment provisions allowing teachers to pause loan payments and interest accrual during their teaching service and for six months afterward.