The Public Service Loan Forgiveness (PSLF) program has long promised to erase federal student debt for workers in government, education, and nonprofit sectors after 120 qualifying payments. Yet a growing number of borrowers have discovered that the rules exclude many of the months they actually spent in public service, especially those who were forced into the SAVE forbearance after courts halted the plan in July 2024. In response, Reps. Bill Foster (D-IL) and Brian Fitzpatrick (R-PA) introduced the Public Service Loan Forgiveness Inclusion Act of 2026 aiming to close two major loopholes.
Key provisions that reshape qualifying payments
The bill introduces two concrete amendments. First, it expands the definition of a “monthly payment” to cover any amount a borrower would have paid during periods of administrative forbearance, provided the borrower was employed in public service at the time. This language directly captures the months many borrowers spent in the SAVE forbearance, which currently earn zero credit toward the 120-payment requirement. Second, the legislation removes the existing floor that disqualifies payments made under graduated, extended, or the newly created tiered standard plans during a borrower’s first 60 months. After the initial 60-month window, the traditional eligibility criteria resume, preserving the program’s integrity while granting relief to those caught in early-career repayment traps.
Why the changes matter for the 7 million SAVE participants
Since the SAVE forbearance began in July 2024, roughly 7 million borrowers have been placed in a 90-day pause that does not count toward PSLF. Servicers started sending 90-day exit notices on July 1, 2026, and interest has been accruing on the underlying balances since August 1, 2025. A public servant who remained in SAVE for the entire period lost more than 24 months of credit toward the 120-payment threshold, effectively pushing forgiveness further into the future. The only existing remedy, the PSLF Buyback program, forces borrowers to first meet 120 months of certified employment, then make a lump-sum payment based on an income-driven repayment formula—often IBR, which can be significantly higher for pre-2014 loans. For example, buying back 24 months at a $300 IBR-equivalent payment would require a $7,200 one-time payment. The Inclusion Act would eliminate that burden entirely for any documented public-service month.
Legislative journey and remaining unknowns
Introduced on the same day it was referred to the House Committee on Education and Workforce, the bill carries nine cosponsors and enjoys backing from the American Federation of Teachers and the American Council on Education. However, the text leaves several practical questions unanswered. Section 2(c)(2) limits the 60-payment rule to borrowers who have made fewer than 120 payments at enactment, yet it does not clarify whether the forbearance credit applies retroactively to months that occurred before the law takes effect. The plain language suggests a retroactive reading, but definitive guidance will likely require a Department of Education rule or a court decision. Additionally, the legislation does not address the existing PSLF Buyback queue—approximately 88,000 pending requests—leaving uncertainty about how already-paid lump sums or pending applications will be handled.
If the Education and Workforce Committee schedules a hearing before the 119th Congress adjourns on January 3, 2027, the bill could advance to a floor vote. Absent a hearing, the proposal would die and need to be re-filed in the next session. Meanwhile, borrowers still face imminent deadlines: the first round of 90-day exit notices expires on September 29, 2026, and the final SAVE deadline falls around March 31, 2027. Stakeholders are urged to monitor the Department’s required 180-day notice period after enactment, during which every Direct loan borrower must receive information on how to switch plans and claim the newly-eligible months.
