S. 1863

119 S1863 IS: Veteran and Active Loan Obligation Relief Act of 2025
 U.S. Senate
 2025-05-22
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 EN
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 II  119th CONGRESS  1st Session  S. 1863  IN THE SENATE OF THE UNITED STATES   May 22, 2025   Mr. Blumenthal  introduced the following
  bill; which was read twice and referred to the  Committee on Health, Education, Labor, and
  Pensions    A BILL
To amend section 455(m) of the Higher Education Act of 1965 to modify the
  eligibility requirements of the public service loan forgiveness program for certain
  members of the Armed Forces, the National Guard, and the commissioned corps of the
  National Oceanic and Atmospheric Administration, and for other
 purposes.
1.
Short title
This Act may be cited as the   Veteran and Active Loan Obligation Relief Act of 2025   or the   VALOR Act of 2025  .
2.
Modification of public service loan forgiveness eligibility for borrowers in
 covered active duty service
Section 455(m) of the Higher Education Act of 1965 ( 20 U.S.C. 1087e(m) ) is amended—
(1)
by redesignating paragraphs (3) and (4) as paragraphs (4) and (5), respectively; and
(2)
by inserting after paragraph (2) the following:
(3)
Special rules with respect to borrowers in covered active duty service
(A)
In general
In carrying out this subsection with respect to a borrower whose public service includes or consists of covered active duty service, including National Guard service, the Secretary shall—
(i)
deem each monthly payment that was deferred under subsection (f)(2)(C) or section 428(b)(1)(M)(iii) (relating to certain National Guard duty or active duty deferment) or section 493D, or that would have been due while the loan was in forbearance under subsection (l)(2) or section 428(c)(3)(A)(i)(iv), to be a qualifying monthly payment made by the borrower for purposes of subparagraphs (A) and (B)(ii) of paragraph (1);
(ii)
waive the requirement of paragraph (1)(B)(i) if the borrower completed 10 years of full-time employment in covered active duty service during the period of the loan; and
(iii)
ensure that a borrower whose public service job included covered active duty service and who meets the requirements of this subsection is able to receive public service loan forgiveness in accordance with the terms of this subsection, without regard as to when the borrower enrolled in the public service loan forgiveness program.
(B)
Covered active duty service defined
In this paragraph, the term  covered active duty service  means—
(i)
active service (as that term is defined in section 101(d) of title 10, United States Code); and
(ii)
full-time duty in the active service of the commissioned corps of the National Oceanic and Atmospheric Administration.
 .