To provide for the elimination of interest charges on Federal student loans for
qualified healthcare workers.
Be it enacted by the Senate and House of Representatives of the United States of
America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the "Healthcare Worker Student Loan
Interest Elimination Act of 2024".
(b) TABLE OF CONTENTS.—The table of contents for this Act is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Definitions.
Sec. 4. Interest elimination program.
Sec. 5. Implementation.
Sec. 6. Reporting requirements.
Sec. 7. Authorization of appropriations.
Sec. 8. Conforming amendments.
Sec. 9. Effective date.
SECTION 2. FINDINGS.
Congress finds the following:
(1) Healthcare workers provide essential services that are fundamental to the
nation's health, safety, and well-being.
(2) The United States faces critical shortages of healthcare workers in many
geographic areas and specialties.
(3) The cost of education required to enter healthcare professions has risen
dramatically, with the average debt burden for healthcare professionals
ranging from $100,000 to over $250,000.
(4) Interest charges on Federal student loans significantly increase the total
cost of education for healthcare workers, often by tens of thousands of
dollars.
(5) The burden of student loan debt and interest charges affects healthcare
workers' ability to:
(A) Serve in rural and underserved communities;
(B) Work in public health settings;
(C) Maintain adequate work-life balance;
(D) Avoid professional burnout.
(6) Existing loan repayment programs do not adequately address the continuing
burden of interest accrual on healthcare workers' student loans.
SECTION 3. DEFINITIONS.
In this Act:
(1) QUALIFIED HEALTHCARE WORKER.—
(A) IN GENERAL.—The term "qualified healthcare worker" means an individual
who—
(i) Has completed a program of study leading to a degree, certificate,
or license in a healthcare field;
(ii) Holds current, valid licensure or certification as required by
Federal and State law for their healthcare profession;
(iii) Is employed full-time in the delivery of healthcare services or
public health services.
(B) INCLUDED PROFESSIONS.—The term includes, but is not limited to:
(i) Physicians
(ii) Nurse practitioners
(iii) Registered nurses
(iv) Physician assistants
(v) Clinical laboratory professionals
(vi) Mental health professionals
(vii) Allied health professionals
(C) RULEMAKING.—The Secretary shall, through rulemaking, further define
and update the list of included professions based on workforce needs
and public health priorities.
(2) QUALIFYING LOAN.—
(A) IN GENERAL.—The term "qualifying loan" means any loan made, insured,
or guaranteed under part B, D, or E of title IV of the Higher
Education Act of 1965 (20 U.S.C. 1071 et seq., 1087a et seq.,
1087aa et seq.).
(B) EXCLUSION.—Such term shall not include—
(i) A loan made to the parents of a dependent student under PLUS loans;
(ii) A Federal Direct Consolidation Loan or Federal Direct PLUS Loan
made to a parent;
(iii) A private education loan as defined in section 140 of the Truth
in Lending Act (15 U.S.C. 1650).
SECTION 4. INTEREST ELIMINATION PROGRAM.
(a) IN GENERAL.—Notwithstanding any other provision of the Higher Education
Act of 1965 (20 U.S.C. 1001 et seq.), interest shall not accrue on a
qualifying loan of a qualified healthcare worker during any period in
which the individual—
(1) Is employed as a qualified healthcare worker; and
(2) Maintains qualifying loan repayment status.
(b) RETROACTIVE INTEREST ADJUSTMENT.—
(1) IN GENERAL.—Upon application and verification of qualified status,
any interest that has accrued on qualifying loans during periods of
qualifying employment prior to the implementation of this Act shall
be—
(A) Removed from the loan balance;
(B) Credited toward future payments; or
(C) Refunded to the borrower if the loan has been fully repaid.
(2) LIMITATION.—Retroactive adjustments shall be limited to periods no
more than 5 years prior to the date of enactment of this Act.
(c) EMPLOYMENT VERIFICATION.—
(1) INITIAL VERIFICATION.—To qualify for the interest elimination
program, an individual shall submit to the Secretary—
(A) Documentation of current employment as a qualified healthcare
worker;
(B) Proof of current licensure or certification;
(C) Such other information as the Secretary may require.
(2) CONTINUING VERIFICATION.—To maintain eligibility, a qualified
healthcare worker shall—
(A) Annually submit updated employment verification;
(B) Notify the Secretary within 60 days of any change in employment
status that would affect eligibility.
SECTION 5. IMPLEMENTATION.
(a) SECRETARY'S RESPONSIBILITIES.—The Secretary shall—
(1) Establish procedures and systems for implementing the interest
elimination program within 180 days of enactment;
(2) Create a streamlined application and verification process;
(3) Coordinate with relevant Federal and State agencies to verify
employment and licensure status;
(4) Issue guidance to loan servicers regarding implementation;
(5) Establish an appeals process for eligibility determinations.
(b) LOAN SERVICER RESPONSIBILITIES.—Loan servicers shall—
(1) Implement interest elimination for eligible borrowers;
(2) Process retroactive adjustments as required;
(3) Provide regular statements showing interest savings;
(4) Maintain accurate records of interest elimination periods.
SECTION 6. REPORTING REQUIREMENTS.
(a) ANNUAL REPORT TO CONGRESS.—The Secretary shall submit to the Committee
on Education and Labor of the House of Representatives and the Committee
on Health, Education, Labor, and Pensions of the Senate an annual
report on—
(1) The number of healthcare workers receiving interest elimination;
(2) The total amount of interest eliminated;
(3) The distribution of beneficiaries by:
(A) Healthcare profession
(B) Geographic location
(C) Practice setting
(4) The impact on recruitment and retention in public health services;
(5) Recommendations for program improvements.
(b) WORKFORCE IMPACT STUDY.—The Secretary shall conduct a study every three
years to evaluate the program's impact on—
(1) Healthcare workforce distribution;
(2) Public health service staffing;
(3) Healthcare worker retention;
(4) Access to care in underserved areas.
SECTION 7. AUTHORIZATION OF APPROPRIATIONS.
(a) IN GENERAL.—There are authorized to be appropriated such sums as may be
necessary to carry out this Act.
(b) AVAILABILITY.—Amounts appropriated under subsection (a) shall remain
available until expended.
SECTION 8. CONFORMING AMENDMENTS.
[Technical amendments to align with existing education and healthcare laws]
SECTION 9. EFFECTIVE DATE.
(a) IN GENERAL.—Except as provided in subsection (b), this Act shall take
effect 180 days after the date of enactment.
(b) REGULATIONS.—The Secretary shall promulgate regulations to carry out the date of enactment.
Why Healthcare Workers Should Be Exempt from Student Loan Interest: A Thread from a VA Nurse Practitioner