H.R. 5084 — Teacher Loan Forgiveness Enhancement Act

This section establishes a loan forgiveness program under the Higher Education Act of 1965 for borrowers employed full-time as public school teachers (i.e., at public elementary or secondary schools, as defined in the Elementary and Secondary Education Act of 1965) for at least 8 consecutive years, forgiving the balance of principal and interest due on eligible Federal undergraduate loans (i.e., Federal Family Education Loan Program loans under part B, Direct Loans under part D, or Perkins Loans under part E attributable to undergraduate study). The Secretary implements forgiveness by repaying FFEL loans through holders, canceling Direct and Perkins Loans (with payments to Perkins institutions), excludes forgiven amounts from gross income for federal tax purposes, and authorizes concurrent benefits with existing teacher loan forgiveness (section 428K), Perkins teacher loan cancellation (section 460), Public Service Loan Forgiveness (section 455(m)), or AmeriCorps education awards.

This section authorizes deferment of Federal Family Education Loan (FFEL) Program loans, Federal Direct Loans, and Federal Perkins Loans for borrowers serving as public school teachers (as defined in section 494A of the Higher Education Act of 1965) during such service and for six months thereafter. For FFEL loans, the deferment—during which principal need not be paid but interest accrues—is added to insured loan note requirements and consolidation loan terms. For Direct Loans made on or after enactment or in repayment as of enactment, the deferment requires neither principal nor interest payments. For Perkins Loans, the deferment—during which principal need not be paid but interest accrues—is added to institutional deferment authority.

This section authorizes the Secretary of the Treasury, upon written request from the Secretary of Education, to disclose to authorized persons specified return information—including taxpayer identity and filing information under IRC §6103(l)(13)(A)(i) and (vi), employer identification numbers, verification of employment, employer names, and employer type indicators—for any relevant taxable year, solely for discharging loans under section 494A of the Higher Education Act of 1965 (Public Teacher Loan Forgiveness). (Thus, the Department of Education may use IRS data to verify public school teachers' employment eligibility for loan forgiveness.) It includes conforming amendments to procedural safeguards and unauthorized disclosure penalties under IRC §§6103(p) and 7213(a)(2), effective for disclosures on or after enactment.