S. 1863 — VALOR Act of 2025

This section modifies the Public Service Loan Forgiveness (PSLF) program by adding special rules for borrowers whose public service includes or consists of covered active duty service, including National Guard service. (The PSLF program forgives the remaining balance on a borrower's Direct Loans after 120 qualifying monthly payments made under a qualifying repayment plan while employed full-time by a qualifying public service employer.) Specifically, for such borrowers, the Secretary of Education must (1) deem monthly payments deferred under specified military-related provisions or that would have been due during related forbearances as qualifying payments; (2) waive the public service employment requirement if the borrower completed 10 years of full-time covered active duty service during the loan period; and (3) provide forgiveness to qualifying borrowers without regard to their PSLF program enrollment date. Covered active duty service is defined as active duty (per 10 U.S.C. §101(d)) or full-time duty in the commissioned corps of the National Oceanic and Atmospheric Administration.