Eligible farmers could earn federal student loan forgiveness through farm work

The Education Secretary would cancel the remaining principal and interest on eligible federal student loans. A qualified farm or ranch must have a farm number under the cited Agriculture Department rule. Eligible loans are specified Federal Direct Stafford, PLUS, Unsubsidized Stafford, and Consolidation Loans that are not in default. Borrowers must make 120 qualifying monthly payments after enactment and work full-time for a qualified farm or ranch during every payment month and when cancellation occurs. At program entry, borrowers must work in agriculture and meet at least one listed eligibility category: beginning, underrepresented, socially disadvantaged, or veteran farmer or rancher. The 120 monthly payments must be made after the Act's enactment. The borrower must still work full-time for a qualified farm or ranch when the Education Secretary cancels the debt.

The Education Secretary would remove some borrowers from the program if they do not meet its minimum work period. The work period is full-time employment as an employee or manager of a qualified farm or ranch. The required period depends on the borrower's age when entering the program. Time on qualifying military service, and the 180 days after demobilization, does not count toward removal. A borrower removed from the program cannot return unless the Secretary finds exceptional circumstances. The work period is measured from program entry. Qualifying military service and the 180 days after demobilization do not count toward the removal period.

The Education Secretary, consulting the Agriculture Secretary, would issue final rules for running the program. The rules would carry out the loan forgiveness program in the Higher Education Act. The rules must include a process to track and verify work for a qualified farm or ranch. Final rules are due within 180 days after the Act's enactment.