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The SERVICE Act amends the Public Service Loan Forgiveness (PSLF) program by reducing the required number of qualifying monthly payments from 120 to 96 months, expanding which types of deferments and forbearances count toward forgiveness, and establishing a buyback process allowing borrowers to retroactively credit months of public service employment during which they did not make qualifying payments. The bill also modifies how prepayments are applied and includes provisions to prevent retroactive determinations that would disqualify previously counted payments.
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