1. Short title This Act may be cited as the Public Service Pays Off Act . 2. Public service loan forgiveness program Section 455(m) of the Higher Education Act of 1965 ( 20 U.S.C. 1087e(m) ) is amended— (1) in paragraph (1), in the matter preceding subparagraph (A), by inserting or paragraph (5), as applicable, after paragraph (2) ; (2) in paragraph (2), by striking After and inserting Except as provided in paragraph (5), after ; and (3) by adding at the end the following: (5) Loan cancellation for partial service (A) In general Notwithstanding paragraph (2), beginning on the date of enactment of the Public Service Pays Off Act , the Secretary shall cancel the obligation to repay the balance of principal and interest due on the eligible Federal Direct Loans made to a borrower under this part in accordance with this paragraph. (B) New monthly payments For a borrower of an eligible Federal Direct Loan who begins making qualifying monthly payments under paragraph (1) on or after the date of enactment of the Public Service Pays Off Act and who is employed in a public service job and submits an employment certification form described in clause (F) , the Secretary shall cancel, after the conclusion of each employment period in such public service job, as described in clause (D) — (i) the percent specified in such subclause (D) of the total amount due on the eligible Federal Direct Loans made to the borrower under this part, based on the length of such employment period