Section 1. Short title
This Act may be cited as the Veteran and Active Loan Obligation Relief Act of 2025 or the VALOR Act of 2025.
Section 2. Modification of public service loan forgiveness eligibility for borrowers in covered active duty service
Section 455(m) of the Higher Education Act of 1965 (20 U.S.C. 1087e(m)) is amended—
(1) by redesignating paragraphs (3) and (4) as paragraphs (4) and (5), respectively; and
(2) by inserting after paragraph (2) the following:
(A) In general
In carrying out this subsection with respect to a borrower whose public service includes or consists of covered active duty service, including National Guard service, the Secretary shall—
(i) deem each monthly payment that was deferred under subsection (f)(2)(C) or section 428(b)(1)(M)(iii) (relating to certain National Guard duty or active duty deferment) or section 493D, or that would have been due while the loan was in forbearance under subsection (l)(2) or section 428(c)(3)(A)(i)(iv), to be a qualifying monthly payment made by the borrower for purposes of subparagraphs (A) and (B)(ii) of paragraph (1);
(ii) waive the requirement of paragraph (1)(B)(i) if the borrower completed 10 years of full-time employment in covered active duty service during the period of the loan; and
(iii) ensure that a borrower whose public service job included covered active duty service and who meets the requirements of this subsection is able to receive public service loan forgiveness in accordance with the terms of this subsection, without regard as to when the borrower enrolled in the public service loan forgiveness program.
(B) Covered active duty service defined
In this paragraph, the term covered active duty service means—
(i) active service (as that term is defined in section 101(d) of title 10, United States Code); and
(ii) full-time duty in the active service of the commissioned corps of the National Oceanic and Atmospheric Administration.