Permanent Families for All Children Act - Amends part E (Foster Care and Adoption Assistance) of title IV of the Social Security Act to:

• limit to 36 the number of months for which foster care maintenance payments made on behalf of a child not in a legal guardianship or kinship guardian arrangement may be reimbursed;
• limit to 12 the number of months for which foster care maintenance payments made to child-care institutions on behalf of a child residing in the institution may be reimbursed;
• eliminate the Aid to Families with Dependent Children (AFDC) income eligibility requirement for foster care maintenance payments;
• replace the federal medical assistance percentage (FMAP, or federal matching rate) for foster care maintenance payments and related costs in a state with a foster care partnership rate for the quarter determined by the Secretary of Health and Human Services (HHS); and
• make children in residential treatment programs eligible for 50% of regular foster care maintenance payments.

Directs the Secretary to increase the proportion of the amounts expended by a state for caseworker training on child-focused recruitment and retention.

Increases the amount of spending for child welfare programs by the unused savings resulting from this Act.

Amends the Higher Education Act of 1965 to authorize the cancellation of Federal Direct Student Loans for a social worker employed in a public child or family service agency after the social worker has made 60 monthly payments on the eligible loan after the enactment of this Act.