Skip to main content

Secondary navigation:

Loan Forgiveness for Public Service

federal direct loans

Please note: Some of these files are Adobe Acrobat® (PDF) formatted files. To view them, you will need to download the free Adobe Acrobat file reader.

The College Cost Reduction and Access Act of 2007 (CCRAA) creates a new loan forgiveness option for Direct loan borrowers who hold public-service jobs. Borrowers who meet requirements outlined in the law may be eligible to have a portion of their student loan debt forgiven. An overview of the guidelines follows.

The borrower must have been working in a public-service profession for 10 years prior to applying for forgiveness. Service cannot begin until after July 1, 2008, and must be consecutive. Borrowers must be making payments during the ten years and may apply to cancel any federal student loan balances that remain after that period.

The Loan being forgiven must be a Direct Loan. Boston College is not a Direct Loan lender. This means that you will need to consolidate your loans with a Direct Consolidation Loan before you can begin counting your service period. If you already have a consolidation loan with another company, you can consolidate again into a Direct Loan to take advantage of this benefit.

To qualify for loan forgiveness, your loan must be on an Income-Contingent Repayment Plan or Income-Based Repayment (beginning July 1, 2009).

Loans eligible for this benefit:

  • Federal Direct Loans
  • Graduate PLUS Loans
  • Direct Consolidation Loans
  • Perkins Loans (only if included in a Direct Consolidation Loan)

Stafford Loan Forgiveness Program for Teachers

To encourage individuals to enter and remain in the teaching profession, the Stafford Loan Forgiveness Program for Teachers grants loan forgiveness of up to $17,500 for teachers in certain specialties, and up to $5,000 for other teachers who teach for five years in low-income schools and meet other requirements.

Additional Loan Forgiveness Resources