Public Service Loan Forgiveness
A brochure (PDF) titled Federal Student Aid: Loan Forgiveness For Public Service Employees
Public Service Loan Forgiveness information
A brochure (PDF) titled Frequently Asked Questions Regarding Public Service Loan Forgiveness
The recently enacted College Cost Reduction and Access Act (CCRAA) creates a new loan forgiveness option for Stafford 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 ten 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:
- Stafford Loans
- Graduate Plus Loans
- Direct Consolidation Loans
- Perkins Loans (only if included in a Direct Consolidation Loan)
Federal Teacher Loan Forgiveness Program
To encourage individuals to enter and remain in the teaching profession, the Teacher Loan Forgiveness Program 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.
Several different Forgiveness benefits are available. Be sure to read carefully in order to determine your eligibility. Contact your Stafford lender/servicer to initiate the process of forbearance while you are working in an eligible field. Specific documentation may be required by the lender/servicer.
The Stafford Loan Forgiveness Program for Teachers is a convenient brochure (PDF) with further details.