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Repayment Information

stafford and direct loan forgiveness

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Please visit our Cancellation page for information about Campus-Based Loan forgiveness.


Public Service Loan Forgiveness


Facts and Certification Form:

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 work full time in a public or private not for profit for 10 years prior to applying for forgiveness. Service cannot have begun until after July 1, 2008. Borrowers must make 120 installments on one of the Income Driven Payment Plans:

  •     Income-Based Repayment (IBR)
  •     Income Contingent Repayment (ICR)
  •     Pay As You Earn (PAYE)
  •     Revised Pay As You Earn (REPAYE)

The loan being forgiven must be a Direct Loan. You may have loans from private lenders (Stafford) and also Direct loans. You must first consolidate both of these making all your loans Direct loans 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 in order to take advantage of this benefit. (This is the only time you may reconsolidate without adding new money.)

Loans eligible for this benefit include:

  • Direct Stafford Loans and FFEL Stafford Loans
  • Graduate Plus Loans
  • Previously Consolidated Loans
  • Perkins Loans (only if consolidated into a direct loan consolidation) 
  • Nursing Loans (only if consolidated into a direct loan consolidation)

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.