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Federal Public Service Loan Forgiveness Program

On September 27, 2007, President Bush signed the College Cost Reduction and Access Act (CCRAA) of 2007. Part of the act included a new program.

Program Eligibility

To be eligible to participate in the Public Service Loan Forgiveness Program you must meet the following requirements:

  1. Make 120 monthly payments on the eligible Federal Direct Loan on or after Oct. 1st, 2007 (FFEL* loans can be moved to Direct Lending through loan consolidation)
  2. Be employed in a public service job as defined in the CCRAA during the time you make the qualifying monthly payments
  3. Be employed in a public service job as defined in the CCRAA at the time the Secretary forgives the loan
  4. Make qualifying payments under a Income-Driven Repayment (IDR) plan:
    • Saving on a Valuable Education (SAVE) Plan—formerly the REPAYE Plan
    • Pay As You Earn (PAYE) Repayment Plan
    • Income-Based Repayment (IBR) Plan
    • Income-Contingent Repayment (ICR) Plan

*The Federal Family Education Loan (FFEL) program includes loans provided by for profit and non-profit student loan lenders.

Eligible Loans

Eligible loans include Federal Direct Stafford Loans (Subsidized and Unsubsidized), Federal Direct PLUS Loans, and Federal Direct Consolidation Loans.

Borrowers in the Direct Loan program do not need to consolidate in order to qualify for loan forgiveness. Borrowers in the FFEL program will need to consolidate into Direct Loans. Perkins Loans can also be included if consolidated into a Federal Direct Loan.

Repayment Plan Options

To receive loan forgiveness, you will need to use , a new repayment plan and available as of July 1, 2009.

A standard payment plan also qualifies but results in your loan being fully repaid by the 120th payment.

See a to estimate your monthly income-based payment.