Educational Loan Forgiveness for Public Service

If you are a public service employee who borrowed student loans or graduate/professional PLUS loans, or a public service employee who borrowed parent PLUS loans, you may be able to have a portion of those loans forgiven if you meet the following requirements:

• Are employed full time in a qualifying public service position
• Have one or more outstanding educational loans under the William D. Ford Direct Loan program
• After October 1, 2007, have made 120 monthly payments on the loan(s) while you were employed in the qualifying public service position
• Not in default on the eligible loan(s)
• Are employed in the qualifying public service job at the time of loan cancellation
• Have made your payments under qualifying repayments plans

The first loan cancellations will not begin until October 2017 because the required 120 payments = 10 years from the October 2007 creation of the public service forgiveness program.

Loans Eligible for the Public Service Forgiveness Program

Loans eligible for forgiveness under this program are:

• Federal Direct Stafford Loans (both subsidized and unsubsidized)
• Federal Direct PLUS Loans (both parents and graduate/professional students)
• Federal Direct Consolidation Loans

Borrowers who have Federal Family Education Loans (FFEL) may be eligible to consolidate their loans under the Federal Direct Consolidation Loan program in order to qualify for forgiveness but only payments made on the Direct Consolidation loan count toward the required 120 payments.

Educational Loan Repayment Plans that Qualify

To qualify for public service loan forgiveness, you must have made payments under one or a combination of the following repayment plans:

• Standard Repayment. Only standard repayment plans over 10 years qualify. (After 10 years of repayment under the 10 year standard repayment plan, a loan should be fully paid.)
• Income-Contingent Repayment or Income-Based Repayment. Not available to parent Direct PLUS loan borrowers.
• Other Direct Loan repayments plans if they have a monthly payment equal to at least the amount that would be required under the 10-year standard repayment plan. Contact your lender for specific information.

Public Service Jobs That Qualify for Loan Forgiveness

Public service jobs in the following fields are eligible for the loan forgiveness program:

• Military service
• Government
• Public safety
• Emergency management
• Law enforcement
• Public health or public education (including early childhood education)
• Public child care or social work in a public child or family service agency
• Public interest law services (including prosecution or public defense or legal advocacy in low income communities at a nonprofit organization)
• Public service for the elderly
• Public service for individuals with disabilities
• Certain tax-exempt organizations
• Public library sciences or school-based library sciences and other school-based services
• Faculty teaching in high-needs areas, as determined by the Secretary of Education
• Full-time faculty member at a Tribal College or University

Plan Ahead to Take Advantage of this Loan Forgiveness Program

If you anticipate being able to qualify for the public service forgiveness program, you can start by taking the following steps:

1. If you have FFEL loans, consolidate them into a Direct Consolidation Loan.
2. Make every monthly payment for the 10-year period.
3. Make sure your loans are not in default.

As you approach your 120 payments, contact the Direct Loan Servicing Center for information on how to apply for the public service loan forgiveness program.

About the Author:
Judi Sandall is a graduate of the State University of New York, with a BA in English Literature. She is a technical writer and editor who worked in student financial aid for over 20 years.