How do I qualify for public service loan forgiveness?

    Published: 06-16-2009
    Views: 13,755
    Justin Draeger with the National Association of Student Financial Aid Administrators discusses how to qualify for public service loan forgiveness.

    Host: How do I qualify for public service loan forgiveness?

    Justin Draeger: Public service loan forgiveness is a new program that was just introduced through the College Cost Reduction and Access Act and it began on October 2007. It is prospective in nature which means that it goes out into the future, the earliest that anyone can qualify for this new forgiveness program is October 2017, so the reason for that is in the legislation it says that you must make a 120 payments, which is ten years with the payments. In a qualified repayment plan under direct student loan that means the loan held by the US Department of Education. To qualify for loan forgiveness after after years you will have to work in a public service job or for a public non-profit and if you meet those criteria and make all of your student loan payments. The Federal Government will cancel out or forgive a portion of your loans.