What is loan forgiveness for public service employees?
Under this program, the remaining outstanding balance of principal and accrued interest on an eligible Direct Loan will be forgiven for a borrower who is not in default and who makes 120 monthly payments on the loan, under certain repayment plans, after Oct. 1, 2007 (the first cancellations of loan balances will not be granted until Oct. 1, 2017 at the earliest), while employed in certain public service fields. You must be employed full-time in a qualifying public service field during the same period in which the 120 payments are made and at the time that the cancellation is granted. For this loan forgiveness program, eligible Direct Loans include Federal Direct Stafford Loans, Federal Direct Unsubsidized Stafford Loans, Federal Direct PLUS Loans (for parents or graduate and professional students), and Federal Direct Consolidation Loans. Although loan cancellation is only available for loans made and repaid under the Direct Loan Program, borrowers with loans made under other federal st
