Student Loan Negotiators Tackle Public Service Loan Forgiveness

Abstract:

Student loan negotiators are meeting this week in negotiated rulemaking (negreg) to codify provisions of the College Cost Reduction and Access Act (CCRAA). Yesterday negotiators discussed the Public Service Loan Forgiveness program, which grants loan forgiveness to borrowers who make 120 payments on a qualified loan while employed full-time in a public service job. Borrowers would need to make 120 on-time full monthly payments on an eligible Direct Loan on or after October 1, 2007. The borrower must be directly employed in a full-time – defined by the Department as a minimum of 36 hours per week – in qualified employment.

The Department provided proposed draft regulations to codify the statute. A summary of the discussion from negreg is contined in this article.

The full article was originally published in NASFAA’s Today’s News on 2/6/08.