	DL Program Loan Forgiveness for Public Service Employees

The College Cost Reduction and Access Act of 2007 amended the Higher Education Act of 1965 (HEA) to establish a new loan forgiveness provision under the William D. Ford Direct Loan (DL) program for borrowers who are employed full-time in public service jobs for ten years during the repayment of their loans. Borrowers of DL program loans who make 120 monthly payments on or after October 2, 2007, according to specified repayment plan terms, while concurrently employed full-time in certain public service jobs, will have any loan balance of principal and interest remaining due after their 120 th payment canceled or forgiven by the Secretary of Education. Implementation Issues

The DL program loan forgiveness provision for public service employees is available to borrowers of DL program loans who make 120 payments according to specified repayment plans while concurrently employed full-time in specified public service jobs, on or after October 2, 2007.
The College Cost Reduction and Access Act of 2007 (CCRAA; P.L. 110-84) establishes a new loan forgiveness provision for borrowers of loans made under the William D. Ford Direct Loan (DL) program who are employed in public service jobs for 10 years during the repayment of their loans. Borrowers who make 120 monthly payments on or after October 2, 2007, according to specified repayment plan terms, while concurrently employed full-time in certain public service jobs, will have any loan balance of principal and interest remaining due after their 120th payment canceled or forgiven by the Secretary of Education. Since borrowers must make 120 monthly payments on or after October 2, 2007, while concurrently employed in public service jobs, borrowers will become eligible for loan forgiveness no earlier than 2017.
This report provides a brief description of the DL program loan forgiveness provision for public service employees and identifies issues that may be addressed as it is implemented. It will be updated as warranted.