Whether you are a freshman or a senior you probably worry about paying back your student loans. No one wants to start their life in debt. Luckily, there are government loan repayment programs (also called loan forgiveness programs) that can help you. These programs allow students to pursue financial aid via the traditional route: completing a Free Application for Federal Student Aid (FAFSA), obtaining a federal loan, and then having all or part of it excused based on choosing specific careers in high demand situations or locations, such as working in the public sector, serving low-income or underserved populations, or in other areas where finding competent employees in certain professions is difficult. Most of these plans become effective once you have become employed after graduating.
College Cost Reduction and Access Act of 2007
The College Cost Reduction and Access Act of 2007 allows you to get your remaining loan debt discharged after 10 years of full-time employment in public service. The borrower must have made 120 payments (that’s 12 a year for 10 years) as part of the Direct Loan program. Only payments made on or after October 1, 2007 count toward the required 120 monthly payments. A public service job is defined as a full-time job in emergency management, government, military service, public safety, law enforcement, public health, public education, social work, public interest law services, child care.
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