The College Cost Reduction and Access Act of 2007

The College Cost Reduction and Access Act of 2007 (CCRAA)

After serving 10 years of full-time employment in public service, the loan forgiveness program pays off any remaining debt on your student loans.

The College Cost Reduction and Access Act of 2007 established a NEW public service loan forgiveness program.

Six months after graduation, (when you begin paying off your loans), you need to first make 120 payments in order to qualify to obtain this benefit. Only payments made on or after October 1, 2007 count toward the required 120 monthly payments.

This program cancels any remaining debt after 10 years of full-time employment in public service.

• You must have made 120 payments as part of the Direct Loan program to obtain this benefit.
• Only payments made on or after October 1, 2007 count toward the required 120 monthly payments.
• Borrowers may lower payments by consolidating into Direct Lending in order to qualify for this loan forgiveness program starting July 1, 2008.

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, public library sciences, or any other job at an organization that is described in section 501(C)(3) of the Internal Revenue Code of 1986.