The College Cost Reduction and Access Act of 2007 limits the payback burden for various federal student loans. It even provides a way to erase the debt in some cases.
Known as public service loan forgiveness, the federal government may cancel all or a portion of an educational loan under certain circumstances. To qualify, you must:
- Teach in a school that serves low-income families or practice medicine in certain types of communities.
- Perform volunteer work in the AmeriCorps, Peace Corps or Volunteers in Service to America (VISTA).
- Serve in the military, such as the Army National Guard.
- Meet other criteria, such as serving in public-interest or nonprofit positions as specified in the forgiveness program.
To find out whether you may be eligible for loan forgiveness, visit the U.S. Department of Education’s Student Loan Web site at www.studentaid.ed.gov or visit www.CTAMemberBenefits.org/studentloan.