Student Loan Forgiveness Act

Representative Hansen Clarke (D-MI) introduced on March 8th 2012, HR4170, the Student Loan Forgiveness Act. The bill aims to protect those struggling to make their student loan payments.
Clark is quoted saying, ” It’s time for Congress to stand for the rights of student loan borrowers. It’s time to forgive these student loan debts!”
If a student loan borrower makes payments equal to 10% of their discretionary income for a period of 10 years, the balance of their federal student loan debt will be forgiven.

Does A 10-Year Repayment Plan Sound Better Than 30 Years?

If you are amongst the people working in the public service field that are stuck with large student loan balances that are difficult if not impossible to pay, then the Student Loan Forgiveness plan is the plan for you.  When looking for help with student loans many people will qualify for the very advantageous Student Loan Consolidation & Income Based Repayment programs; however those that are employed full time in the public service field can now apply for student loan forgiveness on top of their consolidation or IBR plan, thus allowing them to have their loans forgiven after making 10 years worth of payments.  

Imagine in just ten years being completely free of your student loans? Also imagine drastically cutting the cost of your monthly payments while fulfilling your student loan forgiveness program?  This could drastically alter your lifestyle and greatly improve your overall financial situation.  

Student Loan Forgiveness Program

What is the Public Service Loan Forgiveness program?

Through the College Cost Reduction and Access Act of 2007, Congress created the Public Service Loan Forgiveness Program to encourage individuals to enter and continue to work full-time in public service jobs. Under this program, borrowers may qualify for forgiveness of the remaining balance due on their eligible federal student loans after they have made 120 payments on those loans under certain repayment plans while employed full time be certain public service employers. Since borrowers must make 120 monthly payments on their eligible federal student loans beginning after October 1, 2007 before they qualify for the loan forgiveness, the first cancellations of loans balances will not be granted until October 2017.

What types of public service jobs will qualify for loan forgiveness?


  • A federal, state, local, or tribal government organization, agency, or entity(includes most public schools,
    colleges and universities)
  • A public or family service agency
  • A non-profit organization under section 501(C)(3) of the Internal revenue Code that is exempt from taxation
    under 501(a) of the Internal Revenue Code (includes most non-profit private schools, colleges, and
    universities); A Tribal college or university; or A organization that is not a for-profit business, a labor
    union, a partisan political organization, or an organization engaged in religious activities
  • Emergency Management
  • Military
  • Law Enforcement
  • Public interest law services
  • Early Childhood Education (including licensed or regulated health care, Head Start, and state-funded
  • Public Service for individuals with disabilities and the elderly
  • Public health (including nurses, nurse practitioners, nurses in a clinical setting, and full-time
    professionals engaged in health care practitioner occupations and health care support occupations)
  • Public Education
  • Public library services; and School library or other school based services.

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