Congress passed a law that will let forgive Federal Student Loans for all public servants after 10 years of repayment:
College Cost Reduction and Access Act (Enrolled as Agreed to or Passed by Both House and Senate)TITLE IV–LOAN FORGIVENESS
SEC. 401. LOAN FORGIVENESS FOR PUBLIC SERVICE EMPLOYEES.
Section 455 (20 U.S.C. 1087e) is further amended by adding at the end the following:`(m) Repayment Plan for Public Service Employees-`(1) IN GENERAL- The Secretary shall cancel the balance of interest and principal due, in accordance with paragraph (2), on any eligible Federal Direct Loan not in default for a borrower who–`(A) has made 120 monthly payments on the eligible Federal Direct Loan after October 1, 2007, pursuant to any one or a combination of the following–`(i) payments under an income-based repayment plan under section 493C;`(ii) payments under a standard repayment plan under subsection (d)(1)(A), based on a 10-year repayment period;`(iii) monthly payments under a repayment plan under subsection (d)(1) or (g) of not less than the monthly amount calculated under subsection (d)(1)(A), based on a 10-year repayment period; or`(iv) payments under an income contingent repayment plan under subsection (d)(1)(D); and`(B)(i) is employed in a public service job at the time of such forgiveness; and`(ii) has been employed in a public service job during the period in which the borrower makes each of the 120 payments described in subparagraph (A).`(2) LOAN CANCELLATION AMOUNT- After the conclusion of the employment period described in paragraph (1), the Secretary shall cancel the obligation to repay the balance of principal and interest due as of the time of such cancellation, on the eligible Federal Direct Loans made to the borrower under this part.`(3) DEFINITIONS- In this subsection:`(A) ELIGIBLE FEDERAL DIRECT LOAN- The term `eligible Federal Direct Loan’ means a Federal Direct Stafford Loan, Federal Direct PLUS Loan, or Federal Direct Unsubsidized Stafford Loan, or a Federal Direct Consolidation Loan.`(B) PUBLIC SERVICE JOB- The term `public service job’ means–`(i) a full-time job in emergency management, government, military service, public safety, law enforcement, public health, public education (including early childhood education), social work in a public child or family service agency, public interest law services (including prosecution or public defense or legal advocacy in low-income communities at a nonprofit organization), public child care, public service for individuals with disabilities, public service for the elderly, public library sciences, school-based library sciences and other school-based services, or at an organization that is described in section 501(c)(3) of the Internal Revenue Code of 1986 and exempt from taxation under section 501(a) of such Code; or
`(ii) teaching as a full-time faculty member at a Tribal College or University as defined in section 316(b) and other faculty teaching in high-needs areas, as determined by the Secretary.’.
Does anyone know if this is still operative even if you have consolidated your loans? If it isn’t that would be a good reason not to consolidate (too late for me)! I’ll try to dig up some more information on this, but you can find the full bill here and I came across it by looking up McCain’s voting record at VoteSmart.org – a site I highly recommend you check out for information on the candidates and their voting records.
Interestingly, in a bill that is, ostensibly, about student loans there is also an amendment against capital punishment for pregnant women.
McCain voted against this bill.