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IU School of Social Work Alumni Association


Federal Public Service Loan Forgiveness

The College Cost Reduction and Access Act is federal legislation that provides student loan forgiveness opportunities for those working in eligible public service fields, as well as a new Income Based Repayment (IBR) plan that can reduce monthly loan payments for borrowers that meet certain criteria. Borrowers with eligible federal loans who are facing challenges related to debt repayment should pursue additional information regarding these new programs so they can alleviate debt in the long run, while also reducing their monthly loan obligation once the new IBR payment plan goes into effect on July 1, 2009.

Eligible federal debt (Stafford loans, Perkins loans, Federal consolidation loans, and Graduate PLUS loans) must be in the Federal Direct Loan program to be considered for loan forgiveness. Private student loans are not eligible for any federal loan forgiveness. Borrowers whose federal debt is not currently with the Direct Loan program will be able to transfer their debt into Direct Loans via a Federal Direct Consolidation loan effective July 1, 2008. If you are unsure whether your debt is with Direct Loans, you may use your federal PIN to login to the National Student Loan Database and review your federal loan history; any Direct Loan would be clearly coded as such in the database. If you need to consolidate your debt currently held by other lenders into the Direct Loan program, you may do so here.

In order to qualify for loan forgiveness, a borrower must make payments towards their loan debt while employed for 10 years in eligible positions, as defined by the Department of Education. 120 monthly payments, not necessarily consecutive, would be required before the remaining debt can be forgiven and the borrower must still be employed in public service at the time they request loan forgiveness from the federal government. Please refer to the following website to review the definitions of eligible employment, as well as a list of jobs that qualify.

The Income Based Repayment plan can assist borrowers by capping their monthly loan payment at a reasonable amount based on income, family size and other factors. Borrowers must have enough federal debt relative to their adjusted gross income to qualify for reduced monthly payments. Detailed information about the IBR payment plan can be found at www.ibrinfo.org, which also includes a calculator to help borrowers determine whether they qualify for this repayment option. If the reduced payment on the IBR plan is not enough to cover the interest on your debt, the federal government will cover the interest on Subsidized Stafford loans for the first three years the borrower is on the IBR plan. Please keep yourself informed about loan forgiveness developments and the IBR plan by entering your email address at www.ibrinfo.org, which is a nonprofit and nonpartisan resource for federal borrowers.


See the IUPUI Office of Alumni Relations Calendar of Events for upcoming School of Social Work alumni programs.

School of Social Work website

IUPUI Office of Alumni Relations contact:
Karen Jones, (317) 274-8959 or kdeery@iupui.edu