21 Sep Student Loan Forgiveness, Fact or Fantasy

The College Cost Reduction & Access Act went into effect July 1, 2009. This legislation provides for forgiveness of federally-guaranteed student loans for individuals in certain public service occupations provided they meet certain conditions. Eligible borrowers must consolidate the loans into an Income Contingent Repayment Plan (ICRP) or Income Based Repayment Plan (IBRP), make scheduled payments for ten years, and must be employed full-time in an eligible public service capacity for each of the 120 months in which a payment is made. If these requirements are satisfied, the remainder of the loan debt is forgiven.
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