Under certain circumstances, the federal government will cancel all or part of an educational loan. This practice is called Loan Forgiveness.
The Public Service Loan Forgiveness (PSLF) program was created under the College Cost Reduction and Access Act of 2007 (CCRAA) to provide indebted professionals a way out of their student loan debt burden by working full-time in public service.
The PSLF Program is intended 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 of their Direct Loans after they have made 120 qualifying payments on those loans while employed full time by certain public service employers.