The Loan Repayment component of the Educational Support Program is designed to be utilized as a hiring and retention incentive for those positions designated by departments, for Educational Support Program purposes, as being difficult to recruit and retain. Qualified employees are eligible for non-taxable Educational Loan Repayments with an annual maximum of $5,250. Individuals must be graduates from an accredited post-secondary education program.

 

The application process for Loan Repayment is not initiated by the employee but by the Department Head. For more information on your Department's participation in Loan Repayment please speak with your Manager or Contact Us.

 

 

The College Cost Reduction and Access Act of 2007 established a new public service loan forgiveness program. This program discharges any remaining debt after 10 years of full-time employment in public service. The borrower must have made 120 payments as part of the Direct Loan program in order to obtain this benefit. Only payments made on or after October 1, 2007 count toward the required 120 monthly payments. (Borrowers may consolidate into Direct Lending in order to qualify for this loan forgiveness program starting July 1, 2008.)

This contrasts with the loan forgiveness of the remaining balance after 25 years of repayment under the income-contingent and income-based repayment plans for borrowers who are not employed full time in public service jobs.

This information was provided by FinAid.com for complete information please visit FinAid.com - Public Service Loan Forgiveness.

For additional information on the College Cost Reduction and Access Act of 2007 please visit the following websites:

• National Association of Student Financial Aid Administrators - Summary Page