CCRAA in a nutshell

Issue June 2011

The federal College Cost Reduction and Access Act of 2007 is hailed by Equal Justice Works as "one of the most significant breakthroughs for public interest lawyers in a generation."

Qualifying public service employment is full-time paid work in the government; a 501(c)(3) nonprofit; an AmeriCorps position; the Peace Corps; or for a private "public service organization."

The borrower must make 120 income-based payments as part of the Direct Loan program in order to obtain this benefit, but the payments don't have to be consecutive. The individual can take time off to start a family, for instance, with payments resuming upon re-entry to public-sector employment.