Students who have federal student loans may be able to reduce or eliminate their debt, thanks to the College Cost Reduction and Access Act of 2007.

The act stipulates that college graduates, after making payments for 120 months on a federal student loan and working in a public service job for the same amount of time, can have their remaining debt, interest and principle, forgiven.

Eligibility requirements include working in a public service job for 10 years. Some of the jobs that are included in this definition are: government, military service, public safety and law enforcement (police and fire), public health, public education, public early childhood education, public child care, social work in a public child or family service agency, public services for individuals with disabilities or the elderly, public interest legal services (including prosecutors, public defenders and legal advocacy in low-income communities), public librarians, school librarians and other school-based services, and employees of tax exempt 501(c)(3) organizations.

The bill grants a nice break for college students who had to borrow for their education. However, it should be noted that it only covers federal loans.
Federal loans are granted to students according to their financial situation, as submitted through the Free Application for federal Student Aid (FAFSA). For this reason, students typically end up with more private loans than federal ones. And after making payments for ten years, there may not be much debt to forgive - it all depends on salary and frugality.

For more information visit http://www.finaid.org/loans/publicservice.phtml