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What Jobs Qualify for Public Service Loan Forgiveness (PSLF)?
What Jobs Qualify for Public Service Loan Forgiveness (PSLF)?
The rules and requirements for PSLF have changed multiple times since the program’s inception, especially in recent years with expansions and provisions to help more public sector professionals — such as doctors, nurses, first responders, and teachers — in response to the COVID-19 national emergency and beyond.
The Public Service Loan Forgiveness (PSLF) program1 was created by the US government as part of the College Cost Reduction and Access Act of 2007 and offers a path to forgiveness for federal student loan borrowers working full-time for the government or a qualifying nonprofit organization.
Additionally, the rules and requirements for PSLF have changed multiple times since the program’s inception, especially in recent years with expansions and provisions to help more public sector professionals — such as doctors, nurses, first responders, and teachers — in response to the COVID-19 national emergency and beyond.
Read on for a deeper understanding of how the PSLF program works and what types of public sector jobs could qualify. You can also learn more at laurelroad.com/student-loan-forgiveness/.
What is PSLF?
The 10-year PSLF program allows borrowers employed at government organizations and qualifying nonprofit organizations to have their federal Direct Loans forgiven after ten years of repayment (or 120 qualifying payments). Here’s how it works.
How does PSLF work?
To pursue and qualify for PSLF, 120 qualifying monthly payments must be made under a qualifying repayment plan — typically, an Income-Driven Repayment (IDR) plan — paid on-time (within 15 days of due date) and in the full due amount. The different types of IDR plans that qualify include:
IDR Comparison Chart
Applications for SAVE, other IDR plans, and loan consolidation are available on http://studentaid.gov. You can also submit a PDF application to your loan servicer by uploading it to your servicer’s website, or mailing it to them. Expect a delay in processing times. The Education Department recommends checking its website for updates – there is no processing time estimate available.
10% of your discretionary income (and your spouse’s if filing jointly)
Never more than federal 10-year Standard Repayment Plan amount
20 years
Accepting new enrollment applications
Challenges to SAVE
Multiple legal challenges made by states to the Saving on A Valuable Education (SAVE) plan could impact implementation of key aspects of the plan. For the most up-to-date developments, visit studentaid.gov.
What jobs qualify for PSLF?
As for job types and titles, qualifying employment for the PSLF Program is more about your employer than the job you do. As a full-time government employee (federal, state, local, or tribal), you’re eligible for PSLF. You could even be eligible for PSLF as a government contractor, so long as you’re directly employed by a qualifying employer — such as a nonprofit — that is doing work under a government contract. Just note that as a contractor, you’re generally considered full-time if you work at least 30 hours per week or if you meet your employer’s definition of full-time — whichever is greater.
Qualifying for PSLF as a nonprofit employee
If you’re employed by a nonprofit, the general rule is that it needs to be tax-exempt under Section 501(c)(3) of the Internal Revenue Code. However, there’s a chance you could be eligible for PSLF even if your organization is not a 501(c)(3) nonprofit. According to studentaid.gov, a nonprofit that is not tax-exempt under section 501(c)(3) could be considered a qualifying employer if it provides certain types of qualifying public services. For example, eligible not-for-profit organizations include most private elementary and secondary schools, private colleges and universities, and many other organizations.
A not-for-profit organization that is not exempt under section 501(c)(3) of the Internal Revenue Code is considered a qualifying employer if it provides at least one of the following public services:
Emergency management
Military service (on behalf of the US armed forces or the National Guard) or civilian service to the military
Public safety
Law enforcement: crime prevention, control or reduction of crime, or the enforcement of criminal law
Public interest law services
Early childhood education
Public service for individuals with disabilities or older adults
First responders employed by federal, state, local or tribal governments, such as:
Law enforcement professionals
Firefighters
EMTs
Active-duty military personnel
Government personnel employed by federal, state, local or tribal governments, such as:
Officials
Aides and support personnel
Social workers
Researchers
Contract workers
Compensated volunteer and non-profit work such as:
AmeriCorps
Peace Corps
To better understand your PSLF eligibility, take our quiz below. You can also use the employer search tool on studentaid.gov to see if your current and past employers are on the eligible list.
Jobs that don’t qualify for PSLF
To further understand what types of jobs and employers typically do qualify for PSLF, it can be helpful to understand the ones that do not. Here’s a short list:
For-profit organizations, including for-profit government contractors
Labor unions
Partisan political organizations
Learn more about job types, employers, and employment circumstances that do not qualify for PSLF.
How to apply for PSLF
Getting in and staying in the PSLF program is a notoriously challenging process with a high rejection rate. According to June 2023 data from studentaid.gov, only 3.3% of all processed PSLF applications have been approved, (121,221 approved for discharge among 3,728,674 total applications).
To pursue and qualify for PSLF, you will need to follow these general steps:
To apply for PSLF, take the following steps:
1
Check your eligibility
Check your eligibility
Is your employer a government entity or qualifying not-for-profit organization? Use the employer search tool on studentaid.gov to check if your current or past employers are eligible.
2
Certify your employment
Certify your employment
You’ll need to do this via an Employment Certification Form (ECF), filled out by each eligible employer in your work history. You will need to re-certify your current employment and submit this form again, at least annually, and if you change employers while you’re enrolled, you’ll need to obtain certification from your new employer and submit the form again.
3
Apply for forgiveness
Apply for forgiveness
Once you’ve made 120 qualifying payments over the course of 10 years and met all requirements, you can apply for forgiveness.
4
Submit your PSLF form
Submit your PSLF form
Generate your PSLF form, sign it, then submit it to the PSLF servicer.
If you don’t qualify for PSLF, you still have other options for federal student loan forgiveness through IDR programs. Learn more about forgiveness through IDR programs at laurelroad.com/income-driven-repayment/ and contact us for a free 30-minute student loan forgiveness consultation. Our student loan specialists can help you compare IDR options and determine which program is best for you.
Final words: PSLF qualifying jobs
For many working Americans, PSLF is a financial lifeline that significantly eases the burden of student loan debt, making it possible to actualize a successful career in public service. While expanded eligibility criteria and waivers have helped make PSLF available to more federal student loan borrowers, many public sector professionals still find the constantly changing legislative landscape as well as the paperwork required for the program to be daunting and time-consuming.
If you’re starting the PSLF application process or are unsure about whether your current or past employment qualifies for PSLF, schedule a free consultation with our student loan specialists to have your questions answered and learn more about all the forgiveness options available to you.
To qualify for PSLF, you must be employed at a qualifying government or nonprofit organization.
True
To qualify for PSLF, you must be employed at a US government organization at any level (federal, state, local, or tribal) – including U.S. military service, or a qualifying nonprofit organization.
False
True or false?
Enrollment in an Income-Driven Repayment (IDR) plan or the Standard Repayment is NOT a requirement for PSLF.
True
False
Borrowers must enroll in an IDR plan or the Standard Repayment Plan to pursue PSLF.
Select all that apply.
Which of the following career fields could potentially qualify for PSLF?
Military service
Law enforcement and first responders
Education
Healthcare
All of the above
All of the above could qualify for PSLF.
Result
Great! You’re on your way.
Now that you understand the requirements of PSLF, our student loan specialists at GradFin can help determine your eligibility and next steps toward forgiveness programs like PSLF.
