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Public Service Loan Forgiveness (PSLF) Program Explained
Public Service Loan Forgiveness (PSLF) Program Explained
For those working in public service, there are a number of paths to student loan forgiveness, including PSLF. Learn how to qualify and potentially reach forgiveness in 10 years.
Public Service Loan Forgiveness (PSLF)1 is a US government program that was created in 2007 to help ease the federal student loan debt burden for professionals working full-time in public service.
The program allows borrowers employed at qualifying nonprofit organizations and government entities to have their Federal Direct Loans forgiven after ten years of repayment (or 120 qualifying payments), typically while enrolled in an Income-Driven Repayment (IDR) plan.
It’s important to note that PSLF is for federal student loans only – it is not available for private student loans. Let’s explore more details about the PSLF program, including who qualifies, what the eligibility requirements are, and how to enroll.
The PSLF program is available toto federal student loan borrowers employed by government entities or qualifying not-for-profit organizations, with the opportunity to have Federal Direct Loans forgiven after ten years of qualifying payments.
Borrowers pursuing PSLF are usually enrolled in an Income-Driven Repayment (IDR) plan –such as the Saving on a Valuable Education (SAVE) plan – that helps makes their monthly student loan payments more manageable based on their discretionary income. Introduced in 2023, SAVE replaced the Revised Pay As You Earn (REPAYE) plan and is now the best choice for the vast majority of borrowers.
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
Not accepting new enrollments
An important distinction between PSLF and the IDR plans listed above is that if you’re enrolled in PSLF, you can qualify for forgiveness in ten years rather than the typical 20 to 25 years with IDR.
To qualify for PSLF, you must meet certain eligibility requirements pertaining to your employer type, employment status, and the type of loan(s) you have. Let’s explore each aspect of PSLF eligibility criteria to understand how to qualify.
Qualifying factors for PSLF
To qualify for PSLF, you must meet the following program requirements.
Qualifying employment
Federal Direct Loans
Enrollment in a qualifying repayment plan
120 qualifying payments
Qualifying employment
To qualify for PSLF, you must be employed full-time at a US government organization at any level (federal, state, local, or tribal) – including US military service, or a qualifying nonprofit organization. Full-time employment is defined as a minimum of 30 hours per week.
Federal Direct Loans
Borrowers should have Federal Direct Loans. Federal loans which are not Direct Loans (made directly by the US Department of Education) may be consolidated into Direct Loans. This is often the first step for borrowers who have a wide array of loans which may include Perkins Loans, FFELP loans, and others. Learn more at studentaid.gov/loan-consolidation.
Enrollment in a qualifying repayment plan
Borrowers typically enroll in an IDR plan to pursue PSLF. The 10-year Standard Repayment Plan is also a qualifying repayment program in the pursuit of PSLF.
120 qualifying payments
Participants will need to make 120 on-time qualifying payments over ten years to qualify for PSLF forgiveness of any remaining balance. These payments do not need to be consecutive, so if a borrower worked in the private sector for a period of time and came back to qualifying public sector work, they’d pick up where they left off progress-wise.
Eligible job fields
Use the employer search tool on studentaid.gov to see if your current and past employers are on the eligible list. Common job fields that are PSLF eligible include:
Military service
Law enforcement and first responders
Education
Non-profit work
Compensated volunteer work such as AmeriCorps or Peace Corps
HCPs such as doctors, nurses, physician associates, therapists, and clinicians working for several different employer types could qualify for PSLF, including:
Qualifying nonprofit hospitals or organizations
State hospital systems
Federal hospitals
Public schools, including universities and K-12 school systems
Explore your options with an expert guide.
Ready to find out if you could qualify for PSLF? Talk to a student loan expert today to get started.
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 can help determine your eligibility and next steps toward forgiveness programs like PSLF.
To pursue and qualify for PSLF, you must provide paperwork, including an Employment Certification Form (ECF) filled out by each eligible employer in your work history.
But once you fill out your first ECF, you’re not done. You will need to re-certify your current employment and submit the form at least annually, as recommended by the Office of Student Aid. Note that if you change employers while you’re enrolled in the program, you will need to obtain certification from your new employer and submit the form again.
To apply for PSLF, take the following steps:
1
Check your eligibility
Check your eligibility
Check if your employer meets the qualifying criteria as a government entity or qualifying not-for-profit organization.
2
Certify annually
Certify annually
Certify your employment every year and whenever you change employers. The government will use the information provided to confirm you’re making qualifying PSLF payments.
3
Apply for forgiveness
Apply for forgiveness
Apply for forgiveness once you’ve made 120 qualifying payments and met all requirements.
4
Submit your PSLF form
Submit your PSLF form
Generate PSLF form for signing and submitting to the PSLF servicer.
Is Public Service Loan Forgiveness (PSLF) right for me?
If you qualify, taking advantage of the PSLF program potentially means major savings for you, depending on the size of your federal student loans, income, lifestyle, and other personal financial factors.
However, getting accepted and staying in compliance over the course of ten years until your forgiveness event takes time, effort, and organization. Changes to program eligibility and IDR requirements that happen periodically in response to economic and political events can be challenging to navigate. Additionally, if you are in a financial position to pay off your student loan debt faster than 10 years, it could be preferable to take that route and save money on interest. Unfortunately, once you’re in the PSLF program, you cannot make extra monthly payments to accelerate your forgiveness event.
If you have questions about qualifying for PSLF, our student loan specialists can help you understand all your repayment options, and help you determine if PSLF is the right program for you. Learn more here.
Final Words: Public Service Loan Forgiveness
For those working in public service, PSLF can be the fastest path to student loan forgiveness. With the possibility of future changes to requirements and eligibility in the program, the rules surrounding PSLF can be dynamic and difficult to keep up with. To get the most up-to-date rules and requirements for PSLF, understand if you qualify, and learn how to stay on track toward forgiveness, schedule a free 30-minute consultation with a student loan specialist at GradFin today.
Recent updates for federal repayment programs.
Learn about the recently announced SAVE repayment plan and what it means for you.
