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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.

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How does Public Service Loan Forgiveness work?

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 that helps makes their monthly student loan payments more manageable based on their discretionary income. 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.

For more information, visit studentaid.gov or schedule a consultation with a student loan specialist.

PSLF eligibility and requirements

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
  • Healthcare

For more information about PSLF eligible jobs, visit our resource What Jobs Qualify for PSLF?

PSLF for healthcare providers (HCPs)

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

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How to apply for Public Service Loan Forgiveness

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.

For the most up-to-date information on how to apply to PSLF, go to studentaid.gov/pslf.

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 meeting program requirements 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.

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 for forgiveness through PSLF, schedule a free 30-minute consultation with one of our student loan specialists today.

Sources:
https://studentaid.gov/manage-loans/forgiveness-cancellation/public-service
https://studentaid.gov/manage-loans/forgiveness-cancellation/public-service/public-service-loan-forgiveness-application

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