Public Service Loan Forgiveness (PSLF) Program Explained
For those working in public service, there are several 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 U.S. 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 at least 10 years of qualifying employment and 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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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: To qualify for PSLF, you must be employed full-time and at least 10 years at a U.S. government organization at any level (federal, state, local, or tribal) — including U.S. military service, or a qualifying nonprofit organization. For PSLF, full-time employment is defined as a weekly average, alone or when combined, equal to at least 30 hours.
Federal Direct Loans: Borrowers should have Federal Direct Loans. Federal loans that are not Direct Loans (made directly by the U.S. 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 pursuing PSLF often enroll in an Income-Driven Repayment (IDR) plan. The 10-Year Standard Repayment Plan is also a qualifying repayment plan for PSLF.
120 qualifying payments: Participants will need to make 120 on-time, qualifying payments typically over 10 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
- Nonprofit 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 assistants, therapists, and clinicians working for several different employer types may qualify for PSLF, including:
- Qualifying nonprofit hospitals or organizations
- State hospital systems
- Federal hospitals
- Public schools, including universities and K-12 school systems
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 recertify 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.
Check if your employer meets the qualifying criteria as a government entity or qualifying not-for-profit organization.
Is Public Service Loan Forgiveness 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, meeting program requirements over the course of at least 10 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 and understand if you qualify, schedule a free consultation with a student loan specialist today.