Your Guide to Public Service Loan Forgiveness
The Public Service Loan Forgiveness (PSLF) program was created to help individuals in public service careers repay their federal student loans. By offering loan forgiveness after a period of qualifying payments, PSLF incentivizes professionals to work in public service roles, such as government and nonprofit positions, while alleviating the financial burden of student debt.
This guide will explore the PSLF program, its eligibility requirements, the enrollment process, and best practices to maximize your chances of qualifying for forgiveness.
What Is the Public Service Loan Forgiveness Program
Public servants who work in the military, local government, schools, hospitals, and nonprofits provide essential services that keep the American people safe, healthy, employed, and able to access resources like education. However, the wage disparity between public servants and those working in the private sector is well known.
According to the White House Council of Economic Advisers, the public sector wage disparity grew from 2.8% in 2011 to 9.5% in 2023. For many, the wage disparity makes becoming a social worker, teacher, community resource provider, or similar role financially unfeasible, resulting in a shortage of public service workers.
The disparity also makes it more difficult for public service workers to repay their student loans, especially those with high interest rates. Some borrowers make student loan payments for years, only to see their balances increase.
The Public Service Loan Forgiveness program, established by the College Cost Reduction and Access Act of 2007, was launched to encourage students to enter public service roles. The program allows federal Direct Loan borrowers to have their remaining balances forgiven after making 120 qualifying monthly payments while working full time for a qualifying employer.
By making public service careers financially viable, the PSLF program — aided by the Biden-Harris administration’s updates to the process — is changing the landscape of public service for the better. As of July 2023, approximately 662,000 borrowers have benefited from forgiveness under the PSLF program. The streamlined process allows borrowers to certify employment, update payment counts, and apply for forgiveness through a single combined form.
Public Service Loan Forgiveness Requirements
You may qualify for the Public Service Loan Forgiveness program if you’re employed by the government or a nonprofit organization. The PSLF program’s qualifying requirements include the following:
- You’re employed full time by a U.S. tribal, local, state, or federal government (including military service), or a qualifying nonprofit organization.
- You have Direct Loans or have consolidated other federal student loans into a Direct Loan.
- You’re on an income-driven repayment plan or a 10-year standard repayment plan.
- You make at least 120 qualifying monthly payments.
Employment Requirements
Meeting the PSLF program’s employment requirements isn’t about a specific job role or title but rather the employer you work for. For-profit organizations, labor unions, and partisan political organizations are ineligible.
Eligible employers include the following:
- S.-based government organizations at any level
- Tax-exempt nonprofit organizations
- Nonprofit organizations that provide certain qualifying public services
PSLF applicants can use the U.S. Department of Education’s PSLF Employer Search to see if they work for a qualified employer.
Loan Requirements
Applicants must have a Direct Loan to qualify for the Public Service Loan Forgiveness program, which is any loan received under the William D. Ford Federal Direct Loan Program, including the following:
- Direct Consolidation Loans
- Direct Subsidized Loans
- Direct Unsubsidized Loans
- Direct PLUS Loans
Ineligible loans include the following:
- Federal Family Education Loan
- Federal Perkins Loan
- Student loans from private lenders
Although Federal Family Education Loans and Federal Perkins Loans are ineligible, applicants can change their eligibility status by consolidating them into a Direct Consolidation Loan.
Qualifying Payments
For a payment to count toward the Public Service Loan Forgiveness program’s 120 required monthly payments, you must:
- Be employed full time by a qualifying employer
- Make payments for the full amount due as shown on the bill
- Be on a qualifying repayment plan, such as the Saving on a Valuable Education (SAVE) plan, the Pay As You Earn (PAYE) repayment plan, an income-based repayment (IBR) plan, or an income-contingent repayment (ICR) plan. The standard repayment plan for Direct Consolidation Loans, graduated repayment plans, and extended repayment plans don’t qualify for PSLF.
Public Service Loan Forgiveness Enrollment Process
You can successfully enroll in the Public Service Loan Forgiveness program by following the four steps below.
Step 1: Confirm Direct Loan Classification
Before filling out the PSLF form, confirm that you have a qualifying Direct Loan. If you have an eligible loan type, you can apply for a Direct Consolidation Loan through the Federal Student Aid website.
Step 2: Enroll in a Payment Plan
You must enroll in a qualifying payment plan. Visit StudentAid.gov to learn about income-driven repayment plans and other qualifying repayment options.
Step 3: Complete the PSLF Form
Complete the Public Service Loan Forgiveness form on the Federal Student Aid website. The form takes approximately 30 minutes to complete, and you’ll need your most recent W-2 from your employer or its employer identification number (EIN).
If you prefer a hard copy, you can print the PSLF PDF form on the Federal Student Aid website. You can return the form via fax at 540-212-2415 or by mail at:
U.S. Department of Education
P.O. Box 300010
Greenville, TX 75403
On a related note, the PSLF form is the same form used in Temporary Expanded Public Service Loan Forgiveness (TEPSLF) applications. The TEPSLF program is intended for those who don’t qualify for PSLF due to making payments under an ineligible repayment plan.
Step 4: Set an Annual Reminder to Submit an Updated PSLF
Whether or not you’ve made 120 qualifying payments, you must submit an updated PSLF form each year or whenever you change employers. Set a reminder in your smartphone or calendar application, so you don’t forget.
What Happens After the Public Service Loan Forgiveness Form Is Submitted?
After you submit the PSLF form, Federal Student Aid will conduct a series of checks and verifications, including a review of the PSLF form to confirm it’s complete. Furthermore, it will confirm whether you have a qualifying loan and employer.
You’ll be notified if:
- Your PSFL form is incomplete
- Your employer doesn’t qualify
- You have an ineligible loan type
- Your loan and employment qualify and have been successfully verified
After determining that your employment and loan qualify, Federal Student Aid will review your payment history and provide a number of the qualifying payments you’ve made so far.
Public Service Loan Forgiveness Best Practices
The PSLF program involves a lengthy process that requires applicants to maintain their eligibility status. According to the Consumer Financial Protection Bureau, you can make the process easier by following these tips:
- Save the PDF or email confirmation after making each payment in a designated folder for easy access.
- Keep track of the number of payments made. Use the PSLF Help Tool to confirm you’re on schedule to make 120 qualifying payments.
- If feasible, make advance payments to reach 120 sooner.
If you discover inaccurate information about your payments or PSLF progress, submit a complaint or call the Consumer Financial Protection Bureau at 855-411-2372.
Public Service Loan Forgiveness FAQs
To help borrowers better understand eligibility, requirements, and the application process, here are answers to some of the most frequently asked questions about the PSLF program.
Can I Be Reconsidered for the PSLF Program if I’ve Been Rejected in the Past?
As of April 2022, PSLF program applicants who were previously denied can apply again at StudentAid.gov.
What if My PSLF Form Is Denied?
If it’s determined that you don’t qualify for loan forgiveness, you’ll be notified and provided with specific reasons why you’re ineligible. A PSLF form denial means that you must resume making payments on your loans according to the terms on your Master Promissory Note.
What if I Don’t Qualify for PSLF?
The PSLF program isn’t the only option for loan forgiveness. Many applicants don’t qualify, meaning that they must seek out alternatives, including the following:
- Remain on an income-driven repayment plan. Depending on how much you owe and the type of debt, it’s possible to have the remaining balance forgiven in 20 to 25 years.
- Explore other federal student loan forgiveness programs.
- Consider student loan refinancing. By qualifying for a lower interest rate, you can save money and get debt-free faster. Keep in mind that if you refinance a federal loan, the loan becomes ineligible for income-driven repayment or forgiveness programs.
What if I Have Qualifying Payments That Haven’t Been Counted?
You may qualify for a one-time income-driven repayment adjustment if you were making federal loan payments while working for a PSLF-qualified employer during or after October 2007. The U.S. Department of Education automatically conducts payment adjustments.
Use the PSLF Help Tool to track and confirm your payment progress. Visit the Federal Student Aid’s online help center for further assistance.
Which Nonprofit Organizations Are Eligible for the PSLF Program?
The organization must be tax-exempt under section 501(c)(3) of the Internal Revenue Code. If the organization isn’t tax-exempt under 501(c)(3), it may still qualify for the PSLF program if it provides a qualifying public service, such as:
- Early childhood education
- Emergency management
- Law enforcement
- Military service
- Public education
- Public health
- Public interest law services
- Public library services
- Public safety
- Public service for individuals with disabilities and the elderly
- School library or other school-based services
What Qualifies as Full-Time Employment for the PSLF Program?
You must work an average of 30 or more hours per week for the period being certified on the PSLF form. Employer-provided leave and vacation time count toward those hours. If you work for multiple employers, you may combine your working hours as long as they meet the PSLF program qualifications.
I Teach at a Private School. Does That Make Me Eligible for the PSLF Program?
Most private schools are nonprofit organizations, meaning that you would qualify for PSLF. For-profit learning institutions, however, don’t qualify.
Do I Qualify for PSLF if I Work for a Religious Organization?
Most religious organizations are tax-exempt under section 501(c)(3) of the Internal Revenue Code. However, they may not appear in the employer database if they don’t register their tax-exempt status with the IRS. You can manually create a case for employee eligibility review when you upload your W-2 to ensure that your employer is added to the database.
Does Foreign Government Work Qualify for the PSLF Program?
Foreign governments and international intergovernmental organizations such as the United Nations and the North Atlantic Treaty Organization don’t qualify for PSLF. Only U.S.-based federal, state, local, and tribal government organizations qualify.
If I’m the Only Person Who Can Certify My Employment, Can I Certify Myself?
Yes. However, you must produce additional documentation, such as W-2 forms, earnings statements, and other relevant documents.
Public Service Loan Forgiveness Resources
The following resources provide additional information about the PSLF program and related topics:
- PSLF Help Tool: This tool, located on the Federal Student Aid website, allows you to see which employers are in its database, request an employer eligibility check, prepare and sign your PSLF form, and more.
- Public Service Loan Forgiveness Form: This form is required for Direct Loan forgiveness.
- Indeed, Master of Public Administration Degree Jobs: This article can help students considering a master’s degree in public administration assess different career options — including those that qualify for loan forgiveness.
- Houston Chronicle, List of Public Service Careers: This article provides a broad overview of public service careers that qualify for the PSLF program.
- PSLF Employer Search: This employer search tool can confirm that your employer meets the PSLF Program qualifications.
- Glossary: Hosted on the Federal Student Aid website, this glossary defines several relevant terms, so students and borrowers can better understand how student aid works.
- Types of Financial Aid: This resource covers financial aid options, including grants, scholarships, loans, and more.
- PSLF Program Qualifying Public Services: This resource can help determine whether a non-tax-exempt nonprofit employer provides a qualifying public service that makes employees eligible for the PSLF program.
- Direct PLUS Loans: This resource offers information about Direct PLUS Loans for graduates, professional students, and parents.
- PSLF Qualifying Payments — Q&A: This resource discusses more about PSLF Program qualifying payments.
- PSLF Qualifying Repayment Plans – Q&A: This resource answers common questions about qualifying repayment plans.
- PSLF Process — Q&A: This resource offers information about the PSLF process, required documentation, how to submit forms, and more.
- Student Loan Forgiveness: This overview provides information about student loan forgiveness, ways to qualify, loan discharge options, and more.
Ease Your Financial Obligations With the PSLF Program
The Public Service Loan Forgiveness program offers a transformative opportunity for individuals committed to public service to alleviate the burden of student debt while contributing to meaningful work. By providing loan forgiveness after 120 qualifying payments, the program rewards dedication to careers that make a difference in local communities, healthcare, and more.
Taking advantage of available resources — such as the PSLF Help Tool, employment certification form, and detailed program guides — can simplify the process and reduce the risk of errors, ensuring that borrowers stay on track to forgiveness. With careful planning and the right tools, loan forgiveness through PSLF can help lead you to financial independence.
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