Public Service Loan Forgiveness (PSLF) is a federal program that forgives student loan debt for borrowers who work for a government or non-profit employer. This includes teachers, firefighters, first-responders, nurses, military members, and other public service workers. Borrowers in PSLF can have the remaining balance on their loans forgiven after making 120 qualifying loan payments.
More than one million borrowers have received student loan forgiveness through PSLF. This article breaks down what you need to know about PSLF, how to qualify, and how to apply.
How does public service loan forgiveness work?
PSLF forgives the remaining balance on Federal Direct Loans after a borrower makes 120 qualifying monthly payments while working for a qualifying employer.
Eligibility Requirements
- You must be working full-time or a minimum of 30 hours per week for a PSLF qualifying employer
- You must have one of the following types of Federal Direct Loans: Direct Subsidized, Direct Unsubsidized, Direct PLUS and Direct Consolidation loans; private student loans, Federal Family Education Loans (FFEL), and Federal Perkins Loans are not eligible for public service loan forgiveness
- You must repay your loan under an eligible repayment plan
Qualifying PSLF Employers
Student loan payments are considered PSLF qualifying payments if you’re working for an eligible employer when you make them. But, if you end up working for a non-qualifying employer, the program will still count your previous qualifying payments. That means you may still be able to have your loans forgiven if you return to eligible employment at a later date.
PSLF eligibility is not based on your specific job, but rather on your employer. Eligible employer types are
- Government organizations at any level (federal, state, local, or tribal), including the U.S. military but excluding time served as a member of Congress
- Not-for-profit organizations that are tax-exempt under Section 501(c)(3) of the Internal Revenue Code
- Not-for-profit organizations that devote a majority of their full-time equivalent employees to providing certain qualifying public services as defined by the U.S. Department of Education
Examples of job types that qualify for Public Service Loan Forgiveness include:
- Law Enforcement
- Public Health (including nurses, nurse practitioners, nurses in a clinical setting, and full-time professionals engaged in health care practitioner occupations and health care support occupations, as such terms are defined by the Bureau of Labor Statistics)
- Public Education
- Social Work in a public child or family service agency
- Public Interest Law Services (including prosecution or public defense or legal advocacy on behalf of low-income communities at a nonprofit organization)
- Public service for individuals with disabilities or the elderly
- Public library sciences
Volunteering full-time for the AmeriCorps or Peace Corps also counts as qualifying employment for PSLF.
Completing the Employment Certification for Public Service Loan Forgiveness form on an annual basis can help you keep track of your payments and eligibility.
Non-qualified Employers for PSLF
Employers that do not qualify for Public Service Loan Forgiveness include:
- For-profit government contractors (as opposed to directly working for a government agency)
- For-profit business
- Labor Unions
- Partisan Political Organizations
- Religious organization (unless the job is unrelated to religious instruction, worship services, or proselytizing)
Eligible Repayment Plans
To benefit from PSLF, you will have to enroll in an income-based repayment plan. Currently the repayment plans that earn PSLF credit are:
- Repayment Assistance Plan (RAP) – the income-based plan created by the One Big Beautiful Bill Act
- Income-Based Repayment Plan (IBR)
- Pay As You Earn Repayment Plan (PAYE) – qualifies only through June 30, 2028
- Income-Contingent Repayment Plan (ICR Plan) – qualifies only through June 30, 2028
Once you are on an income-based repayment plan, you will need to make 120 qualifying payments before the balance of the loan can be forgiven.
How to Apply for Public Service Loan Forgiveness
Once you’re ready to apply for PSLF, you will need to complete and submit the Public Service Loan Forgiveness Employment Certification form. You will have to include your employment history for the entire time period when you made qualifying payments.
The Department of Education offers a Public Service Loan Forgiveness Help Tool to assist borrowers with their applications. You can also use the tool to find out if you work for a qualifying employer.
Alternatives to PSLF
Not everyone will qualify for Public Service Loan Forgiveness. Fortunately, there are other ways to reduce or eliminate your student loan payments.
Other student loan forgiveness programs
For example, your loan may be eligible for another student loan forgiveness program, such as programs for healthcare professionals or employees of federal agencies. The Department of Education also offers student loan discharge programs for borrowers unable to repay their debt.
Income-based repayment plan
If you don’t qualify for a loan forgiveness program, you can opt to stay in an income-based repayment plan. You’ll benefit from a lower monthly payment and any remaining debt will be forgiven after 20 or 25 years under legacy income-driven plans, or after up to 30 years under the new Repayment Assistance Plan (RAP). A calculator, such as the Income-Based Repayment Calculator, can help you evaluate your repayment options.
Refinancing
Refinancing your student loan can also provide some relief by lowering your interest rate. Whether refinancing offers savings depends on your current rate, your credit profile, and prevailing market rates.
However, if you refinance a federal student loan, you lose access to federal benefits like forgiveness discharge options. Since refinancing is only offered by a private lender, you will need good credit and a steady income to qualify. Before deciding to refinance, compare features and interest rates from top student loan refinance companies.
Conclusion
The Public Service Loan Forgiveness Program (PSLF) has become far more accessible than in its early years, as long as borrowers are in qualifying positions. Take steps now, such as opting into an income-based repayment program, certify your employment regularly and confirm your employer’s status with the PSLF Help Tool.
