Public Service Loan Forgiveness (PSLF)
Federal Student Loan Forgiveness Programs for Public-Sector Employees
At National Student Debt Forgiveness Center, our consultants understand how monotonous and confusing it can be to navigate the process of applying for student loan forgiveness. That is why we are here to help. There are several programs available to assist borrowers with the burden of federal student loan debt. Our goal is to simplify these processes in order to help maximize your forgiveness and minimize your frustration.
What is the Public Service Loan Forgiveness (PSLF) Program?
The PSLF Program was established by Congress in 2007 to encourage individuals to enter lower-paying but vitally important public-sector jobs such as military service, law enforcement, public education, and public health professions. The PSLF Program forgives the remaining balance of their Direct Loans after they have worked full-time for a qualifying employer for at least 10 years, while making 120 qualifying payments. Only payments made under certain repayment plans (primarily income-driven repayment plans) qualify for PSLF.
How to Qualify for PSLF
1
Have Direct Loan Program loans
Have the Right Payment Plan
3
Work Full-Time for a Qualifying Employer
Make 120 Qualifying Payments
Gain Credit through Annual Recertification
Direct Loans
Any loan that is part of the William D. Ford Federal Direct Loan (Direct Loan) Program qualifies for PSLF. Payments made under a Direct Consolidation Loan can also qualify. Private loans do not qualify for the program.
Qualifying Payments
Making a qualifying payment means it is a Direct loan payment, and it is an on-time, full, scheduled monthly payments. “On-time” means no later than 15 days after the due date. Full payments are in an amount that equals or exceeds the amount you are required to pay each month under your Direct Loan repayment schedule. Payments must be made after Oct. 1, 2007 to qualify, and they do not have to be consecutive (which may apply if your loans are in a grace period or have breaks for forbearance.)
Eligible Employers
Full-Time Employment
Annual Recertification
Who Is Eligible?
To be eligible, you must work for a non-profit 501(c)(3) organization or government organization.
The following are examples of careers and organizations that qualify:
Public Charities
Religious Organizations
Public Education
Healthcare
Law
Military
Law Enforcement
Public Works
Community Development
PSLF FAQs
No. According to the Internal Revenue Service (IRS), student loan amounts forgiven under PSLF are not considered income for tax purposes. For more information, check with the IRS or a tax advisor.
There is no income requirement to qualify for PSLF; however, since the required monthly payment amount under most qualifying PSLF repayment plans is based on your income, your income level over the course of your public service employment may be a factor in determining whether you have a remaining loan balance to be forgiven after making 120 qualifying payments.
We cannot make any guarantees about the future availability of PSLF. The PSLF Program was created by Congress, and Congress could change or end the PSLF Program.
PSLF is available only for Direct Loans; however, if you have loans under another federal student loan program, you may consolidate those loans into a Direct Consolidation Loan, which is eligible for PSLF.
Qualifying repayment plans include all income-driven repayment (IDR) plans and the 10-year Standard Repayment Plan:
- Saving on a Valuable Education (SAVE) Plan/REPAYE Plan
- Pay As You Earn (PAYE) Repayment Plan
- Income-Based Repayment (IBR) Plan
- Income-Contingent Repayment (ICR) Plan
While payments made under the 10-year Standard Repayment Plan are qualifying payments, you might have to change to an IDR plan to benefit from PSLF. Under the 10-year Standard Repayment Plan, generally your loans will be paid in full once you have made 120 qualifying PSLF payments, so there would be no balance left to forgive unless periods of qualifying deferments or forbearances are included in your 120 qualifying payments.
Temporary Expanded Public Service Loan Forgiveness (TEPSLF)
If some or all of your payments weren’t made on a qualifying repayment plan for PSLF, you may be able to receive loan forgiveness under a temporary opportunity the ED refers to this opportunity as Temporary Expanded Public Service Loan Forgiveness (TEPSLF).
The Consolidated Appropriations Act, 2018, provided limited, additional conditions under which you may become eligible for loan forgiveness if some or all of the payments you made on your Direct Loans were under a nonqualifying repayment plan for PSLF. This opportunity is temporary, has limited funding, and must be provided on a first come, first served basis. Once all of the funds are used, the TEPSLF opportunity will end.
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How to qualify for TEPSLF
- made all of your payments under a qualifying repayment plan for TEPSLF;
- had at least 10 years of full-time employment certified by a qualifying employer;
- met the TEPSLF requirement for the amount you paid 12 months prior to applying for TEPSLF and the last payment you made before applying for TEPSLF to be at least as much as you would have paid under an income-driven repayment plan; and
- made 120 qualifying payments* under the new requirements for TEPSLF while working full-time for your qualifying employer or employers
Only Direct Loans—one type of federal student loan—are eligible for the TEPSLF opportunity; however, neither defaulted Direct Loans nor Direct PLUS Loans made to you as a parent borrower are eligible for forgiveness under TEPSLF.
*A qualifying monthly payment is one that is made after Oct. 1, 2007; for the full amount due on the bill; while employed full-time by a qualifying employer
Why you may be eligible for TEPSLF even if previously denied for PSLF
- made all of your payments under a qualifying repayment plan for TEPSLF;
- had at least 10 years of full-time employment certified by a qualifying employer;
- met the TEPSLF requirement for the amount you paid 12 months prior to applying for TEPSLF and the last payment you made before applying for TEPSLF to be at least as much as you would have paid under an income-driven repayment plan; and
- made 120 qualifying payments* under the new requirements for TEPSLF while working full-time for your qualifying employer or employers
Only Direct Loans—one type of federal student loan—are eligible for the TEPSLF opportunity; however, neither defaulted Direct Loans nor Direct PLUS Loans made to you as a parent borrower are eligible for forgiveness under TEPSLF.
*A qualifying monthly payment is one that is made after Oct. 1, 2007; for the full amount due on the bill; while employed full-time by a qualifying employer.
Why you may be eligible for TEPSLF even if previously denied for PSLF
Upon submission of the PSLF form, your payments will be considered for both PSLF and TEPSLF using an expanded list of qualifying repayment plans. Some payments that don’t count toward loan forgiveness under PSLF may count toward forgiveness under TEPSLF.
The additional qualifying repayment plans include the Graduated Repayment Plan, Extended Repayment Plan, Consolidation Standard Repayment Plan, and Consolidation Graduated Repayment Plan. These plans don’t usually qualify for PSLF.
You will be eligible for the TEPSLF opportunity only if, among other requirements, the amount you paid 12 months prior to applying for TEPSLF and the last payment you made before applying for TEPSLF are at least as much as you would have paid under an income-driven repayment plan. ED will assess this and contact you if they need documentation of your income to determine whether you are eligible.