Public Service Loan Forgiveness (PSLF) Program (Part 1)

If you are employed by a U.S. federal, state, local, or tribal government or not-for-profit organization, you might be eligible for the Public Service Loan Forgiveness (PSLF) Program. The PSLF Program forgives the remaining balance on your Direct Loans after you have made 120 qualifying monthly payments under a qualifying repayment plan while working full-time for a qualifying employer.

Alert! If you are ineligible for PSLF only because some or all of your payments were not made under a qualifying repayment plan for PSLF, you might still be eligible for forgiveness through Temporary Expanded Public Service Loan Forgiveness (TEPSLF). Learn more here: Link opens in a new windowhttps://studentaid.gov/manage-loans/forgiveness-cancellation/public-service/temporary-expanded-public-service-loan-forgiveness.

Qualifying for PSLF

To qualify for PSLF, you must

• Be employed by a U.S. federal, state, local, or tribal government or not-for-profit organization
• Work full-time for that agency or organization
• Have Direct Loans (or consolidate other federal student loans into a Direct Loan)
• Repay your loans under an income-driven repayment (IDR) plan
• Make 120 qualifying payments

To ensure you're on the right track, you should submit a PSLF & TEPSLF Certification & Application (PSLF Form) annually or when you change employers: Link opens in a new windowhttps://studentaid.gov/manage-loans/forgiveness-cancellation/public-service/public-service-loan-forgiveness-application. The Office of Federal Student Aid (FSA) will use the information you provide on the form to let you know if you are making qualifying PSLF payments. This will help you determine if you're on the right track as early as possible.

Qualifying Employer

Qualifying employment for the PSLF Program isn't about the specific job that you do for your employer. Instead, it's about who your employer is:

• Employment with the following types of organizations qualifies for PSLF:
  • Government organizations at any level (U.S. federal, state, local, or tribal)
  • Not-for-profit organizations that are tax-exempt under Section 501(c)(3) of the Internal Revenue Code
• Serving as a full-time AmeriCorps or Peace Corps volunteer also counts as qualifying employment for the PSLF Program.

The following types of employers do not qualify for PSLF:

• Labor unions
• Partisan political organizations
• For-profit organizations, including for-profit government contractors

Contractors

You must be directly employed by a qualifying employer for your employment to count toward PSLF. If you're employed by an organization that is doing work under a contract with a qualifying employer, it is your employer's status—not the status of the organization that your employer has a contract with—that determines whether your employment qualifies for PSLF. For example, if you're employed by a for-profit contractor that is doing work for a qualifying employer, your employment does not count toward PSLF.

Other Types of Not-for-Profit Organizations

If you work for a not-for-profit organization that is not tax-exempt under Section 501(c)(3) of the Internal Revenue Code, it can still be considered a qualifying employer if it provides certain types of qualifying public services.

Full-Time Employment

• For PSLF, you're generally considered to work full-time if you meet your employer's definition of full-time or work at least 30 hours per week, whichever is greater.
• If you are employed in more than one qualifying part-time job at the same time, you will be considered full-time if you work a combined average of at least 30 hours per week with your employers.
• If you are employed by a not-for-profit organization, time spent on religious instruction, worship services, or any form of proselytizing may not be counted toward meeting the full-time employment requirement.

Eligible Loans

• Any loan received under the William D. Ford Federal Direct Loan (Direct Loan) Program qualifies for PSLF.
• Loans from these federal student loan programs don't qualify for PSLF: the Federal Family Education Loan (FFEL) Program and the Federal Perkins Loan (Perkins Loan) Program. However, they may become eligible if you consolidate them into a Direct Consolidation Loan.
• Student loans from private lenders do not qualify for PSLF.

If you consolidate your loans, only qualifying payments that you make on the new Direct Consolidation Loan can be counted toward the 120 payments required for PSLF. Any payments you made on the loans before you consolidated them don't count. The PSLF Help Tool will tell you whether you need to consolidate some or all of your loans: Link opens in a new windowhttps://studentaid.gov/pslf.

Qualifying Payments

A qualifying monthly payment is a payment that you make

• After October 1, 2007
• Under a qualifying repayment plan
• For the full amount due as shown on your bill
• No later than 15 days after your due date
• While you are employed full-time by a qualifying employer

You can make qualifying monthly payments only during periods when you're required to make a payment. Therefore, you can't make a qualifying monthly payment while your loans are in

• An in-school status
• The grace period
• A deferment
• A forbearance

If you want to make qualifying payments, but you're in a deferment or forbearance, contact your federal student loan servicer to waive the deferment or forbearance.

Your 120 qualifying monthly payments don't need to be consecutive. For example, if you have a period of employment with a nonqualifying employer, you will not lose credit for prior qualifying payments you made.

The best way to ensure that you are making on-time, complete payments is to sign up for automatic debit with your loan servicer.

Can I qualify sooner by making higher monthly payments?

No. You must make payments to cover 120 separate monthly obligations. Paying extra won't help you qualify for PSLF sooner.

You may prepay, or make lump-sum payments, which would apply to future months, for up to 12 months, or when your next IDR plan is due. For example, if you recertified your IDR and your monthly payment was $100, but you paid $1,200 for the first month's payment, that payment would count as 12 separate payments for that year. You would not need to make another payment until the next 12-month cycle. These payments would count as qualifying payments toward PSLF once you certified your eligible employment for the 12-month period.

What if I'm in the AmeriCorps or Peace Corps, or my loans are being repaid by the U.S. Department of Defense (DOD)?

There are special rules that allow borrowers who are AmeriCorps or Peace Corps volunteers to use their Segal Education Award or Peace Corps transition payment to make a single lump-sum payment that may count for up to 12 qualifying PSLF payments. In addition, borrowers who have lump-sum payments made on their behalf under a student loan repayment program administered by the DOD may also receive credit for more than one qualifying PSLF payment.