Public Service Loan Forgiveness (PSLF) is a U.S. federal student loan forgiveness program designed to encourage individuals to work in public service and for certain qualifying nonprofit organizations.
If participants meet all program requirements, they may have the remaining balance of their federal student loans forgiven after making the required number of qualifying payments under the program.
Why Was PSLF Created?
The cost of undergraduate and graduate education in the United States can be substantial, leading many students to take out loans in order to complete their studies.
Depending on the loan amount and the repayment terms selected by the borrower, fully repaying student loans can take decades. This can significantly affect a borrower’s financial stability and future plans.
In many fields, salaries in the public sector may be lower than those in the private sector for positions requiring comparable qualifications. As a result, some workers may have to weigh income considerations against the opportunity to serve their communities.
To encourage skilled workers to choose and remain in public service, the U.S. Congress established the Public Service Loan Forgiveness (PSLF) program, which helps reduce the student loan burden for borrowers who meet all program requirements.
Who May Qualify for PSLF?
Eligibility is not based primarily on a borrower’s specific occupation or job title. Instead, it generally depends on the borrower’s employer, loan type, repayment plan, and compliance with program requirements.
Examples of employers that commonly qualify include:
- federal government agencies;
- state governments;
- local governments;
- the U.S. military;
- many qualifying nonprofit organizations.
Key PSLF Requirements
Although program rules may change over time, participants generally must meet requirements such as:
- having federal loans under the Direct Loan Program, or loans that have been consolidated into a Direct Consolidation Loan if permitted under current rules;
- working full time for a qualifying employer;
- making 120 qualifying monthly payments, equivalent to approximately 10 years;
- repaying the loans under an eligible repayment plan as defined by current program rules.
Borrowers do not necessarily have to work for the same employer continuously for 10 years. In many cases, they may move between qualifying employers and continue accumulating qualifying payments.
Payments that do not meet program requirements may not count toward the 120 payments needed for forgiveness. For example, payments made while the borrower is not working for a qualifying employer, or payments associated with an ineligible loan type or repayment plan, may not be counted.
In addition, payments that fail to meet other program requirements may also not be recognized as qualifying payments.
Which Loans May Qualify?
Not all student loans qualify for PSLF. In general, the program applies to eligible Federal Direct Loans.
Some other types of federal student loans may need to be consolidated into a Direct Consolidation Loan before they can qualify under current program rules.
How Can Borrowers Track Their Progress?
Participants should regularly certify their employment status under the program.
The U.S. Department of Education provides the PSLF Help Tool, which helps borrowers:
- check whether an employer qualifies;
- prepare the employment certification form;
- track the number of qualifying payments that have been recorded.
Although submitting the PSLF Form annually is not strictly required, many borrowers choose to submit it periodically or whenever they change employers.
Doing so can help identify potential eligibility issues early and reduce the risk of errors when applying for forgiveness later.
Can Immigrants Participate in PSLF?
PSLF does not require participants to be U.S. citizens. However, borrowers must still be eligible to receive Federal Direct Loans and meet all other program requirements.
Common Misconceptions
“Working for the government automatically means my loans will be forgiven.”
Incorrect. Borrowers must still meet all program requirements.
“Only teachers can participate.”
Incorrect. PSLF applies to many types of public sector jobs and positions with qualifying nonprofit organizations.
“I must work for the same employer continuously for the entire 10 years.”
Incorrect. In many cases, borrowers may move to another qualifying employer and continue accumulating qualifying payments.
“After 10 years, the loan simply disappears.”
Incorrect. Borrowers must satisfy all program requirements and complete the process according to guidance from the U.S. Department of Education.
Key Takeaways
- PSLF is a federal program that may forgive the remaining balance of certain eligible federal student loans.
- The program is intended to encourage workers to serve in the public sector and with certain nonprofit organizations.
- Eligibility depends on the loan type, employer, repayment plan, and compliance with program requirements.
- The U.S. Department of Education provides the PSLF Help Tool to help borrowers check eligibility and track progress.
- Because program rules may change over time, borrowers should review the latest official guidance from the U.S. Department of Education.
Learn More
You can learn more about Public Service Loan Forgiveness, check whether an employer qualifies, and use the PSLF Help Tool on StudentAid.gov. The U.S. Department of Education also provides official guidance on this program.
Frequently Asked Questions (FAQ)
Do I have to work for the same employer for the entire 10 years?
Not necessarily. In many cases, you may move to another qualifying employer and continue accumulating qualifying payments.
What happens if I leave public service?
You will not continue accumulating qualifying payments while you are not working for a qualifying employer. However, qualifying payments that were previously recorded generally are not lost.
Does PSLF forgive the entire loan?
If all program requirements are met, PSLF may forgive the entire remaining balance of eligible federal loans after the borrower completes 120 qualifying payments.
Does PSLF apply to private student loans?
Generally, no. PSLF primarily applies to eligible Federal Direct Loans.