Public Service Loan Forgiveness
Public Service Loan Forgiveness, commonly referred to as "PSLF," is a government program that forgives the balance on your loans after meeting certain qualifications. This article will outline the program and how to apply.
The PSLF program was started to help public service workers receive forgiveness on their loans. While it may seem simple, the program is historically complicated, and many borrowers have been denied in the past. But, the Department of Education has been making updates to the PSLF program to now allow more borrowers to be eligible for forgiveness and to receive forgiveness sooner!
Who Qualifies for PSLF:
To qualify for PSLF, you must meet all of the following criteria:
- Currently work at a U.S. federal, state, local, or tribal government and/or not-for-profit organization (federal service includes U.S. military service)
- Currently work full-time for that organization
- Have Direct Loans (or have consolidated other federal loans into a Direct Loan)
- Repay your loans under a qualifying repayment plan
- Make 120 qualifying payments while working for a qualifying employer
Qualifying Employer:
A qualifying employer for PSLF includes any U.S. federal, state, local, or tribal government or not-for-profit organization. For example, if you are (or used to be!) a teacher, an administrative assistant at a 501c3, a nurse, or a university employee, you're likely eligible. PSLF will take into account all previous and current jobs at a qualifying employer from 2007-present.
Important note about employer eligibility (effective July 1, 2026): An employer can lose its PSLF-qualifying status if the Department of Education determines it has engaged in a "substantial illegal purpose." This includes activities such as aiding immigration violations, supporting terrorism, illegal discrimination, or certain other serious violations of law. If an employer loses eligibility, no payments made after that determination will count toward PSLF. An organization that loses eligibility may regain it after 10 years by certifying to the Department that it no longer engages in those activities.
Working Full-Time:
Your employer ultimately decides the definition of what it means to be full-time, but most employers define it as 30 hours per week. You can also be part-time at two qualifying employers and be considered full-time if you work an average of 30 hours per week between the two employers.
For example, Jane is an x-ray technician at Hospital A for 20 hours per week. She also is an x-ray technician at Hospital B for 15 hours per week. Because she works at Hospitals A and B for over 30 hours per week, she is eligible for PSLF.
Qualifying Loans:
Any loan received under the William D. Ford Federal Direct Loan (Direct Loan) Program qualifies for PSLF. This includes loans like Direct Subsidized or Direct Unsubsidized.
If you have a loan from the Federal Family Education Loan (FFEL) Program and/or the Federal Perkins Loan (Perkins Loan) Program, they are not eligible for PSLF, but they may become eligible if you consolidate them into a Direct Consolidation Loan. To learn more about consolidation, click here.
Grad PLUS Loans: Grad PLUS Loans made before July 1, 2026 are eligible for PSLF. Note that the Grad PLUS program has been eliminated for periods of enrollment beginning on or after July 1, 2026, so no new Grad PLUS Loans will be available after that date.
Parent PLUS Loans: Parent PLUS Loans are generally not eligible for PSLF on their own. However, existing Parent PLUS borrowers who consolidate into a Direct Loan before July 1, 2026 and make at least one qualifying IDR payment through July 1, 2028 may transition to IBR and retain PSLF eligibility. Keep in mind that if you consolidate your Parent PLUS Loan, your payment count toward the 120 payments needed for PSLF will start at 0.
Important: If you are a Parent PLUS borrower who takes out any new Direct Loan on or after July 1, 2026, all of your loans will be limited to the Tiered Standard repayment plan, which does not qualify for PSLF.
Private loans are non-federal loans made by a lender such as a bank, credit union, state agency, or a school. Private loans are not eligible for any loan forgiveness program. Once federal loans are turned private, there is no way to make them federal again.
If you're not sure what types of loans you have, log in to StudentAid.gov using your FSA ID (account username and password) and select "My Aid" under your name. My Aid displays information on all federal loan and grant amounts, outstanding balances, loan statuses, and disbursements.
To continue with our example, let's say Jane has three different loans: a Direct Unsubsidized Loan from her education, a Parent PLUS Loan that she took out for her child, and a Private Loan from grad school. Currently, only her Direct Unsubsidized Loan is eligible for PSLF. Jane can also choose to consolidate her Parent PLUS Loan before July 1, 2026 to potentially retain PSLF eligibility, but the payment count will start at zero.
Qualifying Repayment Plans:
To qualify for PSLF, you must be on a qualifying repayment plan. The following repayment plans qualify for PSLF:
- Repayment Assistance Plan (RAP) — New plan available starting July 1, 2026. RAP is an income-driven plan available to all Direct Loan borrowers. Your monthly payment is based on a sliding scale of 1%–10% of your adjusted gross income (AGI), reduced by $50 for each dependent. The minimum payment is $10/month. Only on-time payments under RAP count toward PSLF — deferment and forbearance periods during RAP do not count.
- Income-Based Repayment Plan (IBR) — Qualifies for PSLF for loans made before July 1, 2026, and for payments made through June 30, 2028 if you were previously on PAYE or ICR.
- PAYE and ICR — These plans are being phased out and will sunset on July 1, 2028. Payments made under these plans on or before June 30, 2028 still count toward PSLF. Payments made on or after July 1, 2028 do not count. If you are currently on PAYE or ICR, you will need to switch to a qualifying plan by July 1, 2028.
- Standard, Graduated, and Extended repayment plans — Continue to qualify for PSLF for loans made before July 1, 2026.
Plans that do NOT qualify for PSLF:
- Tiered Standard Repayment Plan — This is the new default fixed repayment plan for Direct Loans made on or after July 1, 2026, but it does not qualify for PSLF.
- SAVE (REPAYE) — No longer an eligible repayment plan.
Income-Driven Repayment Plans calculate your monthly payment based on your income rather than your loan balance. For some people, the payment amount may even be $0 per month. To learn more about repayment plans, click here.
Going back to our example, since Jane has a Direct Loan and consolidated her Parent PLUS Loan into a Direct Loan before July 1, 2026, she enrolls in the Repayment Assistance Plan (RAP). Due to her income, she qualifies for a low monthly payment. Even with a low payment, she is receiving credit toward PSLF as long as she pays on time.
120 Payments:
To receive forgiveness on the remaining balance of your loan(s), you must make 120 qualifying payments. Student loan payments count toward the 120 payments needed for PSLF if all of the following qualifications are met:
- 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 generally cannot make qualifying payments while you are still in school, in deferment, or in forbearance. However, there is an exception: if you are not enrolled in RAP, you may be able to get PSLF credit for certain deferment or forbearance periods if you either made supplemental payments equal to what you would have paid on a qualifying plan, or you would have qualified for a $0 payment on an income-driven plan. Qualifying deferment and forbearance types for this purpose include cancer treatment deferment, economic hardship deferment, military service deferment, AmeriCorps, National Guard Duty, and a few others.
Your payments do not need to be consecutive, but if they are, it will take you about 10 years to receive forgiveness. Additionally, you cannot make more than one payment per month or pay a higher amount to receive PSLF sooner.
To continue with our example, Jane has worked as an x-ray technician since 2019, is on the Repayment Assistance Plan (RAP), and has never made a late payment. She has 48 on-time payments toward the 120 needed for PSLF.
How to Apply for PSLF:
To receive loan forgiveness, you need to show "proof" that you meet all the qualifications. This is done through a PSLF Form (also known as an Employer Certification Form, or ECF). You will need to submit this form for each qualifying employer that you work at. For some, this may be 1–2 forms, but for others, this can mean 5–10+.
It is recommended that you submit a PSLF Form for each employer annually, so you have an annual snapshot of how close you are to receiving forgiveness.
On the form, you will fill out personal information (name, address, Social Security number). Your employer(s) will add their information (name, address, Federal Employer Identification Number, also known as an FEIN number) and the period(s) you worked at that employer and the average hours worked. Once completed, this form is submitted to Federal Student Aid. They will review your form and send you a letter or email with an updated payment count.
Reconsideration: If you were denied forgiveness between October 1, 2017 and June 30, 2023, you have 180 days from the effective date of the updated rule to request reconsideration.
To conclude our example, Jane submits a PSLF Form to Federal Student Aid for Hospital A, Hospital B, and the non-profit she used to work at. Federal Student Aid reviewed her application and sent her a letter via mail with her updated payment counts. Jane is closer to receiving forgiveness than she realized!
How Savi can Help:
Savi helps borrowers through every step of the PSLF process. With Savi you can:
- Check to see if your current or past employers qualify for PSLF
- Find the best repayment plan for your situation, including the new Repayment Assistance Plan (RAP)
- Get help completing and submitting your PSLF Form
- Track your progress toward 120 qualifying payments