Public Service Loan Forgiveness
What is Public Service Loan Forgiveness (PSLF)?
Under this program, you may qualify for forgiveness of the remaining balance due on your eligible federal student loans after you have made 120 payments.
In 2007, Congress created the PSLF to encourage individuals to enter and continue to work full time in public service jobs. See the information below to find out if you may qualify!
You must have made 120 monthly payments on your eligible federal student loans after October 1, 2007 before you qualify for the loan forgiveness, the first cancellations of loan balances will not be granted until October 2017.
Which federal student loans are eligible for forgiveness under PSLF?
Any loan made under the Direct Loan Program. This includes:
- Federal Direct Subsidized Stafford Loans
- Federal Direct Unsubsidized Stafford Loans
- Federal Parent PLUS Loans
- Federal Grad PLUS Loans
- Federal Direct Consolidation Loans
Note: To qualify for forgiveness of a Parent PLUS Loan the parent borrower, not the student on whose behalf the loan was obtained for, must be employed by a public service organization.
Can other federal student loans become eligible for loan forgiveness under PSLF?
Yes! You can consolidate other federal loans into a Federal Direct Consolidation Loan. However, only once the loans are consolidated into the Direct Consolidation Loan will your payments begin to count toward the 120 required payments. If you have already made 36 monthly payments on the other federal loans before consolidating into the Direct Consolidation Loan, those 36 payments will not count toward the required 120 payments.
What are the repayment requirements?
The 120 required payments must be made under one or more of the following Direct Loan Program repayment plans:
- Income Based Repayment (IBR) Plan
- Income Contingent Repayment Plan
- Standard Repayment Plan with a 10-year payment period
For more information about the repayment plans available in the Direct Loan program, visit studentaid.gov/manage-loans/repayment/plans.
What types of public service jobs will qualify a borrower for loan forgiveness under PSLF?
- A government organization (including federal, state, local, or tribal organization, agency, or entity; a public child or family service agency; or a tribal college or university);
- A non-profit, tax-exempt organization under section 501(c)(3) of the Internal Revenue Code (includes most not-for-profit private schools, colleges and universities);
- A private non-profit organization (that is not a labor union or a partisan political organization) that provides on or more of the following services:
Emergency management, military service, public safety, law enforcement, public interest law services, early childhood education, public service for individuals with disabilities and the elderly, public health, public education, public library services, school library or other school-based services.
How can I know for sure that my employer, loans and repayment plan qualify? And how can I keep track of my payments?
The U.S. Department of Education has created the Employment Certification for Public Service Loan Forgiveness form and a process to help you monitor your progress toward making the 120 qualifying payments. You should complete the form, including your employer's certification of employment, and submit it to the PSLF servicer, at the address listed in Section 6 of the Employment Certification form. Click here to view more information about the Public Service Loan Forgiveness Program and to access the application form.