Public Service Loan Forgiveness (PSLF) is a federal program that erases remaining student loan debt for borrowers who work full-time in qualifying public service jobs and make 120 monthly payments under a specific repayment plan.
The program was created to encourage graduates to enter lower-paying public service careers by offering loan forgiveness in exchange for ten years of qualifying employment and payments. To qualify, borrowers must work for an eligible employer, such as a government organization or nonprofit, and make payments under an income-driven repayment plan or the 10-Year Standard Repayment Plan.
To receive PSLF, borrowers must meet several requirements:
After making 120 qualifying payments, borrowers must submit the PSLF application along with the Employment Certification for Public Service Loan Forgiveness form. The U.S. Department of Education will then review the application and, if approved, forgive the remaining balance on the borrower's Direct Loans.
There are two main types of PSLF:
| Type | Description |
|---|---|
| Standard PSLF | Requires 120 qualifying monthly payments while working full-time for a qualifying employer and enrolled in an eligible repayment plan. |
| Temporary Expanded PSLF | A limited-time opportunity for borrowers who may have previously not met all the requirements for PSLF. This includes those who were on non-qualifying repayment plans or had loans that were not Direct Loans. |
Borrowers should submit the PSLF form annually or when changing employers to ensure they are on track for forgiveness. The U.S. Department of Education provides a PSLF Help Tool to help borrowers understand their eligibility and track their progress toward forgiveness.
Another common misconception is that borrowers must work for the same employer for the entire ten years. However, borrowers can switch employers as long as they continue to work full-time for qualifying employers and make qualifying payments.
Sarah, a nurse, works full-time at a nonprofit hospital and has $50,000 in Direct Loans. She enrolls in the Pay As You Earn repayment plan and submits the PSLF form annually to certify her employment and payments. After making 120 qualifying payments over ten years, Sarah submits the PSLF application. The U.S. Department of Education reviews her application and, if approved, forgives the remaining balance on her Direct Loans.
According to the U.S. Department of Education, as of March 2023, over 267,000 borrowers have submitted applications for PSLF, and over 127,000 applications have been approved.
For more information on PSLF, including eligibility requirements and how to apply, visit the U.S. Department of Education website.