What is PSLF?
When planning how to repay student loans, you may hear about PSLF, or Public Service Loan Forgiveness. PSLF is a federal program that offers a path to loan forgiveness for some borrowers who work in public service. For borrowers who meet the program requirements, PSLF may forgive the remaining balance on eligible federal student loans after a certain number of qualifying payments.
How Does it Work?
PSLF eligibility is based on several factors, including your employer, your loan type, and payment history.
In general, borrowers must work full-time for a qualifying employer, such as a government agency or certain nonprofit organizations. Eligibility is based on the employer, not necessarily on a specific job title or role. Borrowers must also have eligible federal Direct Loans. Those who have other federal loan types may need to take additional steps before those loans can be considered for PSLF.
Borrowers generally must make 120 monthly qualifying payments while working for a qualifying employer. Many borrowers use an income-driven repayment plan, although other repayment plans may qualify in some situations. Additional requirements may also apply.
What Should You Know?
PSLF is not automatic. Borrowers are encouraged to submit certification forms to help verify qualifying employment and track your progress toward forgiveness. It is also important to understand that program requirements may differ based on individual circumstances. For example, not all loan types will qualify, and not all payments will count toward the required total.
Because federal student aid programs can change over time, borrowers should review current program requirements and guidance from the U.S. Department of Education. Recent changes to federal student loan programs may affect repayment plan eligibility and other PSLF requirements. Because these rules can change, borrowers should review current federal guidance.
Is PSLF Right for You?
PSLF may be worth exploring if you work, or plan to work in public service and have federal student loans. Depending on your circumstances, the program could provide long-term repayment benefits. Because eligibility depends on multiple factors, borrowers should carefully review the program's requirements and consider how PSLF could work for them.
The Bottom Line
Public Service Loan Forgiveness is a federal program that may provide loan forgiveness opportunities for borrowers who work in qualifying public service positions and meet all program requirements. Understanding the rules, confirming eligibility, and keeping accurate records can help borrowers make informed decisions about repayment options.
