The Public Service Loan Forgiveness (PSLF) program was established in 2007 to help borrowers pay off their student loan debt easier and faster. Under the federal program, eligible borrowers can have their loans discharged after 10 years if they meet eligibility requirements.
Public Service Loan Forgiveness Requirements
• Must work full-time for the government or eligible non-for-profit within a designated field, such as firefighting, teaching, government, nursing, public interest law, military, or religious work. Read about Shawna Newman’s successful journey to loan forgiveness.
• Make 10 years’ worth of payments, totaling 120 payments (although you are still eligible if you have to pause payments through forbearance), for the full amount within 15 days of your monthly payment due date.
• Have loans in the federal direct loan program; however, you can consolidate your federal loans for one payment under PSLF.
Careers that Qualify for Student Loan Forgiveness
It may seem as if the field of work is narrow; however, public service jobs can encompass a variety of employers and roles – not just careers in government. The Department of Education lists public service areas as:
- Military and civilian service to the military
- Emergency management
- Public safety
- Law enforcement
- Public interest law
- Early childhood education
- Public service for individuals with disabilities
- Public health
- Public education
- Public library services
- School library services
- Other school-based services, like health or nursing services, social work services, or parent counseling and training
- Public service for the elderly
How to Get Started Qualifying for Public Service Loan Forgiveness
Contact the Department of Education
It’s recommended that borrowers register for an FSA ID at StudentAid.gov/create-account or update your contact information at StudentAid.gov/settings.
Employer Certification Form
The US Department of Education has an employment certification formandinstructions. Use of the employment certification form is recommended but not required. It is best, however, to submit the form annually or whenever the borrower changes employers to ensure that the qualifying service is properly recorded.
Upon submission, the US Department of Education’s servicer will inform the borrower whether the employment reported on the form satisfies the requirements for public service loan forgiveness. Borrowers will also be able to track their progress toward obtaining public service loan forgiveness.
After the borrower has fulfilled the requirements for public service loan forgiveness (i.e., made 120 qualifying payments while working full-time in a qualifying public service job), the borrower will need to file a PSLF application to obtain the loan forgiveness. A link to this form will be added to this web site when it becomes available.
Obtaining a Federal Direct Consolidation Loan
To obtain afederal direct consolidation loan, contact theUS Department of Education.
If you have not yet consolidated, you can seek a federal direct consolidation loan in order to obtain an income contingent repayment plan. Federal direct consolidation loans are available if you haven’t been able to obtain a FFEL consolidation loan, income sensitive repayment terms acceptable to you or if you have defaulted on your FFEL loans.
You can request income-contingent repayment or income-based repayment. The consolidation loan application does not currently include a checkbox for requesting these repayment plans, so you must ask for it separately.
FAQs
“Errors, even as minor as spelling mistakes, can cause rejections. For PSLF for example, borrowers must thoroughly fill out an Employer Certification Form (ECF) with all of their previous employers, their Federal Employer Identification Numbers, tax status, and other details.
Has anyone actually received public service loan forgiveness? ›
From Oct. 6, 2021, through Oct. 31, 2022, the U.S. Department of Education (ED) implemented a change to PSLF program rules for a limited time as a result of the COVID-19 national emergency. As of mid-July 2023, approximately 662,000 borrowers have qualified for forgiveness under the limited PSLF waiver.
What is the rejection rate for public service loan forgiveness? ›
Among processed applications for Public Service Loan Forgiveness (PSLF), 2.3% have been accepted since November 2020. Among denied claims, 24.6% are denied due to incomplete paperwork. 14.4% of PSLF applications have yet to be processed.
What is the approval rate for PSLF loan forgiveness? ›
11% of all PSLF and TEPSLF applications have been approved, according to June 2023 data from the Department of Education (673,077 approved for discharge among 6,147,812 total applications). Total discharges processed included: 19,218 for PSLF and 6,520 for Temporary Expanded PSLF.
What is the success rate of PSLF loan forgiveness? ›
The initial success rate was about 0.5%, and now it's above 1% only a couple of years later. You might think that's still ridiculous, but it shows the exponential path to a 50% PSLF success rate that will happen over time and lead to more student loan forgiveness on borrowers' loans.
Is there a downside to applying for PSLF? ›
Along with the pros of PSLF, there are some cons. 1) Complex Eligibility Requirements. Although the Education Department has made considerable efforts to simplify and streamline PSFL, it is still complex. Borrows must meet specific requirements for loan types, repayment plans, employment status, and timely payments.
What is the acceptance rate for PSLF? ›
The data shows that 98% of applications for Public Service Loan Forgiveness (PSLF) from November 9, 2020 to April 30, 2021 were rejected. Only two out of every hundred applicants were approved.
Why is PSLF so hard? ›
PSLF only works if you have a remaining loan balance after 120 qualifying payments. That's why you generally shouldn't stay on the Standard Plan the entire time you're in repayment—there would be nothing to forgive at the end!
Does PSLF forgive all loans after 10 years? ›
The program allows borrowers employed at qualifying nonprofit organizations and government entities to have their Federal Direct Loans forgiven after ten years of repayment (or 120 qualifying payments), typically while enrolled in an Income-Driven Repayment (IDR) plan.
How many people have actually gotten public service loan forgiveness? ›
One-time temporary changes and permanent, long-term updates have made it easier for borrowers to qualify. As a result, more than 715,000 public servants have now had their total debt forgiven, as of early October 2023.
PSLF processing times vary based on whether you've previously submitted employment documentation and other factors. But you can generally expect to wait one to three months for your loan forgiveness application to be fully processed.
How easy is it to get public service loan forgiveness? ›
Make 10 years' worth of payments
You must make 120 monthly loan payments to reach the forgiveness finish line. These payments must be made: For the full amount due; partial payments don't count. On time, meaning within 15 days of your due date.
Why are so many PSLF applications denied? ›
At that time, when borrowers first started applying for forgiveness, we found that the PSLF program had denial rates upwards of 99%. Among reasons for denial, borrowers were told that they did not qualify because they were under the wrong loan program or had the wrong repayment plan.
Is PSLF worth pursuing? ›
In summary, the public service loan forgiveness program could be an efficient way to pay off your student loans if you satisfy the requirements needed and have a decent student loan balance. If you are trying for the PSLF program, it is important to communicate with you loan servicer.
Who benefits most from PSLF? ›
Black Americans are more likely to hold student debt, at 28.6% compared with 19.8% for white Americans. And while Black and white borrowers are similarly likely to be potentially eligible for PSLF forgiveness, Black borrowers can expect a higher level of forgiveness, with the mean relief expected to be $47,903.
Why is PSLF so hard to get? ›
Requirements for Qualifying Payments
To get PSLF, you have to get a total count of 120 qualifying payments. So you'll want to make sure that you're getting closer to your goal with each payment you make. Keep in mind, your payments don't have to be consecutive.
Why is my employer likely ineligible for PSLF? ›
There are a few reasons that your employer could be in the database as ineligible. These reasons include that we determined that it's a for-profit organization or that it is a not-for-profit that isn't a 501(c)(3) organization and that does not provide a qualifying service.
