Public Service Loan Forgiveness (PSLF) forgives the remaining balance on Direct Loans after 120 qualifying monthly payments (10 years) made while working full-time for a qualifying employer. Qualifying employers include government organizations at any level (federal, state, local, tribal), 501(c)(3) nonprofit organizations, AmeriCorps, Peace Corps, and certain other nonprofit organizations providing qualifying public services.
10 steps across 1 sections
1. Steps Process
- Verify you have eligible loans. Only Direct Loans qualify for PSLF:
- Direct Subsidized and Unsubsidized Loans
- Direct PLUS Loans
- Direct Consolidation Loans
- FFEL and Perkins Loans do NOT qualify (but can become eligible if consolidated into a Direct Consolidation Loan)
- Log into studentaid.gov to check your loan types
- Confirm your employer qualifies. Qualifying employers include:
- Any government entity (federal, state, local, tribal)
- 501(c)(3) tax-exempt nonprofit organizations
- AmeriCorps and Peace Corps
Common Mistakes
- Not having Direct Loans
- Not enrolling in IDR
- Not submitting the PSLF Form annually
- Assuming any nonprofit qualifies
- Not tracking qualifying payments
Pro Tips
- Submit the PSLF Form every year
- Minimize your payment to maximize forgiveness
- Part-time at multiple qualifying employers counts
- Payments of $0 count
- Use the PSLF Help Tool