Skip to Content

If you’re like most recent college graduates, you’re probably making payments on student loan debt.  But did you know there’s a special program especially for people who work in public interest careers? It’s a way to reward people working toward the common good — in jobs that are not necessarily high in income.

The Public Service Loan Forgiveness (PSLF) program, created in 2007, forgives any balances on federal student loans after 120 qualifying payments, or approximately 10 years. While borrowers with small balances will likely pay off their loans in fewer than 10 years, students who took out large loans may benefit from this program.

Does my job qualify as public service?  

To be eligible for PSLF, you must work full time for public service organizations including the government, military, public schools, public health or another not-for-profit organization. You may also be serving in a full-time position for the Peace Corps or AmeriCorps. If you’re unsure whether your job qualifies, ask your boss or HR manager. The Consumer Financial Protection Bureau also created this toolkit to help you determine your eligibility for PSLF.

What are the criteria for Public Service Loan Forgiveness?

  • PSLF requires 120 separate monthly loan payments after Oct. 1, 2007. Payments made before this date do not count toward PSLF.
  • You must make those payments under a qualifying repayment plan while working full-time at a public service organization.
  • Each payment must be made for the full scheduled installment amount, and must be received no more than 15 days after the payment due date. It is not required that the 120 payments are consecutive.
  • Finally, you must be working for a qualified public service organization when you submit your PSLF application and at the time your remaining loan balance is forgiven.

Which loans are eligible?

In a nutshell, PSLF applies to loans in good standing under the William D. Ford Federal Direct Loan Program, including:

  • Subsidized Loans
  • Unsubsidized Loans
  • PLUS Loans—for parents and graduate or professional students
  • Consolidation Loans

If you have a Federal Family Education Loan (FFEL) or Federal Perkins Loan, you may consolidate your loans into a Direct Consolidation Loan to be eligible for PSLF.

Which loan repayment plan is right for me?

Income-driven repayment plans are best for borrowers seeking PSLF. The Income-Based Repayment (IBR) and Pay As You Earn (PAYE) programs lower your monthly payment based on your discretionary income. This keeps your payments affordable and helps you meet your obligation to make 120 payments.

How do I monitor my progress toward Public Service Loan Forgiveness?

The Department of Education created the Employment Certification for Public Service Loan Forgiveness form to make it easy for you to track your progress toward your 120 qualifying payments. Simply follow the instructions for completing and submitting the form.

You should submit the form annually as well as any time you switch jobs.

Use our Student Loan Calculator to estimate how long it will take to pay off your student loans using your current repayment plan.

 

woman working on balancing budget

Struggling with Credit Card Debt?

A debt management plan can help:
  • Consolidate monthly payments
  • Lower interest rates
  • Eliminate collection calls

Related Posts

Busting the Myths of Student Loan Forgiveness

If you have student loans, you’ve no doubt heard about student loan forgiveness. You have probably seen ads on TV promising instant ‘student loan relief.’ Or  received  mailers from companies telling you they know the ‘secret’ to eliminating your student loans. Of course, they’re willing to share that secret – for a hefty price. The number of […]

Read More

What to Do If You Default on Your Student Loans

With student loan debt now totaling $1.3 trillion in the United States, the student loan crisis has reached a fever pitch and now affects more than 40 million Americans. To compound the crisis, the Consumer Financial Protection Bureau reports that one in four borrowers are in delinquency or default on their student loans. Student loans […]

Read More

What You Need to Know About Private Student Loans

When most people hear “student loans,” they’re thinking of federal student loans that are issued by the Department of Education and managed by a variety of loan servicers. But in addition to these widely known federal student loans, there are also private student loans. These are loans issued by banks or other financial institutions directly […]

Read More

Call 866-528-0588

Or schedule a call now
Please complete the required fields to continue.
Now Later
By requesting a review you are agreeing to communications from Take Charge America via email, phone and SMS messaging. You can opt out at any time.