PSLF forgives the remaining balance on your Direct Loans after 120 qualifying payments (a minimum of 10 years).
Jobs that don't qualify for PSLF
Here's a short list: For-profit organizations, including for-profit government contractors. Labor unions. Partisan political organizations.
IF YOU HAVE ONE JOB You have to meet your employer's definition of “full-time” OR work at least 30 hours per week, whichever is greater. IF YOU HAVE PART-TIME JOBS You have to work a combined average of 30 hours per week, and all your part-time jobs must meet the eligibility requirements.
Don't forget to submit the PSLF form with your employment certification annually. If you're on an income-driven repayment (IDR) plan, you can make it a habit to submit your form at the same time of year as you renew your IDR plan.
No. The 120 payments do not have to be consecutive payments. For example, if you have a period of employment with a nonqualifying employer, you won't lose credit for prior qualifying payments you made.
Due to changes in PSLF regulation, you can now buy back certain months in your payment history to make them qualifying payments for PSLF. Specifically, you can buy back months that don't count as qualifying payments because you were in an ineligible deferment or forbearance status.
Yes, as long as the combined number of hours you work for each employer equals at least 30 hours per week. Each employer must be a qualifying employer for the employment to be included in determining whether you are employed on a full-time basis.
Parent PLUS loans can potentially be forgiven after 10 years under specific conditions, such as through the Public Service Loan Forgiveness (PSLF) program after consolidation into a direct consolidation loan. Parent borrowers must enroll in the Income-Contingent Repayment (ICR) plan to qualify for PSLF.
Does my income level determine my eligibility for Public Service Loan Forgiveness (PSLF)? There is no income requirement to qualify for PSLF.
Most denials are for not making enough qualifying payments.
Working full-time for a public service employer is a requirement for PSLF, and you'll need to submit an employment certification form for each such employer in order for your loan payments to count. You can go as far back in your employment history as October 2007, which is when the PSLF program launched.
Important: If your employer is a for-profit organization, a labor union, or a partisan political organization, it isn't an eligible PSLF employer regardless of the kinds of public services it might provide.
After at least 20 years of student loan payments under an income-driven repayment plan — IDR forgiveness and 20-year student loan forgiveness. After 25 years if you borrowed loans for graduate school — 25-year federal loan forgiveness.
If you work in certain public service jobs and make 120 payments on your Direct Loan(s), you may be eligible to have your loans forgiven. If you are a teacher in a low-income school or educational service agency, you may be eligible for Teacher Loan Forgiveness.
How to Use the Double Consolidation Loophole: The key to using the double consolidation loophole is to consolidate each of your Parent PLUS Loans twice. In this scenario, a borrower can have as few as two Parent PLUS Loans.
Parent PLUS Loans are not excluded from PSLF, but they are not eligible for all income-driven repayment plans. Parent PLUS borrowers can consolidate their debt to access the ICR plan and thus, PSLF.
Because you have to make 120 qualifying monthly payments, it will take at least 10 years before you can qualify for PSLF. Important: You must still be working for a qualifying employer at the time you submit your form for forgiveness.
Now, PSLF is getting a much-needed overhaul. On July 1, 2023, following a negotiated rulemaking process, new PSLF regulations took effect. Highlights include new payment credits on consolidated loans, an improved definition of “full-time”, credit for certain deferments and forbearances, and a “buyback” provision.
Can I certify my own qualifying employment? Yes, you may certify your own employment if you are the only employee of the organization who can do so.
Borrowers can continue to submit PSLF forms, but they will not be reviewed until the transition is completed. After July 1, the department will resume processing PSLF employment certifications and loan forgiveness requests, and borrowers should be able to access their PSLF data.
But under the payment count adjustment, time in forbearance will count toward IDR and PSLF under these specific conditions: Borrowers with 12 or more consecutive months in forbearance (excluding the COVID-19 payment pause) will have those consecutive months treated as time in repayment.
Do the months on the COVID-19 payment pause count toward my PSLF payment count? Paused payments count toward PSLF and TEPSLF as long as you meet all other qualifications. You will get credit as though you made monthly payments.