Public Service Loan Forgiveness (PSLF) is a federal program that may forgive the remaining balance on eligible federal Direct Loans for borrowers who meet specific requirements while working in public service. PSLF is not automatic, and employment in public service by itself does not guarantee forgiveness. Loan type, repayment plan, payment history, hours worked, employer eligibility, and employment certification all matter.
Borrowers who are interested in PSLF should verify their loans, employer, and repayment plan early and review their progress regularly. Using an ineligible loan or repayment plan can prevent months from counting toward the required total.
What Is Public Service Loan Forgiveness (PSLF)?
Congress created PSLF in 2007. The program forgives the remaining principal and interest on eligible Direct Loans after a borrower accumulates 120 qualifying monthly payments while working full time for a qualifying employer. Only qualifying months after October 1, 2007, can count. The 120 qualifying payments and periods of qualifying employment do not have to be consecutive.
A borrower may move between qualifying employers without losing credit for qualifying months already earned. To receive forgiveness, the borrower must be working full time for a qualifying employer when the final PSLF form is submitted. Amounts forgiven through PSLF are not treated as income for federal tax purposes, although state tax treatment may vary.
How Do Borrowers Qualify for PSLF?
Borrowers generally must satisfy all of the following requirements:
• Have eligible Direct Loans. Eligible loans are nondefaulted loans made under the Direct Loan Program. Parent PLUS Loans and Direct Consolidation Loans that repaid Parent PLUS Loans have special repayment-plan rules, and some parent borrowers may not have access to a PSLF-qualifying plan. Federal Family Education Loan (FFEL) Program loans and Federal Perkins Loans do not qualify unless they are consolidated into a Direct Consolidation Loan. Private education loans cannot qualify for PSLF.
• Work full time for a qualifying employer. For PSLF purposes, full time generally means an average of at least 30 hours per week during the period being certified. A borrower may meet this requirement through one qualifying employer or through multiple qualifying part-time employers whose hours total at least 30 per week.
• Use a qualifying repayment plan. Depending on the borrower’s loan history and eligibility, qualifying options may include the Repayment Assistance Plan (RAP), another eligible income-driven repayment plan, or the 10-year Standard Repayment Plan. Only on-time RAP payments count toward PSLF. Payments made under the Tiered Standard Repayment Plan do not count toward PSLF.
• Accumulate 120 qualifying monthly payments. Each qualifying payment must be matched to a month of certified full-time employment with a qualifying employer. The payments do not have to be consecutive.
• Submit the PSLF form. Borrowers use the PSLF form to certify employment, update their qualifying-payment count, and request forgiveness after meeting the program requirements.
Consolidation can change how prior payment credit is calculated, so borrowers should review the current consolidation rules and their payment history before consolidating loans solely for PSLF.
Which Public Service Jobs Qualify for Loan Forgiveness?
PSLF eligibility usually depends on the employer, not the borrower’s job title. A teacher, accountant, nurse, administrative assistant, attorney, or technology professional may qualify if the employer and employment arrangement meet the program requirements.
Qualifying employers generally include:
• U.S.-based federal, state, local, or Tribal government organizations, agencies, and entities, including the U.S. Armed Forces and National Guard
• Organizations that are tax-exempt under section 501(c)(3) of the Internal Revenue Code
• Certain other nonprofit organizations when a majority of their full-time-equivalent employees provide specified non-governmental public services
• Eligible full-time AmeriCorps positions and Peace Corps assignments
For a nonprofit organization that is not a 501(c)(3), qualifying public services may include emergency management, military service, public safety, law enforcement, public health, public education, library services, school-based services, early childhood education, public-interest legal services, and services for people with disabilities or older adults.
Employers that generally do not qualify include:
• Businesses organized for profit, including most for-profit government contractors
• Labor unions
• Partisan political organizations
• The U.S. Congress for service as a member of Congress
A narrow exception may apply to some contracted employees when applicable state law prevents the qualifying organization from directly employing the worker in that position. Borrowers should not assume the exception applies without confirmation.
Use the PSLF Employer Search or the PSLF Help Tool to review an employer’s status. The employer’s federal Employer Identification Number (EIN), usually shown on the borrower’s W-2, is generally needed for the search.
Changes to PSLF as of July 1, 2026
The core PSLF structure, eligible Direct Loans, qualifying employment, a qualifying repayment plan, and 120 qualifying monthly payments, remains in place. Two 2026 developments are especially important: new repayment plans became available, and a separate employer-eligibility rule scheduled for July 1 did not take effect.
Status of the New Employer Restrictions
The U.S. Department of Education issued a rule that would have allowed the Department to exclude an employer from PSLF if the employer engaged in activities described as having a “substantial illegal purpose.” The rule was scheduled to take effect on July 1, 2026.
On June 30, 2026, a federal court vacated the rule before its effective date. The Department later announced that it was removing the related employer attestation from the PSLF form to comply with the court order. As of July 19, 2026, borrowers should rely on the current PSLF employer requirements and the official Employer Search. Because litigation and federal guidance can change, borrowers should confirm the rule’s status on StudentAid.gov before making employment or repayment decisions.
Changes to Qualifying Repayment Plans
The Repayment Assistance Plan (RAP) and Tiered Standard Repayment Plan became available on July 1, 2026. RAP is an income-driven plan, and on-time payments made under RAP can count toward PSLF when the borrower satisfies all other PSLF requirements. Payments under the Tiered Standard Repayment Plan do not count toward PSLF.
Borrowers with only loans made before July 1, 2026, may continue to have access to certain legacy repayment plans during the transition period, depending on their loan history and plan eligibility. Under the final rule, qualifying payments made under legacy income-contingent repayment plans may count toward PSLF only through June 30, 2028. Availability and transition rules differ by plan, and some plans are affected by court orders. Receiving a new loan or obtaining a new consolidation loan on or after July 1, 2026, can also affect which plans are available. Borrowers pursuing PSLF should use the official repayment calculator and confirm that a proposed plan will generate qualifying payments before switching.
Eligible borrowers with qualifying Direct Loans originated after July 1, 2012, may also receive a temporary 1% interest-rate reduction by enrolling in auto pay by September 30, 2026, and remaining enrolled through June 30, 2028. Auto pay can help avoid missed payments, but enrolling in auto pay does not make an otherwise ineligible loan, employer, or repayment plan qualify for PSLF. Compare options with the Federal Student Aid Repayment Calculator.
How to Apply for Public Service Loan Forgiveness (PSLF)
Borrowers who want to pursue PSLF can use the following process:
1. Create or Access Your StudentAid.gov Account
Log in to StudentAid.gov and review the “My Aid” information for each loan. Confirm that the loans are Direct Loans and identify the current repayment plan. Borrowers considering consolidation should review how consolidation could affect prior PSLF payment credit before applying.
2. Confirm the Employer’s Eligibility
Use the PSLF Employer Search to look up the employer by EIN and employment dates. If the employer is not listed or its status is undetermined, the PSLF Help Tool can guide the borrower through a manual review.
3. Submit the PSLF Form Regularly
Use the PSLF Help Tool to generate and submit the PSLF form. Federal Student Aid recommends submitting a form each year and whenever the borrower changes employers. This is a recommended tracking practice, not an annual eligibility requirement. Regular certification helps verify employment and update the qualifying-payment count. Digital signatures generally allow faster processing.
4. Request Forgiveness After 120 Qualifying Payments
After reaching 120 qualifying monthly payments, submit the final PSLF form through the PSLF Help Tool. The borrower must be working full time for a qualifying employer when the form requesting forgiveness is submitted. Continue monitoring the form status and payment count in the StudentAid.gov account, and keep copies of employment and payment records.
Important FAQ
Does Part-Time Work Qualify for PSLF?
It can. A borrower who works less than 30 hours per week for one employer generally does not meet the full-time requirement through that job alone. However, simultaneous part-time work for two or more qualifying employers may satisfy the requirement if the combined hours average at least 30 per week during the certified period.
Can Loans from a Private Lender Be Forgiven Through PSLF?
No. Private education loans are not eligible for PSLF and cannot be converted into federal Direct Loans. FFEL Program loans and Federal Perkins Loans are federal loans, but they generally must be consolidated into a Direct Consolidation Loan before they can become eligible for PSLF. Borrowers should review the effect of consolidation on prior payment credit before proceeding.
What if My Employer Loses PSLF Eligibility?
Employer eligibility is evaluated for the period of employment being certified. If an organization changes from a qualifying employer to a nonqualifying employer, months worked while the organization met the requirements may still count, while later months generally will not. Borrowers should submit PSLF forms regularly, review Federal Student Aid notices, and use the PSLF reconsideration process if they believe an employer or payment determination is incorrect.
Is PSLF Considered Taxable Income?
The federal government does not treat amounts forgiven through PSLF or TEPSLF as taxable income. State tax treatment may differ. Borrowers should review current state guidance or consult a qualified tax professional regarding their individual circumstances.
Campus: Helping Students Understand Financial Aid Options
At Campus, our Financial Aid team helps prospective and current students understand federal student aid, the FAFSA® process, and available funding options during enrollment. PSLF is a federal loan-forgiveness program administered by the U.S. Department of Education after a borrower enters repayment. Campus does not determine PSLF employer eligibility, qualifying-payment counts, repayment-plan eligibility, or loan-forgiveness approval.
Borrowers seeking PSLF should use the official PSLF Help Tool and contact Federal Student Aid or their federal loan servicer for account-specific assistance. Financial aid is available to those who qualify. Eligibility is determined through the FAFSA® and other applicable requirements. Awards vary based on financial need, program, enrollment status, available funding, and federal or state rules. Campus does not guarantee financial aid eligibility, loan approval, PSLF eligibility, or loan forgiveness.
Disclaimer: This article is for general informational purposes only and is not legal, tax, financial, or repayment-plan advice. Information was reviewed on July 19, 2026. Federal laws, regulations, court orders, repayment plans, tax rules, and administrative procedures may change. Borrowers should review current information on StudentAid.gov, contact their federal loan servicer, and consult an appropriate professional for advice about their individual circumstances. Eligibility and forgiveness are not guaranteed.
Sources
Official sources reviewed July 19, 2026.
1. U.S. Department of Education, Federal Student Aid, “Public Service Loan Forgiveness (PSLF) & Temporary Expanded PSLF (TEPSLF) Certification & Application”, accessed July 19, 2026.
2. U.S. Department of Education, Federal Student Aid, “Public Service Loan Forgiveness (PSLF)”, accessed July 19, 2026.
3. U.S. Department of Education, Federal Student Aid, “Public Service Loan Forgiveness (PSLF) Help Tool”, accessed July 19, 2026.
4. U.S. Department of Education, “Reimagining and Improving Student Education—Federal Student Loan Program Final Regulations”, accessed July 19, 2026.
5. U.S. Department of Education, “Agency Information Collection Activities; Comment Request; Public Service Loan Forgiveness (PSLF) & Temporary Expanded PSLF (TEPSLF) Certification and Application”, accessed July 19, 2026.
6. U.S. Department of Education, “U.S. Department of Education Announces Student Loan Interest Rate Reduction”, accessed July 19, 2026.
7. U.S. Department of Education, Federal Student Aid, “How to Manage Your Public Service Loan Forgiveness Progress”, accessed July 19, 2026.
8. U.S. Department of Education, Federal Student Aid, “Are Loans Forgiven Under Public Service Loan Forgiveness Considered Taxable by the IRS?”, accessed July 19, 2026.