Public Service Loan Forgiveness (PSLF) is a federal program designed to provide financial relief for people with student loans working in public service careers.
The program offers a path to forgiveness for eligible federal student loans after making 120 qualifying monthly payments while working full-time for government organizations, non-profit entities, or other public service roles.¹
The PSLF program can be a game-changer for anyone burdened with student loan debt pursuing careers that can offer lower salaries compared to the private sector. By potentially forgiving a significant portion of student loans, PSLF allows public servants to focus on their work without the worry of overwhelming student loan payments.
How to qualify for the Public Service Loan Forgiveness program
To qualify for the Public Service Loan Forgiveness program, you need to meet specific criteria. The requirements relate to your employment, loan type, and payment history. Let’s break down the key requirements:
- Employment eligibility: To qualify for PSLF, you must be employed full-time by a U.S. federal, state, local, or tribal government organization or a not-for-profit organization that’s tax-exempt under section 501(c)(3) of the IRS code. Some non-501(c)(3) not-for-profit organizations that provide certain types of qualifying public services may also be eligible.¹
- Loan type: Only Direct Loans or loans consolidated into the Direct Loan Program are eligible for PSLF. If you have other federal student loans, such as Federal Family Education Loans (FFEL) or Perkins Loans, you’ll need to consolidate them into a Direct Consolidation Loan to make them eligible.¹ Private student loans don’t qualify.
- Repayment plan: You need to be enrolled in an income-driven repayment plan: Income-Based Repayment (IBR), Pay As You Earn (PAYE), Revised Pay As You Earn (REPAYE), or Income-Contingent Repayment (ICR).¹
- Payment history: You need to make 120 qualifying monthly payments. These payments must be made:
- Under a qualifying repayment plan
- For the full amount due
- No later than 15 days after the due date²
- While employed full-time by a qualifying employer
The 120 qualifying payments don’t need to be consecutive. If you have periods of unemployment or work for a non-qualifying employer, you can still pick up where you left off when you return to qualifying employment.¹
How to apply for reconsideration
Applying for PSLF is easy: you just need to complete and submit the PSLF application form and then wait for a response.
However, if your PSLF application is denied or you believe there’s been an error in the count of your qualifying payments, you can also apply for reconsideration. This process allows you to have your application or payment count reviewed again.
Here’s how to apply for reconsideration:
- Submit a PSLF reconsideration request: You can do this through the Federal Student Aid website or by contacting your loan servicer within 90 days of receiving a letter from them.³
- Provide additional information: Include any relevant documentation that supports your case. This could be employment verification forms, pay stubs, or other evidence demonstrating your eligibility.
- Be specific: Clearly state why you believe the decision was incorrect. If you’re disputing the count of qualifying payments, provide details about the payments you think should be counted.
- Follow up: After submitting your request, keep track of its progress. Don’t hesitate to contact your loan servicer for updates or to provide additional information if needed.
The reconsideration process can take time, so be patient. While your request is under review, continue making your regular loan payments to ensure you don’t default on your student loans.
What to do after a PSLF application rejection
Here’s what to do if your PSLF application is rejected:
- Understand the reason: Carefully review the rejection letter to understand why your application was denied. Common reasons include not having enough qualifying payments, having ineligible loans, or not meeting the employment requirements.
- Verify the information: Double-check all the information you provided in your application. Ensure that your employment dates, loan details, and payment history are accurate.
- Gather additional documentation: If you believe the rejection was made in error, gather any supporting documents that prove your eligibility, including employment verification forms, pay stubs, and your loan payment history.
- Consider Temporary Expanded PSLF (TEPSLF): If you were rejected because some or all of your payments were made under a non-qualifying repayment plan, you might be eligible for TEPSLF. This temporary program expands the qualifying repayment plans for PSLF.
- Submit a reconsideration request: You can submit a reconsideration request if you believe the decision was incorrect.³
- Continue making payments: Even if you’re in the process of appealing a rejection, continue making your regular loan payments to stay on track for future forgiveness opportunities. You can use our loan payoff calculator to see how quickly you can get out of debt.
Can't qualify for PSLF? Other student loan relief solutions
If you find that you don’t qualify for PSLF or if you’re looking for alternative options, there are other student loan relief solutions available:
- Evaluate the option of refinancing your loans: Refinancing can potentially lower your interest rate and monthly payments. However, be cautious, as refinancing federal loans into private loans will cause you to lose federal benefits and protections.⁴
- Look into alternative forgiveness programs: Depending on your profession, there might be other loan forgiveness programs available, like Teacher Loan Forgiveness or forgiveness options for healthcare professionals.⁵, ⁶
- Continue with an income-driven repayment plan: These plans can lower your monthly payments based on your income and family size. After 20 or 25 years (depending on the plan), any remaining balance may be forgiven.⁷
- Explore employer-sponsored repayment assistance: Some employers offer student loan repayment as a benefit. Check if your current or potential employers offer such programs.
- Consider extended repayment plans: These plans can stretch your repayment term up to 25 years, lowering your monthly payments.⁸
- Look into deferment or forbearance: While these should be a last resort, they can provide temporary relief if you’re facing financial hardship.
Navigating the path to loan forgiveness
Public Service Loan Forgiveness offers a valuable opportunity for those dedicated to public service careers to relieve their student loan burden. While the journey may seem complex, understanding the requirements, staying informed about your options, and persisting through potential setbacks can bring you significant financial relief. W
Check out our other guides on managing debt to equip yourself with the tools to navigate student loans with confidence.