Public Service Loan Forgiveness
To maximize forgiveness under the PSLF Program, you should repay your loans on the Income-Based Repayment (IBR) Plan, Pay As You Earn Repayment Plan, or the Income-Contingent Repayment (ICR) Plan, because you most likely will have the most amount forgiven
- Only payments made after October 1, 2007 qualify.
- You must make those payments under a qualifying repayment plan.
- When you make each of those payments, you must be working full-time at a qualifying public service organization.
- Other PSLF-qualifying repayment plans are the 10-Year Standard Repayment Plan or any other repayment plan where your monthly payment amount equals or exceeds what you would pay under a 10-Year Standard Repayment Plan.
Qualifying employment is any employment with a federal, state, or local government agency, entity, or organization or a not-for-profit organization that has been designated as tax-exempt by the Internal Revenue Service (IRS) under Section 501(c)(3) of the Internal Revenue Code (IRC). The type or nature of employment with the organization does not matter for PSLF purposes. Additionally, the type of services that these public service organizations provide does not matter for PSLF purposes.
A private not-for-profit employer that is not a tax-exempt organization under Section 501(c)(3) of the IRC may be a qualifying public service organization if it provides certain specified public services. These services include emergency management, military service, public safety, or law enforcement services; public health services; public education or public library services; school library and other school-based services; public interest law services; early childhood education; public service for individuals with disabilities and the elderly. The organization must not be a labor union or a partisan political organization.
- Step 1 — Complete, with your employer's certification, the Employment Certification form annually or whenever you change jobs.
- Step 2 — Submit the completed form to FedLoan Servicing (PHEAA), the PSLF servicer, following the instructions on the form.
- Step 3 — FedLoan Servicing (PHEAA) will review your Employment Certification form, ensure that it is complete, and, based on the information provided by your employer, determine whether your employment is qualifying employment for the PSLF Program.
- Step 4 — If the form you submit is incomplete or your employment does not qualify, FedLoan Servicing (PHEAA) will notify you and you will have an opportunity to provide additional information.
- Step 5 — If FedLoan Servicing (PHEAA) cannot determine whether your employment qualifies, you may be asked to provide additional information or documentation to help establish whether you were employed by a qualifying public service organization. This documentation may include an IRS Form W-2, pay stubs, or other documents from your employer that substantiate your employment at the organization or documentation supporting your employer's eligibility as a public service organization.
- Step 6 — If your employment qualifies and some or all of your federally held loans are not serviced by FedLoan Servicing (PHEAA), those loans will be transferred to FedLoan Servicing (PHEAA) so you will have a single federal loan servicer for all of your federally held loans. After your loans are transferred, earlier payments made to other federal loan servicers will be evaluated to see whether they are qualifying PSLF payments.
- Step 7 — FedLoan Servicing (PHEAA) will notify you whether your employment qualifies, and, if so, how many payments during the certification period were qualifying payments, the total number of qualifying payments you have made, and how many payments you must still make before you can qualify for PSLF.