Public Service Loan Forgiveness (PSLF)
Borrowers who enter public service are eligible to apply for forgiveness of any outstanding Direct Loan balance after making 120 qualifying payments. Qualifying payments are those made under Income Based Repayment, Income Contingent Repayment, the Pay As You Earn Repayment Plan, the Standard Repayment Plan, or any alternative repayment plan where monthly payment amount equals or exceeds payments under a 10-year Standard Repayment Plan. Public service employment consists of: government (federal, state, tribal, and local) employment; a non-profit organization under section 5019(c)(3) of the Internal Revenue Code; a tribal college or university; a private organization that provides certain public services; and a public child or family service agency.
PSLF is only available for Federal Direct Loans and Federal Direct Consolidation Loans. FFEL loans (Federal Stafford Loans borrowed from a bank or credit union) and Federal Perkins loans do not qualify for PSLF. However, FFEL and/or Perkins Loans may be consolidated into a Federal Direct Consolidation Loan at repayment. The Federal Direct Consolidation Loan would then qualify for PSLF.
Private loans do not qualify for PSLF and cannot be consolidated through the Direct Loan Program.