Public Service Loan Forgiveness

Borrowers who enter public service are eligible to apply for Public Service Loan Forgiveness (PSLF) of any outstanding Direct Loan balance after making 120 qualifying payments. Qualifying payments are those made under any of the income-driven repayment plans, which include the Income Based Repayment Plan, Income Contingent Repayment Plan, the Pay As You Earn Repayment Plan, and the Standard Repayment Plan. Even though the 10-year Standard Repayment Plan is also a qualifying repayment plan for PSLF, you cannot receive PSLF unless you enter an income-driven repayment plan. Public service employment consists of: government (federal, state, tribal, and local) employment; a non-profit organization under section 501(c)(3) of the Internal Revenue Code; other types of not-for-profit organizations that are not tax-exempt under Section 501(c)(3) of the Internal Revenue Code, if they provide certain types of qualifying public services.

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.