Public Service Loan Forgiveness
If you are employed by a government or not-for-profit organization, including religious organizations, you may be able to receive loan forgiveness under the Public Service Loan Forgiveness Program.
The Public Service Loan Forgiveness (PSLF) Program forgives the remaining balance on your Direct Loans after you have made 120 (10 years) qualifying monthly payments under a qualifying repayment plan while working full-time for a qualifying employer.
FFELP borrowers may consolidate to Direct Loans to take advantage of programs such as PSLF.
Limited PSLF Waiver Opportunity
The U.S. Department of Education in October 2021 announced a temporary period through October 31, 2022, during which borrowers may receive credit for payments that previously did not qualify for PSLF or TEPSLF.
Benefits of PSLF Waiver
- Receive credit for periods of repayment on Direct, FFEL, or Perkins Loans.
- Periods of repayment under any plan count.
- Periods of repayment on loans before consolidation count, even if on the wrong repayment plan.
- Periods of repayment where your payments were made late or for less than the amount due count.
- Periods of repayment on loans before consolidation count, even if paid late, or for less than the amount due.
- Can receive forgiveness even if not employed or not employed by a qualifying employer at the time of application and forgiveness.
- If you received Teacher Loan Forgiveness, the period of service that led to your eligibility will count toward PSLF (if you certify employment for PSLF for that period).
PSLF is only available on Direct Loans. If you have non-Direct Loans, they must be consolidated into a Direct Consolidation Loan to benefit from the limited PSLF waiver. These federal loans include:
- FFEL Program loans,
- Federal Perkins Loans,
- Federally Insured Student Loans,
- National Defense Student Loans. and
- Other types of federal student loans that are not Direct Loans.
If you don’t know how many loans or what types of loans you have, take the following steps:
- Visit Aid Summary and log in to your account in order to view the page.
- Scroll down to the Loan Breakdown section.
- In the Loan Breakdown section, you’ll see a list of each loan you have taken out, even if you have paid the loan off or consolidated it into a new loan.
- If you expand View Loans, then click the View Loan Details arrow next to a loan, you’ll see a more detailed name for that loan. Direct Loans begin with the word “Direct.” Federal Family Education Loan Program loans start with “FFEL,” and Perkins Loans include the word “Perkins” in the name. Parent PLUS loans are not eligible under the limited PSLF waiver.
Next Steps to Apply for Waiver with FFEL Loans
Consolidate your FFEL Program loans and Perkins Loans into a Direct Consolidation Loan by Oct. 31, 2022. This is important, because you cannot receive credit for payments under this limited-time period if you consolidate after that date. After the consolidation is complete, you must then submit a PSLF form for all periods of qualifying employment to FedLoan Servicing.
- Verifying your loan types in your Aid Summary.
- Verifying eligible employment by completing Step 1 of the PSLF Help Tool.
- Verifying if an employer is eligible or is “likely ineligible” (which means unknown) but you believe the employer qualifies and you have at least one loan that is not a Direct Loan, request a Direct Consolidation Loan by Oct. 31, 2022.
- Using the PSLF Help Tool to generate a PSLF form to submit to FedLoan Servicing by Oct. 31, 2022.