Public Service Loan Forgiveness!

Public service loan forgiveness

The Public Service Loan Forgiveness (PSLF) is one of the known programs offered by the government to specific individuals. Here, certain qualifying student loans are forgiven after payments have been made in 120 installments (or within ten years). 

It is only available for persons who work in authorized public service establishments. The government agencies to which this applies to include the U.S Military, federal, state, local, and tribes. It is also extended to some Non-profit NGOs. You can also apply if your firm offers some services to the public.  

Many workers may have difficulties getting the payment issues sorted. This is understandable, especially as the world is recovering from the COVID-19 effects. It is possible to use an app for advance on paycheck to ensure payments are made on time, but please research before moving forward on them.

While certain misconceptions about this vital tool exist, the PSLF has been effective for certain people. Here is a review of how the PSLF works, how to apply it, and other relevant information. 

About The Public Service Loan Forgiveness Program (PSLF)

The PSLF is a federal directive that encourages students to consider careers with low pay, especially in public service. It was started in 2007 and is managed by the U.S. Department of Education. Qualifying public firms include the Military, Firefighting, medicine (nursing), Religious work, education, and government.

The not-for-profit NGOs who qualify must have tax-exempt status under the Internal Revenue Code, Section 501(c)(3). Services they render must border around public work like:

  • legal aid/services;
  • emergency response, and management;
  • care for persons with disabilities and the elderly;
  • early childhood education;
  • public health, including physicians and nurses;
  • library (school and public); 
  • public law enforcement, etc. 

Part of the legislation powering this program states that you must make up to 120 payments within ten years to qualify. Other requirements include working full-time for a qualifying firm before applying for this tax-free government scheme. 

Other eligibility criteria include:
  • Applicants must be servicing direct loans (or try to infuse all student loans as a direct loans).
  • Applicants must pay the loans using a repayment plan driven by salary-based income. 
A few facts about this program include:
  • There are no processes to speed up the application.
  • You can’t make additional payments to meet up with the 120 installments, as applicants must clock at least ten years in employment before applying. 
  • Qualifying payments must be received on time. Any student debt paid during a period of grace or while at school won’t be added to the required criteria. 
  • After a suspension, all federal loan payments were reopened on January 31, 2022. At the time, eligible applicants received credits that counted as part of the repayment. 

How to Apply for the PSLF

Getting started with the PSLF program means you must have met the initial requirements needed before you can apply. Here’s a step-by-step guide on how to go about the program. 

Know what you want

Due to new directives as a result of the COVID-19 effects, the Department of Education made some changes to the criteria, valid until October 31, 2022. The new rules stipulated that all loan-type payments made counts among the 120 installments. The only needed criteria – is qualifying employment. 

Submit an Application

With the current waiver, all payments for federal student loans after October 1, 2007, count under the qualifications. Depending on whether you’re servicing a direct loan or other federal student loan debts. 

If you’re on a direct loan and are yet to apply for PSLF:

You can use the help tool to fill out an application and submit it on or before October 31, 2022. All applications approved will receive credits that serve as repayment. 

If you’re on a direct loan and just recently filled out the PSLF application with your employment:

You should resubmit reminder application forms each year to confirm that you are still eligible to benefit under the PSLF scheme. 

If you have a type of federal student loan, either the Perkins Loan, FFEL Program loan, etc.: 

You must complete an application for Direct Consolidation Loan before October 31, 2022. All types of federal student loans are eligible, except the Parent PLUS type. If you currently have a Parent PLUS loan, reach out to your loan servicer to consider other options. 

If you have more than one qualifying employment: 

Each employment must have a separate PSLF application form. Under the limited waiver period, you must submit an application on or before October 31, 2022. 

Make an Appointment with your Servicer

Once you’re done with the application and submitted, visit your servicer. To be safe, the provider should also be available when you fill out the application to provide guidance. He also has to help you track the progress. 

Here are some other features to note:
  • The Education Department may change your service provider without notice. If you’re yet to know who the current servicer is, check it on the official student aid website. Other relevant information about federal student loans will be available there.
  • Ensure to keep records of all loan repayments made. It would help if you got an email confirmation after payment. A look at your bank account statements should also show records of payments. 
  • Keep a record of all payments made and the total number of times. 
  • With the waiver in place, it is possible to make large payments to cover future repayment dates. As long as other requirements are met, it will count among the installments needed. 

Loans eligible for the PSLF Program

Generally, all loans gotten under the Wiliam D. Ford direct loan scheme are eligible under PSLF. The following student loan types do not qualify under the scheme:

  • The Federal Perkins Loan (Perkins loan)
  • The federal Family Education Loan (FFEL)
  • All student loans from private firms.

It will count under this scheme if you have made efforts to convert the payments into a Direct Consolidation form. There are no issues with how you source funds to make payments. Options can stretch from a borrow money app, advanced paycheck platforms, etc. Don’t forget to check reviews before proceeding with them. 


It is important to note that your employment may be certified before proceeding with the application. While this is an optional process, we recommend you carry it out. It becomes necessary when you change employers to keep an accurate record.  

A PSLF form can only be filled out and submitted after completing the 120 payments. The form link can be accessed on the federal student aid website. To directly consolidate all loans, you can get information from the U.S. Department of Education. 

Public service loan article and permission to publish here provided by Anastasia Romanko. Originally written for Supply Chain Game Changer and published on August 2, 2022.

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