Public Service Loan Forgiveness (PSLF) encourages borrowers to go into public service or the nonprofit sector by forgiving their federal student loan balance after 120 eligible payments made while working full time with an eligible employer.
Your employer can complete this form each year to help you track your eligibility for forgiveness. However, it is ultimately up to you to prove that you worked full time in an eligible job for the full 10 years. You can either send in the completed certification form each year to your loan servicer or you can keep it in your personal files—just don't lose it!
Non-defaulted loans made in the Direct Loan (DL) program are eligible. These include:
- Direct subsidized Stafford loans
- Direct unsubsidized Stafford loans
- Direct PLUS loans
- Direct Consolidation loans
Perkins loans and some health professions and nursing loans are also eligible if consolidated into the DL program.
Student loans in the Federal Family Education Loan Program (FFELP) are not eligible for forgiveness unless you consolidate them into DL, and no payments made before the consolidation will count toward the 120 needed for forgiveness.
Defaulted loans can regain PSLF eligibility if they are consolidated out of default or rehabilitated.
You must make all payments while working full time at an eligible employer. Your 120 payments must be on time, full, and separate, as well as made on or after October 1, 2007, under one of the following repayment programs. (Any combination of payments under these programs would be eligible, and the payments do not need to be consecutive.)
- Income-based repayment (IBR)
- Income-contingent repayment (ICR)
- Pay As You Earn (PAYE) repayment
- Revised Pay As You Earn (REPAYE) repayment
- Standard 10-year repayment
Keep in mind that the standard 10-year repayment schedule works by splitting your loan amount into 120 equal payments (or 12 payments per year for 10 years). You may not have a balance left to be forgiven if you make most of your 120 payments under the standard 10-year plan unless you make some reduced payments under IBR, ICR, PAYE, or REPAYE.
There is an exception for Peace Corps volunteers who receive a transition payment after completing their period of service and AmeriCorps volunteers who received a Segal Education Award after a year of service. If you fit that criteria and used these payments or awards to make a lump sum payment on your eligible loans, those payments will count toward PSLF. You can receive credit for up to 12 qualifying payments; the actual number will be determined by dividing your lump sum payment by your scheduled full monthly payment amount, not to exceed 12 months.
Forgiveness is employer specific, not job specific. So, anyone working for an eligible employer (from the CEO to the secretary) who meets all the other criteria is eligible. To qualify, the employer must be one of the following kinds of organizations:
- Tax-exempt nonprofits under 501(c)(3) of the IRS tax code
- Government, including federal, state, local, and tribal agencies, the military, and law enforcement
- Tribal colleges or universities
- Public child or family services agencies
- AmeriCorps or the Peace Corps
- A not-for-profit organization that provides one of the following public services:
- Public safety or emergency management
- Public interest law services
- Early childhood education
- Public service for individuals with disabilities and the elderly
- Public health
- Public education, including school-based educational services
- Public and school-based libraries
You cannot work for a labor union or partisan political organization. You may work for an organization that provides religious instruction, worship services, or proselytizing if your job functions do not include these activities.
What You'll Need
Your employer will need to complete this form each year to help you track your eligibility for forgiveness.
Note: This form isn't required for PSLF; however, it is ultimately up to you to prove that you worked full time in an eligible job for the full 10 years. Most employers will not keep employment records for more than a few years—so having your employer complete this form annually gives you a record of your full-time employment with an eligible employer.
Where To Send This Form
Submit this form to your servicer (the company that sends you the bills). If you don’t know who that is, you can go to the National Student Loan Data System (NSLDS®) to find out.
Note: Your servicer may change after you file this form, because the U.S. Department of Education has assigned one servicer FedLoan Servicing (PHEAA) to work with all Public Service Loan Forgiveness candidates.