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Public Service Loan Forgiveness Facts


The recent facts about public service loan forgiveness.

Recently The Department of Education released data showing how many borrowers it has forgiven under the program and results show only 206 out of 40,000 borrowers who applied. The majority of borrowers were denied simply because they didn’t meet the requirements for the program and the rest for missing information.

The public service loan forgiveness program still confusing to this day here you will find more information that could help you have a better chance to get your application approved.

What is the Public Service Loan Forgiveness (PSLF) Program?

The PSLF Program is intended to encourage individuals to enter and continue to work full-time in public service jobs. Under this program, Clients may qualify for forgiveness of the remaining balance due on your William D. Ford Federal Direct Loan (Direct Loan) Program loans after you have made 120 qualifying payments on those loans while employed full-time by certain public service employers.

Since you must make 120 qualifying payments on your eligible federal student loans after October 1, 2007, before you can qualify for forgiveness, the first forgiveness of loan balances were just granted in October 2017.

What Federal Student Loans are eligible for forgiveness under the PSLF program?

Any non-defaulted Direct Loan is eligible for forgiveness. The Direct Loan Program includes the following loans:

  • Direct Subsidized Loans
  • Direct Unsubsidized Loans
  • Direct PLUS Loans – for parents and graduate or professional students
  • Direct Consolidation Loans

NOTE: Parents who received a Direct PLUS Loan may qualify for forgiveness of the PLUS loan if the parent borrower – not the student on whose behalf the loan was obtained – is employed by a public service organization.

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How can other federal student loans become eligible for forgiveness under the PSLF program?

Although loan forgiveness under this program is available only for direct loans, loans made under other federal student loan programs may become eligible for PSLF if they are consolidation into a Direct Consolidation Loan.

However, only payments made on the Direct Consolidation Loan will count toward the required 120 qualifying payments. The following loans may be consolidated into a Direct Consolidation Loan:

  • Federal Family Education Loan (FFEL) Program Loans
  • Subsidized Federal Stafford Loans
  • Unsubsidized Federal Stafford Loans
  • Federal PLUS Loans – For parents and graduate or professional students
  • Federal Consolidation Loans (excluding joint spousal consolidation loans)
  • Federal Perkins Loans
  • Certain Health Professions and Nursing Loans

NOTE: To consolidate a Federal Perkins Loan or Health Professions or Nursing Loan into a Direct Consolidation Loan, you must consolidate at least one FFEL Program loan or Direct Loan.

What are the borrower eligibility requirements for loan forgiveness under the PSLF Program?

  • You must not be in default on the loans for which you are requesting forgiveness
  • You must be employed full-time by a public service organization

When making each of the required 120 qualifying loan payments; at the time you apply for loan forgiveness; and at the time the remaining balance on your eligible loans is forgiven.

What are the specific loan repayment requirements for loan forgiveness under the PSLF Program?

  • You must have made 120 separate monthly payments after Oct. 1, 2007 on the Direct Loans for which you are requesting forgiveness
  • Payments made before this date do not count toward meeting this requirement
  • Each of the 120 qualifying payments must be made for the full scheduled installment amount and no later than 15 days after the scheduled payment due date
  • The 120 required payments do not need to be made consecutively

What types of public service jobs will qualify a borrower for loan forgiveness under the PSLF program?

You must be employed full-time (in any position) by a public service organization or must be servicing in a full-time AmeriCorps or Peace Corps position. Here are the types of organizations that meet the definition of “public service organization” for the purposes of the PSLF program:

● A government organization (including a federal, state, local, or tribal organization agency or entity; a public child or family service agency; or a tribal college or university)

● A not-for-profit, tax-exempt organization under section 501(c)(3) of the Internal Revenue Code

● A private, not-for-profit organization (that is not a labor union or a partisan political organization) that provides one or more of the following public services:

  • Emergency management
  • Military service
  • Public safety
  • Law enforcement
  • Public interest law services
  • Public service for individuals with disabilities and the elderly
  • Public health (including nurses, nurse practitioners, nurses in a clinical setting, and full-time professionals engaged in health care practitioner occupations and healthcare support occupations)
  • Public education
  • Public library services
  • School library or other school-based services

What is full time employment?

You must meet your employer’s definition of full time. However, for PSLF purposes, that definition must be at least an annual average of 30 hours per week.


Finally, remember every case is different and if you still unsure of what options you have, a trusted and professional assistance with a free consultation to help you better understand your options can help you make a decision.