One year ago, the first round of public servants became eligible for Public Service Loan Forgiveness. These early recipients were the first to have their Direct student loans forgiven with the PSLF program.
With growing awareness of the program, and an increased number of income-driven repayment plans, more and more people are becoming eligible for loan forgiveness. Are you a person who could become eligible for loan forgiveness? Find out in our ultimate guide to student loan forgiveness.
If you want to get any questions answered around PSLF or how to apply outside this guide, check out our PSLF Online Training Course.
If you want a tool to analyze your loans, see if your loans qualify, and even track your eligible payments, check out LoanBuddy. It's a tool we collaborated on to simplify the PSLF process. It will track your eligibly and help make sure you qualify and get the forgiveness you deserve. Check out LoanBuddy here >>
What Is Public Service Loan Forgiveness?
Public Service Loan Forgiveness (PSLF) is a federal program that allows loan forgiveness for qualified employees who work full-time for a variety of employers. Full-time work requires working at least 30 hours per week.
After 120 on-time payments (10 years) of federal student loans (more on that below), qualified applicants will have the remainder of their federal loans forgiven.
Qualified employers of public service jobs include:
- The government (including military, law enforcement, schools. and universities)
- Tax-exempt not-for-profit 501(c)(3) companies; including tax-exempt hospitals, tax-exempt charitable organizations, tax-exempt educational institutions, etc. (It’s important to note that if you’re a member of clergy or your work is religious in nature, you may not receive exemption. To qualify you must spend at least 30 hours per week on work that doesn’t have to do with proselytizing, conducting worship services, or providing religious instruction.)
- Peace Corps or AmeriCorps
- Other non-profit organizations that provide one of the following services:
- Emergency management
- Military service
- Public safety
- Law enforcement
- Public interest law services
- Early childhood education (including licensed or regulated healthcare, Head Start, and state-funded prekindergarten)
- 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 healthcare practitioner occupations and healthcare support occupations, as such terms are defined by the Bureau of Labor Statistics)
- Public education
- Public library services
- School library or other school-based services
Advocacy groups, political groups, and labor unions are not qualified employers.
How Does the 120-Payment System Work?
To actually get loan forgiveness, you have to make 120 “qualified” payments on your student loans. Qualified payments have to meet the following criteria:
- You were employed full-time by a qualified employer
- Your loans were not in deferment, forbearance, or default
- The payment was made after October 1, 2007
- Made on time and in full (paid the full installment amount - not just what your bill says - within 15 days of the due date). See our full article on Pay Ahead Status and PSLF.
- Under a qualified repayment plan (One of the most important things to understand is the requirement of being under a qualified repayment plan. Qualified repayment plans include any income-driven repayment plans. These include monthly payments of $0 that might accrue if you’re earning a wage below the poverty line. Payments made under the Standard Repayment Plan for Direct Consolidation Loans would qualify for PSLF purposes only if the maximum repayment period was set at 10 years. If you have Direct Consolidation Loans, be sure to combine the loan with an income-driven repayment plan.)
The 120 payments don’t have to be consecutive. So if you take a few years off of public service work, you can come back in where you started.
However, if you consolidate your loans, the clock on the 120 payments restarts. That’s right. The clock on the 120 payments resets when you consolidate your student loans. The best time to consolidate your student loans is at the beginning of the loan forgiveness process. The second best time is never.
Some tips for making the most out of PSLF:
- Don’t make larger payments than are necessary.
- Don’t make more than one payment per month.
- Get on an income-driven repayment plan right away.
- If you want to consolidate your loans, do so as soon as you graduate from college.
When Does the Clock Start for My 120 Loan Payments?
You can begin making qualifying PSLF payments once the in-school deferment and grace period on your loans ends. If you want to start making payments right away, consolidate your loans and begin repayment immediately.
Warning: Consolidating loans can “reset the clock” on PSLF! Remember, consolidating your federal loans resets the clock on Public Service Loan Forgiveness. Don’t consolidate if you’ve already made eligible payments under PSLF.
How Do I Apply for Public Service Loan Forgiveness?
First, you’ll want to complete and submit the Employment Certification form for Public Service Loan Forgiveness annually or when you change employers.
You’ll mail the form to:
U.S. Department of Education
FedLoan Servicing
P.O. Box 69184
Harrisburg, PA 17106-9184
After you submit this form, FedLoan Servicing will become your loan servicer. At this point, FedLoan Servicing will review your loan payment history to determine how many qualified payments you made. If you had multiple employers, be sure to submit multiple Employment Certification forms.
Each year, you should continue to submit your Employment Certification form. But you should also save IRS W-2 documents and other documents that can prove you were a full-time employee. This will make it much easier for FedLoan Servicing to track your payments (and you’ll avoid major hassles once your 120 payments are complete).
FedLoan Servicing allows you to check on the number of payments you’ve made through its account access area.
Once you’ve reached 120 payments (congratulations!), you can apply for student loan forgiveness.
You can simply upload the form to MyFedLoan.org/FileUpload or mail it in to:
U.S. Department of Education
FedLoan Servicing
P.O. Box 69184
Harrisburg, PA 17106-9184
FedLoan Servicing will let you know that your application is approved, and you’ll receive notifications of loan balances of zero!
Which Loans Are Eligible for PSLF?
Private student loans are not eligible for loan forgiveness. PSLF is only a program for student loans of the Federal Direct Loans type. These include:
- Direct Subsidized Loans
- Direct Unsubsidized Loans
- Direct PLUS Loans
- Direct Consolidation Loans (Editor's Note: See the warning about this as previously written in this article.)
If the loan isn’t on the list above, it’s not eligible for loan forgiveness.
Are Direct Consolidation Loans Really Eligible?
Direct Consolidation Loans are eligible for loan forgiveness, but with several important caveats.
First, if you and your spouse consolidated onto a Direct Consolidation Loan, and only one of you met the employment requirements, the portion of the balance attributable to the qualified employee is forgiven. The rest is not.
Additionally, joint consolidation loans from the Federal Family Education Loan (FFEL) Program cannot be forgiven.
Finally, any time you consolidate your federal loans, you restart the 120-payment requirement.
Are FFEL Loans Forgivable?
Up until June 2010, Federal Family Education Loan (FFEL) Program loans were one of the biggest federal loans issued to student borrowers. Unfortunately, these loans were not issued by the U.S. Department of Education, and do not qualify for PSLF.
You could consolidate these loans into a Direct Consolidation Loan, but that will reset the clock on your PSLF.
Is Loan Forgiveness Taxable?
One of the best perks of PSLF is that the loan forgiveness is not taxable. No matter how much interest you’ve accrued, the full balance of the loan is forgiven, and the amount forgiven isn’t taxed.
What Happens to PSLF If I Default on My Loans?
If you’re on an income-driven repayment plan, you should never default on your loans. Paying your student loans should be one of your highest financial priorities.
That said, any debt in default is not counted as a qualifying payment on your loan. That includes any time you spend “rehabbing” the loan to current status.
Keep your student loans out of default by prioritizing repayment. Remember, if your income adjusts downward (say you lose your job), you can reset your repayment plan in the middle of the year.
Will Public Service Loan Forgiveness Still Be Around?
PSLF is one of the favorite punching bags for Congress. An act of Congress could eliminate the program today. That said, it’s more likely that the rules for qualified employment will be narrowed rather than the program being completely eliminated.
If you’re very worried about it, you may want to continue making the standard payments on your student loans. Just remember, all of the potential changes are just proposals. Check out the full list of Trump Student Loan Forgiveness Proposals here.
Temporary Expanded PSLF (TEPSLF)
In 2018, Congress created Temporary Expanded Public Service Loan Forgiveness. This program is designed to help borrowers who were on the wrong repayment plan, but otherwise would have been eligible to have their loans forgiven under PSLF.
This is a complicated exception to the program, and it only applies to certain borrowers on the wrong repayment plan (not wrong loan type of disqualified employment).
We break down the full requirements and how it works here: Temporary Expended PSLF (TEPSLF)
Final Thoughts
PSLF is a great program, but it does require you follow very strict rules to get your loans forgiven.
If you're unsure about what to do or how to fill out the certification forms, check out LoanBuddy and see if it can help you better track your PSLF eligibility.
Robert Farrington is America’s Millennial Money Expert® and America’s Student Loan Debt Expert™, and the founder of The College Investor, a personal finance site dedicated to helping millennials escape student loan debt to start investing and building wealth for the future. You can learn more about him here and here.
He regularly writes about investing, student loan debt, and general personal finance topics geared towards anyone wanting to earn more, get out of debt, and start building wealth for the future.
He has been quoted in major publications including the New York Times, Washington Post, Fox, ABC, NBC, and more. He is also a regular contributor to Forbes.
Susan says
I am confused what student loan forgiveness program I am eligible for .
I have federal Stafford loans. My loans went into deferrment and forbearance due to hardship. What can I do?
Robert Farrington says
What do you do? For any of these forgiveness programs, you need to get out of forbearance and back on a repayment plan to start making payments.
Cristina says
After 120 payments (10years) my son’s loans will be just about paid off. How is this a good deal for him.
Robert Farrington says
That’s great! Just about means he can still get some forgiveness. It’s a good deal for him because:
1. He is earning more than other people
2. He took out less loans than other people
Hopefully this can be a stepping stone to future financial well being!
Chris says
I have a question for which I have not been able to find the answer. I am on the income-based repayment plan, which I know qualifies for Public Service Loan Forgiveness. I have been making on-time payments since 2014. (Technically, I have been making payments since 2011, but I re-consolidated in 2014, and I know the “clock starts over” if you re-consolidate.) I learned just last month that my employer qualifies for PSLF because of 501(c)(3) status (I had no idea). The question: if I apply and am approved for the PSLF program, do all those payments made since 2014 count towards my 120 total? I have searched high and low for an answer. All I can find about “retroactive” payments is information telling me that payments made before 2007 cannot count because the program didn’t exist then. Fine…but that doesn’t answer my question. My question concerns the payments I’ve made since 2014, when I re-consolidated. (That’s four years worth of payments!) Do those count toward the 120, or do I start (again) at zero once my application is approved?
Robert Farrington says
Yes, you technically don’t even have to send in an employer certification until you’ve already made 120 payments. So, as long as your employer certification covers all the dates listed, and the other aspects apply (correct loan and repayment plan), then all of those payments count.
Erica says
Can you work several per diem positions that add up to more than 30 hours a week for qualified employers (like hospitals) or does it have to be “full time” in your job position?
Robert Farrington says
You can work several part time positions to get to 30 hours per week, but you must be considered an employee. Per diem is considered an independent contractor (you work for yourself), so that work wouldn’t count.
Sarah says
Actually per diem is an employee status and not an independent contractor classification in many facilities. But there are no ‘scheduled’ hours. I do work more than 30 plus hours a week in these roles.
Robert Farrington says
If you receive a W2, you’re good. If you receive a 1099, you’re not good for PSLF.
Mattias says
What if you get both and the W2 covers the 30hr/wk requirement?
Robert Farrington says
If you have 2-W2s and they meet the minimum hours required, you’re good to go. Make sure your paychecks show the hours worked in case you need to dispute anything.
Charlotte Robertson says
If you have more than one loan and don’t consolidate do you have to make 120 payments for each loan or just 120 total to be forgiven for all loans outstanding?
Robert Farrington says
Every loan is tracked individually. It typically doesn’t make sense to consolidate because you actually can cause more problems that it solves.
Brad Boyd says
I am confused about this. I have been making payments since Nov 2016. I worked for a hospital full time as a resident for 2 years at a modest salary. I now work for another hospital as a specialist at over 2x the residency salary. I am on a REPAYE program and am due to recertify my income in March. I am being told that if I want to go the PSLF route, I have to repay over 10 years instead of 20 or 25. Doesn’t that defeat the purpose? Or should I not even mention the PSLF and wait 10 years to apply for forgiveness?
Robert Farrington says
PSLF is 120 payments. Depending on your salary, your RePAYE payment may pay off your entire loan balance before that 120 payment mark is met.
Either way, just consider them two independent issues – your RePAYE certification and PSLF paperwork.
Library Lady says
You need to be on a 10 year repayment plan that is income-based. The assumption is that you will be paying less than the total amount so you would end up paying past the 10 year window due to your ongoing reduced payments.
This is different from selecting a 20 or 25 year fixed repayment plan.
Robert Farrington says
There are no 10 year income-based repayment plans. All income based repayment plans are 20 to 25 years depending on plan and loan origination date. PSLF is a 120 payment program (120 payments = 10 years if done sequentially).
The standard 10 year repayment plan also counts for PSLF, but that plan is moot for forgiveness since your loan would be paid off at the same time you’re eligible for forgiveness.
Bruce Chandler says
I’m a bit confused – I have old Stafford Loans from the late 1990s and I still owe a balance of about 24K – but since 2000, I have worked continuously for state governments – two different states – and one tribal government (as a librarian). I currently work for the Dept of Defense. I’ve made the 120 payments – how do I prove that I worked for these agencies? Do I submit qualified employment forms from each? I guess what I’m asking is can I qualify for the PSLF and get that last part of my loan paid off? Thanks! RBC
Robert Farrington says
Since your loans are so old, you likely don’t have the correct loan type to qualify (sadly). You need to have Direct Loans, not the old FFEL loans. You would have to re-consolidate your existing loans to this to qualify. If you had done this in 2007, you could likely have your debt forgiven.
Remember, it requires three things to qualify:
1. Direct Loans
2. Qualifying Repayment Plan
3. Qualifying Employment
Lucia Harris says
I have a student loan the school closed down and got many ppl sued them can I get a student loan forgiveness?
Robert Farrington says
Maybe. It’s a process called Borrower Defense to Repayment. Read this: https://thecollegeinvestor.com/18752/understanding-borrower-defense-repayment/
Rachel says
I started making payments in 2009. I have only worked for 501 3c . I was making payments at more than $400.0o month until 2017 when I applied for the IBR payment plan. In 2017-18 I paid $180.00 month, 2018- $254.00
My question is- since I was making more than double payments on standard payment plan (25 years), making less than I have in past 3 years do those payments apply toward 120 consecutive for PSLF?When the program first came out, little info was available and I was told to just get certification letter from employer when need.
All these years I made payments, my 10 years could be up and I based it all on what I was told. Earning less, paying more. Now owing more due to interest.
Robert Farrington says
PSLF requires three things:
1. Direct Loans
2. Qualifying Repayment Plan
3. Qualifying Employment
Given your loans were around 2009 when you started making payments, I’d be concerned you don’t have Direct Loans, but rather FFEL Loans. What kind of loans do you have?
Second, payments – standard plan, IBR, PAYE, RePAYE, and ICR all count. In 2009, only ICR existed. So, I’d also be concerned you don’t have the correct repayment plan.
Based on this, you need to go through your loan history and see what qualifies. Have you submitted PSLF Certification? How many payments did FedLoan say qualified?
Amanda says
I’ve had student loans in debt consonsolidation since 2007 and have made 120 monthly payments on time, but have only worked for a qualifying employer for just under 2 years. Do I need to wait until I have worked for this employer for 10 years to qualify?
Robert Farrington says
Yes, each of your 120 payments (10 years) is counted individually. So, you can certify this employer, and that gives you 2 years. What did you do before this? Could your previous employers potentially qualify? If not, then yes, you have 8 years to go.
Lorrie Cline says
Hello! I am happy to report that I am 100 qualifying payments in towards the 120! I had a battle going for the past 1.5 years due to a discrepancy on number of qualifying payments. I won! As I’ve worked very hard to ensure I did everything correct the last thing I want to do is mess anything up…my question is, do you know if it is okay to pick up a part-time (9 hrs per month) job on the side? I would continue with my full-time qualifying position at a 501(c)3.
Thanks so much!
LC
Mattias says
I’m also interested in this question. Is anyone aware of the answer? As far as I understand, as long as one meets the minimum full-time requirements (avg 30 hrs per week at a qualifying institution) then additional side-jobs should not be an issue…
Robert Farrington says
Sorry we didn’t see this question! Taking a side job beyond your qualifying employment is fine. Doesn’t impact anything other than potentially raising your income, and raising your monthly payments on your payment plan until you get forgiveness.
If you make too much money on the side, you could end up seeing your payment rise to the point where you don’t get any loan forgiveness due to the loan being paid off.
Rosina says
Can you tell me how you won?! I’ve been going back and forth with FedLoan for years, because they say that I was in forbearance or not in repayment, which is WRONG. I have followed their guidelines to the T.
Now, I’m struggling to find the proof…I may have lost it.
thank you,
rosina
Jynger Morris says
What if I didn’t consider PSLF previously when I worked at another non-profit and never filled out a form at that time (I would have had about 60 payments while at that job) and am now at a non-profit again, and am prepared to file my first form–with about 13 more payments under my belt. My loans were taken out between 2003 & 2005 and I’ve paid (never missed a single payment) on them since inception–I began paying immediately. I only have about $5k left–but it’s still $5k. Is this worth my effort?
Robert Farrington says
I think it’s totally worth the effort IF you have the right loan types – given they are 2003 and 2005, it would be very rare you have Direct Loans – you probably have FFEL loans. Check your loan type first. If you have qualifying loans, then I would make the effort to certify your employment by getting someone at that non-profit to sign off on your certification.
Palma says
I’ve been paying on school loans since 2000. I deferred loan repayments recently while completing my doctorate. I start repaying next month. Do any of the payments made qualify towards 120 for loan forgiveness, or do I start over?
Robert Farrington says
Probably not based on your loan start date. The three criteria are:
1. Direct Loans – but these loans didn’t become a thing until 2007. So your loans are probably FFEL Loans, which don’t qualify.
2. Qualifying Employment
3. Qualifying Payment Plan
However, if you still think it will take you longer than 10 years, and you work in public service, you can always re-consolidate those old loans into new Direct Consolidation Loans, and become eligible for PSLF.
Also, if you did consolidate already and have Direct Loans, then yes, if you can go back and get your past employer to certify you, then you can get the past qualifying payments to count – as long as they meet all three criteria.
Donna says
Can a co-signer apply for PSLF? We are paying our deadbeat daughter’s loans and will be forever. My husband is a government employee.
Robert Farrington says
Hey Donna! Federal loans don’t have cosigners – the loan is either a private loan with a cosigner (in which case there are no forgiveness options), or you have a Parent PLUS Loan, which is in your name 100% and your daughter doesn’t have any responsibility for it. If it is a Parent PLUS Loan, PSLF is a potential option if it’s in your husbands name, but he does need to do a few steps. We break it down here: Options for Parent PLUS Loans.
Trish says
Hi I just recently signed up with Financial Preparation Services &I’m hoping it’s not a scam.My 30K student loan just entered default.They told me I would pay 120 mos with the first 5 payments $249 then pay $67 for remainder 115 payments.$42 out of the 67 is a monthly fee they will charge me.They told me my credit would began to get better.I haven’t made my first payment yet.I started reading their reviews &now I’m afraid I’m being scammed
Robert Farrington says
If you’re in default, you need to get out of default by rehabilitating your loans. See this: Student Loan Rehabilitation.
Then, once you’re on an income-driven repayment plan, you can start qualifying for PSLF.
You never need to pay for third party help, but you always can. Read this first: https://thecollegeinvestor.com/16429/is-your-student-loan-repayment-company-a-scam/
B says
My direct loans including federal pell grant etc are in default….I was counseled to make certain decisions sadly without knowing the consequences of said decisions. Believing I was doing what I was told was in my best interest. Anyway. I had to drop out of college without finishing my BA (Still 1 yr left to complete.) I ran out of money and grants to continue and my family refused to help or co-sign. My loans were in deferment initially. Then it was recommended to me by an employee of nelnet that I place them in forbearance when I told him I lost my job. Then a banker took me to the dept of education site where you consolidate your loans asked me if I agreed and clicked boxes on a screen and said “ok it’s done now.” Not sure now if he even had the authority. I have only recently learned about the income based repayment plans. I told them I had an income of $0 and they still for years insisted I pay an amount of money there was no way I could afford. I had an unplanned pregnancy. I am a stay at home mom now for over 4 yrs pregnant with my 2nd planned child. They insisted I had the money and could find it some how some where. When indeed I could not. I was never offered an option of $0 or $5 per mth like I have heard some people say. My husband only worked part time making less than $1000 per mth and still now! Anyway…my loans went into default. I am wondering if I can now get on an income based repayment plan (still making $0 income) at the lowest possible payment. To get my loans out of default. Then will I qualify for the loan forgiveness programs if I can land a job in one of the mentioned fields? Or perhaps another way? I really want to go back to school eventually and finish my BA etc. I have heard also that once you let loans go into default even if you get them rehabilitated you can never qualify for loans or grants again is this true? Thank you. ANY help is appreciated. I have been completely lost. Just another teenager suckered by the system now paying the price years later.
Robert Farrington says
Yes, you can get your loans out of default. Read this: How To Get Your Loans Out of Default.
Then, get on an income-driven repayment plan you can afford.
Joany Rivera says
Last year I got a letter in the mail from the Department of Education saying that I was pre-qualified for loan forgiveness. I ended up doing 3-4 monthly payments of around $240. My student loans then changed to a different company and now I keep getting calls to discuss repayment options. They said I was eligible for Public Service Loan Forgiveness. I work for a nonprofit providing advocacy/case management services. I saw in your article that advocacy groups don’t count as public service. At this point, I’m not sure what to do with my student loans and don’t know who to turn to for help.
Robert Farrington says
First, are you sure it was a real letter and not junk mail getting you to sign up for a random company (read this: https://thecollegeinvestor.com/317/top-student-loan-scams/).
Second, did you file your Employer Certification Form? If so, was it rejected? If you haven’t filed it yet, why not (maybe you relied on this other company to help)?
Finally, remember, your repayment plan is different from PSLF program. You have to maintain both – both require their own paperwork.
You can do this all yourself! You don’t need to pay anyone to do it. Just remember – qualifying payment plan, and PSLF certification. Both require forms each year.
Rhonda says
Can someone qualify for PSLF if their spouse is a federal employee? Or does the qualifying student loan have to belong to the federal employee?
Robert Farrington says
The qualifying loan has to belong to the qualifying employee. Remember – it’s not just Federal employees, but any qualifying employment.
Esther Wines says
I have been under the PSLF plan since entering loan repayment period after graduating nursing school and even consolidated my loans at the begining. I was able to consolidate all of my loans under the program. My question is, hypothetically, what if I have saved up enough to pay off my loans plus the interest next year or two? Will I owe anything else? I want to pay it off before the 120 qualifying payment mark in the program.
Robert Farrington says
If you pay off your loans, you’re done. You don’t owe anything more.
But the real question is – why? Why would you waste your hard earned savings when you’ll get loan forgiveness? Maybe you don’t plan on staying as a nurse? Maybe you are only a year or two in and life changes happen?
But if you’re past the half-way point, I would be banking those savings, investing and maxing out an IRA, HSA, 401k, saving for a house, etc. Not throwing it away towards a loan that will be forgiven tax free!
Esther Wines says
Because I do not like my payments going up with the more money I make each year. I feel it limits me each year. I pick up extra shifts to balance paying for the loan each month all for what? The next year my payments increase again. I agree with you, I do not want to waste my hard earned money so I have already begun investing some of my money on the side in a retirement fund, already bought a house and have other investments separate from my retirement fund.
Robert Farrington says
Remember the ways to lower your AGI (and keep your payments lower too) – max 401k, contribute to HSA, contribute to a traditional IRA. You can basically take a ton of your extra earnings and shelter them in these accounts, and it won’t boost your payment up!
Max 401k – $19,000
IRA – $6,000
HSA (family) – $7,000
Saving your money in these accounts will lower your AGI, which in turn lowers your income-driven repayment!
Andrew says
I’ve been paying under IBR for approximately 2.5 years, my loans are eligible loans and my employment is qualifying. I recently noticed that the rePAYE is eligible for all loans, unlike the PAYE which has date restrictions that my loans do not qualify for. I would like the lower payment requirement of the rePAYE (10% disposable income) vs my current IBR (15% disposable income). Can I change to the rePAYE program without resetting my PSLF clock?
Robert Farrington says
You can change repayment programs without resetting the clock. As long as the old/new plans are both qualifying. As for “the best” one for you, only you can decide.
Danielle says
Does a person only qualify for PSLF if they work 10 consecutive years in a qualified non-profit agency? I took a year off from non-profit work however I still continued to make on time payments on my direct loans with a qualified repayment plan. Thanks!
Robert Farrington says
No, each payment is counted individually per loan to add up to 120 payments (or 10 years). So, if you took a year off, those 12 payments won’t count, but you can start back on track with no issues.
Dennis says
I have three questions:
#1: I am confused about the forms that I have to submit to PSLF because it says my account will be transferred from my current loan server (Navient) to PSLF. I have been in repayment for 6 years. They are all Direct loans. I am under the IBR plan. Will I have a new repayment plan with PSLF and how do they determine my new payment amounts?
#2: My 5 loans are bundled by Navient but the last two are now receiving $0 payments each month, principle and interest, because there isn’t enough payment to cover the way they take each portion of the loans. Are all of them still qualifying for PSLF with some in $0 payment because they are all on the same bill and bundled together?
#3 I finished a graduate degree and another loan was added 5 years ago to my loan bundle, did this restart the loans because they are bundled together?
Thanks,
Dennis
Robert Farrington says
1. Your loans are transferred to Fedloan – they are the only servicer that handles PSLF per the Department of Education. Your repayment plan doesn’t change – and IBR is an eligible repayment plan for PSLF.
2. There are three criteria to be eligible – Direct Loans, Qualifying Employment, Qualifying Repayment Plan. IBR qualifies. It doesn’t matter what your payment is, as long as you make one (or if $0, have one) each month.
3. Each loan is treated individually on its own path to 120 qualifying payments. As long as you don’t get a new consolidation loan to replace everything, you don’t reset the clock. So, theoretically, you could have 4 loans that are 7-8 years on the way towards PSLF, and that last 1 loan will take another 5. That’s okay.
Alicia says
Thanks for explaining this. Is this explained on the PSLF website somewhere as proof? I recently re-certified and my new monthly payment is calculated to $0 per month. I worry that these $0 payments, essentially no payment, will not count toward the 120 payments I need to qualify. I’m trying to find proof that the $0 will still count. Otherwise, I might just make an auto payment of $5 per month to show a payment occurred. Thanks.
Robert Farrington says
Here you go: https://studentaid.ed.gov/sa/repay-loans/forgiveness-cancellation/public-service#qualifying-payment
A qualifying payment is one that is the full amount due on the bill. So, if your IBR plan is $0 (the full amount due), it qualifies.
jason baxter says
Once I reach 120 payments on a first batch of loans, can I have those forgiven and then quit the program, or would I be forced to wait until all loans have qualified?
If you know the answer to this can you direct me to where the authority for the answer would be found?
Robert Farrington says
Each loan is counted individually. There is no “quitting”. Let’s say you have three loans. Each of the 120 payments on each of the loans is counted based on meeting the criteria:
1. Direct Loan
2. Qualifying Repayment Plan at the time of payment
3. Qualifying employment at the time of payment
4. Certifying completely that employment period for said payments (using the employment certification form).
So, if you have three loans, you may have staggered forgiveness dates depending on how many qualifying payments each loan has. Your FedLoan statement will tell you how many accumulated payments they have on file for each loan.
It’s all available on StudentAid.gov.
Sabrina says
I have consolidated my loans with Navient. These are direct loans that were consolidated into 1 (back in 2015). I currently went from a IBR to the REVISED paye with a balance of 0.00 due each month. I have worked for an eligible employer for the past 3 years while on a IBR plan. My question is, WHEN should I apply for PSLF? Should I wait 10 years? If my balance is 0, what are qualifying payments? Also, if and when I apply for PSLF, will my “Revised Paye” with a balance of 0 still be in action? Or will it change eveything? Thank you
Robert Farrington says
You should file your PSLF employment certifications at least annually (always keeping a copy for your own records as well).
A qualifying payment is one that is:
1. On Direct Loans
2. Qualifying Repayment plan (even if the amount due is $0 – each month counts)
3. Qualifying Employment
You actual payment amount doesn’t matter, you just have to be a on a qualifying payment plan. Remember, PSLF and your payment plan are two independent programs.
Jenna says
Sorry if you’ve already answered this question/situation (I tried to read all of them).
I have loans that are on different forgiveness timelines (stupidly didn’t consolidate older loans to direct loans until 2 years into repayment). I’m trying to decide if I should apply for forgiveness right away on my qualifying loans or wait until they all are forgivable. I’m concerned my IBR payment will drastically increase or I may no longer be eligible for IBR. Would I be able to estimate what might happen using an online IBR calculator and input my particular numbers? Is there one you like? Are there other considerations I’m overlooking?
Robert Farrington says
Each loan maintains it’s own timeline. You should always file your employment certifications, and that way each loan get’s it timeline. And if you have eligible loans to get forgiveness (i.e. they already have 120 qualifying payments made), definitely don’t wait – you’re just costing yourself more money!
The best place to estimate your loans is StudentLoans.gov: https://studentloans.gov/myDirectLoan/repaymentEstimator.action#view-repayment-plans
Erica says
My question is regarding employment certification. I have worked for my current employer for almost 8 years and did not submit my first employment certification until about two years ago. I did have two previous employers (same job as a charter school teacher, however the school’s management company changed while I was there) and no longer have contact with either company and neither company currently manages the school where I taught. So, my question is, what can I do if I am no longer able to get certification of my employment for those years?
Robert Farrington says
It’s lost unless you can get your employment certified. You need to try and get your employment certified by someone at the school or even the district. It might even be worth it to go in person.
Christina says
My loans were initially through direct loans but got passed onto MOHELA. I have been working full time as a teachers asst since January 2012 and transferred to public school district in fall of 2013, no gaps in employment, always paying the ICR. Would I qualify for this? My original loans were DL consolidation subsidized and DL consolidation unsubsidized ? Please advise
Robert Farrington says
Yes, if you have a qualifying repayment plan, then you would meet all three criteria:
1. Direct Loans
2. Qualifying Employment
3. Qualifying Repayment Plan
Get your PSLF certification done ASAP.
Dawn Heath says
I do have a question for clarification purposes.
If I have sent these forms to my past employers, in for past years, do I just do one for my current employer this year, even if I worked for them last year?
I would hope I don’t have to contact each and every employer I worked for since getting the loan every year.
Robert Farrington says
You need to do a form for every employer, and you should do it at least annually. It could be multiple employers per year.
Remember each of the 120 payments is counted individually, so you need to have dates on your employment certifications that cover each qualifying payment.
srp says
Is there anything that references a minimum annual income? I have found several references to “employed full-time” and “paid” but nothing as far as a minimum income bracket. Just curious.
Robert Farrington says
There is not. You must simply be employed (W2) full time. This is 30 hours per week. You can combine two part time that qualify to meet the full time requirement.
Given this is W2 employment, the minimum income would be minimum wage – since that is the law. But it’s not written anywhere because it’s irrelevant.
Rosina says
Robert,
Thank you for helping folks. I’m hoping you can help me. I can’t find proof that I made qualifying payments for PSLF, which is what FedLoan is saying I have to do. Their audit showed that my 43 payments did not count, even though I KNOW that they did. I had the correct repay status and ECF forms submitted. Do you have any ideas of what I can do?
thank you,
rosina
Robert Farrington says
Do you have your bank statements of the amount of payments/withdrawals? Your bank can also send you past statements if you ask.
Jenna says
I have student loans beginning in 2010. All are direct loans. I have been working with my current qualified employer since 2013. I began making payments in 2014. As of today I have made a total of 41 payments towards my student loan debt. My question is, I don’t recall signing up for “a loan repayment program” so does that mean I was doing a standard payment plan? Also, if I get on a repayment plan now, will my previous payments made count towards the 120 payments required?
Robert Farrington says
If you never opted into a plan, you default into the standard 10 year plan. But you should confirm this by logging into your loan account and seeing what plan you’re on. If you started making payment in 2013, with no gaps, you should be around 80 qualifying payments (assuming you have employment certifications for every year from 2013-now).
As for switching payment plans, each of the 120 payments is counted individually on your way to 120. So as long as you switch to a qualifying plan, your new payments will count, and nothing will change with your existing qualifying payments.
The only time you get into trouble is if you consolidate your loans. Consolidation creates a new loan – and that new loan is new (i.e. no record of your old payments carry forward onto it). So, DON’T consolidate your loans.
C Fisher says
I work for United States Citizenship and Immigration Services (USCIS). Is there any chance that this federal organization, which is fee-based, is a qualifying employer? How do I find out, one way or the other?
Robert Farrington says
Yes, you work for the government. USCIS is a department within the Department of Homeland Security. As long as you’re a W2 employee of the USCIS, your employment will qualify.
Sarah C says
Is there an easy way to count how many eligible payments I’ve made so far?
And I started repaying most of my student loans in 2013. However, I went back to school from 2016-2018 and took out new loans, would my 120 payments for those loans be on a different track? (I have continued working for an eligible employer that entire time, by the way)
Robert Farrington says
LoanBuddy Plus offers PSLF payment tracking automatically. Check it out here >>
Otherwise, you’d have to manually keep track.
Marshall says
My annual recertification recently came back that I owe $0 a month. I am a public school teacher and have a dependent. Does this $0 really count towards my 120 qualifying payments if I am in a PAYE plan? The interest is accruing at over $6 a day. Just want to know your thoughts. Shouldn’t I be paying at least a $1 a month to count as a qualifying payment? Also if the PSLF program goes away will we have any legal rights from all the interest that we accrued over the 10 plus years?
Robert Farrington says
A $0 per month payment sure does count! Isn’t that awesome?!?!?
The PSLF may go away, but borrowers who currently qualify would likely be grandfathered in – it’s actually written into your loan documents.
If you decide to not pursue PSLF or no longer qualify, you will owe all interest on your loans. They may pass a law changing this, but that’s unlikely (just as unlikely as anything happening to PSLF).
Nic C says
So I am on a “standard repayment” plan of 233 per month. I owe approximately 26000 still. I was in local government work (LE) for nearly four years and military for two years. I didn’t discover PSLF until recently. I’m around 70 payments in. What do I need to do besides get to 120 qualifying payments?
Thanks!
Robert Farrington says
Are you are on the standard 10 year plan? If so, you simply need to get your employment certified by filing the employment certification form and sending it in.
Jo says
I owe approximately $94,000 in student loans for undergrad and masters programs. I pay $409 per month on an IBR plan. Of my 8 loans, 6 qualify for PSLF, and I have certified 70 payments. The 2 loans that don’t qualify at this time total approximately $12,000. Even with paying that much per month, it doesn’t even cover the interest, so my total owed keeps increasing. I have read that I should not consolidate, but should I / can I consolidate the two loans that don’t qualify, in order to make them qualify for PSLF? Would that affect the 70 months already paid, like having to start over?? Or would it be better to wait until the ones that qualify are forgiven, and then consolidate the 2 that don’t and go another 10 years to get them forgiven? With the reports of people being turned down even when they get to 120 payments, I feel like I am drowning in this situation, with no way out! What do you recommend?
Robert Farrington says
Yes, you can consolidate the 2 individual loans that don’t qualify – do it manually on a paper application with the the two non-qualifying loans (so there is no confusing on the loans). And once they qualify, as long as you meet the above criteria, you can have a 120 payment clock start on those separately than the other 6 loans.
Van says
As I am indeed working towards PSLF I intend to file taxes separately next time and then request to be switched (from REPAYE) to PAYE when recertifying income. A FedLoan rep informed me that they may still request spouse income information but that they will not use it in recalculating monthly payments under the PAYE plan. This is brilliant information and stands to save us quite a lot of money given that we otherwise only foresee a small increase in our tax burdens as a result of filing separately.
Thank you for these resources!
Ashley says
Can I work for multiple qualifying employers during the span of the 120 payments towards my loans? Right now I work for a government agency and after I complete my nursing degree I will again work for a different qualifying employer? i.e one job for 3 years, a short break from working while in nursing school, then start working as a nurse maybe 2 years after that.
Robert Farrington says
Yes, you can work for multiple employers – and most do. The important thing is to certify your employment annually to keep accurate records (especially if you leave/change jobs).
Robin says
I am (finally!) approaching 120 payments and will submit the PSLF form in June 2020. I have two questions:
1) I have two other smaller qualifying loans that won’t be eligible for forgiveness until 2022. Can I apply for PSLF again?
2) I was also considering applying for the teacher loan forgiveness for the smaller loans. Can I do this? I read that you can’t apply for the teacher loan forgiveness and then PSLF without resetting the clock, but what about the other way around?
Robert Farrington says
1. Yes! Each loan is counted individually. So, you would apply now, and keep certifying your employment for the next two years, then apply again for those loans.
2. No, you can’t mix and match TLF and PSLF. PSLF is usually better. See this: Teacher Loan Forgiveness vs. PSLF.