• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

The College Investor

Student Loans, Investing, Building Wealth

  • About
  • Podcast
  • Research
  • Contact
  • Save For College
      • How To Start

      • How To Save For College
      • How To Pay For College
      • What Is the Average Cost of College?
      • What Is A 529 Plan and Where to Open One in Your State
      • How Much Should You Have In A 529 Plan By Age
      • How To Use A 529 Plan For Private Elementary And High School
      • What Are Qualified Expenses For A 529 Plan (And What Doesn’t Count)?
      • The Best Brokers To Open A 529 Plan
      • Tools + Accounts

      • 529 Plans: The Ultimate College Savings Plan
      • 529 Plan Contribution Limits
      • Prepaid Tuition Plans | What To Know
      • Understanding And Using 529A ABLE Accounts
      • Using A Roth IRA To Save And Pay For College
      • FAFSA Deadlines for Financial Aid
      • CollegeBacker Review
      • Upromise Review
      • UNest Review
      • Other Options

      • Student Loan And Financial Aid Programs By State
      • The Guide To Military And VA Education Benefits
      • How To Fill Out The FAFSA
      • How To Find College Scholarships
      • The Best College Scholarship Search Websites
      • How To Find Grants To Pay For College
      • Pell Grants: What They Are And How To Qualify
      • Understanding Federal Work-Study
      • How To Use A 529 Plan If Your Child Doesn’t Go To College
  • Student Loans
      • Borrowing

        • How Student Loans Work
        • How To Apply For A Student Loan
        • How To Find The Best Student Loans And Rates
        • Best Private Student Loans Of May 2022
        • Best Student Loans To Pay For Graduate School
        • Best Student Loans To Pay For Medical School
        • Parent Loans To Pay For College
        • No-Cosigner Student Loan Options
        • Guide To Income Sharing Agreements (ISAs)
        • Best International Student Loans
      • Get Out Of Debt

        • Best Places To Refinance Student Loans In May 2022
        • Best Student Loan Repayment Plans
        • Best Student Loan Refinancing Bonuses And Promotional Offers
        • Student Loan Forgiveness Programs (The Complete List)
        • The Full List Of Student Loan Forgiveness Programs By State
        • Public Service Loan Forgiveness (PSLF)
        • Top Student Loan Scams
        • Average Student Loan Monthly Payment
        • Average Student Loan Debt By Year
      • Reviews

        • Credible Review
        • Splash Review
        • Ascent Review
        • Citizens Bank Review
        • Commonbond Review
        • Earnest Review
        • ELFI Review
        • Laurel Road Review
        • LendKey Review
        • SoFi Review
  • Investing
      • How To Start

        • How To Start Investing in High School
        • How To Start Investing In College
        • How To Start Investing In Your Twenties For 22 – 29 Year Olds
        • How To Start Investing In Your 30s For 30 – 39 Year Olds
        • How To Start Investing With $100 Or Less
        • How To Give Kids The Gift Of Stock
        • What Is Dividend Growth Investing
        • IRA Rollover Chart
      • Tools + Accounts

        • Best Online Stock Brokers
        • The Best Traditional And Roth IRA Accounts
        • The Best Robo-Advisors
        • The Best Investing Apps
        • The Best Places to Trade Options
        • The Best Places To Open A Health Savings Account
        • The Best Solo 401k Providers
        • The Best Self-Directed IRA Providers
        • Best Cryptocurrency Exchanges
      • Reviews

        • Vanguard Review
        • Fidelity Review 2022: Still One Of The Best Online Brokers
        • M1 Finance Review
        • TD Ameritrade Review
        • Charles Schwab Review
        • Robinhood Review
        • Webull Review
        • Betterment Review
        • Wealthfront Review
  • Earn More Money
      • Extra Income

        • 15 Best Side Hustles You Can Start Earning With Now
        • Side Hustle Ideas: 50+ Ways To Make Money Fast
        • 100+ Real And Honest Ways To Make Money In College
        • 80 Ways To Make Money From Home (In Your Pajamas)
        • 5 Quick Money Making Ideas (That Take Less Than 1 Hour)
        • 10 Interesting Ways You Can Make Money Driving
        • High-Paying Side Gigs That Earn $1,000 or More Per Month
        • The 10 Best Money-Making Apps
        • Paid Surveys: Earn Money For Giving Your Opinion Online
        • 10 Crazy Ways To Make $10,000 You’ve Never Heard Of
      • Build Wealth

        • 35 Passive Income Ideas You Can Use to Build Real Wealth
        • 3 Ways To Make $50,000 Per Year Without Working With Passive Income
        • How To Become A Real Estate Investor With Just $500
        • 15 Best Online Business Ideas
        • How to Create Streams of Passive Income on a Limited Budget
        • Residual Income: 7 Super Smart Ways to Build It
        • The Most Common Multiple Income Streams
        • How To Become A Real Estate Mogul With Only $10,000
      • Reviews

        • Fundrise Review
        • RealtyMogul Review
        • FarmTogether Review
        • AcreTrader Review
        • Swagbucks Review
        • Survey Junkie Review
        • TopCashback Review
        • DoorDash Review
  • Personal Finance
      • Banking

        • Best High Yield Savings Accounts Of May 2022
        • Best Money Market Accounts Of May 2022
        • 10 Best Free Checking Accounts In May 2022
        • The Best Bank CD Rates Of May 2022
        • 10 Best Business Checking Accounts In May 2022
        • The Best Online Banks Of May 2022
        • 5 Best Credit Unions Nationwide of May 2022
        • Best College Student Checking Accounts In May 2022
      • Insurance

        • Best Life Insurance Companies
        • Renters Insurance
        • Car Insurance
        • Pet Insurance
        • Umbrella Insurance
        • Disability Insurance
        • Tuition Insurance
        • Travel Insurance
      • Credit Tools

        • Best Budgeting Apps
        • Cash Advance Apps
        • How To Get A Free Credit Score Report
        • The Best Credit Monitoring Services
        • Debt Settlement: Inside The Secret World
        • Credit Repair Explained: Should You Pay For Help?
        • Best Personal Loan Companies And Lenders
        • Online Loan Companies To Borrow From Home
      • Tax

        • Best Tax Software
        • Free Tax Software
        • IRS Tax Refund Calendar
        • Common IRS Questions and Errors
        • Federal Tax Brackets
        • Capital Gains Tax Brackets
        • 401k Contribution Limits
        • IRA Contribution Limits
        • HSA Contribution Limits
  • Forum
  • Search
Home » Student Loans » Loan Forgiveness » What Are Considered Public Service Jobs (For PSLF Eligibility)?

What Are Considered Public Service Jobs (For PSLF Eligibility)?

Updated: October 6, 2021 By Robert Farrington

Tweet
Share
Share
Pin31
Email

At The College Investor, we want to help you navigate your finances. To do this, many or all of the products featured here may be from our partners. This doesn’t influence our evaluations or reviews. Our opinions are our own. Learn more here.Advertiser Disclosure

There are thousands of financial products and services out there, and we believe in helping you understand which is best for you, how it works, and will it actually help you achieve your financial goals. We're proud of our content and guidance, and the information we provide is objective, independent, and free.

But we do have to make money to pay our team and keep this website running! Our partners compensate us. TheCollegeInvestor.com has an advertising relationship with some or all of the offers included on this page, which may impact how, where, and in what order products and services may appear. The College Investor does not include all companies or offers available in the marketplace. And our partners can never pay us to guarantee favorable reviews (or even pay for a review of their product to begin with).

For more information and a complete list of our advertising partners, please check out our full Advertising Disclosure. TheCollegeInvestor.com strives to keep its information accurate and up to date. The information in our reviews could be different from what you find when visiting a financial institution, service provider or a specific product's website. All products and services are presented without warranty.

public service jobs

In 2017, Federal Student Aid began accepting actual loan discharge applications for the Public Service Loan Forgiveness (PSLF) Program for Direct Loan borrowers. This was the 10 year mark of when the program started.

On paper, the program sounds fantastic.

You make 120 qualifying payments on your student loans while working full-time in a qualifying public service job and your loans will be forgiven.

If you have made these payments consistently since October 1, 2007, you should have qualified for the program beginning in 2017 — as long as you met the above requirement.

The reality however is that, almost two years after they started accepting applications, the Department of Education has only accepted 2% of the applications that have shown up on their desk for the PSLF. However, this headline is extremely misleading.

The program is working exactly as intended - but borrowers need to understand exactly how it works.

Table of Contents
Why This Is Important
So What Exactly Are Public Service Jobs?
Government Organizations
501(c)(3) Organizations
Not-for-Profit Organization That Is Not a 501(c)(3) Organization
AmeriCorps and Peace Corps
What Are Not Considered Public Service Job Organizations?
Thoughts on the PSLF

Why This Is Important

With your average graduating students owing $33,000 and the national student debt now at the trillion-dollar mark, this is both frightening and ridiculous.

In order to help people find out if they had qualifying public service jobs, in 2012, the government introduced the Employment Certification Form (ECF).

Although this form is completely voluntary, filling it out will help you determine if your current employment really does qualify for the PSLF.

The ECF is also helpful if you have recently changed jobs and would like to determine if your current job makes you eligible.

In March of 2019, Federal Student Aid rejected more than a million ECF forms according to their own data.

Yes, this is even before the actual PSLF!

ECF forms were rejected for the following reasons:

  • Missing information: 60%
  • No eligible loans (only Direct Loan borrowers can apply for the PSLF): 20%
  • Incorrect form type: 11%
  • Employer ineligible: 5%

Federal Student Aid has cited the following reasons for refusing 99% of PSLF applications:

  • Qualifying payments (or the lack thereof)
  • Missing information
  • No eligible loans
  • Employment dates
  • Employer not eligible

The average loan amount for those in the 1% approved was $59,244.

As you can see, in both the ECF and PSLF rejections, one of the top reasons for rejection was the fact that their employer was not eligible. This meant that even though these people thought they were in public service jobs, they really were not.

So What Exactly Are Public Service Jobs?

One of the biggest lessons we can learn from the performance of the PSLF program so far is the fact that you have to be certain that your job is considered a public service job.

So what exactly are public service jobs?

According to the Federal Student Aid website, you need to:

  • Work for the government
  • Work for a 501(c)(3) organization
  • Work for a not-for-profit organization that is not a 501(c)(3) organization that provides a public service as its primary purpose.

If you work with AmeriCorps in a full-time capacity or volunteer with the Peace Corps you can apply for the PSLF.

Government Organizations

If you work with a federal, state, local, or tribal government, you are eligible for the PSLF.

This can be any role within the government organization - from assistant to mayor. You must be a full time employee of the government, so 1099 contractors don't count.

This also includes the military, DOD, and all branches of the Federal government.

501(c)(3) Organizations

A non-profit organization that falls under the IRS code 501(c)(3) is also one that does not pay federal income taxes.

They fall under the following categories:

  • Religious: Churches, synagogues, and any other organization that exists for religious purposes will fall under this category.
  • Educational: Many public schools fall under this category.
  • Charitable: Organizations that focus on providing charitable services.
  • Scientific: A scientific corporation that, for instance, ships equipment to poorer countries so they can have access to advanced research tools, would be considered a 501(c)(3) organization.
  • Literary.
  • An organization that does testing for public safety.
  • Animal protection organizations.
  • Organizations that protect the rights of children.
  • Organizations that foster national or international sports competition.

If your job falls into any of these categories, you could be eligible for PSLF.

Not-for-Profit Organization That Is Not a 501(c)(3) Organization

If the organization you work for is not a 501(c)(3) organization but is a not-for-profit organization that provides a qualifying public service, you could apply for the PSLF too.

Certain not-for-profit organizations that provide a public service may not be tax-exempt at all.

In some cases that not-for-profit may enjoy some tax exemptions but not necessarily under the 501(c)(3) code.

These are the types of organizations we’re talking about here.

It is possible, for instance, that your local chamber of commerce is not a 501(c)(3) organization but it is tax-exempt under a different IRS code.

If that chamber of commerce, however, provides a qualifying public service, you could be eligible.

AmeriCorps and Peace Corps

If you have a full-time, approved AmeriCorps position, the Department of Education considers it to be equivalent to working in a public service job for the purposes of PSLF.

The Department of Education also considers volunteering in the Peace Corps equivalent to working in a public service job.

And so assuming you meet all the other criteria, this is qualifying employment as well.

What Are Not Considered Public Service Job Organizations?

  • Partisan political organizations
  • Labor unions
  • For-profit organizations including for-profit government contractors
  • Not-for-profit organizations which are not tax-exempt and which do not provide a qualifying public service

No matter which public service job category you belong to, you also need to:

  • Have made 120 payments toward your Direct Loan
  • Be making payments under an income-based repayment program
  • Be working full-time for that organization
  • Be a Direct Loan borrower
  • Have been making these payments on or after October 1, 2007.

Thoughts on the PSLF

99% of PSLF applications have been rejected so far. But most of those were because the borrowers weren't eligible and educated on the program, or simple paperwork mistakes.

However, the reasons the Federal Student Aid website provides might give an insight into why it has worked out that way.

If you are planning on applying for the PSLF, it is important that you fill out the ECF, although it is a voluntary form.

Filling it out will do two things for you:

  1. If you are ambiguous on whether your current work is considered a public service job, you will find out before investing the time in applying for PSLF.
  2. If you are in fact employed in a public service job, it will help you keep track of how many payments you have made so you can increase your chances of approval for the program.

Furthermore, the Biden Administration has been taking steps to streamline the process - such as by automating it for government employees. Learn about Public Service Loan Forgiveness Reform here.

Was this post helpful?

Let us know in the comments below if you have had trouble with the PSLF too.

Robert Farrington
Robert Farrington

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 on the About Page, or on his personal site RobertFarrington.com.

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.

Editorial Disclaimer: Opinions expressed here are author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, or other advertiser and have not been reviewed, approved or otherwise endorsed by any of these entities.
Comment Policy: We invite readers to respond with questions or comments. Comments may be held for moderation and are subject to approval. Comments are solely the opinions of their authors'. The responses in the comments below are not provided or commissioned by any advertiser. Responses have not been reviewed, approved or otherwise endorsed by any company. It is not anyone's responsibility to ensure all posts and/or questions are answered.
Subscribe
Connect with
I allow to create an account
When you login first time using a Social Login button, we collect your account public profile information shared by Social Login provider, based on your privacy settings. We also get your email address to automatically create an account for you in our website. Once your account is created, you'll be logged-in to this account.
DisagreeAgree
Notify of
I allow to create an account
When you login first time using a Social Login button, we collect your account public profile information shared by Social Login provider, based on your privacy settings. We also get your email address to automatically create an account for you in our website. Once your account is created, you'll be logged-in to this account.
DisagreeAgree
35 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

Primary Sidebar

Robert Farrington

Hi! My Name is

America's Millennial Money Expert

Welcome to The College Investor. We're here to help you escape student loan debt so you can start investing and building wealth for the future

Our expert guides, reviews, and more are designed to help you achieve your financial goals.

Want to learn more? See what's in my wallet.

As Featured In

Social Media

Popular Posts

Side Hustling

Side Hustle Ideas: 50+ Ways To Make Money Fast

Best Side Hustles

15 Best Side Hustles You Can Start Earning With Now

Make Money From Home

80 Ways To Make Money From Home (In Your Pajamas)

Crazy Ways To Make $10,000

10 Crazy Ways To Make $10,000 You’ve Never Heard Of

Make $50,000 Per Year

3 Ways To Make $50,000 Per Year Without Working With Passive Income

Student Loan Scams

Top Student Loan Scams

Net Worth of Millennials

The Average Net Worth Of Millennials By Age

Ways To Get Student Loan Forgiveness

Student Loan Forgiveness Programs (The Complete List)

Passive Income Ideas

35 Passive Income Ideas You Can Use to Build Real Wealth

529 Plan By Age

How Much Should You Have In A 529 Plan By Age

Ultimate Guides

529 Plan Guide

529 Plans: The Ultimate Guide To College Savings Plans

Student Loans and Financial Aid By State

Student Loan And Financial Aid Programs By State

Student Loan Advice

The Definitive Guide To Student Loan Debt: Everything To Know About Your Loans

Student Loan Forgiveness By State

The Full List Of Student Loan Forgiveness Programs By State

newretirement

How to Start Saving Now: The College Graduate’s Guide to Saving for Retirement

Latest Research

Institutional Merit Grants

Who Gets Institutional Merit Grants At Private Colleges?

Resume Student Loan Payments

Survey: Even With Higher Expenses, Most Student Loan Borrowers Are Ready To Resume Payments

Support From Parents Survey

64% Of Millennials Receive Support From Their Parents

undermatching at selective colleges

Undermatching: Why Do Smart Low-Income Students Not Enroll In Selective Colleges?

How Much Americans Pay To File Their Taxes

How Much Americans Pay To File Their Taxes

Footer

Banking

  • 10 Best Free Checking Accounts In May 2022
  • The Best Online Banks Of May 2022
  • The Best Bank CD Rates Of May 2022
  • Best Money Market Accounts Of May 2022
  • Best High Yield Savings Accounts Of May 2022
  • Best High-Yield Checking Accounts Of May 2022
  • The Best Bank Bonus Offers
  • The Best Business Checking Accounts

Investing

  • Best Online Stock Brokers In 2022 (According To Readers)
  • Best Brokerage and Investing Bonus Offers In May 2022
  • The Best Places To Open An HSA (Health Savings Account)
  • 5 Best Investing Apps With Free Stock Trading
  • How To Buy Stocks Online For Free
  • The Best Robo-Advisors Of 2022
  • The Best Self-Directed IRA Providers
  • The Best Traditional And Roth IRA Accounts Of 2022
  • Comparing The Most Popular Solo 401k Options
  • Top 3 Automatic Investment Apps Of 2022

Student Loans

  • Best Places To Refinance Student Loans In May 2022
  • Best Private Student Loans Of May 2022
  • How To Find The Best Student Loans And Rates
  • Best Student Loan Refinancing Bonuses And Promotional Offers

Insurance

  • The Top 10 Online Life Insurance Companies
  • The Ultimate Guide To Renters Insurance – Everything You Need To Know
  • The Cheapest Car Insurance For College Students

Connect

  • Contact Us
  • Advertise
  • Press & Media

About

  • About
  • Our Team
  • Podcast
  • Editorial Guidelines
  • How We Make Money
  • Archives

Social

Copyright © 2022 · The College Investor · Privacy Policy ·Terms of Service · DO NOT Sell My Personal Information

wpDiscuz