What if you could get rid of five figures of student loan debt overnight? For hundreds of thousands of borrowers, that’s exactly what happened, thanks to Public Service Loan Forgiveness (PSLF).
As of January 2026 — the last available data — 1,410,000 federal loan borrowers have qualified for loan forgiveness under PSLF, with an average balance of $78,300 discharged per borrower.
But PSLF is notoriously difficult to qualify for, and it takes years of eligible employment and payments. Recent changes and proposals further limit access to the program. Taking steps now to ensure you’re on the right track can prevent nasty surprises and disappointment later.
What is Public Service Loan Forgiveness?
PSLF is a federal loan forgiveness program exclusively for federal student loan borrowers. It provides forgiveness of up to 100% of your remaining loan balance after you complete the program’s work obligation.
Under PSLF, you must work for a qualifying employer — typically a nonprofit organization or government agency — full-time for at least 10 years. While employed by an eligible employer, you must make 120 monthly payments toward your debt under a qualifying payment plan.
Once you reach the necessary years of employment and number of payments, the government discharges your eligible federal student loans. Unlike some other loan forgiveness programs, the amount forgiven through PSLF is not taxable as income, so you don’t have to worry about a surprise tax bill.
Eligibility requirements for PSLF
The eligibility requirements for PSLF are strict, and proposals made by the Trump administration are expected to make it more difficult for some borrowers to qualify. Here’s a quick look at the current criteria.
Qualifying loans
The following federal student loans qualify for PSLF:
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Direct Subsidized
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Direct Unsubsidized
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Direct Consolidation Loan
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Direct Grad PLUS
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Direct Parent PLUS (Parents must first consolidate their loans with a Direct Consolidation Loan by June 30, 2026 and enroll in a qualifying repayment plan)
Loans issued under the Federal Family Education Loan (FFEL) or Perkins Loan programs can qualify for PSLF, but borrowers must first consolidate them with a Direct Consolidation Loan.
Only federal student loan borrowers are eligible for PSLF; those with private student loans don’t qualify.
Eligible employers
Eligible employers include:
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Nonprofit organizations with tax-exempt 501c)(3) status
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Government organizations, including those at the federal, state, local, or tribal levels
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U.S. Armed Forces
Ineligible employers include for-profit institutions, labor unions, and partisan political organizations. You can use the employer search tool to find out if your workplace counts as an eligible employer.
PSLF requires borrowers to work full-time for an eligible employer for at least 10 years. For the purposes of PSLF, the government defines full-time employment as working at least 30 hours per week (for teachers, an employment period of at least eight months is considered qualifying employment for a full year).
Qualifying payment plans
You must make 120 monthly payments while employed by a qualifying employer to have your loans forgiven under PSLF. Those monthly payments must be made under a qualifying payment plan. Currently, only the following income-driven repayment (IDR) plans are eligible:
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Income-Based Repayment (IBR)
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Income-Contingent Repayment (ICR)
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Pay As You Earn (PAYE)
Other repayment plans, such as extended or graduated repayment, are not eligible.
Payments made under a 10-year standard repayment plan do count toward the necessary payments needed for PSLF, but if you stick to that plan, you’ll pay off your debt before you qualify for loan forgiveness. To take advantage of PSLF, you’ll need to enroll in an IDR plan.
Important: Previously, the government temporarily expanded PSLF’s requirements to include payments and loans that wouldn’t usually qualify. However, that waiver ended in October 2022.
Recent and upcoming changes to the PSLF program
The One Big Beautiful Bill Act (OBBBA) didn’t make any direct changes to the PSLF program, but the law’s overhaul of the federal student loan program had some indirect impact on borrowers interested in PSLF.
Additionally, the Trump administration has proposed some adjustments to eligibility to disqualify borrowers working for certain employers. Here’s a look at the updates.
Many parents will soon lose access
Parents with PLUS Loans can currently take advantage of PSLF if they’ve consolidated their loans and they’re on the ICR plan.
However, the OBBBA eliminates the ICR plan effective July 1, 2026. If a parent borrower consolidates their loans by June 30, 2026, they can switch to the IBR plan through July 1, 2028, after they complete at least one full payment under the ICR program. These borrowers may still retain access to the PSLF program.
However, all new parent PLUS loans disbursed on or after July 1, 2026, won’t be eligible for IDR plans, locking them out of the forgiveness program. Even if you have eligible loans disbursed before that date, taking out any new loans after July 1 will force all of your loans into the standard repayment plan.
SAVE plan borrowers must switch to another IDR plan
With the SAVE program officially ending in 2026, you’ll need to switch to another IDR plan to remain eligible for PSLF.
Loan servicers will begin notifying borrowers starting on July 1, 2026, with instructions for enrolling in a new plan. You’ll have 90 days to choose a plan. Borrowers who take no action will be automatically enrolled in either the existing Standard Repayment Plan or the new Tiered Standard Plan.
In the long term, the only IDR plans available will be the IBR plan and a new Repayment Assistance Plan (RAP). Income-Contingent Repayment (ICR) and Pay As You Earn (PAYE) are still available for now, but will be phased out by July 1, 2028.
Certain employers may be deemed ineligible
The Trump administration has finalized a rule narrowing the definition of an eligible employer. Under the new directive, employers who participate in “illegal activities such that they have a substantial illegal purpose” will be excluded.
The Education Department secretary has sole discretion to decide which nonprofits will lose eligibility, and critics fear that organizations working with undocumented immigrants, LGBT communities, or other marginalized groups could be unfairly targeted.
The rule is expected to go into effect on July 1, 2026, though multiple lawsuits are pending over the directive. The order is not retroactive, so any payments made before an employer is deemed ineligible will still count toward your PSLF total.
How to apply for PSLF
If you believe you meet the requirements for PSLF, you can apply for loan forgiveness by following these steps.
1. Verify your loan and employment eligibility
Use the PSLF Help Tool to verify that your loans and employer are eligible for PSLF. If your employer is in the database, the PSLF Help Tool will show their information. If they are not, you can submit a request through the tool to review your employer’s eligibility.
2. Consolidate non-eligible federal loans
If you have federal loans that are not eligible for PSLF in their current state, such as parent PLUS loans or Perkins Loans, you can consolidate them with a Direct Consolidation Loan. Once they’ve been consolidated, you can enroll in an IDR plan and pursue loan forgiveness.
3. Enroll in a qualifying repayment plan
Apply for one of the IDR plans online through your StudentAid.gov account or by submitting a paper application to your loan servicer. When you apply, you can request that your servicer place you in the plan with the lowest possible monthly payment.
Depending on your circumstances, you could qualify for a payment as low as $0. If you qualify for a $0 payment, you are not required to pay any money toward your loans, but each month you are eligible for $0 payments will count toward the 120 monthly payments required for PSLF.
5. Certify your employment annually
Certifying your employment ensures that your employment and payments count toward PSLF, and your loan servicer will update your payment count so you can track your progress toward loan forgiveness.
Although you can wait until your 10 years of employment are over, it’s wise to certify your employment annually. Particularly if you switch employers, certifying annually helps prevent issues or delays when reaching out to former employers to verify your work history.
You can certify your employment using the PSLF Help Tool; the tool will automatically send your employer an email requesting that they digitally sign the form to verify your employment.
6. Make 120 monthly payments while working for an eligible employer
While working full-time for an eligible employer, continue making your monthly payments under a qualifying plan. Once you reach 120 monthly payments, you can submit the final PSLF application form.
7. Submit the final PSLF application
You can submit the final PSLF application through the PSLF Help Tool or by downloading and printing out a paper form.
The Education Department will review your information to determine your eligibility for loan forgiveness. If your application is approved, you will be notified that your loans will be forgiven and receive details about the outstanding interest and principal to be eliminated.
If you made any payments beyond the necessary 120 needed for loan forgiveness, your loan servicer will treat those as overpayments and refund the additional amount to you.
Important: Your application may be denied if certain payments do not count toward loan forgiveness or if you have a period of ineligible employment. However, that doesn’t mean you can’t qualify for PSLF later. If you aren’t yet eligible for forgiveness, you can still make progress if your current employer and payment plan are eligible.
