Public Service Loan Forgiveness (PSLF): New Rules for 2026 & How Borrowers Can Qualify
The U.S. Department of Education has finalized major updates to the Public Service Loan Forgiveness (PSLF) program, set to take effect on July 1, 2026. Although these new rules are official, nothing changes for borrowers right now. If you currently work in public service or a nonprofit, you do not need to take any action today. The Public Service Loan Forgiveness (PSLF) program continues to operate as usual.
Who Qualifies for Public Service Loan Forgiveness (PSLF)?
If you work full-time for a government agency or a qualifying not-for-profit organization, you may be eligible for Public Service Loan Forgiveness (PSLF). Under this program, your remaining federal student loan balance can be forgiven after you make 120 qualifying monthly payments while employed by an eligible employer.
The employer you work for matters more than your specific job title. Federal, state, local, and tribal government workers—including U.S. military service members—can qualify. Many nonprofit organizations that are tax-exempt under 501(c)(3) also meet PSLF rules.
How to Apply for Public Service Loan Forgiveness (PSLF)
Applying for Public Service Loan Forgiveness (PSLF) is much easier today thanks to the PSLF Help Tool. With this tool, you can:
Use the employer search database to confirm if your employer qualifies
Request employer eligibility review
Fill out, sign, and submit your PSLF form digitally
Generate a manual form if needed
To stay on track, borrowers are encouraged to certify their employment every year, and again each time they change employers. Doing this ensures your qualifying payment count stays accurate.
Full-Time Work Requirements Under Public Service Loan Forgiveness (PSLF)
To meet the full-time requirement for Public Service Loan Forgiveness (PSLF), you must work at least 30 hours per week for a qualifying employer. Paid leave, vacation, and FMLA leave all count toward this requirement. Even teachers who work under an 8-month contract are considered full-time for the entire year.
However, unpaid volunteer work does not count toward full-time status for Public Service Loan Forgiveness (PSLF).
Which Loans Qualify for Public Service Loan Forgiveness (PSLF)?
Only federal Direct Loans are eligible for Public Service Loan Forgiveness (PSLF). This includes Direct Subsidized, Direct Unsubsidized, Direct PLUS, and Direct Consolidation Loans.
FFEL and Perkins Loans can only qualify if they are first consolidated into a Direct Consolidation Loan.
Payments made before consolidation do not always count, so borrowers considering consolidation should certify all their qualifying employment before making changes.
What Counts as a Qualifying Payment for Public Service Loan Forgiveness (PSLF)?
To receive credit toward Public Service Loan Forgiveness (PSLF), your payment must be:
Made under a qualifying repayment plan
Made while you were employed full-time by a qualifying employer
Made for the full amount due
Months during the COVID payment pause also count toward Public Service Loan Forgiveness (PSLF) as long as you certify your qualifying employment during those months.
Which Repayment Plans Count for Public Service Loan Forgiveness (PSLF)?
Qualifying repayment plans include all income-driven repayment (IDR) plans and the 10-year Standard Repayment Plan. Most borrowers choose an IDR plan because the Standard Plan would leave no remaining balance after 120 payments, making forgiveness unnecessary.
Repayment plans like Extended, Graduated, and Consolidation Standard Plans do not qualify unless considered under TEPSLF.
Why You Should Submit the PSLF Form Every Year
Because Public Service Loan Forgiveness (PSLF) requires 120 qualifying payments, the process takes at least 10 years. Submitting your form yearly helps verify your progress and protects you from mistakes or employer issues in the future. Once you reach 120 qualifying payments, the Department of Education will confirm your eligibility and work with your loan servicer to discharge your remaining balance.
Submitting the Public Service Loan Forgiveness (PSLF) Form
You can submit your PSLF form either digitally through the PSLF Help Tool or by printing and mailing a paper form. After submission, the Department of Education will review your employment certification and notify you of the total number of qualifying payments credited toward Public Service Loan Forgiveness (PSLF).