Does Working for a University Qualify for PSLF? It Depends

• PSLF only applies if your university is public or a 501(c)(3) nonprofit, not if it’s a for-profit school.

• Job title doesn’t matter. PSLF depends on your employer’s tax status and whether you work full-time.

• You must be on an IDR plan like IBR, PAYE, or ICR. SAVE may qualify, but it’s under legal review right now.

Yes. If your university is a government or 501(c)(3) nonprofit, your job can qualify for Public Service Loan Forgiveness.

But if it’s a private, for-profit school? You’re out of luck.

Your job title doesn’t matter. Your department doesn’t matter. Your employer type, hours worked, and repayment plan do.

If that sounds frustrating, it is.

We’ll walk you through how to check if your university qualifies, what boxes you need to check, and how to fix it if you’ve been counting on PSLF but aren’t actually eligible.

Not every university job counts toward PSLF. What matters isn’t whether you work in higher education, but how your employer is classified.

Public Universities (State-Run Schools)

Public universities qualify for PSLF automatically.

If you’re employed by a state-run college, community college, or public university, your employer is considered a government entity. That means the employer meets PSLF requirements, as long as you’re working full-time and on an income-driven repayment (IDR) plan, your payments can count.

Private, Nonprofit Universities

Private universities only qualify if they’re registered as 501(c)(3) or 501(c)(6) nonprofits.

Some nonprofit universities are registered as 501(c)(4) or 501(c)(7), which aren’t qualified for PSLF. This specification trips up many nonprofit university employees. It all boils down to your organization’s tax status.

If it’s not a 501(c)(3) or 501(c)(6), it doesn’t count.

Always check using the PSLF Help Tool before assuming your employer qualifies.

Private, For-Profit Universities

For-profit universities do not qualify for PSLF.

Your role doesn’t matter. If your school is run as a for-profit business, your employment there won’t count.

Hybrid or Hospital-Based Universities

Some universities are connected to hospitals, health systems, or medical groups. Whether these qualify depends on who actually employs you.

If your paychecks come from a nonprofit or government entity, it may count. If it comes from a private or for-profit medical group, it won’t. Use your Employer’s Identification Number (EIN) to verify it through the PSLF Help Tool.

Working at a university doesn’t automatically mean you have a government or public service job. Unless your school is a public institution, your role isn’t considered a government job.

But here’s the key: PSLF doesn’t care about your job title. It only cares about your employer.

It doesn’t matter if you’re a professor, admin, or maintenance staff. What matters is whether your employer is a government agency or a 501(c)(3) nonprofit. That’s what qualifies as “public service” under PSLF rules.

So if you’re employed by a state university, you’re working for the government. If you’re at a nonprofit private university, you’re still eligible because of the employer’s tax status. But if your university is for-profit, it’s not public service.

It’s worth repeating: It’s not about your title, it’s about your employer and your hours. If you work full-time for a qualifying university (government or 501(c)(3) nonprofit), your job counts. That includes:

• Faculty: PSLF is the best student loan forgiveness option for professors, adjuncts, lecturers, and teaching staff.

• Administration: HR, finance, registrars, admissions, and similar roles

• Support Staff: IT, custodians, facilities, security, groundskeepers, etc.

• Clergy or Religious Staff: If the university is a qualified nonprofit, religious duties count for PSLF. That includes preaching, worship, and religious instruction, thanks to a 2021 rule update.

You don’t need to be a professor to qualify. You just need to be paid by a qualifying employer and meet the full-time requirement.

If you’re part-time, you can still qualify if you work at least 30 hours per week across one or more eligible employers. Just make sure each employer qualifies under PSLF rules and get those hours documented.

PSLF only works if your employer actually qualifies, and just working at a university isn’t enough. Here’s how to confirm it step by step:

1. Get your university’s EIN: Grab a recent pay stub or ask HR for your employer’s EIN. It’s usually a 9-digit number like a Social Security number for organizations.

2. Use the PSLF Help Tool: Plug in the EIN to check if your employer is listed as eligible. If it’s not, you can submit an Employer Certification Form (ECF) to get a determination.

3. Watch out for status changes: Don’t assume you’re in the clear just because your job used to qualify. If your university switched from nonprofit to for-profit, merged with another organization, or was restructured under a different employer, your eligibility could be at risk. You’ll need to reconfirm using the latest EIN.

4. Submit an ECF: Even if your employer shows up as eligible, submit the form. It locks in your qualifying payments and protects your progress if the employer’s status changes later. Do this once a year or whenever you switch jobs.

PSLF is based on your employer’s status right now. If that status changes and you don’t catch it, you could lose qualifying payment credits for months (or even years).

Even if your university qualifies, your job alone doesn’t get you forgiveness. You also need to meet every borrower-side requirement. Miss one, and your payments won’t count.

Here’s what you need to lock in PSLF:

• 120 qualifying payments: These don’t need to be consecutive, but they do need to be made while you’re working full-time for a qualifying employer and on the right repayment plan.

• You must be on an IDR plan: That includes PAYE, IBR, and ICR. If you’re on the SAVE Plan, know this: it’s still an IDR plan, but its future is tied up in legal challenges as of April 2025.

• Full-time status (30+ hours per week): You must work at least 30 hours per week. If you’re working multiple part-time jobs, your combined hours across eligible employers must hit that 30-hour minimum.

Qualifying for PSLF isn’t just about where you work. It’s about how you work and how you repay. Every piece has to line up.

If your university doesn’t meet PSLF requirements, your payments won’t count, no matter how long you’ve worked there.

But you still have options. Here’s what you need to know:

• Switch to a qualifying employer: Moving to a public university or a 501(c)(3) nonprofit can put you back on track. Once you’re in a qualifying role and on an IDR plan, your payments can start counting toward PSLF.

• Consider IDR forgiveness as a backup: If PSLF is off the table, IDR forgiveness might still apply. After 20 years (for undergrad loans) or 25 years (for grad loans) on an IDR plan, your remaining balance can be forgiven.

• Do not refinance federal loans: Refinancing with a private lender erases PSLF eligibility and every other federal protection. You can’t undo it. If forgiveness is even a possibility, don’t refinance.

Working at a university doesn’t guarantee PSLF eligibility. You only qualify if your employer is a government or 501(c)(3) nonprofit, you work full-time, and you’re on an IDR plan.

Plenty of university employees lose years of progress because they worked for a for-profit school, had the wrong repayment plan, or didn’t realize part-time roles don’t count unless they hit 30 hours per week across qualifying employers.

Don’t wait until year ten to find out you’ve been on the wrong track. Confirm your employer status, check your loan type, and make sure your payments actually count.

We have a PSLF Calculator that would help you see how many payments you have left to reach forgiveness. This tool can also help you decide if it’s worth switching repayment plans.

Book a call with our student loan expert today.

We help university employees fix PSLF mistakes and maximize forgiveness.

Related reading:

• Student Loan Forgiveness for Teachers

• Librarian Student Loan Forgiveness

• Are Teachers Public Service Workers?

• School Counselor Student Loan Forgiveness

• Do Charter Schools Qualify for PSLF