Created by Congress in 2007, the Public Service Loan Forgiveness Program allows borrowers with high student loan balances relative to their income to have their debt wiped out if they work in government or nonprofit jobs for 10 years.
Download the PSLF Form
The tax-free federal student loan forgiveness incentive attracted thousands of borrowers to vital but low-paying public service work. But a decade later, the department reneged on its promise. Over 98 percent of public servicer workers who applied were rejected because of complex rules and shoddy administration by student loan servicers.
Last October, the Education Department used powers it gained during the coronavirus pandemic* to make good on its word. It took a chainsaw to the PSLF Program and temporarily cleared the path toward forgiveness for teachers, nurses, military service members, federal employees, nonprofit workers, and so on.
Under the Limited PSLF Waiver, borrowers who’ve worked for qualifying employers anytime on or after October 2007 will get credit for payments made toward:
government-backed, Federal Family Education Loans
past payments made on non-qualifying repayment plans
payments for less than the amount due
The department also will automate eligibility for federal employees next year and give active-duty military service members PSLF credit for periods they put their loans on forbearance while deployed.
The temporary waiver ends on October 31, 2022.
Not sure if your employer qualifies? Use the PSLF Help Tool on studentaid.gov to check your employer’s eligibility using the EIN from your W2.
* The Education Department’s authority to temporarily soften the eligibility requirements for PSLF comes from the HEROES Act.
Learn More: How to Qualify for Public Service Loan Forgiveness
MOHELA will take over PSLF from FedLoan
The Education Department will transfer all borrowers with complete PSLF forms from FedLoan or their current servicer to MOHELA. Once transferred, borrowers will be able to work with MOHELA to monitor their progress towards PSLF.
Learn More: MOHELA Student Loan Forgiveness