Do Churches Qualify for PSLF? Yes, If You Meet These 3 Criteria
Updated on June 9, 2025
Quick Facts
Preaching, worship, and other religious duties now count toward PSLF thanks to a 2021 rule change still in effect.
PSLF for church workers only works if your employer qualifies, your loans are Direct, and you’re on an IDR plan.
Contractors and self-employed pastors don’t qualify. PSLF requires formal W-2 employment.
Does Working for a Church Qualify for PSLF?
Yes, church workers can qualify for PSLF if they meet three criteria:
Your church must be a 501(c)(3) nonprofit.
You must work full-time.
You must be on an income-driven repayment (IDR) plan.
It doesn’t matter if you’re clergy, admin, or custodial staff. If you’re on payroll full-time at a qualifying church, you can get PSLF.
But here’s where people get tripped up. Not all churches are registered as 501(c)(3)s. Some don’t file at all.
If that’s your situation, you could be working in ministry and missing out on forgiveness.
Here’s how to make sure your church qualifies and how to protect your progress toward loan forgiveness.
What Church Roles Count Toward PSLF?
If you work for a qualifying church, your job title doesn’t matter. But your employment status and hours do.
Here’s what counts:
You must work full-time (30 hours per week or more)
You must be a W-2 employee of the church
That means pastors, worship leaders, counselors, youth ministers, admin staff, and custodians can qualify as long as they’re full-time employees.
Related: What Jobs Qualify for PSLF?
Thanks to the 2021 rule change (which still holds as of 2025), religious duties now count toward the PSLF employment requirement. Preaching, leading services, performing sacraments, pastoral counseling; it all qualifies.
But here’s what doesn’t count:
1099 contractors don’t qualify
Self-employed pastors or those paid as independent ministers don’t qualify
If your church isn’t withholding taxes from your paycheck, that’s a red flag. PSLF requires formal employment, not contract work.
If you split your time (say, part-time admin and part-time ministry), you can combine the hours as long as it’s for the same qualifying employer. Hit the 30-hour minimum, and you’re good.
Check how much you still have to pay towards forgiveness (or how much you can save when you switch plans) with our PSLF Calculator.
How PSLF Works for Religious Workers
If you’re a religious worker aiming for Public Service Loan Forgiveness, here’s what needs to line up:
Your employer must be a qualifying 501(c)(3) nonprofit. Most churches qualify if they’re officially registered. If they’re not, PSLF is off the table.
Your loans must be Direct Loans. Older FFEL or Perkins Loans don’t count unless you consolidate them into a Direct Consolidation Loan first.
You must be on an IDR plan. That includes SAVE, PAYE, IBR, or ICR. Standard 10-year plans can count too, but only if your balance wouldn’t be forgiven after 120 payments, which is rare.
If all three line up and you make 120 qualifying payments, your remaining balance is forgiven, tax-free under current federal rules.
Payments don’t have to be consecutive. If you took a break or changed jobs, that’s fine. As long as the payments were made while you met all three conditions above.
Already applied for the IDR Account Adjustment before the deadline? Good. Past periods of repayment, deferment, or forbearance may already count toward your 120 payments.
How to Apply for PSLF as a Church Employee
Here’s exactly how to start (and stay on track) with PSLF if you work at a church:
Check if your church is a qualifying employer. Check our PSLF Employer List or use the PSLF Employer Search Tool to search your church’s EIN or name. If it’s listed as a 501(c)(3), you’re good.
Make sure your loans are Direct Loans. Log in to StudentAid.gov and review your loan types. If you see FFEL or Perkins, consolidate them into a Direct Consolidation Loan. Otherwise, none of your payments will count.
Enroll in an IDR plan. For most borrowers right now, the IBR Plan is the safest choice. You can apply or switch plans through your servicer or StudentAid.gov.
Submit your Employer Certification Form (ECF). Do this through the PSLF Help Tool to verify your employment and start tracking qualifying payments.
Track your progress. Log in to your StudentAid.gov account and check your PSLF tracker. Tracking your progress shows how many qualifying payments you’ve made.
Resubmit your ECF every year or whenever you switch jobs. This keeps your progress updated and protects you from missing payments that should count.
What About PSLF Question 13?
If you’ve filled out the ECF, you’ve probably paused at Question 13. The one that asks if your job includes religious instruction, worship services, or proselytizing.
That question no longer disqualifies you.
Since the rule change in 2021, religious activities count toward PSLF. That includes preaching, leading worship, teaching faith-based classes, and other ministry duties.
So when you see Question 13, just answer honestly. You won’t get flagged or denied just because your role involves worship or religious teaching.
The system isn’t filtering out ministry work anymore. What matters is that you’re a W-2 employee working full-time for a qualifying 501(c)(3) employer. That’s it.
Common Pitfalls Religious Workers Face
Even if your work qualifies, one small misstep can knock you off the PSLF track. Here are the most common mistakes we see from church employees (and how to avoid them):
Your church isn’t a registered 501(c)(3). If your church hasn’t filed for nonprofit status, your employment won’t qualify. Check its status using the PSLF Help Tool.
You’re paid as a contractor, not a W-2 employee. PSLF requires formal employment. If you’re issued a 1099, your payments won’t count.
You didn’t consolidate FFEL or Perkins Loans. These loans aren’t eligible for PSLF unless you consolidate them into a Direct Consolidation Loan. Without that step, you’re stuck.
You’re on the wrong repayment plan. Standard 10-year plans only work if your loan would be fully paid off in 10 years. You need an IDR plan to stay eligible.
You haven’t submitted your Employer Certification Form. Without this form, your payments don’t get tracked. You could be losing qualifying months without knowing it.
You rely on verbal confirmation instead of written approval. Don’t trust what your HR department or loan servicer says over the phone. Get everything in writing, and keep copies of every PSLF form you submit.
Double-check each of these. Always. One wrong assumption can cost you years of progress and forgiveness.
Other Forgiveness Options for Church Workers
If PSLF is off the table (or you’re not sure you’ll stick with it long enough), there are still ways to get your loans forgiven or reduced.
Income-Based Repayment (IBR) Forgiveness. Under the IBR plan, borrowers making consistent payments can achieve forgiveness after 20 or 25 years.
State-based forgiveness programs. Rare, but worth a quick search. A few states offer forgiveness for nonprofit or faith-based service, especially in healthcare or education roles. Check your state’s higher ed website or attorney general’s office.
Faith-based debt relief programs. Some ministries and nonprofits offer help with student loans. But be careful, this space is full of scams. Always check for transparency, proof of results, and whether they’re asking for upfront fees (they shouldn’t).
Disability discharge or borrower defense. If you have a long-term disability or were defrauded by a school, you might qualify for full loan cancellation through one of these federal programs. They’re niche, but legit.
Bottom Line
If you work at a church and have federal student loans, PSLF is the best choice. But only if everything lines up: the right employer, the right loan type, the right repayment plan, and the right paperwork.
Miss one piece, and your forgiveness goes off the rails. We’ve seen it happen too many times.
We’ve helped pastors, youth leaders, admin staff, and church employees get back and stay on track.
Book a call with our student loan expert today
We’ll review your setup, help you fix any PSLF issues, and make sure you’re not wasting time on payments that don’t count.
Related reading:
FAQs
Do pastors qualify for Public Service Loan Forgiveness?
Yes, as long as they’re full-time W-2 employees of a 501(c)(3) nonprofit and enrolled in an IDR plan. Job title doesn’t matter. What counts is the employer type and meeting PSLF’s core rules.
Do religious duties like preaching or leading worship count?
Yes. Since 2021, religious instruction, worship services, and pastoral duties fully count toward PSLF. You won’t be disqualified for doing ministry work, even if it’s your primary role.
What if my church isn’t a 501(c)(3)?
If your church isn’t officially registered as a 501(c)(3), your work likely won’t qualify. The only exception is if it’s government-affiliated, like a church tied to a public university or prison system.
Can I qualify if I’m part-time at multiple churches?
Only if both churches are eligible PSLF employers and your combined hours total at least 30 per week, you’ll need separate Employer Certification Forms from each to prove it.
Are housing allowances counted toward PSLF income?
Yes. Housing and parsonage allowances are included in your Adjusted Gross Income (AGI), which is used to calculate your monthly IDR payment. Lower income = lower payments, but all of it must be reported.
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