If you’re interested in a career in public service but worried about replaying your student loans, you need to know about the Public Service Loan Forgiveness (PSLF) program. It was created to encourage college graduates to enter important public sector jobs such as local, city, county, and state government; nonprofit organizations; public education; and public health professions.

What is the Public Service Loan Forgiveness Program?

The PSLF program was created under the College Cost Reduction and Access Act of 2007 (CCRAA) to provide indebted professionals a way out of their federal student loan debt burden by working full-time in public service. The program is only available to those who qualify financially.

How Do You Qualify?

• You must make 120 on-time, full, scheduled, monthly payments on your Direct Loans. (Only payments made after October 1, 2007, qualify.)
• You must make those payments under a qualifying repayment plan
• When you make each of those payments, you must be working full-time at a qualifying public service organization

What is Qualifying Employment?

Qualifying employment for the PSLF Program is not about the specific job that you do for your employer. Instead, it is about who your employer is. Employment with the following types of organizations qualifies for PSLF:

• Government organizations at any level (federal, state, local, or tribal)
• Not-for-profit organizations that are tax-exempt under Section 501(c)(3) of the Internal Revenue Code
• Other types of not-for-profit organizations that provide certain types of qualifying public services

Serving in a full-time AmeriCorps or Peace Corps position also counts as qualifying employment for the PSLF Program.