Public Service Loan Forgiveness Explained: Rules and Steps

Public Service Loan Forgiveness (PSLF) Explained

Public Service Loan Forgiveness (PSLF) cancels the remaining balance on eligible federal Direct Loans after you make 120 qualifying monthly payments while working full time for a qualifying employer, such as a government agency or a 501(c)(3) nonprofit. The program has strict rules about which loans, employers and repayment plans count, and several of those rules changed in 2025 and 2026.

This guide explains the requirements as Federal Student Aid describes them today, how to certify your employment with the PSLF Help Tool, and what the recent changes—including the new Repayment Assistance Plan and the court decision on the 2025 employer rule—mean for borrowers.

Key takeaways

You need 120 qualifying payments, made in full and on time, while working full time (an average of at least 30 hours a week) for a qualifying employer. The payments do not have to be consecutive.
Only Direct Loans that are not in default qualify; FFEL and Perkins loans count only if consolidated into a Direct Consolidation Loan.
The Repayment Assistance Plan (RAP), available since July 1, 2026, is a qualifying plan for PSLF; PAYE and ICR count only until they are retired, no later than July 1, 2028.
A 2025 rule that would have let the Department disqualify some employers was vacated by a federal judge on June 30, 2026, one day before it was to take effect.
Use the PSLF Help Tool at StudentAid.gov/pslf to certify employment each year and whenever you change employers.

Table of Contents

How Public Service Loan Forgiveness works

According to the official PSLF and TEPSLF Certification and Application form, you must accumulate 120 qualifying payments made after October 1, 2007, while employed full time by a qualifying employer, and you must be working full time for a qualifying employer when you apply for forgiveness. The 120 payments do not need to be consecutive. If you leave public service or return to school, StudentAid.gov’s PSLF tips article says you keep the credit you have already earned.

The form says forgiveness covers any remaining principal and interest on your eligible loans after those 120 payments. StudentAid.gov’s income-driven repayment FAQs state that PSLF forgiveness is not federally taxable, although your state may tax it.

Requirement 1: A qualifying employer

Eligibility depends on who employs you, not on your job title. The PSLF form lists these qualifying employers:

U.S.-based government organizations at the federal, state, local or tribal level, including the U.S. Armed Forces and the National Guard.
Organizations that are tax-exempt under Section 501(c)(3) of the Internal Revenue Code.
Certain other nonprofits that are not 501(c)(3) organizations, if a majority of their full-time-equivalent employees provide qualifying public services listed on the form, such as public education or public safety.

The form excludes for-profit businesses, labor unions and partisan political organizations, and it does not count service as a U.S. Representative or Senator.

What counts as full time

Full time means an average of at least 30 hours per week during the period being certified. If you work part time for more than one qualifying employer, the hours can be combined to reach 30. To confirm your employer qualifies, use the PSLF Employer Search on StudentAid.gov with the employer identification number (EIN) shown in box b of your W-2.

Requirement 2: Eligible loans

The PSLF form states that only Direct Loan Program loans, including Direct Consolidation Loans, that are not in default are eligible. Loans made under the Federal Family Education Loan (FFEL) Program or the Federal Perkins Loan Program are not eligible on their own. StudentAid.gov explains that they can become eligible if you consolidate them into a Direct Consolidation Loan.

If you consolidate Direct Loans that already have PSLF credit, the form says eligible payments on the original loans carry over to the new consolidation loan based on a weighted average.

Requirement 3: A qualifying repayment plan

Your payments must be made under a qualifying repayment plan. The current PSLF form lists the following:

Repayment plan	Counts for PSLF?
Repayment Assistance Plan (RAP)	Yes
Income-Based Repayment (IBR)	Yes
Pay As You Earn (PAYE)	Yes, before July 1, 2028
Income-Contingent Repayment (ICR)	Yes, before July 1, 2028
10-Year Standard Repayment Plan	Yes
Other Direct Loan plans (except Tiered Standard and Alternative Repayment)	Only payments at least equal to the 10-year Standard amount

StudentAid.gov recommends an income-driven repayment (IDR) plan if you are pursuing PSLF, because under the 10-year Standard plan your loan would be paid off after 120 payments, leaving nothing to forgive. Its IDR FAQs say every full, on-time IDR payment counts as a qualifying payment if you meet the other PSLF requirements.

Requirement 4: 120 qualifying payments

A qualifying payment must be made in full and on time. The PSLF form defines this as the full scheduled amount due, received on or after the most recent due date and before the due date of the current month. Several smaller payments within the same payment period that add up to the full amount also count.

Recent official changes and when they take effect

The Repayment Assistance Plan (RAP)

The One Big Beautiful Bill Act (Public Law 119-21) was signed on July 4, 2025. Federal Student Aid’s guidance on provisions effective upon enactment says the law lets RAP payments count toward PSLF if other criteria are met, and that RAP had to be available no later than July 1, 2026. The Department’s final regulations published May 1, 2026 took effect July 1, 2026 and confirm that RAP payments qualify for PSLF.

According to the federal loan servicer Edfinancial’s RAP page, borrowers have been able to apply for RAP on StudentAid.gov since July 1, 2026. StudentAid.gov’s IDR FAQs add that if all of your loans were disbursed on or after July 1, 2026, RAP is the only IDR plan available to you, and that Parent PLUS loans, including consolidation loans that repay them, are never eligible for RAP.

Older IDR plans are being retired

StudentAid.gov says PAYE and ICR will be retired no later than July 1, 2028, which is why the PSLF form lists them as qualifying only before that date. The SAVE plan was ended by a federal court order; StudentAid.gov tells affected borrowers to choose a new plan and to watch for an email from their servicer with their deadline.

The 2025 qualifying-employer rule and the court decision

On October 31, 2025, the Department published a final PSLF rule in the Federal Register, set to take effect July 1, 2026. It would have allowed the Secretary of Education to find that an employer was not a qualifying employer if it engaged in illegal activities such that it had a “substantial illegal purpose,” as defined in the rule, while preserving credit for work done before any such finding.

That rule did not take effect. In a Federal Register notice posted July 13, 2026, the Department stated that a federal judge vacated the rule on June 30, 2026, one day before its effective date. The notice says the Department is removing the related employer attestation from the PSLF form to comply with the court order. Check StudentAid.gov for any further updates.

How to certify employment with the PSLF Help Tool

The PSLF form recommends submitting it every year and any time you change employers or your employment status changes. Regular certification helps you catch problems early. StudentAid.gov’s guide to managing your PSLF progress describes the process:

Open the PSLF Help Tool. Go to StudentAid.gov/pslf and log in with your StudentAid.gov account. The tool builds a PSLF form from the employment information you enter.
Find your employer. Search by your employer’s EIN. Use the EIN from your W-2; an incorrect EIN is a common reason a form will not generate.
Enter your employment dates. StudentAid.gov’s PSLF Help Tool tips say to enter your employer’s EIN and your employment start and end dates. If you already certified earlier employment, you do not need to enter it again.
Sign electronically and request your employer’s signature. Enter the email address of your employer’s authorized official, often in human resources. They receive a DocuSign email from the Department to certify your employment. Signing digitally speeds processing; uploading a paper form takes longer.
Track the status. In your StudentAid.gov account, open “My Activity” to see whether your employer has signed and where your form stands. You can resend a reminder or update your employer’s email there.
Check your payment count. After your form is approved, your qualifying payment count updates in the “My Aid” section.

StudentAid.gov’s employer tips article notes that employers certify your employment dates, EIN and full-time status. The PSLF form does not accept typed names or certificate-based signatures on paper forms, so the DocuSign route is usually simplest.

Applying for forgiveness

Once you reach 120 qualifying payments and meet the other requirements, you request forgiveness through the PSLF form. StudentAid.gov says the final review takes about 60 business days, and you must keep making payments while it is processed unless your loans are in forbearance.

PSLF buyback

According to the federal servicer MOHELA’s PSLF page, borrowers can “buy back” months that did not count because of certain deferments or forbearances, but only if they already have 120 months of qualifying employment and the buyback would result in forgiveness.

Tips to protect your progress

Keep copies of every PSLF form, response letter and employment record in case your payment count needs to be corrected.
Use the Loan Simulator on StudentAid.gov to estimate whether PSLF or another option fits your situation.
Submit your PSLF forms through StudentAid.gov, and be cautious with anyone who contacts you offering help with your loans. Our reader safety page has general tips on avoiding scams.

If you work in public service, our guides on how to apply for federal jobs on USAJOBS and how to fill out the FAFSA may also be useful for your family.

Note: This article is general information, not financial, tax or legal advice. Rules can change, so confirm details with StudentAid.gov, your loan servicer or a qualified professional. See our Disclaimer.

Frequently asked questions

Do my 120 PSLF payments have to be in a row?

No. The PSLF form says qualifying payments do not need to be consecutive. If you leave qualifying employment and return later, StudentAid.gov says you keep the credit you already earned.

Does the Repayment Assistance Plan count for PSLF?

Yes. The Department’s final regulations, effective July 1, 2026, state that RAP payments qualify for PSLF if all other requirements are met. RAP is listed as a qualifying plan on the current PSLF form.

Are Parent PLUS loans eligible for PSLF?

The PSLF form says Direct Loans, including Direct Consolidation Loans, are the only eligible loans, but it does not separately address Parent PLUS loans. StudentAid.gov notes that Parent PLUS loans, and consolidation loans that repay them, are never eligible for RAP, so check with your servicer about which qualifying plans are available to you.

Is PSLF forgiveness taxed?

StudentAid.gov says PSLF forgiveness is not federally taxable. Your state may treat it differently, so check your state’s rules.

How often should I submit the PSLF form?

The PSLF form recommends submitting it annually and whenever you change employers or your employment status changes. Using the PSLF Help Tool lets you and your employer sign electronically.

Official sources

Last checked: November 6, 2026. We review this guide when the official rules change.