Public Service Loan Forgiveness

What is Public Service Loan Forgiveness?

Congress created the Public Service Loan Forgiveness Program to encourage people to work full-time in public service jobs. Under the Public Service Loan Forgiveness Program, borrowers may qualify for forgiveness of the remaining balance due on their federal student loans after 120 payments are made. Borrowers have to be employed full time by certain public service employers in order to qualify.

Federal Student Loans That are Eligible for the Public Service Loan Forgiveness Program

Any non-defaulted loan made under the William D. Ford Federal Direct Loan Program (Direct Loan Program) is eligible for loan forgiveness:

• Federal Direct Stafford/Ford Loans
• Federal Direct Unsubsidized Stafford Loans
• Federal Direct Unsubsidized Stafford Loans
• Federal Direct PLUS Loans
• Federal Direct Consolidation Loans

Do Other Federal Student Loans Qualify?

Loan forgiveness under this program is available only for loans repaid under the Direct Loan Program. However, loans made under other federal student loan programs (Federal Family Education Loan Program - FFEL) may qualify for forgiveness if the loans are consolidated into a Direct Consolidation Loan.

**Note Only payments made on the Direct Consolidation Loan will count toward the required 120 monthly payments needed for forgiveness.

Loans That Can Be Consolidated Into a Direct Loan Consolidation

Federal student loans that have been originated under the FFEL program qualify to be consolidated into the direct loan program, include the following:

• Subsidized Federal Stafford Loans
• Unsubsidized Federal Stafford Loans
• Federal PLUS Loans - for parents and graduate or professional students
• Federal Consolidation Loans
• Federal Perkins Loans
• Health Professions and Nursing Loans

Eligibility Requirements for Public Service Loan Forgiveness

The borrower must not be in default on any of the loans for which they are seeking forgiveness for. Additionally, the borrower must be employed full-time by an approved public service organization - while making the necessary 120 monthly payments, at the time the borrower applies for forgiveness, and when the remaining balance on the borrower's federal loans are forgiven.

Public Service Jobs that Qualify Borrowers for Public Service Forgiveness

Borrowers must be employed full-time, in any position at an approved public service organization. Below are examples of entities that are considered public service organizations.

• A federal, state, local, or Tribal government organization, agency, or entity (includes most public schools, colleges and universities)
• A public child or family service agency
• A non-profit organization

Additionally, any private organization that is not a for-profit business and provides public services. These public services include:

• Military service
• Public safety
• Law enforcement
• Early childhood education
• Public health
• Public education
• Public library or school library services
• Emergency Management

To find additional information, and determine if the organization or job you work for qualifies for public service loan forgiveness, you can contact the Federal Student Aid Information Center by calling toll-free (800) 433-3243.