Lana Oconnell
University employees may be eligible for student loan forgiveness under the Public Service Loan Forgiveness (PSLF) program. This program is available to full-time employees of qualifying public service employers, including government agencies and certain non-profit organizations. To qualify for PSLF, borrowers must have specific types of federal student loans, such as Direct Loans or Federal Direct Loans, and be enrolled in an eligible repayment plan. Additionally, they must make 120 qualifying payments over 10 years while working full-time in public service. University employees can confirm their eligibility for PSLF and ensure they meet all the requirements to benefit from student loan forgiveness.
| Characteristics | Values |
|---|---|
| Who is eligible for loan forgiveness? | College professors, administrators, researchers, PhD holders, full-time employees of state schools or tax-exempt private colleges, federal, U.S. military, state, local, or tribal government employees, and employees of certain non-profit organizations. |
| What loans are eligible for loan forgiveness? | Only federal student loans managed by the Department of Education (ED) qualify for the one-time IDR adjustment. Direct Loans, Direct Subsidized and Unsubsidized Loans, Direct Graduate PLUS Loans, Direct Parent PLUS Loans, and Direct Consolidation Loans are eligible for loan forgiveness. |
| How to apply for loan forgiveness? | Use the PSLF Help Tool on the Federal Student Aid website, studentaid.gov, to check eligibility. Submit the forms suggested by the PSLF Help Tool to document qualifying employment and receive credit for monthly payments. |
| How long does it take for loans to be forgiven? | 20 or 25 years, depending on the plan and the type of student loans. Eligible borrowers can have their remaining loan balance forgiven after making 120 qualifying loan payments on an IDR plan and 10 years of full-time public service work. |
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What You'll Learn
Public Service Loan Forgiveness (PSLF)
University employees can have their student loans forgiven under the Public Service Loan Forgiveness (PSLF) Program, as long as they meet certain requirements. Firstly, the university must be a state or non-profit school, as for-profit schools do not qualify as employers for PSLF. Secondly, only certain types of federal student loans are eligible for the program, specifically those made under the Federal Direct Loan Program, including Direct Subsidized and Unsubsidized Loans, Direct Graduate PLUS Loans, Direct Parent PLUS Loans, and Direct Consolidation Loans. It is important to note that not having the right type of loan does not mean that all is lost; individuals can still gain access to PSLF by consolidating their loans into a Direct Loan.
To qualify for PSLF, university employees must also be enrolled in an eligible repayment plan. Additionally, they should document their employment using the proper form to avoid any issues in the future. Full-time employees of state schools or tax-exempt private colleges can have their remaining loan balance forgiven after making 10 years' worth of qualifying monthly payments, regardless of their role at the university. This includes administrators, professors, and provosts, among others. Adjunct faculty can only qualify for PSLF if they are considered full-time.
During the pandemic, the U.S. Department of Education made two significant but temporary changes to the PSLF Program. Firstly, it put most federal student loans in forbearance, froze the interest on those loans, and gave borrowers credit toward public service forgiveness and income-driven repayment plan forgiveness. Secondly, it implemented a limited waiver through October 31, 2022, of the complex rules that prevented many people who worked in qualifying public service jobs from getting their loans forgiven.
To determine whether a university meets the eligibility criteria for public service loan forgiveness, individuals can use the PSLF Help Tool on the Federal Student Aid website, studentaid.gov. This tool requires the university's Employer Identification Number, which can be found on an individual's W-2 form or by asking the employer directly.
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Qualifying federal student loans
University employees can have their federal student loans forgiven under the Public Service Loan Forgiveness (PSLF) Program. To qualify, you must work for a state or non-profit school, as for-profit schools are not eligible employers. You can check if your university is eligible for public service forgiveness using the PSLF Help Tool on the Federal Student Aid website, studentaid.gov.
To qualify for the PSLF Program, you must have the right type of federal student loan. Only loans made under the Federal Direct Loan Program qualify for PSLF, including Direct Subsidized and Unsubsidized Loans, Direct Graduate PLUS Loans, Direct Parent PLUS Loans, and Direct Consolidation Loans. If you have the wrong type of loan, you can still gain access to the program by consolidating those loans into a Direct Loan.
Additionally, you must be enrolled in an eligible repayment plan and have made 120 qualified payments. Qualifying repayment plans include income-based repayment plans. It is important to document your employment using the proper form to avoid any issues in the future.
There are also other loan forgiveness programs available specifically for college professors, such as the Faculty Loan Repayment Program (FLRP) for qualified teachers at health profession schools. The federal employee student loan repayment program is another option, which offers up to $10,000 per year, up to a maximum of $60,000, for highly qualified employees working at government agencies.
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Qualifying employers
Working at a university is considered public service if it is a state or non-profit school. These types of schools and colleges qualify for the Public Service Loan Forgiveness Program (PSLF). The PSLF is a federal program that incentivizes public service work by cancelling a portion of borrowers' federal student loans. For-profit schools are not eligible employers for PSLF.
To qualify for PSLF, you must be a full-time employee of an eligible public service employer and make 120 qualifying payments toward your student loans. After this, the remainder of your federal student loan debt can be forgiven if proper documentation is submitted to the federal government. The term full-time means working at least an average of 30 hours per week or at least an average of 30 hours per week throughout a contractual or employment period of at least eight months in a 12-month period.
PSLF qualifying employers include any state, county, city, or other local government employers, including any office, department, independent agency, school district, public college or university system, public library system, authority, or other body, including the legislature and the judiciary. Qualifying employers also include any employer that has received a designation as a tax-exempt organization under the Internal Revenue Code. This term does not include a federal or tribal government organization, agency, or entity.
In addition to the PSLF program, there are other loan forgiveness programs for college professors, such as the Faculty Loan Repayment Program (FLRP) for qualified teachers at health profession schools. Teachers employed full-time in low-income public schools may be eligible for Teacher Loan Forgiveness after working for five consecutive years.
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Qualifying employees
University employees can have their student loans forgiven under the Public Service Loan Forgiveness (PSLF) program. PSLF is a federal program that incentivizes public service work by forgiving the remaining federal student loan debt of borrowers who are full-time employees of an eligible public service employer.
To qualify for PSLF, university employees must work for a state or nonprofit school, as for-profit schools are not eligible employers. Employees must also ensure they have the right type of federal student loan and are enrolled in an eligible repayment plan. Only federal loans made under the Federal Direct Loan Program qualify for PSLF, including Direct Subsidized and Unsubsidized Loans, Direct Graduate PLUS Loans, Direct Parent PLUS Loans, and Direct Consolidation Loans.
University employees must also document their employment using the proper form to ensure there are no issues with their application. They can use the PSLF Help Tool on the Federal Student Aid website, studentaid.gov, to determine their eligibility for public service forgiveness. This tool will require the university's Employer Identification Number, which can be found on the employee's W-2 form.
In addition to PSLF, there are other loan forgiveness programs that university employees may qualify for, such as the Faculty Loan Repayment Program (FLRP) for qualified teachers at health profession schools. There are also income-driven repayment (IDR) plans that cap monthly payments based on income and family size, with the remaining balance on loans potentially being forgiven after 20 or 25 years of repayment.
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Loan forgiveness alternatives
University employees can have their student loans forgiven under the Public Service Loan Forgiveness (PSLF) Program. To qualify, you must be a full-time employee at a state school or a tax-exempt private college and have made 10 years' worth of qualifying monthly payments. Additionally, only certain types of federal loans are eligible for the PSLF program, including Direct Subsidized and Unsubsidized Loans, Direct Graduate PLUS Loans, Direct Parent PLUS Loans, and Direct Consolidation Loans.
If you have non-qualifying loans, you may still be able to gain access to the program by consolidating those loans into a Direct Loan. Alternatively, you can use the PSLF Help Tool on the Federal Student Aid website to check your eligibility.
Aside from the PSLF program, there are other loan forgiveness alternatives available. For example, the Faculty Loan Repayment Program (FLRP) is available for qualified teachers at health profession schools. Teachers employed full-time in low-income public schools may also be eligible for Teacher Loan Forgiveness after working for five consecutive years, with up to $17,500 in federal direct or Stafford loans forgiven.
Nurses have several student loan forgiveness options, including the NURSE Corps Loan Repayment Program, which pays up to 85% of qualified nurses' unpaid college debt. Additionally, the Georgia PRAA offers up to $25,000 in loan forgiveness annually for physicians working full-time in medically underserved, rural areas of Georgia.
For attorneys, the Vermont BF-LRAP offers up to $5,000 in loan forgiveness annually for those working for an approved public good employer in Vermont, with priority given to attorneys practicing in underserved geographic areas. The Florida Bar Foundation Loan Repayment Program offers $10,000 annually in loan forgiveness for attorneys with a graduate degree in nursing employed as faculty in the university system of Georgia.
Other alternatives include the Rhode Island Wavemaker Fellowship, which offers $6,000, $4,000, or $1,000 in loan forgiveness for applicants with a Master's, Bachelor's, or Associate's degree, respectively, in a STEM field or employed in the design or healthcare field. The Illinois Nurse Educator Loan Repayment Program offers up to $5,000 in loan forgiveness annually for nursing educators who have taught for at least 12 consecutive months in an approved program in Illinois.
Lastly, refinancing your student loans with a private lender can get you a lower interest rate, reducing your monthly payments and the amount you pay overall. However, this option is generally not recommended for those with federal loans, as they will lose access to government forgiveness programs.
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Frequently asked questions
Yes, university employees can have their student loans forgiven under the Public Service Loan Forgiveness (PSLF) Program.
To qualify for loan forgiveness under PSLF, you must:
- Be a full-time employee of a public service employer, which includes state, county, city, or local government employers, as well as designated tax-exempt organizations.
- Have certain types of federal student loans, such as Direct Subsidized and Unsubsidized Loans, Direct PLUS Loans, and Direct Consolidation Loans.
- Make 120 qualifying loan payments (typically over 10 years) under an eligible repayment plan.
To apply for PSLF as a university employee, you should:
- Confirm that your university is a qualifying public service employer. You can use the PSLF Help Tool on the Federal Student Aid website, studentaid.gov, for this.
- Ensure you have the right type of federal student loans and are enrolled in an eligible repayment plan.
- Document your employment using the proper forms, such as the Public Service Loan Forgiveness form.
- Inform your loan servicer that you work for a public service employer.
