Douglas Olsen
The Public Service Loan Forgiveness (PSLF) program offers a path to federal student loan forgiveness for borrowers working full-time for the government or a qualifying nonprofit organization. To qualify for PSLF, an individual must be employed at a US government organization at any level (federal, state, local, or tribal) or a qualifying nonprofit organization. This includes state universities, which are qualifying employers. Therefore, working at a state university can count towards student loan forgiveness under the PSLF program, provided that the borrower meets the other requirements, such as making 120 qualifying payments over the course of 10 years.
| Characteristics | Values |
|---|---|
| Qualifying employer | US government organization at any level (federal, state, local, or tribal) |
| Qualifying nonprofit organization | Yes |
| Qualifying repayment plan | Income-Driven Repayment (IDR) plan |
| Qualifying payments | 120 monthly payments |
| Payment amount | Full amount due |
| Payment timing | Within 15 days of the due date |
| Payment start date | On or after October 1, 2007 |
| Employment type | Full-time |
| Student loan type | Federal Direct Loans |
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What You'll Learn
State university jobs may count towards Public Service Loan Forgiveness (PSLF)
Qualifying employers include government organizations at any level (federal, state, local, or tribal) and qualifying nonprofit organizations. State universities are considered government organizations, so they qualify as eligible employers for PSLF.
However, it's important to note that not all types of student loans qualify for PSLF. Only federal student loans that are part of the federal direct loan program, including grad PLUS loans, are eligible. Private student loans and other types of federal loans, such as Federal Family Education Loan Program (FFELP) loans, do not qualify for PSLF on their own but may become eligible through consolidation into a qualifying loan.
To ensure that your state university job qualifies for PSLF, you can check the student aid website or submit an employer verification form to the PSLF servicer, MOHELA. Additionally, it's recommended to submit the PSLF certification form annually to stay on track for loan forgiveness and keep track of your payments and eligibility.
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Qualifying jobs must be government or non-profit
The Public Service Loan Forgiveness (PSLF) program was created by the US government as part of the College Cost Reduction and Access Act of 2007. It offers a path to federal student loan forgiveness for borrowers working full-time for the government or a qualifying nonprofit organization. To qualify for PSLF, you must be employed at a US government organization at any level (federal, state, local, or tribal)—including US military service—or a qualifying nonprofit organization.
Qualifying nonprofit organizations include 501(c)(3) organizations and other tax-exempt nonprofits that provide certain public services. These services can include, but are not limited to, public safety, public health, education, and public interest law services. It's important to note that not all nonprofit organizations qualify, and borrowers should check the eligibility of their employer with the PSLF program.
Additionally, borrowers must enroll in an eligible repayment plan, such as an Income-Driven Repayment (IDR) plan, and make 120 qualifying monthly payments on time and in full. These payments must be made while the borrower is employed full-time by a qualifying employer. It's important to note that payments made while in school, in deferment or forbearance, during a grace period, or if loans are delinquent or in default generally do not qualify.
The PSLF program has specific requirements and conditions that borrowers must meet to qualify for loan forgiveness. It's recommended that borrowers seeking loan forgiveness through PSLF understand the requirements and stay up-to-date on any changes to the program. Additionally, borrowers can seek guidance from student loan specialists or consult official government websites for the most accurate and up-to-date information.
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You must make 120 monthly payments to qualify for PSLF
To qualify for Public Service Loan Forgiveness (PSLF), you must make 120 monthly payments while working for a qualifying employer. These payments must be made on time, for the full amount due, and on or after October 1, 2007. It's important to note that only non-defaulted federal Direct Loans are eligible for PSLF, and private student loans are not included in this program. Federal Family Education Loan (FFEL) Program loans and Federal Perkins Loans do not qualify for PSLF unless they are consolidated into a Direct Loan.
To ensure you are on track for PSLF, submit a PSLF form annually and when you change jobs. You can also use the PSLF Employer Search tool to verify if your employer qualifies. Additionally, you should enroll in an income-driven repayment (IDR) plan, which caps monthly bills at a set percentage of your income. While this may result in paying off your loan in under 10 years, it's important to consider that you won't benefit from PSLF in that case.
It's worth noting that your payments towards PSLF do not need to be consecutive. If you switch between qualifying and non-qualifying employers, take a break from work to return to school, or experience a pandemic payment pause, you can pick up where you left off with your qualifying payments. However, payments made while in school, during a grace period, or if your loans are delinquent or in default generally do not count towards PSLF.
To maximize your progress towards PSLF, carefully plan your prepayments. While making extra payments in a month is possible, only one payment per month counts towards the 120 required for PSLF. Additionally, any remaining balance after you make 120 qualifying payments and apply for PSLF is the amount that will be forgiven, so staying on the Standard Plan throughout repayment may not be advantageous.
In summary, qualifying for PSLF requires strategic planning and a careful understanding of the requirements and conditions. By staying informed, submitting the necessary forms, and considering enrollment in an IDR plan, you can work towards achieving student loan forgiveness through the PSLF program.
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PSLF is only available for federal student loans
Public Service Loan Forgiveness (PSLF) is a federal program that forgives federal student loan debt after 10 years of payments, equalling 120 monthly payments. This is only applicable to federal student loans, and private student loans are not eligible for PSLF.
Federal student loans that are part of the federal direct loan program, including grad PLUS loans, are eligible for PSLF. However, to make other types of federal loans eligible for PSLF, they must be consolidated. These include Federal Family Education Loan Program (FFELP) loans, Parent PLUS loans, and Perkins loans.
To qualify for PSLF, borrowers must work in a qualifying nonprofit or government job. Additionally, borrowers must submit a PSLF certification form annually and enrol in an income-driven repayment (IDR) plan. This plan caps monthly bills at a set percentage of the borrower's income, and any loan forgiveness received through PSLF is not taxed.
The PSLF program was designed to encourage students to pursue careers in potentially low-paying but essential fields, such as firefighting, teaching, government, nursing, public interest law, the military, and religious work. The Biden administration, as of January 14, 2025, has erased $78.46 billion in student loans for 1,069,000 borrowers through PSLF, according to the Education Department.
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You can check if you qualify on the student aid website
To qualify for Public Service Loan Forgiveness (PSLF), you must work for a qualifying employer in a government or non-profit job. State universities are qualifying employers, and some professors on Reddit have confirmed that their loans were forgiven after working at state universities. However, it's important to note that not all types of student loans qualify for PSLF, and you must meet other requirements to be eligible.
You can check if you qualify for PSLF on the Student Aid website (studentaid.gov). The website provides information on the eligibility criteria and the application process. You can also find the PSLF Help Tool on the website, which can help you certify periods of employment and track your progress toward loan forgiveness. Additionally, you can submit a PSLF certification form annually to stay on track for forgiveness and ensure that your employer is qualified.
The PSLF program requires borrowers to make 120 qualifying monthly payments under a qualifying repayment plan, typically an Income-Driven Repayment (IDR) plan. These payments must be made on time, within 15 days of the due date, and for the full amount due. It's important to note that payments made while in school, deferment, forbearance, or during a grace period do not count towards the 120 payments.
If you're unsure about your eligibility or have questions about the PSLF program, you can schedule a free consultation with student loan specialists who can guide you through the process and explore other forgiveness options if you don't qualify for PSLF.
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Frequently asked questions
Yes, as long as you meet the other requirements. State universities are qualifying employers for PSLF.
To qualify for PSLF, you must be employed full-time at a US government organization at any level (federal, state, local, or tribal) or a qualifying nonprofit organization. You must also make 120 qualifying monthly payments under a qualifying repayment plan, typically an Income-Driven Repayment (IDR) plan, paid on time and in full.
You can apply for PSLF by submitting a PSLF certification form annually to stay on track for forgiveness. Once you've made 120 qualifying payments over the course of 10 years and met all the requirements, you can submit your completed PSLF form to the PSLF servicer.
