What Is PSLF?
Public Service Loan Forgiveness (PSLF) forgives the remaining balance on your Direct federal student loans after 120 qualifying monthly payments (10 years) while working full-time for a qualifying public service employer. Forgiveness is completely tax-free.
PSLF was created in 2007 and has approved over $70 billion in forgiveness through 2026.
The Four PSLF Requirements
All four must be true at the time of each qualifying payment:
1. Direct Loans Only Direct federal loans qualify. FFEL and Perkins Loans do not qualify unless consolidated into a Direct Consolidation Loan. Important: consolidation typically resets your qualifying payment count.
2. Qualifying Employer You must work full-time for one of:
- U.S. federal, state, local, or tribal government (including military)
- 501(c)(3) nonprofit organizations
- Other nonprofits that provide certain qualifying public services (emergency management, public education, public health, law enforcement, early childhood education, public interest law, etc.)
For-profit employers never qualify, even if they do public-benefit work.
3. Full-Time Employment "Full-time" means 30+ hours/week or your employer's definition of full-time, whichever is greater. Two part-time qualifying jobs can be combined if together they meet the full-time threshold.
4. Qualifying Repayment Plan You must be on an income-driven repayment plan (IBR, PAYE, ICR) or the standard 10-year plan. The SAVE Plan is currently blocked — payments during the SAVE forbearance do not count toward PSLF.
How to Apply for PSLF
Step 1: Use the PSLF Help Tool Go to studentaid.gov → PSLF → PSLF Help Tool. It verifies your employer and generates the Employer Certification Form (ECF).
Step 2: Get Your ECF Signed Have an authorized official at your employer sign the form. Usually HR can do this. Submit it to MOHELA (the official PSLF servicer).
Step 3: Submit Annually Resubmit the ECF every year and after every employer change. This keeps your qualifying payment count current.
Step 4: Apply When You Reach 120 Payments When you hit 120 qualifying payments, submit the PSLF Application through studentaid.gov. MOHELA processes it and notifies the Department of Education.
MOHELA: The PSLF Servicer
All PSLF processing goes through MOHELA — even if your loans are currently serviced by Aidvantage, Nelnet, or EdFinancial. When you submit your ECF, your loans may be transferred to MOHELA.
Log in to mohela.com to see your qualifying payment tracker once you've submitted at least one ECF.
The SAVE Plan Injunction and PSLF
This is critical for 2026 borrowers:
If you were enrolled in the SAVE Plan when the court injunction took effect (July 2024), your payments have been paused in administrative forbearance. These paused months do not count toward your 120 PSLF payments.
What to do:
- Switch from SAVE to IBR immediately
- Every month you remain in SAVE forbearance is a month that doesn't count
- IBR fully qualifies for PSLF — you'll resume accumulating qualifying payments
- Your payments may change when you switch, but you'll be making progress again
PSLF-Eligible Professions
Almost any full-time government or nonprofit employee qualifies, including:
- Teachers and school administrators (public schools)
- Nurses, doctors, social workers (government and nonprofit hospitals)
- Public defenders and government attorneys
- Police officers, firefighters, emergency management
- Federal employees (all agencies)
- Military service members (active duty)
- Nonprofit staff (any 501(c)(3))
- Librarians (public and academic)
- AmeriCorps and Peace Corps volunteers
How Much Do You Save With PSLF?
The tax-free forgiveness amount depends on your balance and how much you've paid. Someone with $80,000 in debt and 10 years of IBR payments at a salary-appropriate amount might have $50,000–$70,000 forgiven. Someone with $200,000 in law school or medical school debt might have $150,000+ forgiven — completely tax-free.
Use our PSLF Tracker to estimate your forgiven amount.
Common PSLF Mistakes to Avoid
1. Wrong loan type: FFEL loans must be consolidated first. But be aware — consolidation resets your payment count unless the IDR Account Adjustment applies.
2. Wrong repayment plan: Graduated repayment, extended repayment, and the standard plan beyond 10 years don't qualify (only IBR, PAYE, ICR, and the standard 10-year).
3. Not submitting ECFs regularly: Without annual ECFs, MOHELA can't track your progress. Submit one for every qualifying employer you've had.
4. Staying in SAVE during the injunction: As of April 2026, SAVE forbearance months don't count. Switch to IBR.
5. Refinancing federal loans: If you refinance federal loans into private loans, those loans immediately lose PSLF eligibility. Never refinance if you're pursuing PSLF.
IDR Account Adjustment: Crediting Past Payments
In 2022, the Department of Education announced a one-time IDR Account Adjustment that credits past periods of repayment, deferment, and forbearance toward IDR forgiveness and PSLF. If you consolidated FFEL loans, you may receive credit for payments made before consolidation.
Check your MOHELA account for your current payment count, which should reflect any IDR Account Adjustment credits. If you believe your count is wrong, contact MOHELA to dispute it.