Public Service Loan Forgiveness (PSLF)
Federal student loan forgiveness after 10 years of qualifying payments while working for a government employer or nonprofit.
Who qualifies: Active duty, Veterans, National Guard.
Public Service Loan Forgiveness (PSLF) forgives the remaining balance on federal Direct Loans after 120 qualifying monthly payments (10 years) while working full-time for:
• U.S. government (federal, state, local, tribal) – including military
• 501(c)(3) nonprofit organizations
• Other qualifying nonprofits providing public services
Military-specific rules:
• Active duty military service counts as qualifying employment
• Months on active duty during loan deferment/forbearance count toward 120 payments (as of 2022 updates)
• This means deployed service members can receive credit toward PSLF without making payments
Forgiveness is tax-free under federal law (through at least 2025 – verify current law).
Action steps:
1. Consolidate into a Direct Loan (if not already)
2. Enroll in an income-driven repayment plan
3. Submit PSLF Employment Certification Form annually
4. After 120 payments, submit PSLF Application
As of July 1, 2026, new PSLF regulations are in effect – verify at StudentAid.gov.