What is Public Service Loan Forgiveness?

The Public Service Loan Forgiveness (PSLF) program forgives the remaining balance on your Direct Loans after you have made 120 qualifying monthly payments under a qualifying repayment plan while working full-time for a qualifying employer. It was created under the College Cost Reduction and Access act of 2007.

What do I need to qualify?

To qualify, you must:

  • Be employed by a U.S. federal, state, local, or tribal government or not-for-profit organization (federal service includes U.S. military service);
  • Work full-time for that agency or organization;
  • Have Direct Loans (or consolidate other federal student loans into a Direct Loan);
  • Make 120 qualifying payments and
  • Repay your loans under an income-driven repayment plan* (*This provision will be waived through October 31, 2022, as part of the limited PSLF waiver. Visit the Student Aid website for more information and application).

Who is a qualifying employer?

Who your employer is matters, not the specific job that you do for that employer. Employment with the following types of organizations qualify for PSLF:

  • Government organizations at any level (U.S. federal, state, local, or tribal), including the U.S. military
  • Not-for-profit organizations that are tax-exempt under Section 501(c)(3) of the Internal Revenue Code
  • Other types of not-for-profit organizations that are not tax-exempt under Section 501(c)(3) of the Internal Revenue Code, if their primary purpose is to provide certain types of qualifying public services
  • Contractors: You must be directly employed by a qualifying employer for your employment to count toward PSLF. If you’re employed by an organization that is doing work under a contract with a qualifying employer, it is your employer’s status, not the status of the organization that your employer has a contract with, that determines whether your employment qualifies for PSLF. For example, if you’re employed by a for-profit contractor that is doing work for a qualifying employer, your employment does not count toward PSLF.

What is full-time employment?

Full-time employment for the PSLF program is if you meet your employer’s definition of full-time or work at least 30 hours per week, whichever is greater.
If you are employed in more than one qualifying part-time job at the same time, you will be considered full-time if you work a combined average of at least 30 hours per week with your employers.

What type of loans qualify?

  • Direct Loans
  • Any loan received under the William D. Ford Federal Direct Loan (Direct Loan) Program

What type of loans don't qualify?

  • Student loans from private lenders
  • Loans from these federal student loan programs don't qualify for PSLF: the Federal Family Education Loan (FFEL) Program and the Federal Perkins Loan (Perkins Loan) Program. However, they may become eligible if you consolidate them into a Direct Consolidation Loan.

Under normal PSLF Program rules, if you consolidate your loans, only qualifying payments that you make on the new Direct Consolidation Loan can be counted toward the 120 payments required for PSLF. Any payments you made on the loans before you consolidated them don’t count.

NEW: However, if you consolidate these loans into a Direct Loan before October 31, 2022, you may be able to receive qualifying credit for payments made on those loans through the limited PSLF waiver.

What counts as a qualifying payment?

For your monthly payment to qualify, it must be made:

  • After Oct. 1, 2007;
  • Under a qualifying repayment plan;
  • For the full amount due as shown on your bill;
  • No later than 15 days after your due date; and
  • While you are employed full-time by a qualifying employer.

Remember, these payments do not have to be consecutive, but you have to meet all of the other qualifying rules.

*Most of the PSLF qualifying payment rules have been suspended through October 31, 2022. Under this temporary waiver, you may get credit for payments you’ve made on loans that would not normally qualify for PSLF. These payments will count even if you didn’t pay the full amount or on-time. However, only payments made after Oct. 1, 2007 can count as qualifying payments. For more information, visit the limited PSLF waiver page on the Student Aid website.

You can make qualifying monthly payments only during periods when you are required to make a payment. Therefore, you cannot make a qualifying monthly payment while your loans are in an in-school status, the grace period, a deferment, or a forbearance.

Where do I send my information?

NYU Administrators           NYU Langone           
To submit your Employment Verification, HR must complete the form. Reach out to PeopleLink.
Contact Human Resources at 212-404-3618 (Recruitment and Staffing)

Updates

Dollar Sign Icon

Temporary Expanded Public Service Loan Forgiveness

If some or all of your payments were not made on a qualifying repayment plan for PSLF, you may be able to receive loan forgiveness under a temporary opportunity. Use the PSLF Help Tool to help complete your Public  Service Loan Forgiveness  (PSLF) & Temporary Expanded PSLF (TEPSLF) Certification & Application (PSLF form).

City Landscape

Extended Student Loan Payment Pause

On April 6, 2022, the ED extended the student loan payment pause through Aug. 31, 2022.


What’s Next?

Public Service Loan Forgiveness can be confusing, especially when trying to tackle it on your own. If you have questions, you can check out iGrad for some useful webinars and articles to learn more.

If you have any questions or need additional assistance, our financial education coaches will be able to assist you. Please contact us at financial.education@nyu.edu or make a 1:1 appointment. Remember, you need to meet all the requirements to apply and qualify for forgiveness and the ultimate determination of forgiveness is with the Federal government.