The Public Service Loan Forgiveness Program

Did you know that employees of 501(c)(3) organizations are eligible to receive forgiveness on the remaining balance of their direct loans? Yes, that’s right. Let’s take a closer look at who qualifies for the Public Service Loan Forgiveness Program and the application process.

What is the Public Service Loan Forgiveness Program?

The PSLF is under Federal Student Aid, an office of the U.S. Department of Education. This program was created to help relieve the burden of federal student loan debt amongst professionals working full-time in public service. Some examples of public service jobs include, but are not limited to; employee for a 501(c)(3) organization, military member, firefighter, teacher, hospice care worker, and more. After ten years, or 120 qualifying monthly payments, under a qualifying employer, the PSLF Program forgives the remaining balance on your direct loans. But first, let’s see if you qualify. 

What are the qualifications?

The Federal Student Aid’s website states:

“To qualify for PSLF, 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);
  • repay your loans under an income-driven repayment plan*; and
  • make 120 qualifying payments.” [i]

How do I apply?

Once you’ve checked your qualification status, what comes next? You will need to submit a PSLF form and from there a PSLF servicer will review your form to determine the eligibility based on the information provided. In some cases, expect to provide further documentation of your employment status for proof of eligibility. We recommend keeping a copy of your PSLF form for your personal records after submission.

For more information on the PSLF Program, please visit the following:

At Nonprofit Enthusiast, we’re always looking for way to help you and your organization. For more tips, tricks and resources; be sure to check out our other blogs!

[i] “Public Service Loan Forgiveness (PSLF).” Federal Student Aid, 

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