Student Loan Forgiveness for Government Employees: How to Get It

Quick Facts

• You qualify for PSLFPublic Service Loan Forgiveness (PSLF)A federal program that forgives the remaining balance on Direct Loans after 120 qualifying monthly payments made while working full-time for a government or qualifying nonprofit employer. if you work full-time for a government agency. This includes federal, state, local, or tribal government positions but excludes contractors or private sector employees.
• Only Direct Loans are eligible for PSLF. If you have other types of federal loans, you may need to consolidate them into a Direct LoanDirect LoanA federal student loan made directly by the U.S. Department of Education under the William D. Ford Federal Direct Loan Program. Most federal student loans issued since 2010 are Direct Loans. to qualify.
• You need to make 120 qualifying payments under an income-driven plan. These payments don’t have to be consecutive, but they must be made while you’re working for a qualifying employer.

Overview

This program applies to employees working for state, local, federal, and tribal government agencies.

Here’s how it works:

• Employer Type: You must be directly employed by a government agency (state, local, federal, or tribal).
• Qualifying Payments: You’ll need to make 120 monthly payments under a qualifying repayment plan while working full-time for a qualifying employer.

Note: This program does not apply to contractors working for private entities, even if they’re performing work at government agencies. If you’re a contractor, check out our guide on government contractor student loan forgiveness programs.

Related:

• Biden Student Loan Forgiveness
• Trump & Student Loan Forgiveness: Now What?

How PSLF Works for Government Employees

The PSLF Program is available to government employees, but qualifying requires meeting specific criteria.

Here’s a closer look at what’s involved and how you can stay on track toward debt forgiveness.

You Must Complete 120 Qualifying Payments

To qualify for forgiveness, you need to make 120 qualifying monthly payments, which generally span 10 years under a qualifying repayment plan.

The payments don’t need to be consecutive, allowing flexibility if you need a break or forbearance.

Throughout this period, you must be employed full-time by a qualifying employer—such as a local, state, tribal, or federal government agency.

Your Loans Must Be Direct Loans

Only loans in the Federal Direct Loan Program qualify for PSLF. If you have other types of federal student loans, such as Federal Family Education Loans (FFEL) or PLUS Loans, you may need to consolidate them into a Direct Consolidation Loan to qualify.

Previously, consolidating reset your payment count. But under the recent one-time account adjustment, many borrowers were able to consolidate and carry forward credit for time spent in forbearance, deferment, or repayment under any plan.

Although the one-time adjustment has ended, a new rule starting July 1, 2024, allows borrowers to consolidate loans and retain the weighted average of their qualifying payments—meaning you can still carry forward existing credit toward PSLF after consolidation.

Related:

• How to Consolidate FFELP Loan
• How to Consolidate Parent PLUS Loans

You Must Use a Qualifying Repayment Plan

Most borrowers use an income-driven repayment plan, which can make monthly payments more affordable based on income and family size.

An IDRIncome-Driven Repayment (IDR)A category of federal student loan repayment plans that calculate monthly payments based on income and family size rather than loan balance. Any remaining balance can be forgiven after 20–25 years of qualifying payments. plan can also maximize the amount forgiven under PSLF, especially if you have a large loan balance.

You Need To Certify Your Employment

Certifying your employment each year keeps you on track for PSLF. This verification process confirms your employment with a qualifying government agency and ensures each payment counts toward the required 120. Submit the PSLF Employment Certification FormEmployment Certification Form (ECF)The federal form used to certify qualifying employment for Public Service Loan Forgiveness. Borrowers submit the form to their servicer to have qualifying payments counted toward PSLF. to the Department of Education annually or when you change jobs.

You can find all necessary documents for student loan forgiveness, including PSLF, in this Forms and Application Guide.

How to Apply for PSLF

1. Check Your Loan Type: Make sure you have Direct Loans, as only these qualify for PSLF. If you have other types of federal loans, like FFEL or Perkins Loans, you’ll need to combine them into a Direct Consolidation Loan.
2. Choose an IDR Plan: If you’re not already on an Income-Driven Repayment plan, choose one that fits your income and family size. This ensures your payments count toward PSLF.
3. Submit the PSLF Form: You need to send the PSLF Employment CertificationPSLF Employment CertificationThe process of verifying that a borrower's employer is a qualifying government or nonprofit organization under Public Service Loan Forgiveness rules, typically done through the PSLF form submitted to the federal servicer. Form each year or when you change jobs. This confirms that your job qualifies and helps your loan servicerLoan ServicerThe company that manages a borrower's federal student loan account, processes payments, and handles applications for repayment plans, deferment, forbearance, and forgiveness on behalf of the U.S. Department of Education. keep track of your progress.
4. Keep Track of Your Payments: Check your payment count regularly through your loan servicer or the PSLF Help Tool.

To get a full, detailed walkthrough, take a look at our comprehensive Guide on Applying for PSLF.

How to Get Credit for Past Payments

The one-time IDR account adjustment allows certain past repayment periods, forbearance, and deferment to be credited toward PSLF, even if they didn’t qualify before.

If you’ve consolidated multiple loans, your payment count might benefit from a weighted average of your repayment time across all loans, potentially advancing you further toward forgiveness.

To determine your eligibility:

1. Review Your Payment History: Log into StudentAid.gov to examine your loan details and payment records.
2. Contact Your Loan Servicer: Reach out to your servicer to confirm which past payments now qualify under the new adjustment.
3. Consider Loan Consolidation: If you haven’t consolidated into a Direct Loan, doing so may help capture additional credit from past payments.

These updates acknowledge your years of service and may bring you closer to full loan forgiveness than previously anticipated.

Common PSLF Problems

Before recent changes by the Biden administration, including the PSLF Waiver and one-time IDR account adjustment, nearly 99% of applications from public service workers were denied.

These updates aim to make the application process more accessible and improve success rates for eligible government employees.

Here are common issues and strategies to address them:

• Missed Qualifying Payments: Payments must be made under a qualifying repayment plan, such as any IDR plan. To ensure your payments count, regularly verify your repayment plan with your loan servicer and confirm that each payment is on time and in full.
• Employment Certification Errors: Submit the PSLF application annually or whenever you change jobs to verify your employment with a qualifying government or non-profit organization. This proactive step helps maintain accurate records and ensures your employment periods are correctly counted toward forgiveness.
• Loan Servicer Errors: Some borrowers have encountered discrepancies in payment counts or qualifying employment records. With the U.S. Department of EducationU.S. Department of Education (ED)The federal agency that oversees federal student aid programs, issues regulations for federal student loans, and is the ultimate lender on Direct Loans. now overseeing the PSLF program, you can address these issues directly. If you notice inconsistencies, contact the Department’s PSLF hotline at 1-888-303-7818 for assistance.

Tip: You must regularly review your PSLF account on StudentAid.gov and retain copies of all submitted forms and correspondence.

Other Forgiveness Options

PSLF is often the best path for government employees, but some may qualify for other forgiveness options depending on specific circumstances:

• Income-Driven Repayment Forgiveness: If you’ve been on an IDR plan for 20 or 25 years, you may be closer to forgiveness through IDR than PSLF. IDR forgivenessIDR ForgivenessThe forgiveness of any remaining federal student loan balance after a borrower has completed 20 or 25 years of qualifying payments under an income-driven repayment plan, depending on the specific plan. is available to borrowers who meet the long-term payment requirement, even if they’re not in public service. Learn more in our IBR Loan Forgiveness Guide.
• Loan Repayment Assistance Programs (LRAPs): Some agencies, like the Department of Veterans Affairs (VA), offer loan repayment assistance programs for specific public service roles. Learn more in our VA Student Loan Forgiveness Guide.
• Total and Permanent Disability (TPDTotal and Permanent Disability Discharge (TPD)A federal loan discharge for borrowers who are totally and permanently disabled, as documented by the Department of Veterans Affairs, the Social Security Administration, or a physician's certification.) Discharge: If you’re a government employee who meets the criteria for a total and permanent disability, you may qualify for a discharge of your federal student loans. This discharge relieves you of the obligation to repay based on severe health conditions that prevent you from working.
• Perkins LoanPerkins LoanA low-interest federal student loan for borrowers with exceptional financial need, issued by schools under a now-discontinued program. New Perkins Loans have not been made since 2017, but many existing balances are still in repayment. Cancellation: For those with Perkins Loans, cancellation options are available for certain types of public service, including law enforcement, firefighting, teaching, and other government-related roles. Under this program, your Perkins Loan may be canceled incrementally each year you work in a qualifying role, potentially leading to complete forgiveness.

Each forgiveness option has its own requirements, so exploring them alongside PSLF can help you choose the path that best fits your unique situation.

Bottom Line

If you’re a government employee, you qualify for the PSLF Program. As long as you work full-time directly for a government agency—whether it’s federal, state, local, or tribal—you’re on the right path to student loan forgiveness.

Remember, this doesn’t apply if you’re employed by a private company, even if you work alongside government entities.

If you have questions or need guidance on maximizing your PSLF benefits, book a consultation with one of our student loan experts. We’re here to help you achieve forgiveness and secure your financial future.

Related reading:

• Jobs that Qualify for Student Loan Forgiveness
• How to Apply for Student Loan Forgiveness
• Government Contractor Student Loan Forgiveness Programs
• How Does EDRP Work?
• Military Student Loan Forgiveness