If you work in the public service sector, there’s a good chance that you could be eligible for Public Service Loan Forgiveness (PSLF). There’s been a lot of talk about getting rid of it over the years—especially as the nation’s student debt continues to grow and budget hawks need a scapegoat—but the program has stood the test of time and remains a vital lifeline for many who work in government, education, medicine, and other service-oriented careers. Even as borrowers brace for numerous changes coming to the student loan system this summer, following a massive bill passed earlier this year, PSLF endures.
One of the largest policy changes for student loan borrowers is the impending upset to the Income-Driven Repayment system. IDR allows borrowers to apply for monthly payment plans based on their income rather than the balance of their loans, which allows borrowers to make payments they can afford, while still whittling away at their debt. IDR has been particularly advantageous for borrowers working towards PSLF because, if they can make those affordable payments for 10 years, the remaining balance is forgiven. Later this year, however, borrowers will no longer be able to apply for those IDR plans as they are phased out and replaced with the Repayment Assistance Plan (RAP), which is not yet available. Borrowers will have fewer plans to choose from, as only the fixed payment plans, RAP, and the old IBR plan will remain. Borrowers working towards PSLF, however, will still be able to qualify with the three remaining plans.
As the IDR plans are phased out, borrowers will need to make sure they are on a qualifying plan to be eligible for PSLF. The same basic criteria for PSLF, however, aren’t changing. As long as you work full-time (30 or more hours a week) for a qualifying employer—which includes most hospitals, universities, and more—you’re eligible once you complete your 10 years worth of payments. In addition, you need to be on one of the applicable payment plans. If you’re on an IDR plan, you don’t need to do anything until those plans are phased out in 2028. The IBR plan also qualifies, and you can switch to it at any time as long as your loans are from July 1, 2026.
If you have questions about PSLF, whether you qualify, or about your individual progress, get in touch. We’re always just a call or click away to give you peace of mind on your student loan journey.
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