Congress established Public Service Loan Forgiveness (PSLF) in 2007 to support borrowers who choose careers in public service. For eligible borrowers, PSLF offers forgiveness of the remaining balance on qualifying federal student loans after 120 qualifying monthly payments while working for an eligible employer.
Nearly two decades later, the repayment-plan rules remain important to anyone pursuing forgiveness. Changes that took effect July 1, 2026, make the choice of repayment plan especially consequential for people taking out new federal loans.
Under the revised repayment structure, borrowers receiving new federal loans on or after July 1, 2026, generally have two principal repayment-plan choices: the Repayment Assistance Plan (RAP) and the Tiered Standard Repayment Plan.
Only RAP payments can earn PSLF credit under these two options. Payments under the Tiered Standard Plan do not qualify toward the 120 payments required for PSLF, even though the plan is an authorized federal repayment option.
Borrowers with loans disbursed before July 1, 2026, may have additional qualifying options, depending on their loan histories and eligibility.
RAP ties monthly payments to adjusted gross income and family circumstances. Unlike Income-Based Repayment (IBR), RAP does not use the same 10-year Standard Repayment Plan payment cap. That distinction may matter as a borrower's earnings change over time.
The PSLF Coalition, a network of public-service and nonprofit organizations with which Navigate partners, published a June 29, 2026 statement describing the repayment-plan eligibility issue.
The Coalition proposes a legislative clarification so that payments made under any federal repayment plan authorized by Congress could count toward PSLF, provided borrowers meet the program's other requirements.
The Coalition's position reflects a concern that public servants could choose an available federal plan without realizing it does not advance their PSLF progress.
Whether Congress adopts the Coalition's proposed change remains an open policy question.
Read the PSLF Coalition's June 29, 2026 statement
Federal Student Aid also specifies that, beginning July 1, 2026, late payments no longer count toward PSLF or income-driven repayment discharge.
A borrower who pays after the due date may therefore miss credit for that month, even if the payment is ultimately received.
Borrowers should review their due dates, confirm their servicer has recorded payments correctly, and consider automatic payments where appropriate. Those experiencing servicing problems or uncertain payment histories may need individualized assistance.
Student loan repayment rules can affect clinicians at different career stages, including recruitment, onboarding, and long-term retention.
Employers that provide access to reliable, individualized information can help employees understand the difference between an available repayment plan and one that actually advances a forgiveness goal.
Navigate continues to monitor PSLF developments and help eligible clinicians understand repayment-plan choices, payment history, and practical next steps.
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