PSLF: Public Service Loan Forgiveness

What PSLF Forgives

Public Service Loan Forgiveness is a federal program that forgives the remaining balance on your Direct Loans after you have made 120 qualifying monthly payments — the equivalent of ten years — while working full-time for a qualifying employer and enrolled in a qualifying repayment plan (studentaid.gov). The 120 payments do not have to be consecutive. The amount forgiven under PSLF is not treated as taxable income. Because it is the U.S. Department of Education's official cancellation program for public servants, it is a “forgiveness” route, not a “discharge” — the distinction matters when you compare it to disability or closed-school discharge.

The Three Conditions

All three boxes must be checked for a payment to count. First, the loans must be federal Direct Loans — older FFEL or Perkins loans must first be consolidated into a Direct Consolidation Loan to become eligible. Second, the employer must be a U.S. federal, state, local, or tribal government organization, or a 501(c)(3) tax-exempt nonprofit; the job must be full-time. Third, the payment must be made under a qualifying repayment plan, which historically meant an income-driven plan. The PSLF Help Tool and the Employment Certification process on studentaid.gov are how you confirm that your employer and payments qualify.

IN FLUX: The Revised PSLF Rule (Effective July 1, 2026)

This is the most unsettled part of PSLF right now. Following Executive Order 14235 (March 7, 2025), the Department of Education issued a rule revising PSLF that is scheduled to take effect July 1, 2026. As described by ed.gov, the rule would exclude from eligibility employers found to have a “substantial illegal purpose,” and only conduct on or after July 1, 2026 would be counted toward that exclusion. As of June 2026 this rule's final operation, scope, and any litigation around it are not fully settled, so treat it as in flux. If you work in public service, certify your employment now under the current rules and confirm your status with your servicer rather than assuming how the July 2026 change will apply to you.

PSLF and the End of SAVE

Because qualifying payments historically had to be on an income-driven plan, the end of the SAVE plan by court order on March 10, 2026 affects which plan PSLF borrowers use to keep their payments qualifying (studentaid.gov). With IBR, PAYE, and ICR continuing and the new Repayment Assistance Plan (RAP) scheduled for July 1, 2026, PSLF borrowers should confirm with their servicer that their current plan still produces qualifying payments. This too is in flux as of June 2026.

Is PSLF Still Available?

Yes. PSLF remains a live federal program as of June 2026 — the statute that created it has not been repealed, and borrowers continue to reach 120 qualifying payments and receive forgiveness. What is changing is the rule around employer eligibility taking effect July 1, 2026. The practical advice is unchanged: certify employment regularly, keep your loans as Direct Loans on a qualifying plan, and track your payment count on studentaid.gov. People's Justice is not a law firm and does not provide legal advice; we connect you with licensed attorneys, and we are not a government agency. We never charge a fee to help you apply for a free federal program, and we cannot promise that PSLF will forgive your loans — only the Department of Education makes that determination.