Public Service Loan Forgiveness (PSLF) is a program designed to encourage students to join and continue public service by forgiving their eligible Federal Direct Loans after they have made 120 income-based payments.

How does it Work?

Under the PSLF program, individuals who are working in public organizations can get a loan waiver for the remaining balance of their eligible Direct Loans after they have made 120 income-based payments. The payment depends on the applicant’s income and family size. The amount of payment does not matter; it is counted regardless of how low it is.

Do You Qualify for PSLF?

It is important to know the eligibility requirements because not all types of loans qualify for PSLF. The basic eligibility requirements for PSLF include:


The borrower must be a full-time employee of a federal, local, or state organization or a non-profit organization that has been declared as tax-exempt by the Internal Revenue Code. The employee must meet the definition of full-time, working for a minimum of 30 hours per week.


Only federal Direct Loans qualify for PSLF program, which include:

  • Direct consolidated loans
  • Direct subsidized and unsubsidized loans
  • Direct PLUS loans
  • Direct Stafford subsidized and unsubsidized loans

Private loans and other federal loans are not eligible for Public Service Loan Forgiveness program. However, federal loans can be consolidated into a Direct Loan by the Direct Loan Consolidation program.


Eligible loans are forgiven after 120 monthly payments. Periods of forbearance and deferment are not counted towards loan forgiveness.

How to Apply for PSLF?

Since payments made before October 1, 2007 do not count towards forgiveness and PSLF requires 120 monthly payments to be eligible to apply for PSLF, no candidate will be eligible for PSLF until 2017. Therefore, PSLF applications will be available in 2017.

However, the US Department of Education has released an employment certification form that should be submitted annually to ensure that the eligibility data is properly recorded.

How Fast Track Preparation Can Help You?

Student loan debt is the second largest consumer obligation after mortgages, hovering around $1 trillion mark. The US Department of Education and Federal government have introduced several programs to help students with their loan debts. There are several different loan discharge and loan forgiveness programs available, each of which has different benefits and eligibility requirements.

Fast Track Preparation is an organization that can help students in choosing the best student loan debt relief program. We have experienced professionals who not only provide you with their expert advice; they will guide you throughout the process of application and document processing.

FTP makes sure that you fulfill the eligibility requirements for PSLF and designs your repayment plan to help you get your loans waived off. If you want to hire us to guide you in applying for the PSLF program, give us a call at 888-369-0973

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