The Public Service Loan Forgiveness (PSLF) program has been a lifeline for borrowers working in public service, providing loan forgiveness after ten years of qualifying payments. However, recent policy shifts and executive actions have introduced uncertainty about the program’s future. Here’s
what you need to know about the latest PSLF updates and how to navigate the application process successfully.
Recent Developments in PSLF
On Monday, March 10, the Department of Education (ED) confirmed it is reviewing an executive order signed by President Donald Trump that directs changes to the PSLF program. Importantly, ED reassured borrowers that the PSLF Program is not changing today and that no immediate action is required. Borrowers can continue to check their PSLF progress and submit forms through the StudentAid.gov website.
Key aspects of the executive order include:
- Directing the Department of Education and the Treasury Department to propose regulatory changes to PSLF and review the number of payments in eligible repayment plans (payment count).
- Excluding organizations engaged in activities deemed as “engaging in illegal activities” from qualifying as public service employers.
- Potentially rescinding eligibility for borrowers working for certain non-profit organizations.
This move has sparked concerns from legal and policy experts, who argue that changing eligibility criteria retroactively could undermine trust in federal student loan programs. ED Secretary Linda McMahon has confirmed, however, that PSLF will continue to be implemented as required by law.
Who Is Still Eligible for PSLF?
The core eligibility requirements for PSLF remain unchanged:
- Employment: You must work full-time for a qualifying U.S. government or non-profit organization, including federal, state, local, or tribal government agencies and 501(c)(3) organizations.
- Loan Type: Only Direct Loans qualify. Borrowers with FFEL or Perkins loans must consolidate them into a Direct Consolidation Loan.
- Repayment Plan: You must be enrolled in an income-driven repayment (IDR) plan or the 10-year Standard Repayment Plan.
- Payments: A total of 120 qualifying monthly payments must be made while working full-time for a qualifying employer.
To verify employer eligibility, borrowers can use the PSLF Help Tool at StudentAid.gov to search for their employer and submit a PSLF form.
How to Apply for PSLF
To be considered for PSLF, borrowers must submit a PSLF form through one of the following methods:
- PSLF Help Tool (Recommended):
- Check employer eligibility.
- Generate and sign a PSLF form digitally.
- Request employer certification and signature electronically.
- Submit the form directly through the online platform.
- Manual Submission:
- Download the PSLF form from StudentAid.gov.
- Print and sign the form.
- Obtain a signature from your employer.
- Submit via mail (P.O. Box 300010, Greenville, TX 75403) or fax (540-212-2415).
Maximizing Your Success in PSLF
To avoid potential pitfalls in the PSLF process, consider the following best practices:
- Certify your employment annually and whenever you change employers. This ensures your progress is tracked correctly.
- Enroll in an income-driven repayment plan. IDR plans help keep your payments affordable and ensure they count toward PSLF.
- Monitor your payment count. Log in to StudentAid.gov to review your PSLF progress.
- Stay updated on policy changes. Given the ongoing policy review, regularly check for updates on ED’s official website.
Final Thoughts
Despite recent executive actions, PSLF remains in place, and borrowers who meet the requirements can still pursue loan forgiveness. While potential regulatory changes may alter aspects of the program, any modifications will take time to implement. In the meantime, borrowers should continue making qualifying payments and ensure their employment is properly certified. For borrowers currently enrolled in the SAVE plan, it is recommended that they should only transition out of that plan to a currently eligible income-based plan if they have less than one year of remaining repayment eligibility pending for PSLF eligibility. Otherwise, they may want to remain in the administrative forbearance status that these plans allow until more information is determined in the courts. As a trusted resource for financial aid professionals, HEAG remains committed to supporting practitioners and student loan borrowers with up-to-date guidance on these matters. For questions or assistance, email info@heag.us for support.
