Call for Action - Public Service Loan Forgiveness

September 15, 2015


Congress created the Public Service Loan Forgiveness (PSLF) program in 2007. Under PSLF, those who make 120 monthly payments (10 years) on their federal graduate student loans while employed full-time in qualified public service jobs are eligible to have their remaining balance forgiven. Congress is on the verge of eliminating the program. Earlier this year, The U.S. House of Representatives agreed to a budget resolution for FY 2016 that would “zero out” funding for Public Service Loan Forgiveness. Funding The President’s FY 2016 budget proposal also suggests a complete cut in funding for Public Service Loan Forgiveness. There is speculation that the Senate will take up the PSLF funding issue as part of a larger education bill. However, the Senate must also agree to a FY 2016 budget resolution. The fate of PSLF will likely be determined by the Senate. There is currently no guarantee that anyone would be grandfathered into the PSLF program. That means that people working in public service jobs over the past 8 years could receive no federal loan forgiveness at all. If PSLF is eliminated, there will be no federal loan forgiveness program for graduate students.

Qualifying employment for the PSLF Program has to do with the type of employer you work for. Employment with the following types of organizations qualifies for PSLF:

  • Government organizations at any level (federal, state, local, or tribal)
  • Not-for-profit organizations that are tax-exempt under Section 501(c)(3) of the Internal Revenue Code
  • Other types of not-for-profit organizations that provide certain types of qualifying public services
  • Serving in a full-time AmeriCorps or Peace Corps position also counts as qualifying employment for the PSLF Program.

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To Learn More About PSLF, Go To: