What Jobs Are Considered Public Service for PSLF?

Public Service Loan Forgiveness, often called PSLF, can sound like a reward for a certain kind of job. In fact, it works in a different way. The programme looks first at who employs you, not at the title on your work badge. A teacher can qualify in one school and not in another. A nurse can qualify in one hospital and not in another. This guide explains the rule in simple words, so you can see how it works and how to check your own case.

The direct answer

Public Service Loan Forgiveness can forgive the remaining balance on Direct Loans after 120 qualifying monthly payments while working full time for a qualifying employer. The employer decides eligibility, not the job title. Government agencies, public schools, and many nonprofit organisations can qualify, while for profit companies, labour unions, and partisan political organisations do not.

What is Public Service Loan Forgiveness?

Public Service Loan Forgiveness is a US federal programme for people with Direct Loans. After 120 qualifying monthly payments, the remaining balance on those loans can be forgiven. A qualifying payment is a payment made on an income driven repayment plan, while working full time for a qualifying employer. The 120 payments do not need to be in a row. They add up over time, as long as each payment meets the rules at the time it was made. The number 120 is the same as ten years of monthly payments, but the count is in payments, not in calendar years.

The word forgiveness can be easy to misunderstand. It does not mean that the loan is free from the start, and it does not mean that every payment you have ever made counts. Only payments that meet all of the rules count toward the 120. That is why it helps to learn the rules early, to keep records, and to check your count with Federal Student Aid, which is the office that runs the programme. This guide is educational only.

The key lesson: the employer counts, not the job title

Two people can do the same work, in the same town, and get a different result under PSLF. The difference is who signs their pay cheque. A teacher at a public school works for a qualifying employer. A teacher at a for profit school may do the same work in the same classroom, but the employer is different, so the result can be different. The same is true for nurses, social workers, lawyers, and many other jobs. The job title tells you what the person does. The employer tells you whether the work counts for PSLF.

Which employers qualify?

In general terms, these kinds of employers can qualify for PSLF. Only Federal Student Aid can decide a single case, so check your own employer with the PSLF Help Tool.

• US federal, state, and local government agencies, including city, county, and state offices.
• Public schools, colleges, and universities, including public school districts and state universities.
• Tax exempt nonprofit organisations under section 501(c)(3) of the tax code.
• Other nonprofit organisations that provide public services, such as public health, public education, law enforcement, and early childhood education.
• Military service, including service in the US armed forces.

Government work covers a wide range of roles. It can include work for a city office, a county office, a state agency, or a federal agency. Public schools and public colleges work in the same way. A public school teacher, a public school librarian, and a member of staff at a state university can all work for a qualifying employer, as long as the employer itself is public. Nonprofit organisations are more mixed, so they need more care. A nonprofit with 501(c)(3) tax exempt status can qualify, whatever public service it provides. Other nonprofits can qualify only if they provide certain public services, such as public health, public education, law enforcement, or early childhood education.

Which employers do not qualify?

In general terms, the following kinds of employers do not qualify for PSLF, even if the work itself helps the public.

• For profit companies, including for profit hospitals, for profit schools, and for profit firms of any kind.
• Labour unions, even when they represent public workers.
• Partisan political organisations, which work for a political party or cause.

A for profit hospital is a clear example. A nurse in a for profit hospital does the same caring work as a nurse in a public hospital. The employer is not the same, so the result under PSLF is not the same. The same point applies to a for profit school, a for profit law firm, and a for profit company of any other kind. Labour unions and partisan political organisations are also outside the rules, in general terms, even when they support public workers or work on public issues.

What does full time mean?

PSLF asks for full time work for a qualifying employer. In general terms, full time means an average of 30 hours a week, or the number of hours that the employer treats as full time, whichever is greater. That last point is stated carefully, because it can catch people out. If your employer says that full time is 35 hours a week, then 30 hours a week may not be enough for PSLF, even though 30 hours sounds like a lot. Hours can also be added up across more than one qualifying employer, in general terms, as long as each employer qualifies. Keep a record of your hours and your pay slips, because you may need to show them when you send in your employer certification form.

Worked example: a teacher and a nurse

Example only.

Example teacher. Maria is a teacher at a public school. The school is run by the local school district, which is a government body. Maria works full time, for 40 hours a week. She has Direct Loans, and she makes her monthly payments on an income driven plan. After 120 qualifying monthly payments, the remaining balance on her Direct Loans could be forgiven under PSLF, if all of the other rules are also met. Her job title is teacher, but the reason she can qualify is her employer, a public school.

Example nurse. John is a nurse at a for profit hospital. He also works full time, for 40 hours a week. He also has Direct Loans, and he also makes his monthly payments on an income driven plan. His work is the same kind of caring work as the work of a nurse in a public hospital. But his employer is a for profit company, so his payments would not count toward PSLF, in general terms. The same job can qualify or not, depending on the employer.

How to check your own case

The best way to check your own case is to use the PSLF Help Tool on studentaid.gov. The tool asks about your employer and your loans, and it tells you whether your employer looks like a qualifying employer. It can also help you fill in the employer certification form, which is the form you send to Federal Student Aid so that your employer can confirm your work. Send the form in each year, and each time you change employer, so that your count of qualifying payments stays up to date.

A short historical note

There was a time when the rules were wider. A temporary expanded PSLF waiver ended in 2022. For a limited time, the waiver let some payments count that would not normally count, and it helped some borrowers reach 120 payments sooner. That waiver has now ended, so the normal rules apply now. Use the current pages on studentaid.gov for the rules that apply now. A qualifying employer is only one part of PSLF. The loans also matter, because PSLF applies to Direct Loans in general terms, and payments must be made on an income driven plan to count. Check each point with Federal Student Aid before you change your plan or your loans.

Quick answers

Related guides

• The Cheapest Way to Pay Off Student Loans: How the Math Works
• Subsidized vs Unsubsidized Student Loans: Who Pays the Interest?
• How to Pay Off Debt With No Money: First Steps When Nothing Is Spare

Further reading

• Federal Student Aid: Public Service Loan Forgiveness, the official PSLF page from Federal Student Aid.
• Federal Student Aid: PSLF Help Tool, the official tool to check your employer and your loans for PSLF.

This content is educational only. It is not financial advice.