PUBLIC SERVICE LOAN FORGIVENESS (PSLF) COMPREHENSIVE GUIDE

OVERVIEW

The Public Service Loan Forgiveness (PSLF) program forgives the remaining balance on your Direct Loans after you have made 120 qualifying monthly payments while working full-time for a qualifying employer.

KEY BENEFIT: Unlike IDR forgiveness, PSLF forgiveness is permanently tax-free under federal law.

IMPORTANT UPDATE (October 2025): The Department of Education published a final rule revising the PSLF program, effective July 1, 2026. This rule changes the definition of "qualifying employer" but does not affect most public service employees.

SECTION 1: APPLICANT INFORMATION

Full Legal Name: _______________________________________________

Date of Birth: _______________________________________________

Social Security Number (Last 4 Digits): XXX-XX-____________

Current Mailing Address:
_______________________________________________
_______________________________________________
City: _________________ State: _______ ZIP: ___________

Phone Number: _______________________________________________

Email Address: _______________________________________________

Federal Student Aid ID (FSA ID): _______________________________________________

SECTION 2: PSLF ELIGIBILITY REQUIREMENTS

The Four PSLF Requirements:

To qualify for PSLF, you must meet ALL of the following requirements:

Requirement 1: Eligible Loans

☐ I have Direct Loans

Eligible loan types:
☐ Direct Subsidized Loans
☐ Direct Unsubsidized Loans
☐ Direct PLUS Loans (Graduate/Professional)
☐ Direct Consolidation Loans

NOT Eligible (must consolidate first):
☐ FFEL Loans (Stafford, PLUS, Consolidation)
☐ Federal Perkins Loans
☐ Parent PLUS Loans (even after consolidation, not eligible for PSLF)

Note: If you have FFEL or Perkins Loans, you can make them eligible by consolidating into a Direct Consolidation Loan. However, only payments made after consolidation will count.

Requirement 2: Qualifying Employment

☐ I work for a qualifying employer

Qualifying employers include:

Government Organizations (Any Level):
☐ Federal government
☐ State government
☐ Local government (county, city, municipality)
☐ Tribal government or organization
☐ U.S. Military (active duty)

Not-for-Profit Organizations:
☐ 501(c)(3) tax-exempt organizations
☐ Other not-for-profit organizations providing qualifying public services
☐ AmeriCorps or Peace Corps

Not Qualifying:
☐ For-profit companies (even if providing public services)
☐ Labor unions (unless 501(c)(3))
☐ Partisan political organizations
☐ Organizations engaged in unlawful activities (per July 2026 rule)

Requirement 3: Full-Time Employment

☐ I work full-time for my qualifying employer

Full-time means:
☐ At least 30 hours per week, OR
☐ Meeting employer's definition of full-time (if higher)

Special Rules:
☐ For teachers and similar positions: At least 30 hours average during contractual period (8+ months)
☐ Multiple part-time jobs: Can combine hours if each is at a qualifying employer

Requirement 4: 120 Qualifying Payments

☐ I have made (or will make) 120 qualifying monthly payments

Qualifying payments must be:
☐ Made after October 1, 2007
☐ Made under a qualifying repayment plan
☐ Made for the full amount due
☐ Made no later than 15 days after due date
☐ Made while employed full-time by a qualifying employer

Qualifying Repayment Plans:
☐ Income-Based Repayment (IBR)
☐ Income-Contingent Repayment (ICR)
☐ Pay As You Earn (PAYE)
☐ SAVE/REPAYE (if available)
☐ Standard 10-Year Repayment Plan
☐ Any other plan with payments equal to or greater than 10-year standard

Note: Payments do not need to be consecutive. Employment can change as long as it remains qualifying.

SECTION 3: EMPLOYMENT CERTIFICATION

PSLF Form (Employment Certification)

You should submit the PSLF Form annually and every time you change employers.

Download the current form at: StudentAid.gov/pslf

Employer Information for Certification:

Current Employer:

Employer Name: _______________________________________________

Employer Address:
_______________________________________________
City: _________________ State: _______ ZIP: ___________

Employer EIN (Federal Tax ID): _______________________________________________

Employer Type:
☐ Government (federal, state, local, tribal)
☐ 501(c)(3) Not-for-Profit Organization
☐ Other Not-for-Profit Organization (describe services): _______________

Your Start Date: _______________________________________________

Still Employed? ☐ Yes ☐ No - End Date: _______________

Average Hours Per Week: _______________

HR/Authorized Official Name: _______________________________________________

HR/Authorized Official Title: _______________________________________________

HR/Authorized Official Phone: _______________________________________________

HR/Authorized Official Email: _______________________________________________

SECTION 4: PAYMENT TRACKING WORKSHEET

Current Payment Count:

Number of Qualifying Payments (check StudentAid.gov): _______________

Remaining Payments Needed: _______________ (120 minus current count)

Estimated Forgiveness Date: _______________________________________________

Payment History Log:

SECTION 5: LOAN SERVICER INFORMATION

PSLF Servicer:

As of 2026, MOHELA handles PSLF applications and tracking for most borrowers.

MOHELA PSLF Contact:
- Website: mohela.com
- Phone: (855) 265-4038
- Address: MOHELA, 633 Spirit Drive, Chesterfield, MO 63005

If Your Loans Are With a Different Servicer:

When you submit your first PSLF Form, your loans will be transferred to MOHELA if they are not already there.

Current Servicer: _______________________________________________

Account Number: _______________________________________________

SECTION 6: INCOME-DRIVEN REPAYMENT SELECTION

To maximize PSLF benefits, you should be on an income-driven repayment (IDR) plan. This minimizes your payments while you work toward 120 qualifying payments.

Recommended IDR Plans for PSLF:

Income-Based Repayment (IBR):
☐ Most stable option (created by Congress)
☐ 10-15% of discretionary income
☐ Remains available after July 2028

Pay As You Earn (PAYE):
☐ 10% of discretionary income
☐ Being eliminated July 1, 2028
☐ If enrolled now, can continue until 2028

SAVE Plan:
☐ Currently blocked by litigation
☐ May not be available
☐ Check current status at StudentAid.gov

Income-Contingent Repayment (ICR):
☐ 20% of discretionary income
☐ Being eliminated July 1, 2028
☐ Only option for consolidated Parent PLUS (but Parent PLUS not eligible for PSLF)

Why IDR Matters for PSLF:

• Standard 10-year plan would pay off your loans in 10 years (120 payments), leaving nothing to forgive
• IDR plans typically result in lower monthly payments
• Lower payments = more left to be forgiven after 120 payments

Your Current Repayment Plan: _______________________________________________

Recommended Plan for PSLF: _______________________________________________

SECTION 7: PSLF APPLICATION PROCESS

Before Applying for Forgiveness:

☐ Verify you have 120 qualifying payments
☐ Confirm current employment is qualifying
☐ Ensure loans are Direct Loans (or consolidated)
☐ Confirm you are on a qualifying repayment plan
☐ Have most recent PSLF Form on file

Application Steps:

Step 1: Log in to StudentAid.gov

Step 2: Navigate to PSLF section

Step 3: Review your qualifying payment count

Step 4: Complete the PSLF Application for Forgiveness

Step 5: Have your employer complete the certification section (or use PSLF Help Tool)

Step 6: Submit the completed form

Submission Methods:

☐ Online (Recommended): Through the PSLF Help Tool at StudentAid.gov/pslf

☐ Fax: (866) 222-7060

☐ Mail:
U.S. Department of Education
MOHELA
633 Spirit Drive
Chesterfield, MO 63005

SECTION 8: SPECIAL PROGRAMS AND CIRCUMSTANCES

PSLF Buyback Program

If you had periods where you were:
- In forbearance or deferment while working for a qualifying employer
- Making payments on loans that weren't yet Direct Loans

You may be able to "buy back" those months by making additional payments.

Interested in PSLF Buyback?
☐ Yes - Contact MOHELA for information
☐ No

Military Service Considerations:

☐ Active duty military service counts as qualifying employment
☐ Periods of deferment due to military service may qualify for buyback
☐ Service members should track employment carefully

COVID-19 Period (March 2020 - September 2023):

☐ Payment pause months counted as qualifying payments if you had qualifying employment
☐ These months should already be reflected in your payment count
☐ Verify count at StudentAid.gov

SECTION 9: COMMON PSLF ISSUES AND SOLUTIONS

Issue: Payments Not Counting

Possible Causes and Solutions:

☐ Wrong loan type: Consolidate FFEL/Perkins loans into Direct Consolidation Loan

☐ Wrong repayment plan: Switch to a qualifying IDR plan

☐ Employer not verified: Submit PSLF Form with employer certification

☐ Payment late or short: Ensure payments are full amount within 15 days of due date

☐ Employment verification issue: Provide additional documentation to servicer

Issue: Employment Rejected

Steps to Take:

1. Review the rejection letter carefully
2. Verify employer's tax status (501(c)(3) status or government entity)
3. Provide additional documentation:
   - IRS determination letter for 501(c)(3)
   - Government employer verification
   - Organization charter or articles
4. Request reconsideration if you believe the rejection was in error

Issue: Payment Count Discrepancy

Steps to Take:

1. Request payment history from servicer
2. Compare with your records
3. Submit reconsideration request with documentation
4. File complaint with CFPB if unresolved

SECTION 10: STATE-SPECIFIC NOTES

California (CA)

• California offers state-level student loan assistance programs for certain public servants
• DFPI oversees loan servicer conduct under California Student Borrower Bill of Rights
• California Teachers Association provides PSLF guidance for educators
• State government employees should verify qualifying status through CalHR

Texas (TX)

• Texas has Teacher Loan Forgiveness programs separate from PSLF
• State employees can verify qualifying status through Texas Comptroller
• Texas Higher Education Coordinating Board provides resources
• No state income tax reduces complexity of financial planning

Florida (FL)

• Florida Teacher Loan Forgiveness Program (separate from federal PSLF)
• State employees should verify through Florida Department of Management Services
• Florida Office of Financial Regulation handles servicer complaints
• No state income tax simplifies calculations

New York (NY)

• NY Get On Your Feet Loan Forgiveness Program provides additional help for NY residents
• HESC (Higher Education Services Corporation) provides PSLF assistance
• NY Attorney General has active student loan protection efforts
• Strong servicer protections under NY Student Loan Servicer Act

SECTION 11: PSLF CHECKLIST AND TIMELINE

Annual PSLF Maintenance Checklist:

☐ Submit PSLF Form annually (even if employment hasn't changed)
☐ Recertify income for IDR plan annually
☐ Review payment count on StudentAid.gov quarterly
☐ Keep copies of all PSLF Forms submitted
☐ Save employment records (pay stubs, employment verification letters)
☐ Update contact information with servicer if you move

When to Submit PSLF Form:

☐ Annually (at minimum)
☐ When you change employers
☐ When your employment status changes (FT to PT or vice versa)
☐ When you are approaching 120 payments
☐ When you believe you have reached 120 payments

Timeline to Forgiveness:

SECTION 12: FORGIVENESS APPLICATION

When You Reach 120 Payments:

☐ Log in to StudentAid.gov
☐ Verify payment count shows 120 qualifying payments
☐ Complete PSLF Application for Forgiveness
☐ Have current employer complete certification
☐ Submit application

What Happens After Submission:

1. Processing: MOHELA reviews your application (60-90 days)
2. Verification: They verify employment and payment count
3. Notification: You receive written notice of approval or denial
4. Forgiveness: If approved, remaining balance is forgiven
5. Tax-Free: Forgiven amount is NOT taxable income

If Denied:

☐ Review denial reason carefully
☐ Gather additional documentation if needed
☐ Request reconsideration within 90 days
☐ File complaint with CFPB if you believe denial was improper
☐ Consider consulting with a student loan attorney

SECTION 13: DOCUMENT RETENTION

Documents to Keep:

☐ All PSLF Forms submitted (signed copies)
☐ Employment verification letters
☐ Pay stubs showing full-time employment
☐ W-2 forms showing employer
☐ Tax returns
☐ IDR recertification documents
☐ Loan servicer correspondence
☐ Payment confirmation records
☐ Bank statements showing payments
☐ Any denial letters and reconsideration requests

Retention Period:

Keep all PSLF-related documents for at least 7 years after receiving forgiveness in case of audit or dispute.

SECTION 14: PSLF CERTIFICATION

I have reviewed this PSLF Guide and understand:

☐ PSLF requires 120 qualifying payments while working full-time for a qualifying employer

☐ Only Direct Loans are eligible (other loans must be consolidated)

☐ I must be on a qualifying repayment plan

☐ I should submit the PSLF Form annually and when I change employers

☐ PSLF forgiveness is tax-free

☐ I should track my payment count and address any discrepancies

☐ I must apply for forgiveness when I reach 120 payments

☐ The July 2026 rule changes may affect certain employers

Applicant Signature: _______________________________________________

Date: _______________________________________________

Print Name: _______________________________________________

RESOURCES

• StudentAid.gov/pslf - Official PSLF information and PSLF Help Tool
• MOHELA.com - PSLF servicer
• CFPB.gov - Consumer Financial Protection Bureau (for complaints)
• StudentLoanBorrowerAssistance.org - National Consumer Law Center
• PSLF Help Tool - studentaid.gov/pslf

FREQUENTLY ASKED QUESTIONS

Q: Can I work for multiple employers simultaneously?
A: Yes, if your combined hours equal 30+ per week at qualifying employers.

Q: What if my employer is acquired or changes its status?
A: You should verify the new employer's qualifying status and submit a new PSLF Form.

Q: Do payments during grace period count?
A: No, payments must be made during repayment status.

Q: What if I take a leave of absence?
A: Payments during leave may not count if you weren't working full-time.

Q: Can I switch employers and still qualify?
A: Yes, as long as each employer is qualifying and you work full-time.

Q: What happens if I leave public service before 120 payments?
A: You lose PSLF eligibility but may qualify for IDR forgiveness after 20-25 years.

This template was last updated on 2026-01-25. PSLF rules and requirements may change. The October 2025 final rule takes effect July 1, 2026. For the most current information, visit StudentAid.gov/pslf or consult with a qualified student loan counselor.