New Developments in Public Service Loan Forgiveness!

Posted By: Tiffany Gourley-Carter Together SC ,

More nonprofit employees relying on the Public Service Loan Forgiveness program should have greater and easier access to student loan forgiveness under a U.S. Department of Education announcement. To receive forgiveness, borrowers must meet several criteria: have the correct type of federal loan, make 120 qualifying payments in the correct repayment plan, and certify that their public service employment qualifies under the program. Work at 501(c)(3) charitable nonprofits generally counts as eligible public service employment for PSLF purposes. The good news for nonprofit employees from the temporary Limited PSLF Waiver in the announcement is that the Department is now instituting short term relief to count all prior payments by borrowers (regardless of loan program), improved automation, and simplified qualified payments and application process, the announcement explains.

Nonprofit employees who believe they are eligible for forgiveness or wish to have their employment at their current nonprofit employer certified as eligible under PSLF should take action by October 31, 2022, through the PSLF Help Tool, available at

Specific guidance for four types of borrowers was also provided:

  1. Workers currently with Direct Federal Loans but have not yet applied for PSLF should determine whether current or past employers qualify for PSLF.
  2. Workers with at least one federal loan that is not a Direct Federal Loan, such as FFEL loan should submit a consolidation application and a PSLF form.
  3. Workers who previously tried to certify employment for PSLF but were denied should submit a new form.
  4. Workers who do not know what kind of federal loan they have should log into their account and see the Loan Breakdown section to determine type of loan and if consolidation is necessary.

For more information see the Good News for Public Service Loan Forgiveness (PSLF) Borrowers and the resources below. Additional guidance and regulations from the Department of Education is expected soon.