Public Service Loan Forgiveness as a Recruitment Tool

Posted By: Benjamin Bullock Member News , Together SC ,

Working for a 501(c)(3) charitable nonprofit generally counts as eligible public service employment for Public Service Loan Forgiveness Program (PSLF). 

This is a benefit to many potential employees that nonprofit leaders need to understand and promote as part of their recruitment and retention efforts. 

Together SC is offering its members a new tool to help employees manage their loans and PSLF participation - SAVI.. 

To learn more, give this a read:

And, be sure to share the following links and information with current employees who have student debt. 

Thanks to last fall's U.S. Department of Education announcement, more nonprofit employees participating in the PSLF program should have greater and easier access to student loan forgiveness.

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. 

The Department announcement instituted short term relief during the pandemic and will now count all prior payments by borrowers (regardless of loan program), has improved automation, and simplified qualified payments and application process.

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.