Everything to Know About Public Service Loan Forgiveness (PSLF)

Editor’s note: At Idealist, we consider ourselves experts in the social-impact sector. But what we’re not experts on is student loan forgiveness. The objective of the following piece is to offer a general overview of the program and to point you in the right direction to find additional resources. We encourage you to visit Federal Student Aid’s Help Center with any questions or for assistance with Public Service Loan Forgiveness.

As the most comprehensive source of nonprofit jobs around, we also know a thing or two about nonprofit professionals. So we’re aware that for many of us in the sector, pursuing a career in a mission-driven environment can mean putting passion over payout—or delaying our ability to pay off student loan debt.

The average borrower takes out nearly $30,000 in student loans, a majority of which are for undergraduate degrees. Since federal student loans currently make up 92% of all outstanding student loan debt, the Department of Education has launched several initiatives to help borrowers reach debt relief faster. One that appeals specifically to social-impact professionals is the Public Service Loan Forgiveness (PSLF) program.

If you or any other social-impact professionals at your organization are struggling to manage student loan debt, please read and share the resources we’ve compiled below about PSLF.

What is the PSLF program?

PSLF was initiated in October 2007 to forgive the student loan debt of borrowers working in the public or nonprofit sectors based on certain requirements. As part of the program, borrowers who work for a qualifying employer can have their remaining debt forgiven after making 120 payments toward their Federal Direct Loans using a qualifying repayment plan.

To spread awareness about the program, Idealist joined the Office of Federal Student Aid for a webinar on all things PSLF for social-impact hiring managers. Watch a recording of our recent webinar and find answers to common questions about PSLF below.

If they cannot get the PSLF form signed by a former employer, PSLF student loan provider Federal Student Aid will accept W-2s and pay stubs to confirm employment.

The employee would need to submit a W-2 for every year they worked at a qualifying employer while making payments, or submit the pay stubs they received for the duration of the employment period. After completing sections 1 through 3 of the PSLF form, they must send it to Federal Student Aid along with the alternative documentation of employment.

For more information about the PSLF program, watch a recording of the All Things PSLF for Social Impact Hiring Managers webinar hosted by Idealist.

If you or one of your employees need help completing the PSLF form, Federal Student Aid has published a step-by-step video on YouTube for borrowers to review. Reach out to Federal Student Aid through their Feedback Center if you have any questions or concerns.

Remember that Idealist is always striving to best support you (and your staff!) in pursuing a social-impact career.

We hope you found the above resources helpful for managing student loan debt and spreading awareness about the PSLF program. Please feel free to share this resource with colleagues at your organization, and don't forget to highlight the value of PSLF when recruiting prospective employees for your organization.