Public Service Loan Forgiveness (PSLF)

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Alert! On Oct. 6, 2021, the U.S Department of Education (ED) announced a temporary period during which borrowers may receive credit for payments that previously did not qualify for PSLF or TEPSLF. Learn more about this limited waiver opportunity.

If you work in certain public service jobs and have made 120 payments on your Direct Loans, you may be eligible to have your loans forgiven. Learn More about Public Service Loan Forgiveness.

Note: Suspended Payments Count Toward PSLF and TEPSLF During the COVID-19 Administrative Forbearance. If you have a Direct Loan and work full-time for a qualifying employer during the payment suspension (administrative forbearance), then you will receive credit toward PSLF or TEPSLF for the period of suspension as though you made on-time monthly payments in the correct amount while on a qualifying repayment plan.

Temporary Expanded Public Service Loan Forgiveness (TEPSLF)

If some or all of your payments were not made on a qualifying repayment plan for PSLF, you may be able to receive loan forgiveness under a temporary opportunity. Learn more about the Temporary Expanded Public Service Loan Forgiveness program.


Tax Implications if Your Loans are Forgiven

Beginning January 1, 2021, amounts forgiven under the PSLF Program are not considered income by the Internal Revenue Service. Therefore, you will not have to pay federal income tax on the amount of your Direct Loans that is forgiven.

The discharged loan amount may be considered income for state tax purposes. You may want to consult with your state tax office or a tax professional before you file your state tax return.