Do Doctors Qualify for Public Service Loan Forgiveness?

The Public Service Loan Forgiveness (PSLF) program offers a pathway for federal student loan borrowers to have their remaining loan balance forgiven. This initiative supports individuals who commit to public service by providing financial relief on their federal student loans.

Borrower and Loan Eligibility

Only federal Direct Loans are eligible for the program. This includes Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans, and Direct Consolidation Loans. Loans from other federal programs, such as Federal Family Education Loan (FFEL) Program loans or Federal Perkins Loans, do not directly qualify but can become eligible if they are consolidated into a Direct Consolidation Loan. Private student loans are not federal loans and therefore cannot be consolidated or forgiven under the PSLF program.

Borrowers must also be employed full-time by a qualifying employer. Full-time employment generally means working at least 30 hours per week for one or more qualifying employers. Additionally, borrowers must be enrolled in a qualifying income-driven repayment (IDR) plan. These plans adjust monthly payments based on a borrower’s income and family size, and include:
Pay As You Earn (PAYE)
Revised Pay As You Earn (REPAYE)
Income-Based Repayment (IBR)
Income-Contingent Repayment (ICR)
Saving on a Valuable Education (SAVE)

While the 10-year Standard Repayment Plan is also a qualifying plan, borrowers typically need an IDR plan to have a remaining balance to forgive after 120 payments, as the Standard Plan would often pay off the loan within that timeframe.

Qualifying Employer Types for Doctors

Doctors can qualify for PSLF, but their eligibility hinges on the type of organization that employs them, rather than their medical profession itself. Employment with government organizations at any level—federal, state, local, or tribal—is considered qualifying. This includes positions at public hospitals, state hospital systems, federal hospitals like those operated by the Department of Veterans Affairs (VA), and military medical facilities.

Work with 501(c)(3) non-profit organizations also qualifies for PSLF. Many non-profit hospitals, medical clinics, and research institutions fall into this category. To verify if an organization is a 501(c)(3) non-profit, individuals can use the IRS Tax Exempt Organization Search tool on the IRS website or request a determination letter directly from the organization. Certain other non-profit organizations that are not 501(c)(3)s may also qualify if they provide specific public services, such as public health services or medical care.

Employment with private, for-profit medical practices, for-profit hospitals, or most group practices typically does not qualify for PSLF. Time spent in residency or fellowship programs may count toward PSLF if the institution is a qualifying employer, such as a public hospital or a 501(c)(3) non-profit hospital. Many residency and fellowship positions are at qualifying institutions, allowing medical professionals to accumulate qualifying payments during their training.

Meeting Payment Requirements

A central requirement for Public Service Loan Forgiveness is making 120 qualifying monthly payments. These payments do not need to be consecutive, allowing for periods of non-qualifying employment or payment pauses without losing prior progress.

Payments must be made on time, generally meaning within 15 days of the due date, and for the full amount due. Payments made before loan consolidation can count if all other eligibility criteria were met at the time the payments were made. The COVID-19 payment pause, which suspended federal student loan payments, counted as qualifying payments for PSLF purposes for those who met all other eligibility criteria during that period.

Steps for PSLF Application and Tracking

Borrowers should regularly submit the Employment Certification Form (ECF) to track their progress. It is advisable to submit this form annually or whenever there is a change in employment. This proactive approach helps confirm that employment periods and payments are accurately recorded by the loan servicer, which is currently MOHELA for PSLF.

The PSLF Help Tool, available on the Federal Student Aid website, is a valuable resource. This tool assists borrowers in determining employer eligibility, generating the ECF, and facilitating the submission process, including electronic signature options for the borrower and employer, ensuring correct submission. After submitting an ECF, the loan servicer will review it and provide an updated count of qualifying payments.

Once a borrower has made 120 qualifying monthly payments, they must submit a final PSLF application. The borrower must still be employed full-time by a qualifying employer when submitting this final application. The application confirms that all requirements have been met, initiating the process for the remaining federal Direct Loan balance to be forgiven.