Do You Have to Work Full Time for PSLF?

The Public Service Loan Forgiveness (PSLF) program is a federal initiative designed to alleviate the burden of student loan debt for individuals dedicated to public service. The program offers the potential for federal student loan forgiveness after a borrower meets certain requirements, supporting those who commit to serving their communities.

Defining Full-Time Employment for PSLF

For the Public Service Loan Forgiveness program, “full-time” employment is a specific requirement. A borrower must work at least 30 hours per week to meet this definition. This threshold applies whether an individual holds one full-time position or combines multiple part-time jobs.

If working multiple part-time jobs, the combined hours must consistently total at least 30 hours per week. Each of these part-time positions must also be with a qualifying employer for the hours to count towards the PSLF requirement. For instance, working 15 hours for one qualifying non-profit and 15 hours for another qualifying government agency would meet the 30-hour weekly threshold.

For some teachers, fulfilling a contract that the employer defines as full-time could qualify, even if it’s less than 30 hours, provided the employment is with a qualifying employer.

Employment as an independent contractor or through self-employment does not qualify for PSLF, regardless of the number of hours worked. The program requires an employer-employee relationship with a qualifying entity. Working full-time hours for an employer that does not meet the qualifying employer criteria will not contribute towards PSLF.

The determination of full-time status primarily relies on the employer’s definition, provided it is at least 30 hours per week. If an employer considers less than 30 hours as full-time, that definition can be accepted for PSLF purposes. If the employer’s definition is less than 30 hours, but the individual works 30 hours or more, the federal definition of at least 30 hours per week will apply.

Qualifying Employer Criteria

The program broadly defines qualifying employers into several categories, focusing on their tax status and mission rather than specific job duties.

Government organizations at any level—federal, state, local, or tribal—are considered qualifying employers. This includes public schools, the U.S. military, public health departments, and various government agencies.

Tax-exempt non-profit organizations recognized under Section 501(c)(3) of the Internal Revenue Code also qualify. These organizations operate for charitable, religious, educational, or scientific purposes, without private gain. Hospitals, universities, and charitable foundations often fall into this category.

Beyond 501(c)(3) organizations, other non-profit organizations that are not tax-exempt under 501(c)(3) can also qualify if they provide specific “public services.” The Department of Education defines these public services to include public health, public education, public safety, social work, and public interest law services. This allows a broader range of non-profits to participate, provided their primary purpose aligns with these designated public service areas.

Certain types of employers are excluded from PSLF eligibility. For-profit organizations, including those that contract with the government or non-profits, do not qualify. Labor unions and partisan political organizations are also ineligible. Organizations primarily engaged in religious instruction or worship do not qualify, unless the employment is solely in secular areas, such as a hospital operated by a religious organization.

Other Essential PSLF Eligibility Requirements

The type of federal student loan a borrower holds is a consideration. Only Direct Loans are eligible for PSLF.

If a borrower has other types of federal student loans, such as Federal Family Education Loan (FFEL) Program loans or Federal Perkins Loans, these do not directly qualify. However, these loans can become eligible by consolidating them into a Direct Consolidation Loan. Only payments made after the consolidation process will count towards the 120 qualifying payments required for PSLF.

Enrollment in a qualifying repayment plan is another component. The most common and beneficial plans for PSLF are Income-Driven Repayment (IDR) plans, which include options like Revised Pay As You Earn (REPAYE), Pay As You Earn (PAYE), Income-Based Repayment (IBR), and Income-Contingent Repayment (ICR). These plans adjust monthly payments based on a borrower’s income and family size, making payments more manageable while pursuing forgiveness. While the Standard 10-year Repayment Plan also qualifies, it is not advantageous for PSLF because the loan would be paid off before reaching the 120 qualifying payments, leaving no balance to forgive.

The program requires a total of 120 “qualifying payments.” A qualifying payment is defined as a payment made on time, for the full amount due, under a qualifying repayment plan, and while the borrower is employed full-time by a qualifying employer. These 120 payments do not need to be consecutive, allowing for periods of non-qualifying employment or payment pauses without losing accumulated progress.

Managing Your PSLF Progress and Application

The Federal Student Aid (FSA) website provides the PSLF Help Tool. This tool assists borrowers in determining their eligibility and generating the PSLF & TEPSLF Certification & Application form.

It is recommended to use the PSLF Help Tool to generate and submit this form annually, or whenever there is a change in employment. This proactive approach allows the loan servicer to review and verify your employment history and update your count of qualifying payments. Regular submission helps prevent potential discrepancies or issues that might arise closer to the forgiveness application date.

After submitting the certification form, your loan servicer will review the employment details and payment history. They will then provide an updated count of your qualifying payments. This count helps track your progress towards the 120 payments needed for forgiveness. Borrowers should keep detailed records of their payments and employment to cross-reference with the servicer’s count.

Once a borrower has made 120 qualifying payments, they can submit the final application for forgiveness. This involves completing another section of the PSLF & TEPSLF Certification & Application form, indicating that the 120 payments have been met and requesting loan forgiveness. The loan servicer will then process this application, and if all requirements are confirmed, the remaining eligible federal loan balance will be forgiven.