Does Working for a University Qualify for PSLF?

The Public Service Loan Forgiveness (PSLF) program is a federal initiative designed to help individuals working in public service roles manage their student loan debt. Many borrowers wonder whether employment at a university qualifies for this program. This article aims to clarify the specific criteria for university employees seeking PSLF, detailing the types of employers, loans, and payments that are eligible for forgiveness.

Employer Eligibility for PSLF

For employment to qualify for PSLF, the employer must be a government organization at any level, such as federal, state, local, or tribal, or a non-profit organization. The specific type of work performed for a qualifying employer generally does not affect eligibility; the employer’s status is the determining factor. This employment must be maintained for the entire period counted towards forgiveness. Public universities, being government entities, are considered qualifying employers for PSLF.

Most private colleges and universities also qualify if they are tax-exempt under Section 501(c)(3) of the Internal Revenue Code. Conversely, employment at for-profit educational institutions does not qualify for PSLF, regardless of the specific job duties performed. For religious organizations, employment can qualify for PSLF if the organization is tax-exempt under Section 501(c)(3). Recent changes clarify that religious instruction, worship services, or proselytizing performed as part of job responsibilities can count toward the full-time employment requirement if the organization meets the 501(c)(3) status.

Loan and Payment Eligibility for PSLF

Beyond employer eligibility, specific loan types and payment requirements apply for PSLF. Only loans received under the William D. Ford Federal Direct Loan (Direct Loan) Program qualify for forgiveness. This includes Direct Subsidized, Unsubsidized, PLUS, and Consolidation Loans.

Other federal loan types, such as Federal Family Education Loan (FFEL) Program loans and Federal Perkins Loans, do not directly qualify for PSLF. However, these loans can become eligible if they are consolidated into a Direct Consolidation Loan. Private student loans never qualify for PSLF.

To earn forgiveness, borrowers must make 120 qualifying monthly payments. These payments must be made after October 1, 2007, and do not need to be consecutive. Each payment must be for the full amount due and submitted within 15 days of the due date.

Payments must also be made under a qualifying repayment plan, such as an Income-Driven Repayment (IDR) plan. These include Income-Based Repayment (IBR), Pay As You Earn (PAYE), Revised Pay As You Earn (REPAYE), Income-Contingent Repayment (ICR), or the 10-year Standard Repayment Plan.

Additionally, payments must be made while the borrower is employed full-time by a qualifying employer, which generally means working at least 30 hours per week, or the employer’s definition of full-time if greater. This 30-hour requirement can be met by combining hours from multiple qualifying part-time jobs.

Verifying Employment and Applying for PSLF

After understanding eligibility, verify employment and apply for PSLF. It is advisable to submit the PSLF Employment Certification Form (ECF) regularly, such as annually or whenever changing employers. This proactive approach helps track qualifying employment and payments, building a digital record over time.

The ECF requires borrower details, employer name, address, Employer Identification Number (EIN), and employment dates. An authorized official at the university or employer must sign and certify the form.

The official ECF form can be accessed on the Federal Student Aid website. Once the form is completed and signed, it can be submitted electronically through the PSLF Help Tool or mailed to the designated loan servicer.

After 120 qualifying payments have been certified, the borrower must submit the final PSLF Application, which is often combined with the ECF, while still employed by a qualifying employer.