What Is Considered 120 Qualifying Payments?
Gain clarity on the exact elements that define 120 qualifying payments for federal student loan forgiveness. Understand your eligibility.
The Public Service Loan Forgiveness (PSLF) program is a federal initiative to forgive remaining balances on certain student loans for individuals working in public service. It requires borrowers to make 120 qualifying monthly payments while meeting specific criteria. Understanding qualifying payments is important for borrowers pursuing PSLF.
Eligible Federal Loans
Only Direct Loans qualify for PSLF: Direct Subsidized, Unsubsidized, PLUS, and Consolidation Loans. Other federal loan types, such as Federal Family Education Loan (FFEL) or Perkins Loans, must be consolidated into a Direct Consolidation Loan to become eligible.
Consolidating non-Direct Loans is necessary for PSLF. Payments on FFEL or Perkins loans do not count. This consolidation creates a new Direct Loan; only payments on this consolidated loan count toward the 120-payment requirement. Private student loans are never eligible for PSLF.
Qualifying Employment
Employment must be full-time with a U.S. federal, state, local, or tribal government, or a non-profit organization tax-exempt under Internal Revenue Code Section 501(c)(3). Full-time employment means working at least 30 hours per week, or the employer’s definition. For multiple part-time employers, combined average hours must total at least 30 hours per week.
Other non-profit organizations not 501(c)(3) may also qualify if they provide specific public services, such as emergency management, public safety, public health, or public education. Employment with a for-profit organization does not qualify for PSLF. It is also generally required to be a direct employee of the qualifying organization, though some exceptions exist in states where laws prevent direct hiring for certain services.
Approved Repayment Plans
Payments must be made under specific repayment plans. Primary plans are Income-Driven Repayment (IDR) plans: Income-Based Repayment (IBR), Pay As You Earn (PAYE), Revised Pay As You Earn (REPAYE), and Income-Contingent Repayment (ICR). These plans base monthly payments on income and family size, often resulting in lower payments.
Payments under the 10-year Standard Repayment Plan also qualify for PSLF. IDR plans are generally most practical for borrowers pursuing PSLF, as they are more likely to result in a remaining balance for forgiveness. Other plans, such as Graduated, Extended, or Alternative repayment plans, do not qualify.
Payment Specifics
Each of 120 payments must meet specific criteria: on time (within 15 days of due date), and for the full amount due. Payments for less do not count.
Payments must be after October 1, 2007, and while employed full-time by a qualifying employer. Payments while not employed by a qualifying employer, or during in-school, grace, deferment, or forbearance periods, do not count. Payments must be made directly by the borrower, with limited exceptions.
Tracking and Verification
Borrowers can track and verify qualifying payments through Federal Student Aid. The PSLF Help Tool on StudentAid.gov assists borrowers in checking employer eligibility, consolidating loans, applying for repayment plans, and generating the PSLF Employment Certification Form (ECF).
Submitting the ECF annually or when employment changes is recommended. This form allows the loan servicer to count payments and confirm qualifying employment to stay on track. Borrowers can review payment progress on the Federal Student Aid website or by contacting their loan servicer. Regular certification maintains an accurate record.