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In response to a growing student debt crisis in the United States, Public Service Loan Forgiveness was enacted into law in 2007 as part of the College Cost Reduction and Access Act.
Many college graduates with significant student loan debt had been deterred from pursuing careers in public service because these jobs frequently paid less than comparable ones in the private sector. PSLF’s goal was to encourage college graduates to work in public service jobs, such as teaching, nursing, and government work, by forgiving a portion of their Federal Direct Loans.
Qualifying for and applying to the PSLF program is a complex process. Borrowers must do the following:
Although Public Service Loan Forgiveness promised debt relief to borrowers who met certain requirements, the program faced numerous challenges. PSLF rules were initially rigid and confusing, and approval rates for loan forgiveness were exceedingly low for a variety of reasons. Several modifications have been introduced throughout the years to help address the issues:
| Year | Modification | Reason |
| 2012 | Introduced Employment Certification Form (ECF) | To help borrowers verify employment qualifications |
| 2018 | Introduced PSLF Help Tool | To help borrowers assess PSLF eligibility and choose correct forms |
| 2018 | Enacted Temporary Expanded Public Service Loan Forgiveness (TEPSLF) | To allow borrowers who were initially denied due to having the wrong payment plan |
| 2020 | Combined PSLF and TEPSLF forms | To simplify the process
|
| 2021 | Redesigned PSLF report | To support the new PSLF and TEPSLF combined form |
| 2021 | Enacted limited PSLF waiver, allowing candidates to count payments from non-qualifying loans toward PSLF eligibility | To offer relief to public servants during COVID-19
(waiver ended 10/31/2022) |
| 2022 | Enacted one-time account adjustments and permanent reforms to IDR tracking | To address historical inaccuracies in the PSLF program and bring more borrowers closer to loan forgiveness |
The path toward loan forgiveness has a long and complicated journey, but borrowers have been seeing better results in recent years. In May of 2023, the Department of Education announced $42 billion in approved PSLF for more than 615,000 borrowers since enacting the limited waiver in October of 2021–a marked improvement over the 7,000 borrowers approved for PSLF during the previous administration.
While the future of PSLF may still hold challenges, new opportunities to ease the burden of student debt could be coming. The DOE continues to modernize the PSLF application experience and now allows borrowers to complete their entire application process online through an updated PSLF Help Tool.
Lawmakers also recognize PSLF’s potential impact on the student debt crisis. Regulations that simplify the program, offer better guidance to borrowers, and expand eligibility to more public service professions are set to take effect in July 2023.
If you want to participate in PSLF, here are some guidelines to keep in mind that could help you navigate the program:
While applying for PSLF isn’t easy, the potential for debt relief and the opportunity to serve your community could make it worthwhile. By leveraging the available resources and staying committed to your goals, you can effectively navigate PSLF, achieve financial freedom, and make a difference in the world of public service.
