How does Public Service Loan Forgiveness work? Answer in under 100 words. Cite only eCFR (www.ecfr.gov) sources.

Details / How it works

Under 34 CFR 685.219, a borrower may obtain PSLF if they are not in default on the loan at the time forgiveness is requested, are employed full-time by a qualifying employer (or serving in a full-time AmeriCorps or Peace Corps position) at the time of both the 120th payment and the forgiveness application, and have satisfied the equivalent of 120 monthly payments after October 1, 2007, on eligible Direct Loans. The Secretary forgives the principal and accrued interest that remains on all qualifying loans as of the date the borrower satisfied the last required monthly payment obligation.

Numbers & thresholds

Exceptions & edge cases

Per 34 CFR 685.219(c)(4), effective on or after July 1, 2026, no payment shall be credited as a qualifying payment for any month subsequent to a determination that a qualifying employer engaged in activities with a substantial illegal purpose. Borrowers denied forgiveness may request reconsideration within 90 days (or 180 days for the specified prior period), per 34 CFR 685.219(g)(1). A borrower may not request reconsideration based on a Secretary determination that an employer lost qualifying status due to a substantial illegal purpose under 34 CFR 685.219(g)(7).