To qualify for Public Service Loan Forgiveness, you'll need to be working full-time in a qualifying public service position while you make each of your 120 qualifying payments. But what is qualifying employment? We can help you get started on the right path.
Printer-friendly versionThink about your future employment and career plans!
Do you plan on working in qualifying employment? If so, make sure you are also meeting the other requirements so you can qualify for PSLF. Or maybe knowing what employment qualifies will help you decide between two or more possible paths. Even if you are uncertain if you will end up working in qualifying employment, consider taking the additional steps necessary so if you do secure a qualifying position, you'll be on your way to forgiveness!
Qualifying public service employment is full-time paid work in:
The two major catchalls for qualifying employment are 501(c)(3) nonprofits and the government. Regardless of your specific position or title, as long as you are employed full-time by the government or a 501(c)(3) organization, you may benefit from Public Service Loan Forgiveness.
If you do not work for a 501(c)(3) nonprofit or the government, your employment may still qualify if you are employed by a "public service organization." The CCRAA defines "public service organization" for certain fields, but in all instances your organization must not be organized for profit, a labor union, a partisan political organization, or an organization engaged in religious activities.
Definition of full-time:
The Department of Education's final regulations define "full-time" as working in qualifying employment in one or more jobs for the greater of:
- An annual average of at least 30 hours per week;
- For a contractual or employment period of at least 8 months, an average of 30 hours per week; or
- Unless the qualifying employment is with two or more employers, the number of hours the employer considers full-time. For example, if your employer considers a full-time position to require 40 hours per week, you must be working 40 hours per week to qualify.
If you take vacation or leave time or take leave pursuant to the Family and Medical Leave Act, this is not counted against you when calculating the annual or contractual average hours you have worked.
Some additional points you need to know about qualifying employment:
- Your qualifying employer must be the one paying you. This means that volunteer work at a 501(c)(3) will not count as qualifying employment.
- You may combine one or more part-time jobs to reach the required average of 30 hours per week, but each of your employers must qualify. For example, you may work part-time for the government and part-time for a 501(c)(3) and add these hours together to reach 30 hours per week.
- You can switch jobs! As long as you switch to another qualifying employer and work full-time, your employment will continue to qualify.
- You must be in qualifying employment at the time of forgiveness. Be sure to remain in qualifying public service work until the government has granted final forgiveness of your loans!
- Keep track of your employment! You will have to show the Department of Education that you have been working in qualifying employment. Keep copies of your W-2s, pay stubs and any other documents you may have that will show your employment.
Government Employment
You may work for any level of government: a local , State, Federal or Tribal government organization, agency or entity. You may be employed in any position with one exception: you may not be a member of the U.S. Congress. However, you may work in Congress or for a Senator or Representative.
A 501(c)(3) Nonprofit
Employment at a non-profit organization under section 501(c)(3) of the Internal Revenue Code that is exempt from taxation under section 501(a) of the Internal Revenue Code is qualifying employment.
A full-time AmeriCorps position
Working in a position approved by the Corporation for National and Community Service under section 123 of the National and Community Service Act of 1990 qualifies.
There are additional considerations AmeriCorps members and alums should think about regarding Public Service Loan Forgiveness.
A Peace Corps position
If you are working in a full-time assignment under the Peace Corps Act, this work will count as qualifying employment.
Employment at a private "public service organization"
The Department of Education has defined a private "public service organization" as one that provides the following services:*
- Emergency management;
- Military service;
- Public safety;
- Law enforcement;
- Public interest law services;
- Early childhood education (including licensed or regulated health care, Head Start, and State funded pre-kindergarten);
- Public service for individuals with disabilities and the elderly;
- Public health (including nurses, nurse practitioners, nurses in a clinical setting, and full-time professionals engaged in health care practitioner occupations and health care support occupations, as such terms are defined by the Bureau of Labor Statistics);
- Public education;
- Public library services;
- School library or other school-based services.
The organization must not be a business organized for profit, a labor union, a partisan political organization, or an organization engaged in religious activities.
* Many of these terms have been specifically defined by the Department of Education in its final regulations implementing the CCRAA. If you are not in the government or at a 501(c)(3), make sure you check the regulations for these definitions to make sure your employment qualifies.
