PSLF employer questions, answered

Public Service Loan Forgiveness depends on who signs your paycheck, not what you do. Work full time for a U.S. government employer at any level, a 501(c)(3) nonprofit, or certain other nonprofits that provide public services, make 120 qualifying payments on Direct Loans, and the remaining balance is forgiven tax free.

Who counts

Studentaid.gov lists qualifying employers as:

• Government organizations in the U.S. at any level: federal, state, local or tribal. That includes public schools, public universities, public hospitals and the U.S. military.
• 501(c)(3) nonprofits, whatever the job: a hospital billing clerk at a nonprofit hospital qualifies.
• Other nonprofits that aren’t 501(c)(3) but devote a majority of their full-time staff to certain public services, such as public health, public education, public safety, or emergency management. These need a closer look.
• Full-time AmeriCorps or Peace Corps service.

And who doesn’t: for-profit companies (including ones under government contract), labor unions and partisan political organizations.

Common edge cases

“I work at a hospital.” Check which entity is your legal employer, the name on your W-2. Many hospitals are 501(c)(3)s; many physician groups that staff them aren’t. The employer’s federal EIN decides it.

“I’m a contractor at a federal agency.” If a for-profit company employs you, it doesn’t count, even if you sit in a government building. There is a narrow exception for some contracted employees in states whose law prevents the public employer from hiring them directly.

“I have two part-time jobs.” Full time for PSLF is a weekly average of at least 30 hours, and hours at more than one qualifying employer add together.

“My employer isn’t in the database.” Use the PSLF Help Tool to search the employer database and, if your employer isn’t listed, request a review. The same tool prepares the PSLF form and sends it to your employer to certify electronically.

The 2025 employer rule: vacated

On October 31, 2025 the Department published a rule (90 FR 48966) that would have let it disqualify employers it found to have a “substantial illegal purpose,” starting July 1, 2026. Nonprofits, cities and states sued. On June 30, 2026, federal courts in Massachusetts and D.C. vacated the rule, according to the Congressional Research Service. The Department appealed on August 27, 2026 and removed the employer attestation from the PSLF form. News reports say that on October 21, 2026 the government moved to dismiss its First Circuit appeal in the nonprofits’ case and its D.C. appeal; we haven’t yet confirmed that against the court filings (nonprofits’ case docket). The states’ appeal (No. 26-1973) is still pending. As of October 24, 2026 the rule stays vacated; if an appeals court revives it, this page will say so.

Which payments count after July 1, 2026

Plan	Counts toward the 120?
Repayment Assistance Plan (on time and in full)	Yes
IBR	Yes
PAYE and ICR, until they close by July 1, 2028	Yes
10-year Standard (loans from before July 1, 2026)	Yes
Tiered Standard	No
Months in the SAVE forbearance	No (PSLF Buyback may apply later)

Two things changed with the new rules. If you take any new federal loan, including a consolidation loan, on or after July 1, 2026, Tiered Standard becomes your default plan, and it doesn’t count. Enroll in RAP instead. And Parent PLUS loans, which can’t use RAP, can’t keep qualifying for PSLF once a new loan forces them onto Tiered Standard.

What PSLF is worth to you

Put your loans and your PSLF count into the calculator and choose your employer type. It shows when the 120th payment lands, what you pay until then on RAP or IBR, and how much would be forgiven. For most people heading for PSLF the cheapest plan is the one with the lowest payment, and refinancing into a private loan is never the right move, because private loans don’t qualify.