If you’ve already read our PSLF overview, you know Public Service Loan Forgiveness is real. It works. And for many, it has been absolutely life-changing.
Now let’s talk about how to actually apply. Slowly. Kindly. One step at a time. Because yes, the system can be frustrating. And yes, the paperwork feels like it was written by someone who has never actually filled out paperwork. But we’re going to get through this together.
Here’s how I help clients walk through it, and how you can too.
Step 1: Make sure you qualify
You’ll need four basic ingredients to be eligible:
- You must have Federal Direct Loans. (If you’ve got FFEL or Perkins loans, you may need to consolidate first.)
- You must be on an eligible repayment plan. These include Income-Based Repayment (IBR), Pay As You Earn (PAYE), Revised Pay As You Earn (REPAYE, now called SAVE), or Income-Contingent Repayment (ICR).
- You must be working full-time for a qualifying employer. This means government or 501(c)(3) nonprofit organizations. Yes, private universities can count too, as long as they are officially registered as a nonprofit.
- You need to make 120 qualifying monthly payments while meeting the above conditions.
This is the foundation. Everything else builds from here.
Step 2: Use the PSLF Help Tool
The PSLF Help Tool is your guide. You can find it at https://studentaid.gov/pslf/. It helps you check whether your employer qualifies, fills out the correct form for you, and creates a checklist to keep you on track.
Even if you're not applying yet, use this tool early. It can save you from years of unnecessary frustration later.
Step 3: Submit the PSLF Form
This is the form that tells the Department of Education, "Hey, I’m working in public service and making payments. Please keep track." You don’t need to wait until your 120th payment. Submit this form once a year or any time you switch jobs.
You’ll need:
- Your employer’s Federal Employer Identification Number (EIN)
- A wet (ink) signature from your employer—this one tripped me up a few times!
- Your own signature (either digital or ink)
You can submit the form online or mail it in. Do whichever feels more comfortable.
Step 4: Know who your loan servicer is
If you’re pursuing PSLF, your loan servicer will likely become MOHELA. Once your PSLF form is processed, your loans may be transferred there.
This can feel a little scary, especially if your servicer changes out of the blue. But don’t panic. Just make sure to download copies of your documents and communications. Keep a folder with every PSLF form you submit, any payment history, and any confirmation emails. The more documentation you have, the better.
If your loan servicer ever does change, stay alert. Monitor your accounts and confirm that everything transferred correctly. Mistakes can happen, but they can also be fixed.
Step 5: Keep an eye on your payment count
MOHELA will eventually start showing a tally of how many qualifying payments you’ve made. Just remember, their math isn’t always perfect. It’s a good idea to keep your own count too, just in case.
Compare their number to your records. If something seems off, you have every right to ask questions. This is your future, and it’s okay to double-check the math.
Step 6: When it’s time, apply for forgiveness
When you hit your 120th payment, you don’t need a new or separate application. You just submit another PSLF form, just like you’ve done before. If everything checks out, your balance will be wiped clean.
It really does happen. And when it does, it is not taxed at the federal level. The amount forgiven simply disappears.
There’s no tax bomb waiting for you. No tricks. No fine print that says “just kidding.” It’s truly forgiven. Period.
A few extra reminders while we’re here:
- Try not to consolidate your loans unless absolutely necessary. Consolidation can reset your qualifying payment count unless you're making them eligible for PSLF for the first time.
- Open your mail. Even if it feels scary. Especially if it looks boring. There are still important updates that come by paper.
- Recordkeeping is everything. If you only take one thing from this guide, let it be that.
A note about the Department of Education
Yes, there are rumors. Yes, certain figures in power have called for the Department of Education to be dismantled. But no, it cannot simply vanish overnight. Even if it were defunded to the point of near-extinction, another federal agency would still be legally required to handle the management and discharge of federal student loans.
This program is written into law. Only Congress can fully erase it. And while we live in a world of some political uncertainty, the infrastructure around PSLF isn’t going anywhere quietly. So please, keep going. It’s worth it.
And while we’re at it… PSLF isn’t the only program out there
There are other forgiveness options that also matter deeply:
- Teacher Loan Forgiveness for those serving in low-income schools
- Military forgiveness benefits that reward service to the country
- And Income-Driven Repayment forgiveness, available after 20 or 25 years of payments, depending on your plan
Public Service Loan Forgiveness isn’t a political stunt. It isn’t some niche offering that popped up overnight. It is one part of a much broader strategy to reward those who serve others.
And you? You’re serving. You’re doing the work. So let’s help you get what you’re owed.
If you ever need a hand, a second pair of eyes, or someone to cry happy tears with when your balance hits zero, you know where to find me.
Bundtinis optional. Joy required.