Public Service Loan Forgiveness requires ten years of monthly payments to qualify for loan forgiveness. Do I get any benefit if I fall short?

The path toward Public Service Loan Forgiveness (PSLF) presents some risks for borrowers. Because this program is an “all-or-nothing” benefit, it is important for you to understand that you must make 120 on-time, qualifying monthly payments in order to obtain loan forgiveness.

It is also important to know that these payments do not have to be consecutive. If you make a late payment or leave public service for a brief period, you will still be able to pick up where you left off and continue down the path to loan forgiveness. If you leave a public service job, you can still receive credit for payments made during the time you were in a public service job. Later in your career, if you return to a public service job, you can begin receiving credit towards the 120 required payments while working for a qualified employer.

However, to obtain the biggest benefit under PSLF, you should strive to make your 120 on-time, monthly payments in 120 months.

While we recommend submitting an Employment Certification Form  on an annual basis to receive credit, you should, at a minimum, submit the form every time you leave a qualifying employer. It will be easier to get the form filled out by your employer at that time compared to when you apply for loan forgiveness.