PSLF forgives your remaining federal Direct Loan balance, tax-free, after 120 qualifying monthly payments (10 years) made while you work full time for a qualifying employer — a U.S. federal, state, local or tribal government organization or a 501(c)(3) nonprofit. Payments under RAP, IBR and other income-driven plans count; payments under the new Tiered Standard plan do not. Congress did not repeal PSLF, and a 2025 Education Department rule narrowing employer eligibility was vacated by a federal court on June 30, 2026.
PSLF requirements in 2026
- Loan type: federal Direct Loans. FFEL and Perkins loans must be consolidated into a Direct Consolidation Loan first, and only payments after consolidation count.
- Employer: a government organization at any level, or a 501(c)(3) nonprofit; some other nonprofits that provide qualifying public services may also count.
- Full-time: at least 30 hours a week (multiple qualifying jobs can be combined).
- Repayment plan: an income-driven plan (RAP, IBR, and PAYE/ICR while they last) or the old 10-year standard plan. Tiered Standard payments never count.
- Payments: 120 on-time, full monthly payments; they need not be consecutive.
Submit the PSLF form (employment certification) every year or whenever you change jobs so your count is updated on StudentAid.gov.
What changed for PSLF on July 1, 2026
- RAP counts. The new Repayment Assistance Plan qualifies for PSLF, including for borrowers whose new loans can no longer use IBR.
- Tiered Standard doesn’t. New borrowers who never choose a plan land on it — and lose PSLF credit until they switch to RAP.
- SAVE is gone. Former SAVE borrowers must choose RAP, IBR or a standard plan; time in the SAVE litigation forbearance generally did not count, though the PSLF buyback program lets some borrowers pay for those months.
- Employer rule vacated. An October 2025 final rule would have excluded employers found to have a “substantial illegal purpose” starting July 1, 2026; a federal court vacated it on June 30, 2026, and reports indicate the Department later dropped its appeals.
How much can PSLF forgive? Three examples
PSLF is most valuable when your income-driven payment is low relative to the balance. Projections over 120 payments on RAP (income +3% a year):
| Borrower | First RAP pmt | Paid in 10 yrs | Forgiven tax-free | 10-yr standard pmt |
|---|---|---|---|---|
| $100,000 at 8.07%, AGI $60,000 | $250 | $43,667 | $94,000 | $1,217 |
| $200,000 at 8.07%, AGI $75,000, 2 dependents | $338 | $57,316 | $194,000 | $2,434 |
| $40,000 at 6.52%, AGI $85,000 | $567 | $49,216 | paid off in 6 yr 2 mo | $455 |
The third case shows the flip side: with a modest balance and a solid income, the RAP payment is above the 10-year standard payment and clears the loan before 120 payments, leaving nothing to forgive. PSLF pays off most for large graduate and professional balances relative to income — doctors in training, public defenders, social workers and teachers with master’s debt.
Plan your payment while you work toward PSLFCheck your take-home pay and see how an income-driven payment fits your budget.
PSLF tips that protect your forgiveness
- Pick RAP or IBR — whichever is lower — because every dollar you pay is a dollar that won’t be forgiven.
- Lower your AGI legally with pre-tax 403(b), 457(b) or 401(k) contributions; this reduces your payment and boosts retirement savings.
- Never refinance federal loans you plan to have forgiven: private loans can’t get PSLF.
- Keep copies of every employment certification and payment count.
- If you leave public service, your qualifying payments stay on record; they resume counting if you return.
Frequently asked questions
How many payments do I need for PSLF?
120 qualifying monthly payments — about 10 years — made while working full time for a qualifying employer.
Does RAP count toward PSLF?
Yes. Payments under the Repayment Assistance Plan count toward PSLF. Payments under the new Tiered Standard plan do not.
Is PSLF forgiveness taxable?
No. PSLF forgiveness is not federal taxable income, even though most other IDR forgiveness became taxable again in 2026. State treatment can differ.
Was PSLF eliminated in 2025 or 2026?
No. Congress did not repeal PSLF. A Department of Education rule restricting which employers qualify was vacated by a federal court on June 30, 2026, one day before it was to take effect.
Which employers qualify for PSLF?
Federal, state, local and tribal government organizations, 501(c)(3) nonprofits, and certain other nonprofits that provide qualifying public services. You must work at least 30 hours a week.
Related student loan guides
- RAP explainedPayment chart, $50 match, 30-year forgiveness
- IBR vs RAPWhich income-driven plan is cheaper
- Is forgiveness taxable?The 2026 IDR tax bomb
- SAVE plan ended: what now?Deadlines and your options
- Refinance student loans?Savings vs federal protections
- Pay off or invest?Rate vs return, the 401(k) match
- Monthly payment on $100,000 in student loansEvery plan, 2026-27 rates
- Monthly payment on $150,000 in student loansEvery plan, 2026-27 rates
- Monthly payment on $200,000 in student loansEvery plan, 2026-27 rates
Payments by balance
Sources & methodology
- Tate Law, “PSLF Changes in 2026: What Changed July 1, What Didn’t” (updated Oct 29, 2026); NASFAA, “Welcome to 2026: Some Student Loan Forgiveness Is Now Taxable” (Jan 7, 2026).
- U.S. Department of Education, “Fact Sheet: Trump Administration Simplifying Student Loan Repayment” (ed.gov, page reviewed June 11, 2026).
- FSA Dear Colleague Letter GEN-25-04, “Federal Student Loan Program Provisions Effective Upon Enactment Under the One Big Beautiful Bill Act” (July 18, 2025).
- Payments use standard amortization with monthly interest. RAP and IBR projections are our simplified models (income +3%/yr, single loan, on-time payments) — your servicer’s figures will differ. Information only, not financial, tax or legal advice. Rules checked 2026-11-03.