If you have federal student loan debt, you could be eligible to have your loan balances forgiven through the Public Service Loan Forgiveness program (PSLF) as a U-M employee.

And, with a limited PSLF Waiver opportunity, faculty and staff with federal student loan debt may receive an unexpected gift in 2022 – federal loan forgiveness. Through Oct. 31, 2022, the PSLF program has been expanded to give borrowers credit for payments that previously didn’t qualify. If you’ve been repaying federal loans, you may qualify.

What is PSLF?

Under the PSLF program, you may qualify for federal loan forgiveness after you’ve made 120 qualifying payments while working full-time for a public service employer (10 years). You also must be making payments through 10-year standard repayment or one of the federal income-driven repayment plans. During the limited waiver, other payments may also qualify.

Only federal Direct Loans qualify for the program, although other federal student loan types may become eligible if you consolidate them into a Direct Consolidation Loan. Talk to your loan servicer about the implications if you’re considering this option.

Am I Eligible?

According to the Office of Federal Student Aid, the eligibility requirements for loan forgiveness under the PSLF program are:

• You must not be in default on the loans for which you are requesting forgiveness.

• You must be employed full-time by a public service organization when making each of the required 120 qualifying loan payments (certain repayment conditions apply); at the time you apply for loan forgiveness; and at the time the remaining balance on your eligible loans is forgiven.

If you’re a parent who borrowed a Federal Direct PLUS Loan on behalf of your dependent undergraduate child, you may qualify if you’re working in a public service job and repaying through an eligible repayment plan.

Completing the Employment Certification Form

As an eligible borrower, you must periodically complete and submit the PSLF Employment Certification Form (ECF) to the U.S. Department of Education. The U-M Shared Services Center can complete the employer portion of the ECF. Visit the SSC website for steps to submit your Employment Verification Request for PSLF.  

Learn More

To learn more, visit the Federal Student Aid website. The U-M Office of Financial Aid may also be able to answer questions at [email protected].