Public Service Loan Forgiveness

Public Service Loan Forgiveness: Help Employees Achieve Their Financial Goals

The Public Service Loan Forgiveness (PSLF) program can offer significant financial relief to higher ed employees, but many don’t know they qualify for this benefit. PSLF is open to most full-time higher ed employees of nonprofit colleges and universities who have direct federal student loans.

HR can spread the word to current employees and use loan forgiveness as part of a retention and recruitment strategy. The average amount of individual loan forgiveness under the PSLF is $70,000, which makes the PSLF an especially attractive benefit to potential employees.

Here’s what you need to know about who qualifies for PSLF, how to offer a free webinar on PSLF to your employees, and what steps you can take to ensure eligible employees enroll.

What is PSLF?

Public Service Loan Forgiveness forgives the balance of direct federal student loans after 120 qualifying payments made by the borrower if they work for a qualifying employer (after October 1, 2007) and are under a qualifying repayment plan. It’s intended to reward and incentivize public service, like teaching, nonprofit work and work in the public sector. PSLF eligibility isn’t about what job an employee does or what their job description is; it’s about where they work.

Who qualifies for PSLF?

Full-time employees of a nonprofit organization or a federal, state, tribal, or local government are eligible. Full-time work is defined as 30 hours or more per week. That means most full-time higher ed employees are eligible for PSLF, including those who may work part time at your institution but are also employed at other qualifying jobs (as is the case with many adjuncts). But the PSLF only applies to direct federal student loans. Borrowers with other federal student loans may be able to consolidate them into a direct federal student loan.

ASU employees:

ASU employees may be eligible for the Public Service Loan Forgiveness Program. The PSLF program forgives the remaining balance on your direct loans after making a set amount of payments under a qualifying repayment plan while working full-time for a qualifying employer.

If you believe you meet the requirements, fill out the PSLF Form.

• Employer Identification Number: 860196696.
• Employer name: Arizona State University.
• To complete the form with an electronic signature, use employer email address: hresc@asu.edu.
• To complete the form manually, complete Section 2 with your signature, then submit to Human Resources for processing.