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How do I know if my Employer is Eligible for Public Service Loan Forgiveness?

The Department of Education has several great resources for verifying if your employer is eligible for the PSLF program.

Written By: Michael P. Lux, Esq.

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This week we received an email from Dave, who is concerned his employer may not be eligible for Public Service Loan Forgiveness (PSLF). In our discussion today, we’ll cover the process for verifying PSLF employer eligibility and outline the necessary actions. If you have any questions for the Sherpa, don’t hesitate to reach out.

No matter who your employer is, the most reliable way to check for PSLF eligibility is by submitting an employer certification form. By doing this, borrowers can get a tally of how many eligible payments they’ve made out of the 120 required.

People like Dave, who are worried that their employer might not be eligible, may need to take a couple of extra steps to protect themselves going forward.

A New Shortcut – The Department of Education PSLF Help Tool

When this article was first written, people like Dave had to do a bunch of research into employer eligibility for PSLF.

The Department of Education recently made employment verification much easier. Using the PSLF Help Tool, borrowers can verify employer eligibility and generate the necessary form that needs to be completed.

According to the Department of Education, borrowers will need their FSA ID and a W-2 or Federal Employer Identification Number (EIN) from their employer. The estimate that the process takes about 30 minutes.

Sherpa Note: I highly recommend that borrowers use the PSLF Help Tool to determine their eligibility for the Public Service Loan Forgiveness program. This tool is essential for confirming eligibility with a high degree of certainty, and it greatly simplifies the process of gathering and submitting all required documentation.

The remainder of this article will explore the specifics of employer eligibility in greater depth. However, for an immediate and clear understanding of your own eligibility status, the PSLF Help Tool is an invaluable resource.

Dave’s Email About PSLF Employer Eligibility

Hi Sherpa,

Fellow attorney here…and I’m flummoxed.

While my question might seem highly specialized, I still think it could be more broadly helpful.

Anyway:

I’m hoping to continue making qualifying payments for PSLF at my new job at the Tennessee Education Lottery Corporation (TEL). TEL was created by statute in Tennessee as “a body, politic and corporate, and a quasi-public instrumentality, and not a state agency or department, which shall be deemed to be acting in all respects for the benefit of the people of the state through the operation of a state lottery and in the performance of other essential public functions entrusted to it.” TCA 4-51-101(c).

What the hell is a “quasi-public instrumentality?” And is it a “governmental entity” for the sake of PSFL?

To attempt to answer my own questions, the only definition to the phrase “quasi-public instrumentality” in TN statute comes in TCA  4-39-101, which provides chapter definitions for Payment of Taxes by State Vendors and Subcontractors.  

“As used in this chapter:

(3)  “State governmental entity” means a state agency, department, board, or commission, or a public corporation or quasi-public instrumentality that performs essential public functions entrusted to it by the state; and”

Should I start celebrating that my work for the Lottery, a “quasi-public instrumentality” in TN, indeed qualifies for PSLF? Quasi-public instrumentality = state governmental entity under the law, right? Or am I being a first-year law student stretching on an exam?

I think there’s meat on the bone with questions about “quasi-public instrumentalities,” even if my question might be a little specific for the general audience that finds your site.

Thanks for taking the time,

Dave

Answering Dave’s Question

Dave has reached out with a highly technical legal query. Should he decide to file a lawsuit against the Department of Education, the laws he mentions could be pertinent. However, thankfully for both Dave and the average borrower, an intricate legal analysis is typically not required to address questions related to Public Service Loan Forgiveness.

Employers Eligible for Public Service Loan Forgiveness (PSLF)

Three employer types qualify as public service:

  • Government – Including Federal, State, and Local
  • Non-Profits – 501(c)(3) Organizations
  • A Private Not-For-Profit Organization – Must have one of the following public service activities as the primary purpose:
    • (1) emergency management,
    • (2) military service,
    • (3) public safety,
    • (4) law enforcement,
    • (5) public interest legal services,
    • (6) early childhood education,
    • (7) public service for individuals with disabilities and the elderly,
    • (8) public health,
    • (9) public education,
    • (10) public library services,
    • (11) school library services, or
    • (12) other school-based services.

How Do I Know If My Employer Qualifies?

If you’re unsure whether your employer qualifies for the Public Service Loan Forgiveness (PSLF) program, like Dave, it’s a good idea to fill out an employer certification form. This form can be found on the Department of Education’s website and needs to be completed by your employer. (Tip: the PSLF Help Tool on the website can assist you in filling out this form.) It’s wise for anyone aiming for PSLF to submit this form annually to keep their records current.

Once submitted, the form will be reviewed for verification that your employer qualifies as a public service employer.

The employer certification form doesn’t just help establish your employer’s eligibility; it also verifies that you’re on a qualifying repayment plan and that your loans qualify. When you successfully submit the form, MOHELA, the PSLF servicer, will send you a letter detailing the number of qualifying payments you’ve made towards the 120 needed for PSLF. Once you reach these 120 certified payments, your loans become eligible for discharge.

Does My Old Employer Count Towards Public Service Loan Forgiveness?

Because there isn’t a requirement to “enroll” in PSLF, old employment can be certified and count towards PSLF.

The challenge with prior employers is getting the necessary paperwork signed. For this reason, the sooner you can get your documents submitted, the better.

Strategy Limitations

The steps we have outlined so far constitute what we would consider to be the “best practice” for verifying employer eligibility. However, successful completion of these steps does not guarantee public service loan forgiveness eligibility. Recently, a lawsuit was initiated by four attorneys who received multiple employer certifications from their loan servicer. They were on track for Public Service Loan Forgiveness, but then the Department of Education changed its mind about their qualification under the 3rd definition of public service. Not only were they told their employer didn’t qualify, but the Department of Education retroactively rejected previously certified payments.

If you work for a 501(c)(3) organization or the government, this specific issue isn’t much of a concern. However, borrowers with some ambiguity about their eligibility should follow the case closely.

Don’t Ignore Other Forgiveness Opportunities: Public Service Loan Forgiveness is the most popular forgiveness program, but many other forms of federal forgiveness are available

We suggest that borrowers in this situation create a savings account or conservative investment account to set aside money for a potential PSLF issue. If, for some reason, these borrowers cannot qualify for PSLF, funds are available to pay off the debt aggressively. The saved money will likely earn less interest than the loans generate, so things won’t break even, but it is a good way for borrowers to protect themselves. If PSLF ends up working out, the money is a great head start for a downpayment on a house or retirement.

Bottom Line: Verifying Employer Eligibility for Public Service Loan Forgiveness is Easy

Figuring out whether or not you qualify for Public Service Loan Forgiveness should not require a law degree.

For the vast majority of borrowers, it is as simple as submitting a form.

About the Author

Student loan expert Michael Lux is a licensed attorney and the founder of The Student Loan Sherpa. He has helped borrowers navigate life with student debt since 2013.

Insight from Michael has been featured in US News & World Report, Forbes, The Wall Street Journal, and numerous other online and print publications.

Michael is available for speaking engagements and to respond to press inquiries.

89 thoughts on “How do I know if my Employer is Eligible for Public Service Loan Forgiveness?”

  1. My husband worked for 30 years until he retired for a qualified employer. we have made timely paymens since 2007. We have been told because he no longer works, he is not eligible for PSLF. If they would count all the years he has been working, he would. The cut off qualifying payments when he retired even though we continue to make the payments. Is this right?

    Reply
  2. 2 problems: 1) I worked full time for Mayo Clinic Health System 2008-2013. I have no one to sign my PSLF form. Their HR has people go through iVerify for employment verification. IVerify will verbally confirm dates of employment but will not sign form
    2) When I put in the EIN number from my W2’s for those years – the PSLF HELP tool says Not Eligible. Sent in Form with “employer refuses to sign” box checked anyway as I have no other options. Mohela says “Employer Not eligible”. Provide proof employer is eligible. Mayo Clinic is a known non profit! How can I prove this. I did send in all W2,s – they are asking for 5 years of paystubs from 10 years ago to prove I worked full time. I have no way to get these either as I no longer have access to payroll system.

    Reply
    • That must be really frustrating, Nancy.

      I’m not surprised that Mohela is being difficult with such limited documentation. I think your approach to work the problem from both the Mohela side of things and the Mayo Clinic side is smart.

      What does surprise me is that the Mayo Clinic isn’t being more helpful. Any non-profit has a huge incentive to help their employees with PSLF as it can be a great recruiting tool. Nancy, I think pushing the issue a bit more with Mayo Clinic might be my next move. If they can confirm that you worked there and confirm that you were full time, they should be willing to document it for PSLF. Their behavior so far seems strange.

      Reply
  3. Hi. I worked for CACI as an attorney for the DOJ (and at the DOJ offices) for 4.5 years. Would those years qualify?
    I have been with the NYCDOE for over 5 years.

    Reply
  4. I am starting a new job as of September 20, 2022 as a Cook at an elementary public school and this is my first time in education and would like to know if I can fill out forms for a PLSF, once I find out if the school is on the list of participating schools

    Reply
    • Congrats on the new job. My suggestion would be to fill out a PSLF application after you have been on the job for a month or two (your employer needs to certify that you work there). Getting that first application on file right away is a great way to ensure that there are not any other PSLF eligibility issues to address.

      Reply
  5. I worked for a non-profit doing community work and funding grants to other non-profit organizations for several years. I got a new position doing the exact same thing (community work and funding grants to non-profits) but now at a for-profit company. Is there an exception because I have still being doing the same work? Is it the public service that qualifies me or the company? Does that mean a janitor at a nonprofit would qualify but I would not? Doesn’t seem fair.

    Reply
    • You are right that it doesn’t seem fair, Micah. Your situation really illustrates the absurdity of basing PSLF on employers rather than the work that is done. Unfortunately, there isn’t an exception like the one you are looking for. PSLF eligibility is all about who you work for rather than what you do.

      Reply
  6. I worked twentysix years with New York city Department of Educationn, twelve years as a special education teacher and thirteen years as a guidance counselor am I qualify to get loan forgiveness I am no retired and had been making partial payment each month until the federal government put a stop on student loans payment

    Reply
  7. I worked for 11+ years for a federally chartered credit union. We were tax exempt, but, I don’t know if that status existed under 501c3. Generally, do credit unions qualify under 501c3? If so, do you believe they would qualify as an approved employer under PSLF?

    Thank you

    Reply
    • I don’t know how credit unions structure their organizations well enough to have an opinion on their eligibility. I’d encourage you to use the PSLF Help Tool linked in the article to get an idea. As always, the best way to find out is to send in an application for all of that time. The worst they can say is no, it doesn’t qualify.

      Reply
  8. If an employer qualities as a non-profit, and I cannot find someone in HR or an old supervisor (former employer) to certify the employment, what do I do? I’m pretty sure W-2s won’t work.

    Reply
  9. I worked for a non profit hospital as a nurse for 11 years but not currently employed there would that still qualify for loan forgiveness. I made my student loan payments but was income driven plan so there were times I did not have to make a payment.

    Reply
    • Corporate structure can get really complicated quickly, but the most important detail is the employer who pays your paycheck. If a for-profit company is paying you, its going to be very difficult to qualify for PSLF, even if most or even all of your work is for public service.

      I’d suggest getting the Employer ID info from your paycheck or tax forms and using the PSLF Help Tool to find out where you stand.

      Reply
  10. They’re looking for any way to disqualify employers, employees, etc.. Was told there’s “up to” a 12month wait and then if there’s an appeal another 12months.

    This whole program It’s for PC purposes and elections coming up in the US empire. Why not have schooling provided by the government like in almost every other country?! Was is almost everything privatized FOR profit in the US empire? Profiteering/hustling off of students it’s vile.

    Reply
    • I am experiencing the same thing Sara! According to the instructions on the StudentAid website, if my previous non-profit employer is not listed in their EIN database, I should submit “a W2 AND/OR paystubs. Imagine that! 13 years ago I worked as a nurse in a hospital (the hospital went bankrupt and no longer exists!). And I am suppose to find paystubs? Who keeps those from 13 years ago? And, to get those from a hospital HR that doesn’t exist anymore? We are generally told to keep records for 7 years, not 13! Its been over 13 years now since I was employed there, and I cannot find anyone who I worked with. Once they check the Secretary of State and verify that there is still Articles of Incorporation for the hospital, plus I did give them a W2 showing employment I’m not sure how they will handle it. Load the EIN to the EIN database, but not give me months of credit because I have no paystubs? I do understand now why there has been no activity for 1.5 years on my issue. It would take too much effort and thinking on their part!!

      Reply
      • That sounds like an awful situation, Tom. It has to be super frustrating.

        The one thought I would add is that you will probably have to come up with some way of showing that you worked there as a full-time employee. Even if the Articles of Incorporation show they are a non-profit, the tricky part will be showing the dates you worked there and proving that you were full-time.

  11. Worked as manager of 501(c)3 non profit, directing all programs 40h+weekly. Included name listed in the annual 990s etc.. as manager/director etc. however, “parent” For-profit organization handled payroll compliance etc.. and W2 forms had for profit TIN listed. Can one still qualify for the waiver pslf program? Thank you.

    Reply
    • Great question Mike.

      My first thought is that if the employer listed on your W2 is a for-profit org, you are going to have a hard time getting it to count. However, I’d encourage you to apply and see what they say.

      Reply
  12. I work for a community college in North Carolina. Supposedly state-run community colleges are PSLF eligible. When I put in my employer’s EIN number, the search results return nothing. I have triple checked the number and I am positive that I put that in correctly. So what do I do now?

    Reply
  13. Hello! In 2014 I was employed by a staffing agency for nonprofit organizations. Thus, I was hired by a for-profit agency and placed by the agency into a nonprofit organization full time. The nonprofit paid the staffing agency for my billed hours and then the staffing agency paid me.

    Would my 2014 work situation still qualify under PSLF (since the staffing agency was technically my employer)?

    Reply
    • Hi Jenny,

      Unfortunately, it sounds like this work would not qualify for PSLF, unless the staffing agency was also a non-profit. However, it still might be worth sending in an employer certification to see what they say. The worst they can do is tell you it doesn’t count.

      Best of luck to you,

      Michael

      Reply
  14. Still waiting for determination of employer eligibility. It’s been in review for almost 10 months now.

    I call fedloan regularly to ask for a status update which is always “your employer is still under review.” I’ve tried escalating to supervisors, no luck.

    I filed a complaint with the department of education who seemed to just kick it back to fedloan. That tactic got me an email to wait longer, but I did get an escalation email address out of it.

    Multiple people at fedloan have told me a 12 month time frame is fairly normal right now. Just putting this out there for people in the same situation.

    Reply
    • Denied just now due to mismatch between my tax id number on my w2 and the one on my certification form. Due to my company’s tax structure, which i provided evidence of, this was correct.

      Further, they weren’t going to send a decision in writing. I had to request it. The representative stated a lot that wasn’t true, and wasn’t a fan of my pointing it out. I’m an attorney who has been researching this quite a bit, so don’t let the fedloan folks fool you. You’ll hear a different response on each call.

      Took about 15 months from beginning to end to get that decision. Trying again to get my not for profit employer to sign the form. They believe they could have some type of liability here. Will likely be an uphill battle. I just want a determination from the dept of Education but may not get it without a lawsuit.

      Reply
  15. They won’t review if my employer is eligible until I consolidate my student loan which is at a higher interest rate then my current loan because of incentives. This seems completely ridiculous being as I’ve submitted a form from my employer to determine their status but they won’t look at it until I complete the consolidation, which if rejected will cost me about $1500 a year more in interest then my current loan

    Reply
    • Consolidation shouldn’t change your interest rate as they use the weighted average of the loans for the new consolidated loan.

      What is the incentive you speak of?

      Also, as a side note, you can use the PSLF Help tool to see if they have previously reviewed your employers eligibility. If the Help tool says your employer is likely eligible, it means that someone else has used the same employer and been approved.

      Reply
  16. I worked for an employer that generated electricity for over 40 counties in the state of Florida. The PSLF tool shows my old employer as “not eligible.” Wouldn’t this seem to be a qualifiable employer for the definition and purposes of “performs essential public functions entrusted to it by the state?”

    Reply
    • If the PSLF help tool says that your employer isn’t eligible, it means that someone else has applied from your employer and been denied. However, you are still able to submit an application and they will again review the employer.

      The important detail on your employer isn’t the work performed, instead, it is the structure of the organization. If you work for the government or a non-profit, the work may qualify for PSLF. However, if you work for a for-profit company, you won’t be eligible for PSLF. Sadly, the amount of good you do for the general public isn’t a consideration in Public Service Loan Forgiveness.

      Reply
  17. Hello, My wife made her 120th payment toward forgiveness 1 year ago. We filed her application 11 months ago and we are still waiting to hear a determination on whether her employer qualifies as Public Service. She previously filed several ECF, and they all went through quickly and were certified, but now it appears that her current employer is now in question. We have tried the Student Loan Help Tool, but it hasn’t gotten us anywhere. The loan servicer says that we should just continue to wait. How long is too long to wait? it’s been eleven months. I can’t seem to find anyone else with this same issue. How do I know that my wife’s application has not gotten lost?

    Reply
    • That is a great question. With the new limited waiver, FedLoan Servicing has been especially busy, but 11 months is ridiculously long.

      I’d suggest calling FedLoan Servicing again, because it sounds like something is off. This is one of those situations where talking to a second or third rep might yield better results.

      You should also keep records of the times you have contacted them. If you reach the point where you think they just are not going to do anything, a good next step might be to file a complaint with the CFPB.

      Reply
    • Trent, have you gotten resolution yet?

      I’m in this exact situation waiting for determination of employer eligibility. It’s been in review for almost 8 months.

      I call fedloan almost every week to ask for a status update which is always “your employer is still under review.”

      I’ve filed a complaint with the department of education who seem to just kick it back to fedloan. That tactic got me an email to wait longer.

      I might try the cfpb next. Best of luck.

      Reply
    • That is a tricky question Beverly. The only way to know for sure is to use the PSLF help tool to find out what the Department of Education says. If you think there is even a possibility that your employer qualifies, I’d encourage you to check by submitting an employer certification. The Help Tool linked above will guide you through the process.

      Reply
  18. If I worked at two different nursing homes would they both qualify or do you have to have employment at one place for 10 years?

    Reply
    • You do not have to work at the same place for 10 years.

      However, I’d encourage you to submit employer certification forms (ECFs) for both employers as soon as possible. Nursing homes are tricky because some may be eligible and others might not. The best way to find out is the ECF.

      Reply
    • From what I’ve read you need to work 30+ hours per week at one that qualifies or 30+ hours together if they both do. The nursing home I worked at for the first 3 years of my loan payment did not qualify.

      Reply
  19. Hi,

    My children will graduate college soon, and will be looking for jobs. Is there a way to search for qualifying employer? (especially if it allows you to filter by zip code, industry, etc.)

    The PSLF help tool expects you to have the EIN for a specific employer in hand. Thats good for people who already have a job, but it doesn’t help people like us who want to find a qualifying employer

    Thanks!

    Reply
    • Hi Scott,

      That is a great question. USAJobs.gov is a great tool for finding federal government jobs, but I’m not aware of any job search tool exclusively for PSLF jobs.

      A good rule of thumb is that government employers are eligible, as are 501(c)(3)s, but contractors employed by these organizations are not. I think asking about PSLF eligibility during the interview process would be a totally appropriate question.

      Best of luck to you and your kids!

      Reply
  20. I drive school bus for a company that is contracted through the federal government. I have to complete a physical every two years and receive a federal medical certificate. does this require me as public service employee?

    Reply
    • Federal contractors are tricky. If your employer is the federal government, you are definitely PSLF eligible. If your actual employer is a private for-profit company, you are not. The important detail on PSLF eligibility is not the work you do, but who your employer is.

      If you think there is even a chance you qualify, I’d suggest using the Department of Education PSLF Help Tool. It will help verify your status for certain.

      Reply
  21. My wife works in Healthcare, and as far as we know her employer is not a non-profit. However her employer is in partnership with the State of Maine to provide healthcare services to residents. Her employer is listed on the State Dept of health website as a partner as the State doesn’t provide the service directly. Essentially her employer is contracted to provide healthcare services for people who qualify for Medicare, medicaid, etc etc. The State pays her employer, not the clients/patients. Would she potentially qualify for PSLF?

    Reply
    • Based on what you are saying, I think it is unlikely that she qualifies.

      However, given how much money could be saved by PSLF, it is worth spending a few minutes to investigate with certainty. I’d suggest checking out the PSLF help tool. It is the easiest and most efficient way to verify employment eligibility.

      Reply
  22. I have learned a lot of thing from the article of How do I know if my Employer is Eligible Public Service Loan Forgiveness? This is very informative and a lot of thanks for this information.

    Reply
  23. How about this one: Worked at a charter school which is listed as a government entity under its chart contract, but was paid thru a management company (likely not a non-profit). Am I correct that this time does not count towards PSLF?

    Reply
    • I can’t say for certain, so my suggestion would be to try to get your time certified. If they say your employer isn’t eligible, bummer, but at least you know for sure. The form doesn’t take long to fill out and the potential benefit is massive.

      Reply
    • Hello, I too have asked this specific question on several forums over the years without any response or further understanding. For starters, IcI not turn in a form to find out if it qualifies because 1)I have declined employment opportunities as they likely won’t qualify (ie don’t work for one currently) and 2) have enough denial issues already working in a capacity that 100% should qualify, so getting approved when a position is outsourced to a for profit management company seems like an impossibility. The tough reality seems to be that the (already low paying positions) I’m qualified for in my desired areas have almost exclusively been outsourced by governmental entities (public education, public social services) to management companies. Usually the school district: writes job description, posts job, conducts interview, makes offer, you work in the district (for less money)…BUT your actual employer is not the district. I’d love to have someone tell me I’m wrong. The situation is entirely backwards to the actual purpose of PSLF.

      Reply
      • This is definitely an issue that should be addressed.

        It might sound ridiculous, but actual benefit to the public is not a consideration for PSLF. The Department of Education looks at who you technically work for, rather than the work that you do.

        Given the many issues that there have been with PSLF, it seems likely that some new legislation will have to be drafted to clean things up. Hopefully they find a way to be more inclusive of work that actually performs a public service.

  24. City bus driver for PSLF. Keolis Transit Service is contracted to serve as public transportation system. I’m a city bus driver do I qualify for PSLF

    Reply
    • The actual job doesn’t matter… it is the employer that matters. If your employer is the city or a non-profit, you will likely be eligible. The only way to know for certain is to complete the employer certification form.

      Reply
    • After a quick google search, it looks to me that Waste Management is a large publicly traded for-profit company. As such, they probably will not qualify as a PSLF employer. You can always send in an employer certification form to check definitively, but I would be shocked if it was approved.

      Reply

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