Study Guide: Public Service Loan Forgiveness

The Public Service Loan Forgiveness (PSLF) program, established as part of the College Cost Reduction and Access Act of 2007, forgives the remaining student loan balance for public servants who make qualifying payments for 10 years while working in eligible public service positions. As one of the largest federal student loan forgiveness policies established in the U.S., its purpose was to incentivize employment and retention in the public sector—a sector where workers often earn less than their private-sector counterparts.

Despite early struggles for borrowers seeking to meet the terms of PSLF, administrative changes to the program have enabled more than one million borrowers to receive forgiveness since 2021. In total, the Education Department has forgiven $85.5 billion for 1.16 million borrowers who have devoted at least 10 years to public service since the creation of PSLF.

This “study guide” from the PEER Center provides background on the PSLF program: who is eligible, who is applying for and receiving forgiveness, the impacts of the program, and the implications of available data for policymakers.