Key points
- Full-time employees of 501(c)(3) organizations and some other nonprofits may qualify for Public Service Loan Forgiveness (PSLF) after 120 payments (10 years).
- Only direct loans are eligible. Older FFEL or Perkins loans must be consolidated into the Direct Loan program.
- Borrowers must be in an income-driven repayment (IDR) plan such as IBR or ICR for payments to be calculated.
There are a variety of programs that can provide nonprofit student loan forgiveness to individuals working in a 501(c)(3) or other nonprofit organization.
By participating in these programs, eligible borrowers can have their student loans forgiven or significantly reduced after meeting specific requirements. However, it is always the borrower’s responsibility to make sure they find, apply for, and maintain these programs.
Here’s what you need to know about the different ways to get nonprofit student loan forgiveness.
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Who is eligible for nonprofit student loan forgiveness?
The main path for nonprofit workers is Public Service Loan Forgiveness (PSLF). To qualify:
|
requirements |
a description |
|---|---|
|
Type of employer |
You must work for a 501(c)(3) An organization or other non-profit organization providing qualified public services (education, health, social work, legal aid, etc.) |
|
Employment status |
It should work Full-time (+30 hours per week) Or be full-time through a range of qualifying positions |
|
Loan type |
It must be Direct loans; FFEL and Perkins loans do that no Counts unless consolidated into a direct loan |
|
Payment plan |
You must be registered in A Qualified IDR plan (IBR, PAYE, ICR, RAP) or standard 10 year plan |
|
Payment number |
Must make 120 on-time qualifying monthly payments.Time in endurance is not calculated directly. |
|
Certification requirements |
He presents Employment Certificate Form (ECF) At least annually or when changing jobs |
How to apply for PSLF
Here’s a step-by-step guide to make sure you’re working properly toward PSLF.
1.Check your employer’s eligibility
use PSLF Student Aid Federal Aid Tool To confirm your employer’s eligibility. The database now includes most registered non-profit organizations.
2.Check your loan type
Your login StudentAid.gov Do the math and make sure your loans are direct loans. If not, apply for Direct Consolidation Loan Before making more PSLF payments.
3.Switch to an IDR plan
Only payments made under IBR, PAYE, SAVE or ICR Counting towards PSLF. Standard 10-year plan payments are also eligible, but these loans will be paid off before forgiveness.
Note: SAVE is no longer open for enrollment, and time spent in the SAVE forbearance period does not count directly toward PSLF. Starting in 2026, the new RAP will be eligible for PSLF.
4.Certification of employment every year
Send your PSLF Employment Certification Form (ECF) Annually or when changing jobs. The online tool automatically updates your count after your form is processed.
5.Track the progress of your payment
Once approved, the provider will show the official number of eligible payments towards the required 120. Pay attention to your green signs.
Additional options for non-profit loan forgiveness
Aside from PSLF, there are other nonprofit loan forgiveness options to consider:
Teacher Loan Forgiveness:Teachers working in low-income schools or educational service agencies may be eligible for loan forgiveness of up to $17,500. Learn more about loan forgiveness programs for teachers here.
Nursing staff loan repayment program: Registered nurses, nurse practitioners, and faculty may receive loan repayment assistance in exchange for working in underserved communities. Learn more about student loan forgiveness for nurses.
NHS Loan Repayment Scheme:Health professionals in eligible specialties may receive loan repayment assistance for providing services in health professional shortage areas (HPSAs).
Check out our complete guide to student loans by state to see what options may be available in your area.
Common mistakes made by workers in non-profit organizations
- Work for contractor Instead of a qualifying non-profit organization (only direct employees are eligible).
- Failure to Consolidate FFEL or Perkins loans Before applying.
- Enrolling in the wrong payment plan (such as Extended or Graduated).
- Forget about submitting the annual Employment certificate.
- Leave before 120 payments without transferring to another eligible nonprofit organization.
Frequently Asked Questions: Nonprofit Student Loan Forgiveness
Do I have to stay with a nonprofit for 10 years?
no. You can switch between nonprofits (or between nonprofits and government) as long as each employer qualifies.
Do part-time nonprofit workers qualify?
Only if you work At least 30 hours per week Or you have multiple eligible part-time jobs totaling more than 30 hours.
Can I qualify if my nonprofit is religious?
Yes, but only if your role and your employer meet the IRS definition of 501(c)(3) and your business primarily serves the public.
Are private student loans eligible?
no. PSLF and other federal forgiveness programs apply only to Federal Direct loans.
What if my nonprofit is not listed in the PSLF database?
You can still apply and provide documentation proving that your employer meets the qualifying criteria under 34 CFR §685.219.
What’s next for nonprofit student loan forgiveness?
Nonprofit workers have some of the strongest paths to student loan forgiveness, thanks to the PSLF program.
By confirming your employer eligibility, switching to a qualified repayment plan, and certifying your employment annually, you can convert a decade of service into full federal student loan forgiveness, without paying taxes on the forgiven balance.
Don’t miss these other stories:
Final restrictions for PSLF eligibility proceed for comment
Can Trump ban some workers from PSLF?
Can you set up your nonprofit to qualify for PSLF?
Editor: Claire Tuck
Reviewed by: Chris Mueller
The post What to Know About Nonprofit Student Loan Forgiveness appeared first on The College Investor.
