There’s often confusion surrounding the need for ten years of employment with an eligible employer versus making 120 certified payments. Even though 120 monthly payments add up to ten years worth of payments, there are some significant differences.

This article will break down the time requirement for PSLF, including how factors such as changing employers, switching repayment plans, and pauses in payments affect the progression towards forgiveness.

Why 120 Certified Payments is More Accurate than Ten Years for PSLF

It isn’t wrong to say that it takes ten years to qualify for Public Service Loan Forgiveness. However, it’s more precise to state that PSLF requires 120 certified payments.

This distinction is crucial in regards to the payment certification process. When a borrower submits an employer certification form, the loan servicer does a comprehensive review of the borrower’s account before certifying the payment. The PSLF loan servicer, MyFedLoan, will evaluate each payment to verify that the borrower has eligible loans and is on an eligible repayment plan. If any requirement is unmet for a specific payment, that payment does not get certified.

Focusing solely on ten-years might lead to some unexpected and disappointing issues with your PSLF application.

Watch the Fine Print. In addition to 120 certified payments, borrowers must be employed full-time by a PSLF-eligible employer at the time they apply for forgiveness and when the debt is forgiven. If you wait until you have made 120 payments, it could take longer than ten years to have the debt forgiven.

Changing Employers, Breaks in Payments, and Switching Repayment Plans

Many borrowers fear that if they start a new job, pause payments, or take a break from public service, they will have to begin the PSLF process all over again.

Fortunately, PSLF does not require payments to be consecutive. As a result, borrowers have the flexibility to pause repayment, switch jobs, or leave the public sector for a private company. At some point in the future, they can choose to resume their path to PSLF right where they left off.

The key is reaching the total of 120 certified payments; how and when those payments are made offers some flexibility, allowing borrowers to navigate life changes without losing progress toward PSLF.

Sherpa Tip: As a sharp reader pointed out in the comments, it’s also worth noting that the 120 certified payments cannot start before 2007, when the PSLF program was first created.

The Starting Over Risk

Even though payments don’t have to be consecutive, there are situations in which a borrower might have to start from scratch on PSLF.

Consolidating Federal Student Loans – While there are many benefits to federal direct consolidation, one significant drawback is that it creates new loans and restarts the forgiveness clock. The limited waiver on PSLF resolved this issue for some borrowers, but the limited waiver expired on October 31, 2022.

Ineligible Loans or Repayment Plans – If a borrower isn’t on an eligible repayment plan or doesn’t have eligible loans, they won’t make any progress towards PSLF. It’s not uncommon for borrowers to believe they’re making progress towards loan forgiveness, only to discover some flaw that made those payments ineligible for PSLF. None of those payments can be certified and count towards their forgiveness.

Note for Borrowers on the Wrong Repayment Plan: If you discover that you were on the wrong repayment plan, there is a temporary federal program that can help.

Getting Payments Certified

The process to certify payments under PSLF is relatively straightforward. Borrowers must complete this form and get it signed by their employer.

If you are looking for a guided application, the PSLF Help Tool is an excellent resource. The Department of Education created the PSLF help tool to aid borrowers in verifying employment eligibility. The PSLF Help Tool also assists borrowers in completing the necessary paperwork for certification.

How Often Should I Certify Payments?

There are no rules stating how often payments must be certified for PSLF. Theoretically, a borrower could submit their first employer certification after ten years.

However, waiting ten years to certify payments comes with significant risk. If any eligibility issues are discovered in the borrower’s loans or repayment plan, it would be a major setback. Loan eligibility issues are often easy to resolve, but those ten years of payments would not count towards PSLF. Thus, waiting ten years may mean wasting ten years.

The best practice for borrowers is to certify payments when:

• starting a new job,
• leaving an old job, and
• getting married.

It’s also wise to submit a certification form at least once a year. Regular certification is the best way to stay on track with PSLF and avoid mistakes.

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