Who Can Still Get Public Service Loan Forgiveness Under 2026 Rules

Public Service Loan Forgiveness continues to offer debt cancellation after 120 qualifying payments, provided the borrower is employed full-time by a qualifying public-service employer such as federal, state, local or tribal agencies, public schools, or eligible nonprofits. The program is limited to federal Direct Loans, meaning borrowers with legacy FFEL or Perkins loans typically must consolidate them, though consolidation may affect prior payment credit.

Qualifying payments must be made under an eligible repayment plan; borrowers who took out loans on or after July 1, 2026, generally must use the new Repayment Assistance Plan for those payments to count. Ongoing employment certification is advised to avoid surprises when the forgiveness threshold is reached. Recent regulatory changes regarding employers with a “substantial illegal purpose” are being contested in court, so borrowers should monitor guidance. Alternative relief options, such as income-driven repayment, consolidation, deferment, forbearance, or refinancing, remain available for those who do not meet PSLF criteria.