5 Key Actions PSLF Borrowers Should Do to Prepare for 2025

The federal student loan system is experiencing unprecedented chaos, and many borrowers seeking student loan forgiveness based on their public service jobs are at the forefront of this turmoil.Public Service Loan Forgiveness (PSLF) can provide complete federal student loan forgiveness in as little as 10 years for borrowers who meet the program’s requirements.These include having the right type of federal student loan, being in the correct type of repayment plan, and working in qualifying employment.  For years, PSLF suffered from abysmal approval rates due to several factors, including poor communication of the program’s benefits and inadequate recordkeeping and oversight.But several changes implemented by the Biden administration have paid off, with more than a million borrowers approved for loan forgiveness under PSLF within the last three years.  But between the SAVE plan legal challenges — which have pushed millions of borrowers into student loan forgiveness limbo — and the election results, which came amid calls by some lawmakers to repeal or eliminate PSLF, many public service borrowers are understandably anxious.  Student loan borrowers don’t have much control over the system right now.

But there are things that you can do to stay on track for PSLF.Certify PSLF employment to get updated student loan forgiveness progress Now would be a great time for PSLF borrowers to certify their employment.Submitting a PSLF Employment Certification, a form completed by both the borrower and their employer to confirm qualifying PSLF employment, is the only way to get an updated count of qualifying PSLF payments.  For several months last summer, the entire PSLF processing system was shut down as the Education Department migrated PSLF tracking from MOHELA, one of the department’s contracted loan servicers, to StudentAid.gov.The department completed the transition in July.

After working through a sizable backlog, the department appears to have caught up for the most part.Borrowers who submit PSLF employment certification forms using the online PSLF Help Tool are reporting fairly rapid processing times ranging from a few days to a few weeks.Those who submitted forms manually, and borrowers who submitted PSLF certifications during or before the transition to StudentAid.gov, are reporting much longer delays.  But now that the new PSLF processing system seems to largely be up and running, go ahead and submit the PSLF form to get those qualifying payments toward loan forgiveness in the bank.And get in the habit of submitting a new PSLF certification every six to 12 months to keep that payment count up to date.

Download and retain key PSLF records One of the major historic problems with PSLF was poor recordkeeping by the Education Department and its loan servicers.This sometimes caused borrowers to lose out on loan forgiveness credit that they had rightfully earned.The new PSLF tracking system at StudentAid.gov is designed to avoid these problems.By housing the PSLF system within the Education Department’s main web portal, borrowers shouldn’t have to worry about loan servicing transfers disrupting their PSLF progress.

But borrowers should take nothing for granted.Get in the habit now of downloading and retaining key records such as your: PSLF employment certification submissions Progress bar showing your qualifying PSLF payment count Month-by-month breakdown of qualifying PSLF payments  We don’t know what will happen in the future, and you don’t know if you may need to rely on those records for some sort of future dispute.Just in case, it’s a good idea to keep good records.  It would also be prudent to periodically download and retain records from your loan servicer account.These can include payment records and key letters or notices, such as approval notices for IDR plans.

Related: How to Use Your National Student Loan Data System (NSLDS) Data File Consider alternative IDR plans to maintain progress toward PSLF Borrowers stuck in the SAVE plan forbearance do not have any payments, and their balances are not accruing interest.But the period isn’t counting toward loan forgiveness under PSLF.Now is a good time to start considering alternative options, particularly given that the SAVE plan may be doomed to get struck down by a federal appeals court or repealed by the Trump administration.  For most borrowers, being in an IDR plan is a requirement to pursue loan forgiveness through the PSLF program.Currently, the only alternative IDR option for most borrowers is the Income-Based Repayment (IBR) plan.

The Education Department indicated last month that it will bring back the Income Contingent Repayment (ICR) and Pay As You Earn (PAYE) plans, which had been phased out for new enrollees as part of the SAVE plan implementation.But it will likely be at least another few weeks before those plans are available again.Meanwhile, IDR processing largely remains suspended for all plans based on income.The Education Department has hinted that processing may resume soon, but borrowers should expect lengthy delays.

Borrowers should start evaluating their options now, and should also be prepared for higher payments under other IDR plans, particularly under IBR for those who took out loans prior to July 2014.  Explore PSLF buyback, but don’t bank on it PSLF borrowers could potentially still get loan forgiveness credit for their time spent in the SAVE plan forbearance through a new PSLF Buyback program.This new initiative by the Biden administration allows borrowers to apply to “buy back” the time spent in a non-qualifying deferment or forbearance period.Payments would be based on what the borrower would have paid if they had been in an IDR plan at the time.However, the PSLF buyback program has some important restrictions.

Borrowers can’t: Buyback periods before Direct loan consolidation Buyback in-school deferment or grace periods  Apply until they have at least 120 months of certified PSLF employment Additionally, the bought-back months — if approved — require borrowers to complete their 120 qualifying PSLF payments.  Moreover, relief under PSLF Buyback is not assured.Some borrowers who already submitted buyback requests are facing long processing times with no end in sight.And because PSLF Buyback is a regulatory program established through executive action by the Biden administration, it could be subject to rollback or repeal by the incoming Trump administration.  Don’t panic Importantly, PSLF borrowers should try not to panic.There is no doubt that it is a stressful time to be a student loan borrower, especially when student loan forgiveness is on the line.

But the reality is that PSLF is a real, legitimate program that was established through bipartisan legislation passed by Congress and signed by President George W.Bush.This puts PSLF on relatively stronger legal footing as compared to regulatory programs like PSLF Buyback or the SAVE plan, which were created without direct input from Congress.PSLF could be targeted, either through regulatory changes by the Trump administration, or via new legislation passed by Congress.

But nothing is guaranteed.  PSLF remains a popular program, and fundamental changes would likely require Congressional input (otherwise, the administration could face legal challenges).That may be difficult given that the House and the Senate are nearly evenly divided between the two major parties.While the first Trump administration had proposed repealing PSLF, that proposal never went anywhere.And if it had, current borrowers would have been grandfathered into the program.

Ultimately, there’s only so much that student loan borrowers can do right now.So, do what you can — certify your employment, download and retain key records, and evaluate your options for getting back on track for PSLF if you’re stuck in the SAVE plan forbearance.Beyond that, we’ll just have to wait and see what happens.