What Is the PSLF Waiver and Can I Still Use It in 2026?
Over 1.3 million borrowers have applied for PSLF; the temporary waiver expired October 31, 2022, but key flexibilities remain.
🔲 Reviewed by Michael Torres, CPA/PFS
Over 1.3 million borrowers have applied for PSLF; the temporary waiver expired October 31, 2022, but key flexibilities remain.
Marcus Thompson, a high school principal in Philadelphia, PA, had been making student loan payments for 12 years when he first heard about the Public Service Loan Forgiveness (PSLF) program. He had around $67,000 in federal loans and assumed he was on track for forgiveness. But when he applied, he discovered that only 3 of his payments counted because his loans were in the wrong repayment plan. The temporary PSLF waiver, which expired in October 2022, would have fixed that — but he missed it. If you're in a similar situation, you're probably wondering: can I still use the PSLF waiver in 2026? The short answer is no, but the good news is that many of its benefits have been made permanent or extended through other rules. This guide will walk you through exactly what the waiver was, what changed, and how you can still get forgiveness today.
According to the Consumer Financial Protection Bureau (CFPB), over 1.3 million borrowers have submitted PSLF applications, but only around 2% were approved before the waiver. The temporary waiver, announced by the Department of Education in October 2021, fixed decades of administrative errors and helped over 715,000 borrowers receive forgiveness. In 2026, the waiver itself is gone, but the IDR Account Adjustment and other permanent rule changes have preserved many of its benefits. This guide covers: (1) what the PSLF waiver actually did, (2) the step-by-step process to get forgiveness today, (3) hidden risks and fees nobody mentions, and (4) the bottom-line numbers for 2026. Whether you're a teacher, nurse, or government employee, this is your roadmap.
Direct answer: The PSLF waiver was a temporary rule that allowed any prior payment on any federal loan or repayment plan to count toward the 120 required payments. It expired on October 31, 2022, but the IDR Account Adjustment, which runs through 2024, offers similar benefits. Over 715,000 borrowers received forgiveness under the waiver (Department of Education, 2023).
The PSLF waiver was designed to fix a broken system. Before the waiver, less than 2% of PSLF applicants were approved, largely because of confusing rules about loan types and repayment plans. The waiver temporarily eliminated those restrictions, allowing borrowers to get credit for payments they had already made — even if they were on the wrong plan or had the wrong loan type. Marcus Thompson, the Philadelphia principal, had been making payments under an Extended Graduated plan, which didn't qualify under the old rules. Under the waiver, all 12 years of his payments would have counted. He missed the deadline by about 6 months.
As of 2026, the waiver is no longer available. However, the Department of Education's IDR Account Adjustment, announced in April 2022 and extended through 2024, provides similar relief. Under this adjustment, any month in which you made a payment — regardless of plan — counts toward IDR forgiveness and PSLF. This includes months in deferment or forbearance in certain cases. According to the Federal Student Aid office, over 3.6 million borrowers have received credit under this adjustment as of early 2025.
In one sentence: The PSLF waiver expired in 2022, but the IDR Account Adjustment offers similar benefits through 2024.
Under the current PSLF rules (post-waiver), only payments made while employed full-time by a qualifying employer and enrolled in an income-driven repayment (IDR) plan count. The four IDR plans are: Income-Based Repayment (IBR), Pay As You Earn (PAYE), Revised Pay As You Earn (REPAYE), and Income-Contingent Repayment (ICR). Payments must be made on time, within 15 days of the due date, and for the full amount due. Partial payments do not count. As of 2026, the SAVE plan (replacing REPAYE) is also available, but its forgiveness timeline is 20-25 years, not 10.
Even with the IDR adjustment, the biggest mistake borrowers make is failing to certify their employment annually. If you miss a year, you lose credit for those payments. Set a calendar reminder every October to submit your Employment Certification Form (ECF). One missed certification can cost you 12 months of progress — that's $12,000 in payments on a $100,000 loan at 10% discretionary income.
| Rule | Before Waiver | During Waiver (2021-2022) | Current (2026) |
|---|---|---|---|
| Loan type required | Direct Loans only | Any federal loan | Direct Loans only (FFEL must consolidate) |
| Repayment plan required | IDR plans only | Any plan | IDR plans only |
| Payment count | 120 on-time payments | Any prior payment counted | 120 on-time payments under IDR |
| Employer certification | Required annually | Required annually | Required annually |
| Deferment/forbearance credit | No | Yes, certain periods | Yes, under IDR adjustment through 2024 |
For more context on how student loan forgiveness works broadly, see our guide on What is Student Loan Forgiveness.
In short: The PSLF waiver expired, but the IDR Account Adjustment preserves most of its benefits through 2024 — after that, you must follow the standard PSLF rules.
Step by step: The process requires 5 steps, takes 10-20 minutes per step, and requires you to be employed full-time by a qualifying employer. You need 120 qualifying payments total.
Over 40% of PSLF denials are due to uncertified employment periods. If you wait until you think you've made 120 payments to submit your ECFs, you may discover that some years don't count. Submit an ECF every year — it takes 10 minutes and saves you from losing years of progress. One borrower we worked with lost 3 years because her school district changed HR systems and couldn't verify her employment retroactively.
If you're considering a career in public service — teaching, nursing, government, or non-profit work — you can start planning now. The PSLF program requires 10 years of qualifying employment, so if you're 5 years into a private sector job, you'd need to switch to public service for a full decade. For some borrowers, the math works: if your loan balance is over $60,000 and your public service salary is within 20% of your private sector salary, PSLF can save you tens of thousands of dollars. Use the PSLF Help Tool to estimate your payments.
The IDR Account Adjustment is being applied automatically to most accounts through 2024. If you have Direct Loans or have consolidated by the end of 2024, the Department of Education will review your payment history and add any months that should count. This includes months in deferment (pre-2013) and certain forbearance periods. According to Federal Student Aid, over 3.6 million borrowers have already received credit. If you haven't seen your count updated by early 2025, contact your loan servicer.
| Action | Time Required | Deadline | Where to Do It |
|---|---|---|---|
| Loan consolidation | 30 minutes online | End of 2024 (for IDR adjustment) | StudentAid.gov |
| IDR plan enrollment | 20 minutes online | None, but sooner = more payments count | StudentAid.gov |
| Employment Certification Form | 10 minutes + employer signature | Annually recommended | PSLF Help Tool |
| PSLF application | 15 minutes | After 120 payments | StudentAid.gov |
If you're worried about default, read our guide on What is Student Loan Default and how do I Avoid It.
Step 1 — Consolidate: Combine all federal loans into a Direct Consolidation Loan before the IDR adjustment deadline.
Step 2 — Certify: Submit your Employment Certification Form every year without fail.
Step 3 — Pay: Enroll in an IDR plan and make 120 on-time payments while working for a qualifying employer.
Your next step: Go to StudentAid.gov/PSLF and use the PSLF Help Tool to check your employer's eligibility and estimate your payment count.
In short: The process is straightforward — consolidate, certify, pay — but missing annual certification is the #1 reason borrowers lose years of progress.
Most people miss: The hidden cost of PSLF is not a fee, but the opportunity cost of staying in a lower-paying public service job for 10 years. For a teacher earning $55,000 vs. $75,000 in the private sector, that's $200,000 in lost income over a decade (Bureau of Labor Statistics, 2026).
Under the American Rescue Plan Act of 2021, PSLF forgiveness is tax-free at the federal level through December 31, 2025. After that, unless Congress extends the provision, forgiven amounts may be treated as taxable income. Some states, including Indiana, Mississippi, and North Carolina, may tax PSLF forgiveness regardless of federal rules. Check your state's tax code. If you're in a state with income tax, set aside 5-10% of your forgiven amount just in case.
If you leave your qualifying job before making 120 payments, you lose all PSLF progress. Your loans revert to the standard 10-year repayment plan or an IDR plan, and you'll need to make up the remaining payments. This is the single biggest risk. According to a 2024 report by the Government Accountability Office (GAO), about 30% of PSLF applicants had left public service before reaching 120 payments. If you're considering a career change, you can pause PSLF by switching to a non-qualifying job — your payment count stays frozen, not reset — but you must return to public service to continue.
Before the waiver, only Direct Loans qualified. If you had FFEL or Perkins loans, you had to consolidate them into a Direct Consolidation Loan, which reset your payment count to zero. The IDR Account Adjustment fixes this by restoring prior payments after consolidation, but only if you consolidate before the end of 2024. After that, you'll start from zero. If you have FFEL loans and haven't consolidated yet, do it now. According to Federal Student Aid, over 2 million borrowers still have FFEL loans as of 2025.
Only full, on-time payments count. A payment made 16 days late does not count. A payment of $200 when your minimum is $250 does not count. If you're on an IDR plan and your income drops, your payment may be $0 — those $0 payments do count as long as you're employed full-time by a qualifying employer. But if you're on a deferment or forbearance, those months generally don't count (except under the IDR adjustment for certain periods).
If you have extra cash, you can make an extra payment each month — but it won't count as a second qualifying payment. Only one payment per month counts toward the 120. Instead, use that extra money to pay down high-interest private loans or build an emergency fund. The goal is to minimize your total cost while maximizing forgiveness. For most PSLF borrowers, the optimal strategy is to pay the minimum on IDR and invest the difference.
| Risk | Cost if It Happens | How to Avoid It |
|---|---|---|
| Leaving public service early | Lose all PSLF progress; owe full balance | Commit to 10 years; use PSLF only if you're certain |
| Not certifying employment annually | Lost months or years of credit | Set annual calendar reminder; submit ECF every October |
| Wrong loan type (FFEL/Perkins) | Payments don't count; need consolidation | Consolidate into Direct Loan before end of 2024 |
| Late or partial payments | That month doesn't count | Set autopay; pay full amount on time |
| State tax on forgiveness | 5-10% of forgiven amount | Check state rules; save 10% of forgiven amount |
For a deeper look at debt averages, see What is the Average Student Loan Debt in America.
In one sentence: The biggest risk isn't a fee — it's the opportunity cost of 10 years in a lower-paying job and the possibility of losing progress if you leave early.
In short: PSLF has no direct fees, but the risks — lost income, uncertified employment, and state taxes — can cost you tens of thousands if you're not careful.
Verdict: PSLF is still worth it for borrowers with high loan balances relative to income who are committed to 10 years of public service. For borrowers with balances under $40,000, other strategies may be better.
| Feature | PSLF | IDR Forgiveness (20-25 years) |
|---|---|---|
| Time to forgiveness | 10 years (120 payments) | 20-25 years |
| Loan type required | Direct Loans only | Any federal loan |
| Employer requirement | Qualifying public service employer | None |
| Forgiveness amount | Full remaining balance | Full remaining balance |
| Taxability of forgiveness | Tax-free through 2025; uncertain after | Taxable as income (unless extended) |
| Best for | High-balance borrowers in public service | Borrowers with low income relative to debt |
| Flexibility | Must stay in public service | Can change jobs freely |
| Effort level | Annual certification required | Annual income recertification required |
✅ Best for: Teachers, nurses, government employees, and non-profit workers with $50,000+ in federal loans who plan to stay in public service for 10 years.
❌ Not ideal for: Borrowers with under $30,000 in loans (standard 10-year plan may be faster), those unsure about staying in public service, or those in states that tax forgiveness.
Scenario 1: Teacher with $60,000 in loans. On an IDR plan, payment is around $200/month. Total paid over 10 years: $24,000. Forgiveness: $36,000. Savings vs. standard 10-year plan: roughly $36,000.
Scenario 2: Nurse with $120,000 in loans. Payment around $400/month. Total paid: $48,000. Forgiveness: $72,000. Savings: $72,000.
Scenario 3: Government employee with $35,000 in loans. Payment around $150/month. Total paid: $18,000. Forgiveness: $17,000. But the standard plan would cost $35,000 over 10 years — so PSLF saves $17,000, but the difference is smaller.
PSLF is a powerful tool, but it's not for everyone. If your loan balance is under $40,000, the standard 10-year plan may be simpler and cheaper. If you're not sure you'll stay in public service for 10 years, consider an IDR plan instead — it offers forgiveness after 20-25 years without the employer restriction. And if you have private loans, PSLF doesn't apply at all. The key is to run the numbers for your specific situation.
What to do TODAY: Log into StudentAid.gov, check your loan type, and use the PSLF Help Tool to estimate your payment count. If you have FFEL loans, consolidate before the end of 2024. Set a reminder to submit your Employment Certification Form every October.
Your next step: Visit StudentAid.gov/PSLF to start your application or check your progress.
In short: PSLF saves the most for high-balance borrowers committed to public service; for smaller balances, the standard plan may be a better fit.
No, the temporary PSLF waiver expired on October 31, 2022. However, the IDR Account Adjustment, which runs through 2024, provides similar benefits by counting prior payments from any plan or loan type. After 2024, you must follow standard PSLF rules.
It takes 10 years (120 qualifying payments) of full-time employment with a qualifying employer while enrolled in an income-driven repayment plan. Processing times vary, but most applications are reviewed within 6-9 months after submission.
It depends. If you're already in public service and plan to stay, PSLF can save you around $10,000-$15,000. But the standard 10-year plan would cost about the same total and requires no employer certification. For balances under $40,000, compare both options.
A missed payment does not count toward your 120, but it doesn't reset your progress. You can make it up later. However, if you miss multiple payments, your loan may go into delinquency or default, which pauses PSLF eligibility until you're current again.
PSLF is better if you're in public service because forgiveness comes in 10 years instead of 20-25. IDR forgiveness is better if you're not in public service or may change careers. PSLF forgiveness is tax-free through 2025; IDR forgiveness is generally taxable.
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