UNITED STATES DEPARTMENT OF EDUCATION

 OFFICE OF POSTSECONDARY EDUCATION

Proposed Regulatory Text for Issue Papers #4 and 5: Public Service Loan Forgiveness

Session Three: December 6-10, 2021

§685.219 Public Service Loan Forgiveness Program. 

(a) General. The Public Service Loan Forgiveness Program (PSLF) is intended to encourage 

individuals to enter and continue in full-time public service employment by forgiving the remaining 

balance of their Direct loans after they satisfy the public service and loan payment requirements of this 

section.

(b) Definitions. The following definitions apply to this section:

AmeriCorps service position means service in a position approved by the Corporation for National 

and Community Service under section 123 of the National and Community Service Act of 1990 (42 

U.S.C. 12573).

Early childhood education program means an early childhood education program as defined in 

Section 103(8) of the Act (20 U.S.C. 1003).

Eligible Direct loan means a Direct Subsidized Loan, a Direct Unsubsidized Loan, a Direct PLUS loan, 

or a Direct Consolidation loan.

Emergency management services mean services that help remediate, lessen, or eliminate the 

effects or potential effects of emergencies that threaten human life or health, or real property.

Employee or employed means an individual--

(1) who is hired and paid by a public service organization. To whom an organization issues an IRS 

Form W-2; or

(2) Who receives an IRS Form W-2 from an organization that contracts services providing human 

resources or other administrative requirements that has contracted with a qualifying employer to 

provide payroll or similar services for the qualifying employer and which provides the Form W-2 

under that contract;

Full-time -

(1) means working in qualifying employment in one or more jobs for the greater of—

(i) At least 30 hours per week, or
PSLF proposed regulatory text session three 2

(ii) At least 30 hours per week throughout a contractual or employment period of at least eight

months in a 12-month period, such as elementary and secondary school teachers, in which case 

the borrower is deemed to have worked full time; or

(iii) The equivalent of 30 hours per week as determined by multiplying each credit or contact 

hour taught per week by at least 3.35 hours worked each week, in non-tenure track

employment at an institution of higher education.

(2) Unless the qualifying employment is with two or more employers, the number of hours the 

employer considers full-time.

(2) When determining whether a borrower works full-time, the Secretary includes vVacation or 

leave time provided by the employer or leave taken by the borrower for a condition that is a 

qualifying reason for leave under the Family and Medical Leave Act of 1993 (29 U.S.C. 2612(a)(1)))

and (3) is not considered in determining the average hours worked on an annual or contract 

basistoward the number of hours worked per week.

Government employee means an individual who is employed by a local, State, Federal, or Tribal 

government, but does not include a member of the U.S. Congress.

Law enforcement means service performed by an employee of a public service organization that is 

publicly funded and whose principal activities pertain to crime prevention, control or reduction of 

crime, or the enforcement of criminal law.

Military service means providing services , including services performed by comprehensive 

caregivers, to or on behalf of members, veterans, or the families or survivors of members or 

veterans of the U.S. Armed Forces or the National Guard that is provided to a person because of 

the person's status in one of those groupsperformed because of the individual’s status as an 

individual in those groups.

, for uniformed members of the U.S. Armed Forces or the National Guard, means “active duty” 

service or “full-time National Guard duty” as defined in section 101(d)(1) and (d)(5) of title 10 in 

the United States Code, but does not include active duty for training or attendance at a service 

school. For civilians, “Military service” means means service on behalf of theby members of the 

U.S. Armed Forces or the National Guard, or veterans of those organizations, so long as such 

services are provided because of the individual’s status as being a member of that groupor former 

member of the U.S. Armed Forces or the National Guard performed by an employee of a public 

service organization.

Non-tenure track means adjunct, contingent or part time, and full-time faculty, teachers, or 

lecturers who are paid solely for the credit hours they teach at institutions of higher education. 

who are not on tenure-track lines.

Other school- based services means the provision of services to schools or students in a school or a 

school-like setting that are not public education services, such as school health services and school 

nurse services, social work services in schools, and parent counseling and training.

Commented [A1]: The Department has accepted the 

conversion factor suggested by negotiators and also 

clarified that this can apply to contact hours as well. 

Commented [A2]: The Department has clarified this 

definition. Please note that this definition matters for 

employers that are NOT the U.S. Armed Forces or National 

Guard. Those are already captured under government 

employers.
PSLF proposed regulatory text session three 3

Peace Corps position means a full-time assignment under the Peace Corps Act as provided for 

under 22 U.S.C. 2504.

Public health means physicians, nurses, nurse practitioners, and nurses in a clinical setting; and 

those engaged in health care practitioner occupations, health care support occupations, and 

counselors, social workers, and other community and social service specialist occupations, as those 

terms are defined by the Bureau of Labor Statistics.

Public interest law refers tois legal services provided by a public service organization that are 

funded in whole or in part by a local, State, Federal, or Tribal government.

Public safety services mean services that seek to prevent the need for emergency management 

services.

Public service means services provided directly by employees of an organization where the 

organization has devoted a majority of its full-time equivalent employees to working in at least 

one of the following areas: emergency management, military service, public safety, law 

enforcement, public interest law services, early childhood education, public service for individuals 

with disabilities and/or the elderly, public health, public education, public library services, school 

library, or other school-based services. Service as a member of the U.S. Congress is not qualifying 

public service employment for purposes of this section.

Public service for individuals with disabilities means services performed for or to assist individuals 

with disabilities (as defined in the Americans with Disabilities Act (42 USC §12102)) that is 

provided to a person because of the person's status as an individual with a disability. 

Public service for the elderly means services that are provided to individuals who are aged 65 62

years or older and that are provided to a person because of the person's status as an individual

individual’s status as someone of that age.

Public education service means the provision of educational enrichment and/or support to 

0students in a school or a school-like setting, including teaching.

Public library service means the operation of public libraries or services that support their 

operation.

School library services means the operations of school libraries or services that support their 

operation.

Public service organizationQualifying employer means:

(1i) A United States-based Federal, State, local, or Tribal government organization, agency, or 

entity, including the U.S. Armed Forces or the National Guard;

(ii) A public child or family service agency;

(2) A non-profit organization under section 501(c)(3) of the Internal Revenue Code of 1986 that 

is exempt from taxation under section 501(a) of the Internal Revenue Code; or

Commented [A3]: This has been moved from where it 

was before.

Commented [A4]: This has been added here to make 

clearer that government service includes military service.
PSLF proposed regulatory text session three 4

(3) An private organization that—

(i) Provides a public service as defined in this section, attested to by the employer on a 

form approved by the Secretary; and

(ii) Is not a business organized for profit, a labor union, or a partisan political 

organization. 

(A) The Secretary may substantiate the employer’s attestation based on a review of

information about the employer. 

(iii)_ Is not a business organized for profit, a labor union, or a partisan political organization., or.

Qualifying repayment plan means:

(1) An income-drivenbased repayment plan under §685.20921;

(2) An income-contingent repayment plan under §685.209; 

(3)(2) The 10-year standard repayment plan under §685.208(b) or consolidation standard 

repayment plan with a 10-year repayment term under §685.208(jb); or

(4)(3) Except for the alternative repayment plan, any other repayment plan if the monthly 

payment amount is not less than what would have been paid under the 10-year standard 

repayment plan under §685.208(b).

(c) Borrower eligibility. (1) A borrower may obtain loan forgiveness under this program if he orthe 

borrower she—

(i) Is not in default on the loan for which forgiveness is requested;

(ii) Is employed full-time by a public service organizationqualifying employer or serving in a fulltime AmeriCorps or Peace Corps position—

(A) During the month for which When the borrower makes satisfied the 120 monthly payments 

described under paragraph (c)(1)(iii) of this section; and

(B) At the time of application for loan forgiveness; and

(CB) At the time the remaining principal and accrued interest are forgivenborrower applies for 

forgiveness under paragraph (e) of this section; and

(iii) Makes Satisfieds the equivalent of 120 separate monthly payments after October 1, 2007, as 

described in paragraph (c)(2) of this section, on eligible Direct loans. for which forgiveness is sought. 

Except as provided in paragraph (c)(2) of this section for a borrower in an AmeriCorps or Peace Corps 

position or who qualifies for partial repayment of his or her loans under the student loan repayment 

Formatted: Font color: Auto
PSLF proposed regulatory text session three 5

programs under 10 U.S.C. 2171, 2173, 2174, or any other student loan repayment programs 

administered by the Department of Defense. ,, the borrower must make the monthly payments within 

15 days of the scheduled due date for the full scheduled installment amount; and

(iv) Makes the required 120 monthly payments under one or more of the following repayment plans—

(A) Except for a parent PLUS borrower, an income-based repayment plan, as determined in accordance 

with §685.221;

(B) Except for a parent PLUS borrower, an income-contingent repayment plan, as determined in 

accordance with §685.209;

(C) A standard repayment plan, as determined in accordance with §685.208(b); or

(D) Except for the alternative repayment plan, any other repayment plan if the monthly payment 

amount is not less than what would have been paid under the Direct Loan standard repayment plan 

described in §685.208(b).

(2) A borrower will be considered to have made monthly payments under paragraph (c)(1)(iii) of this 

section by—

(i) Paying at least the full scheduled amount due for a monthly payment under the qualifying

repayment plan ; 

(i)(ii) Paying in multiple installments that equal the full scheduled amount due 

for a monthly payment under the qualifying repayment plan;

(iii) For a borrower on an income-driven repayment plan under §685.209, paying a lump sum or 

monthly payment amount that is equal to or greater than the full scheduled amount in 

advance of the borrower’s scheduled payment due date for a period of months not to 

exceed the period from the Secretary’s receipt of the payment until the borrower’s next 

annual repayment plan recertification date under the qualifying repayment plan in which 

the borrower is enrolled; (2)If a borrower makes a lump sum payment on an eligible loan for 

which the borrower is seeking forgiveness by using all or part of a Segal Education Award 

received after a year of AmeriCorps service, or by using all or part of a Peace Corps 

transition payment if the lump sum payment is made no later than six months after leaving 

the Peace Corps or if a lump sum payment is made on behalf of the borrower through the 

student loan repayment programs under 10 U.S.C. 2171, 2173, , or any other student loan 

repayment programs administered by the Department of Defense,, the Secretary will 

consider the borrower to have made qualifying payments equal to the lesser of -––

(iv) For a borrower on a 10-year standard repayment plan under §685.208(b) or consolidation 

standard repayment plan with a 10-year repayment term under §685.208(jb), paying a lump 

sum or monthly payment amount that is equal to or greater than the full scheduled amount 

in advance of the borrower’s scheduled payment due date for a period of months not the 

exceed the period from the Secretary’s receipt of the payment until the lesser of 12 months 

from that date or the date upon which the Secretary receives the borrower’s next 

submission under subsection (e).

Commented [A5]: Clarified because someone on the 10-

year standard does not have a recertification date.
PSLF proposed regulatory text session three 6

(ii)(v) Receiving one of the following deferments or forbearances:

(A) the cancer treatment deferment under section §455(f)(3) of the Act; 

(B) the Peace Corps service deferment under §682.210(k), as applicable to Direct Loan

borrowers under §685.204(j);

(C) the rehabilitation training program deferment under §685.204(e);

(D) the economic hardship deferment under §685.204(g);

(E) the military service deferment under §685.204(h);

(F) the post-active-duty student deferment under §685.204(i)

(G) the AmeriCorps forbearance under § 685.205(a)(4);

(H) the National Guard Duty forbearance under § 685.205(a)(7);

(I) the U.S. Department of Defense Student Loan Repayment Program forbearance under §

685.205(a)(9); or

(J) An administrative forbearance or mandatory administrative forbearance under §

685.205(b)(8) or §685.205(b)(9);

(v) Deferring or forbearing payments--

One time, for up to 12 months, due to service in an AmeriCorps position, if the borrower

subsequently applies a Segal Education award to the borrower’s eligible Direct Loans.; or 

(B) For as many periods as needed when an administrative or mandatory forbearance is applied to the 

borrower’s account, including a forbearance under §§ 685.205(a)(3), (7), (9) and 685.204(b), except that 

in no case may a borrower satisfy monthly payments under this section for more than 12 months in a 

year. the borrower’s employment causes them to receive a U.S. 

Department of Defense-administered student loan repayment benefit under 10 U.S.C. 2171, 2173, 2174 

and 16302, except that in no case may a borrower satisfy monthly payments under this section for more 

than 12 months in a year; or

(C)For as many periods as needed when an administrative or mandatory forbearance is applied to the 

borrower’s account, except that in no case may a borrower satisfy monthly payments under this section 

for more than 12 months in a year,.

(D)For as many periods as needed when a Medical or Dental Internship/Residency, National Guard 

Commented [A6]: These include national emergency and 

while processing paperwork such as servicing transfers.
PSLF proposed regulatory text session three 7

Duty, or Department of Defense Student Loan Repayment forbearance is applied to the borrower’s 

account, except that in no case may a borrower satisfy monthly payments under this section for 

more than 12 months in a year, or 

(vi) Is employed full-time with a qualifying employer, as defined in this section, at any point during 

the month for which the payment is credited.

(3) If a borrower consolidates one or more Direct Loanss into a Direct Consolidation Loan, then the 

payments the borrower made on the Direct Loans prior to consolidating and that met the criteria in 

subsection (c)(2)(i)-(iii) will count as qualifying payments on the Direct Consolidation Loan.

(4) Service as a member of the U.S. Congress is not qualifying employment.

(5) Under paragraph (c)(2)(iii) and (c)(2)(v)(A) of this section, a borrower will be considered to have 

satisfied the 

(i) The number of payments months resulting after dividing the amount of the lump sum payment 

received under paragraph (c)(2)(iii) of this section by the monthly payment amount the borrower 

would have been obligated to make under paragraph (c)(2) of this section had the borrower not 

received the deferment or forbearance; or by the monthly payment amount the borrower would 

have made under paragraph (c)(1)(iv) of this section; or

(ii) Twelve payments.

(d) Forgiveness Amount. The Secretary forgives the principal and accrued interest that remains on 

all eligible loans for which the borrower meets the requirements of paragraph (c) of this section as of 

the date the borrower satisfied the last required monthly payment obligation. loan forgiveness is 

requested by the borrower. The Secretary forgives this amount after the borrower makes the 120 

monthly qualifying payments under paragraph (c) of this section.

(e) Application Process. (1) Notwithstanding paragraph (g) inof this section, Aafter making the 120 

monthly qualifying payments on the eligible loans for which loan forgiveness is requested, a borrower 

may request a determination of loan forgiveness on a form provided approved by the Secretary. (2)If the 

Secretary determines that the borrower meets the eligibility requirements for loan forgiveness under 

this section, the Secretary -

(2) To receive a determination under paragraph (1) of this section--

(2) (i) If the Secretary has sufficient information to determine the borrower’s qualifying employer 

and length of employment, the Secretary informs the borrower when of the determination for 

forgiveness if the Secretary possess sufficient information to determine the borrower’s employment and 

employer the borrower is eligible for forgiveness. 

(ii3) if the Secretary does not have sufficient information to make a determination of the 

borrower’s eligibility for forgiveness under (i), the borrower A borrower shallmust provide information 

about the borrower’s employment and employer on a form approved by the Secretary--, which must 

Commented [A7]: This addresses the issue raised by a 

public commenter about tying the date of payment too 

closely to the date of employment. 
PSLF proposed regulatory text session three 8

generally be certified by the employer, except when the Secretary possesses sufficient information to 

determine the borrower’s employment and employer.

(4) If the borrower is unable to secure a certification of employment from an qualifying employer, 

the Secretary may determine the borrower’s qualifying employment or payments based on other

documentation provided by the borrower at the Secretary’s request. 

(5) The Secretary may request reasonable additional documentation pertaining to the borrower’s 

employer or employment before providing a determination.

(6) The Secretary may substantiate an employer’s attestation of information provided on the form 

in clause (ii) based on a review of information about the employer.

(7) If the Secretary determines that the borrower meets the eligibility requirements for loan 

forgiveness under this section, the Secretary -

(i) Notifies the borrower of this determination; and

(ii) Forgives the outstanding balance of the eligible loans.

(8) If the Secretary determines that the borrower does not meet the eligibility requirements for 

loan forgiveness under this section, the Secretary resumes collection of the loan and grants forbearance 

of payment on both principal and interest for the period in which collection activity was suspended. The 

Secretary notifies the borrower that the application has been denied, provides the basis for the denial, 

and informs the borrower that the Secretary will resume collection of the loan. The Secretary may

shalldoes not capitalize any interest accrued and not paid during this period. 

(g) Application not required. The Secretary forgives a loan under this section without an 

application from the borrower if the Secretary has sufficient information in the Secretary’s possession to 

determine the borrower has satisfied the requirements for forgiveness under this section. 

(h) Reconsideration Process. (1) Within 90 days of receiving a notice of denial of forgiveness under 

paragraph (e)(4) of this section, the borrower may request that the Secretary reconsider whether the 

borrower’s employer or any payment qualifies for forgiveness PSLF by requesting reconsideration on a 

form approved by the Secretary. Borrowers who were denied prior to [EFFECTIVE DATE OF REGS], have 

180 days from that date to request reconsideration. 

(2) To evaluate a reconsideration request, the Secretary considers--

(i) Any relevant evidence that is reasonably obtainable or currently obtained by in the Secretary;’s

possession; and

(ii) Additional supporting documentation not previously provided by the borrower or employer. 

(3) The Secretary notifies the borrower of the reconsideration decision and the reason for the

Secretary’s determination. 
PSLF proposed regulatory text session three 9

(4) If the Secretary grants some or all of the borrower’s request for reconsideration, the Secretary 

adjusts the borrower’s number of qualifying payments or forgives the loan, as appropriate. 

 (5) After the Secretary makes a decision on the borrower’s reconsideration request, the Secretary’s 

decision is final, and the borrower will not receive additional reconsideration without any unless the 

borrower presents additional evidence. 

(6) Hold harmless procedures. (i) For any period in which a borrower postponed monthly payments 

under a deferment or forbearance and was employed full-time at a qualifying employer as defined in 

this section but was in a deferment or forbearance status besides those listed in subsection (c)(2)(v), 

excluding periods of in-school deferment, the borrower may obtain credit toward forgiveness, as 

defined in paragraph (d), for any months in which the borrower—

(A) Makes an additional payment equal to or greater than the amount they would have paid at that 

time on a qualifying repayment plan;

(B) Otherwise qualified for a $0 payment on a on an income-driven repayment plan under 34 CFR 

685.209. 

§682.414(b) Reports.

(b) Reports. A guaranty agency shall accurately complete and submit to the Secretary the following 

reports:

(1) A report concerning the status of the agency's reserve fund and the operation of the agency's 

loan guarantee program at the time and in the manner that the Secretary may reasonably require. 

The Secretary does not pay the agency any funds, the amount of which are determined by reference 

to data in the report, until a complete and accurate report is received.

(2) Annually, for each State in which it operates, a report of the total guaranteed loan volume, 

default volume, and default rate for each of the following categories of originating lenders on all 

loans guaranteed after December 31, 1980:

(i) State or private nonprofit lenders.

(ii) Commercial financial institutions (banks, savings and loan associations, and credit unions).

(iii) All other types of lenders.

(3) By July 1 of each year, a report on -

(i) Its eligibility criteria for lenders;

(ii) Its procedures for the limitation, suspension, and termination of lenders;

(iii) Any actions taken in the preceding 12 months to limit, suspend, or terminate the participation 

of a lender in the agency's program; and

Commented [A8]: This is a new provision to address the 

issue of forbearance steering. It provides a path for 

borrowers to get credit for past periods of deferment or 

forbearance by making necessary payments. This can 

include periods of time at a $0 payment.
PSLF proposed regulatory text session three 10

(iv) The steps the agency has taken to ensure its compliance with § 682.410(c), including the 

identity of any law enforcement agency with which the agency has made arrangements for that 

purpose.

(4) A report to the Secretary of the borrower's enrollment and loan status information, details 

related to the loans or borrower’s deferments, forbearances, repayment plans, delinquency and 

contact information, or any Title IV loan-related data required by the Secretary, by the deadline date 

established by the Secretary.

(5) Any other information concerning its loan insurance program requested by the Secretary.