UNITED STATES DEPARTMENT OF EDUCATION

 OFFICE OF POSTSECONDARY EDUCATION

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

Session 2: November 1-5, 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 position means 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.

Full-time -

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

(i) (A) At least 30 hours per week, or

(B) 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

(C) The equivalent of 30 hours per week as determined by multiplying each credit hour taught 

per week by 2.5 hours worked each week, in non-tenure track employment.

Commented [A1]: For Negotiators: ED proposes adding a 

few additional definitions to help clarify what employment 

qualifies under these categories and clarifying others with 

more streamlined language.

Commented [A2]: For Negotiators: 

Early childhood education means (1) a Head Start program 

or Early Head Start program including a migrant or 

seasonal Head Start program, an Indian Head Start 

program, or a Head Start program or an Early Head Start 

program that also receives State funding;

(2) a State licensed or regulated child care program;

(3) a program that—

(i) serves children from birth through age six that 

addresses the children’s cognitive (including language, 

early literacy, and early mathematics), social, emotional, 

and physical development; and 

(ii) is—

(A) a State prekindergarten program; 

(B) a program authorized under section 619 or part C of 

the Individuals with Disabilities Education Act; or 

(C) a program operated by a local educational agency.

Commented [A3]: For negotiators: We would like to 

understand how other states calculated other conversions 

they have suggested and how they justified those numbers. 
Improving PSLF application process – proposed regulatory text 2

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

employer considers full-time.

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

leave time provided by the employer or leave taken 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 , 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, part time, and full-time faculty, teachers, or lecturers 

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. 

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 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 such 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 the its full-time equivalent employees to working in at least 
Improving PSLF application process – proposed regulatory text 3

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. 

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

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

because of the individual’s status as an individual with a disability.

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

or older and that that are provided because of the individual’s status as someone of that age.

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

students in a school or a school-like setting.

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;

(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

(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.

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

in the Secretary's possession about the employer.

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

(iv) not withstanding (iii), is an organization providing medical services at a nonprofit or public 

hospital or other non-profit or public health care facility.

Qualifying repayment plan means:

(1) An income-based repayment plan under §685.221;

Commented [A4]: For Negotiators – We are interested in 

your thoughts on this definition. We are trying to do a few 

things. First, listing the types of government service that can 

qualify. Second, we are trying to make clear that 

organizations like the UN, WHO, etc. are not qualifying 

employers (even if employees of State that make up 

American delegations are Federal employees who qualify), 

but also that foreign governments are not qualifying 

employers. Third, we are mindful of the fact that Tribal 

governments have the right to self-determination and 

generally operate outside the scope of Federal or state law.
Improving PSLF application process – proposed regulatory text 4

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

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

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

(4) 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 Satisfied 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 

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). Commented [A5]: For negotiators: ED incorporated this 

into the definition of a qualifying repayment plan above.
Improving PSLF application process – proposed regulatory text 5

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

section by—

(i) Paying 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) Paying a lump sum or monthly payment amount 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 -––

(ii)(iv) Receiving one of the following deferments:

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

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

borrowers under §685.204(j);

(C) An economic hardship deferment under §685.204(g); or

(D) A military service deferment under §685.204(h);

(v) Deferring or forbearing payments--

(A) 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

(vi) On a Direct Consolidation Loan, meeting the criteria in paragraph (c)(2)(i)-(iii) on an eligible 

Direct Loan that was consolidated. 

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

(4) Under paragraph (c)(2)(iii) of this section, a borrower will be deemed to have satisfied the 

number of monthly repayment obligations that is the lesser ofCommented [A6]: For negotiators: Unfortunately, our 

read of the statute is that we are not legally allowed to 

count the 9 payments made while on a rehabilitation 

agreement as qualifying payments for PSLF because we 

cannot count payments made while in default.

Commented [A7]: For Negotiators: ED moved this from 

an earlier place in the regulatory text.
Improving PSLF application process – proposed regulatory text 6

(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 (f) 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--

(i) A borrower shall provide information about the borrower’s employment and employer on a

form approved by the Secretary, which must generally be certified by the employer, except when the 

Secretary possesses sufficient information to determine the borrower’s employment and employer.

(ii) If the borrower is unable to secure a signaturecertification from an employer, the Secretary 

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

provided by the borrower at the Secretary’s request. 

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

employer or employment before providing a determination.

(23) 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.

(34) 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 shall 

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

Commented [A8]: For Negotiators: ED added the “except 

when” text to reflect a suggestion by negotiators
Improving PSLF application process – proposed regulatory text 7

(f) Application not required. The Secretary may forgive 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. 

(g) Reconsideration Process. (1) Within 90 days of receiving a notice 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 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 Rreasonably obtainable or currently 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. 

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

evidence. 

§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.

Commented [A9]: For Negotiators: We added additional 

time for previously denied individuals. 
Improving PSLF application process – proposed regulatory text 8

(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

(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.

Last updated 10/25/2021

Commented [A10]: For Negotiators: We decided the best 

way to address improved borrower notification is to provide 

requirements for the guaranty agencies to report more 

information about the borrower to the Department through 

NSLDS. Doing so will then allow the Department to conduct 

direct outreach and minimize additional work for FFEL 

lenders while ensuring consistency of information sent to 

borrowers.