Credible takeaways
- There are two main federal student loan forgiveness programs for federal employees: Public Service Loan Forgiveness and Perkins Loan cancellation.
- There’s also a student loan repayment program that allows federal agencies to repay up to $60,000 of your eligible student loans in exchange for a three-year service commitment.
- If you don’t qualify for forgiveness but want to save money on repayment, you can consider refinancing, though doing so means losing access to federal student loan benefits.
Many people want to go into public interest work but worry about how to repay expensive student loans. If you work for the government, you may be eligible for tens of thousands of dollars in student loan forgiveness for federal employees.
See what programs you may qualify for, how much money you could get for your student loans, and how to apply for forgiveness.
Current student loan refinance rates
Student loan forgiveness programs for federal employees
Federal employees can take advantage of many different programs designed to help people repay their student debt.
Some of these programs are open to qualified borrowers, including those who work for eligible nonprofits as well as the federal government. These options include:
- Public Service Loan Forgiveness
- Perkins Loan cancellation
In addition to these options, though, there is also a special program just for individuals who work for the federal government — the federal student loan repayment program. While your loans aren’t forgiven through this program, your government employer will help you repay all or a portion of your debt.
Federal student loan repayment program
Under this program, the federal agency you work for will repay up to $10,000 per year of eligible federal student loans, including:
- Direct Loans, including Direct Subsidized and Unsubsidized Loans, PLUS Loans, and Direct Consolidation Loans
- Federal Family Education Loans (FFEL)
- Perkins Loans
- Loans made or insured under the Public Health Service Act, including loans for disadvantaged students, primary care loans, nursing student loans, and health education assistance loans
The maximum amount you can have repaid under this program is $60,000. However, employees must also make a three-year service commitment to a federal agency in order to be eligible for any repayment help. If you quit or are fired before your service is complete, you may need to repay any loan money you received.
Federal agencies determine who is eligible for federal employee student loan forgiveness, but in general, the program is open to highly qualified candidates and current employees.
There is no specific application, but the Office of Personnel Management instructs current employees or potential candidates to contact their employing agency for further information, as each agency has its own implementation rules.
Public Service Loan Forgiveness
Public Service Loan Forgiveness (PSLF) is another avenue through which federal employees can earn student loan forgiveness. It’s not restricted to just federal employees, though — anyone who works for a qualifying employer can benefit from it.
The program is available to borrowers with Direct Loans who work for an eligible nonprofit or federal, state, or local government agency. To qualify, you must work full-time and make 120 on-time payments under an income-driven repayment plan. After you complete your 120 payments, any remaining balance of your eligible federal loans can be forgiven.
You will need to apply for this program, which you can do by using the Public Service Loan Forgiveness help tool. If your employer qualifies, you’ll use this same tool to certify your employment each year and, once you’ve met the requirements, apply for loan forgiveness.
Recent changes to the PSLF program
In March 2025, President Donald Trump signed a controversial executive order requiring the Department of Education to exclude from the definition of public service any organizations that have a “substantial illegal purpose,” including those alleged to engage in illegal discrimination or to violate federal immigration laws.
Supporters framed the move as an effort to tighten and better monitor PSLF eligibility standards, while critics argued that it could be used to target certain nonprofits and restrict access to loan forgiveness.
The new rule, scheduled to take effect in July 2026, has drawn legal challenges, with lawsuits arguing that it unlawfully redefines what constitutes a “qualifying employer.” If you're unsure whether your employer still qualifies under the updated guidelines, you can use the Department of Education's employer search tool to verify its eligibility.
What to do if you need more help paying off student loans
Taking advantage of these options for student loan forgiveness can be helpful in repaying eligible federal loans, but you may still need some extra assistance. That’s especially true since you’re still responsible for making your monthly payments while you work toward loan forgiveness.
Thankfully, there are a number of options you can use, including:
- Research non-government loan assistance: Look for other loan repayment assistance programs, which may be offered through schools or public or private organizations — especially if you’re doing public service work or are employed in health care, law, or teaching.
- Change your repayment plan: Income-driven repayment plans are required if you want to qualify for Public Service Loan Forgiveness. However, income-driven plans also enable you to set your monthly payment based on a percentage of your income — a potentially useful strategy if your payments are too high.
- Refinance student loans: This could be a good option for private student loans, which aren’t eligible for income-driven payment plans or most loan forgiveness or repayment assistance programs. Refinancing your loans can reduce your interest rate, which can lower both your monthly payment and total payoff costs in some circumstances. Be cautious when refinancing federal loans, though, as doing so means you’ll lose access to all federal loan benefits.
The right option for you will depend on what loans you have, as well as the type of assistance you need and the kinds of programs you’re eligible for based on your job and income.
FAQ
Do federal jobs pay off your student loans?
Open
Can you negotiate student loan repayment assistance with a federal agency?
Open
Can you double-dip into PSLF and other forgiveness programs?
Open
What qualifies as public service for Public Service Loan Forgiveness?
Open
What’s the difference between loan forgiveness and cancellation?
Open
