New PSLF Rules 2023: A Clearer Path to Forgiveness

• Late or partial PSLF payments now count. Pay the full amount within the same month, and you won’t lose credit.

• Consolidating loans won’t erase your PSLF progress. You keep partial credit for past qualifying payments.

• Full-time for PSLF now means 30 hours a week—period. No more employer-specific rules.

For years, the Public Service Loan Forgiveness (PSLF) program had strict requirements. One paperwork mistake? Disqualified. Wrong loan type? Too bad. But the new PSLF rules in 2023 changed the game—making PSLF easier to qualify for and track.

Here’s what’s different and how it helps you.

Old rule: Payments had to be made in full and on time (within 15 days). Even being a day late or a few dollars short could lead you to student loan delinquency.

New rule (as of July 1, 2023):

• Late or partial payments count. As long as you pay the full required amount within the same month, it qualifies—no more losing PSLF credit over minor timing issues.

• Lump-sum payments count in advance. If you make a large payment (like from a bonus or tax refund), you can get credit for up to 12 future PSLF payments—or until your next annual recertification, whichever comes first.

Why this matters: You get more control over your budget. You won’t lose PSLF credit just for splitting up payments or missing the exact due date. Plus, lump sums let you bank qualifying payments in advance if you stay in public service long enough.

Related: Why Your PSLF Qualifying Payments Aren’t Counting

Old rule: If you paused payments, your PSLF progress paused, too. Most months in deferment or forbearance didn’t count (except in rare cases).

New rule:

• Some deferments and forbearances count toward PSLF. Time spent in certain situations—like military service or cancer treatment—qualifies for PSLF without extra paperwork.

• You can “buy back” other paused months. If you took a deferment or forbearance that doesn’t count automatically, you can make up those payments now with the PSLF Buyback Program to regain credits.

Why this matters: If you had to pause payments for public service or financial hardship, those months won’t necessarily set you back. You may already have PSLF credit—or a way to get it back.

Related: Can PSLF Be Retroactive?

Old rule: Consolidating loans—even Direct Loans—wiped out your PSLF progress. Your payment count reset to zero.

New rule:

• You keep partial credit. If you consolidate student loans for PSLF, your new loan starts with a weighted average of the PSLF-qualifying payments you have already made.

• Older loans can be consolidated without losing everything. If you still need to consolidate FFEL or Perkins loans to qualify for PSLF, you can do it without erasing all your progress.

Why this matters: Consolidation used to be a gamble, but not anymore. You can simplify your loans or meet PSLF’s Direct Loan requirement without starting over.

Old rule: You had to meet your employer’s definition of full-time or work at least 30 hours a week, whichever was higher. This made things tricky for adjuncts and positions with fluctuating hours.

New rule:

• 30 hours a week is the standard for everyone. No more employer-specific definitions.

• Adjunct professors or faculty members can now count credit hours toward the 30-hour requirement using a set formula.

• Some specialized contractors qualify if their work can legally only be done under that employer’s supervision. Check out this guide for more information: Government Contractor Student Loan Forgiveness Programs.

Why this matters: No more confusion over what counts as full-time. If you work 30+ hours a week for a qualifying employer, you meet the PSLF requirement—period.

While 2023 brought permanent improvements, some temporary benefits from the Biden administration have ended:

• You must be working a public service job at the time of forgiveness. To get PSLF, you need to be employed by a PSLF-qualifying employer both when you apply and when your loans are officially forgiven.

• No double-counting Teacher Loan Forgiveness. If you received Teacher Loan Forgiveness, those same months can’t also count toward PSLF.

Why this matters: Make sure you’re still in a PSLF-qualifying job until your application is officially approved. And if you’ve used Teacher Loan Forgiveness, double-check that those months aren’t being counted twice.

Want to maximize the new PSLF benefits? Here’s what you need to do to keep your progress on track and avoid losing qualifying payments.

• Stay (or get) in a qualifying repayment plan. These changes help protect past payments, but future PSLF payments still need to be under an Income-Driven Repayment (IDR) plan or the 10-year standard repayment plan to count.

• Certify your employment every year. Submit the PSLF form annually—or whenever you switch employers—to confirm your qualifying work. This keeps your PSLF progress on track and prevents surprises when it’s time to apply for forgiveness.

• Consolidate student loans if needed. If you have loans outside the Direct Loan program, you must consolidate them into a Direct Consolidation Loan to qualify for PSLF. The good news? You’ll keep partial credit instead of resetting to zero.

• Time deferments and forbearances wisely. If you’re pausing payments for military service, the Peace Corps, or similar programs, ask your servicer if that time will count. If you need a general student loan forbearance, consider the “buyback” option to restore PSLF credit later.

• Apply for forgiveness at the right time. You must be working in public service when your PSLF is approved. Don’t quit or retire before your application is processed.

The 2023 PSLF updates make it easier to qualify and stay on track:

• Late or split payments still count.

• Military and public service deferments can earn PSLF credit.

• Consolidation no longer erases your progress.

• Full-time employment now has a clear 30-hour standard.

If you’re counting on PSLF, the smartest move is to take action now while these improved rules are in place. Certify your employment, confirm your repayment plan qualifies, and keep making those payments. With these changes, reaching 120 and getting forgiveness is more achievable than ever.

But while the rules are better, PSLF is still full of loopholes, paperwork, and servicer mistakes that can cost you time and money.

Book a call with our student loan expert today. Let’s make sure you’re on the fastest path to forgiveness.

Related reading:

• Does PSLF Have to be Consecutive?

• PSLF Employer Won’t Sign Your Form?

• Student Loan Forgiveness Lawsuit Updates