Could Your Nonprofit Job Lose PSLF Status?

The College Investor Audio Show · Nov 22, 2025 · 7m

For nearly two decades, the Public Service Loan Forgiveness Program has offered a straightforward promise: make 120 qualifying payments while working full-time for a government agency or a 501(c)(3) nonprofit, and any remaining federal student loan balance will be forgiven. The idea helped schools, hospitals, local governments, and nonprofits recruit workers who might otherwise avoid lower-paying public-service roles.

That certainty shifted when the Education Department finalized a regulation allowing the Secretary to declare an employer ineligible if it “has a substantial illegal purpose.”…