PSLF Fairness Act Removes 'Must Be Working' Rule, Easing Student Loan Forgiveness for Former Public Servants

The Public Service Loan Forgiveness (PSLF) Payment Completion Fairness Act is a short, targeted piece of legislation aimed at fixing one of the biggest headaches in the PSLF program. Right now, to get your student loans forgiven after making 120 qualifying payments (that's 10 years), you have to be working full-time in a public service job both when you apply and when the forgiveness actually happens. This bill cuts that requirement.

The Fine Print That Caused the Problem

For years, this rule has tripped up teachers, nurses, and social workers who completed their decade of service but then moved to the private sector or retired right before applying. Imagine spending 10 years working for the government or a non-profit, hitting your 120th payment, and then taking a higher-paying job to finally catch up on life—only to find out you disqualified yourself from the forgiveness you earned. This bill, specifically by striking language in Section 455(m)(1)(B) of the Higher Education Act, says that’s ridiculous. It focuses solely on whether you completed the required full-time public service employment for the full period.

What This Means for Your Career Trajectory

If this passes, it’s a big win for career flexibility. It means that once you hit the 10-year mark and make those 120 payments while working in public service—say, as a public defender, a school librarian, or a state trooper—you are qualified, full stop. You don’t have to stick around in that job waiting for the paperwork to clear or worrying that accepting a new position will cost you tens of thousands of dollars in earned forgiveness.

For example, if a nurse worked at a qualifying non-profit hospital for 10 years, made all her payments, and then took a better-paying job at a private clinic in year 11, she can still apply for and receive PSLF. Under the current rules, she'd be blocked. This change recognizes that the commitment was the 10 years of service, not being perpetually locked into that sector. It essentially ensures the promise of PSLF is delivered to everyone who fulfilled their side of the bargain, removing a major procedural barrier that has frustrated thousands of deserving borrowers.