Under new regulations effective July 1, 2021, clergy and religious workers may now qualify for Public Service Loan Forgiveness (PSLF).

According to attorney Adam Minsky writing for Forbes.com, the PSLF program was launched in 2007 as a way to help those working in public service with their student loan debt. Under the program, an individual who meets the program qualifications including performing qualifying work for a qualifying employer may submit an application to have their student loans forgiven.

When the Public Service Loan Forgiveness program was first initiated, religious work was not considered qualifying work and was specifically excluded from PSLF eligibility. These new regulations, now in effect, have expanded PSLF eligibility to include time spent on religious instruction, worship services, or any form of proselytizing as part of the job responsibilities being counted toward meeting the full-time employment requirement.

The Department of Education has updated its website to reflect this change in the definition of full-time employment and qualifying work.

While the expansion of PSLF for clergy may be good news for many, Minsky cautions student loan borrowers to be aware of certain challenges. The program continues to struggle with application backlogs and low approval rates. Also, there is no guarantee that the program will continue in the future. The federal government could end or alter the program at any time.

PSLF Qualifications

To be eligible for PSLF, you’ll need to meet several different requirements, including ones that apply to how long you’ve worked for a qualifying organization, the type of student loan involved, and your repayment plan. If you’re interested in pursuing PSLF, here are the key requirements you’ll need to meet:

• Be employed by a U.S. federal, state, local, or tribal government, or another qualifying not-for-profit organization
• Be employed by the qualified employer on a full-time basis. Time spent doing volunteer work does not qualify.
• Your student loans are Direct Loans or federal loans consolidated into a Direct Loan. Student loans from private lenders are not eligible.
• You have an income-driven repayment plan (SAVE, PAYE, IBR, ICR) or a 10-year Standard Repayment Plan
• You have made a total of 120 qualifying monthly payments. These payments do not need to be consecutive.
• You are still working for a qualified employer when applying for PSLF.

To learn more and determine eligibility for Public Service Loan Forgiveness, visit the helpful tool at the Federal Student Aid website.