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The Public Service Loan Forgiveness (PSLF) program is not ending. However, the program will be undergoing changes starting in July 2026, when the Education Department (ED), acting on an executive order signed by President Trump, institutes new limitations on who can qualify for PSLF.
If you are pursuing forgiveness through PSLF or planning to do so, you’ll need to be aware of the latest on Trump and PSLF and the upcoming changes to the program.
Key Points
• The Public Service Loan Forgiveness program is not ending, but new limitations on qualifying employers will take effect starting July 1, 2026 under an executive order.
• Currently, borrowers working full-time in public service for qualifying nonprofits or government agencies can receive remaining loan balance forgiveness after 120 qualifying payments.
• An executive order signed in March 2025 excludes certain organizations from qualifying as PSLF employers, which may limit some borrowers from qualifying for the program.
• The SAVE income-driven repayment plan has ended, requiring affected borrowers to switch to a new qualifying plan within 90 days of notification to continue qualifying for forgiveness.
• The PSLF Buyback program allows qualifying borrowers to purchase back months spent in forbearance to complete the 120 payments required for loan forgiveness.
What Is the PSLF Program?
The Public Service Loan Forgiveness program was created by the Education Department (ED) in 2007 as a way to help federal student loan borrowers who work in public service to pay off their student loans.
Under the PSLF program, borrowers with eligible federal loans who work full-time in public service for a qualifying nonprofit or government agency and repay their loan under a qualifying repayment plan, such as an income-driven plan, may be eligible to have the remaining balance on their student loans forgiven after making 120 qualifying payments.
If you’ve been hearing about a student loan executive order impacting PSLF and wondering if that means the PSLF program is going away, the good news is that PSLF is still operating. But some student loan borrowers and employers may no longer be eligible for the program starting on July 1, 2026.
Who Qualifies for PSLF?
Borrowers are required to have specific types of jobs and work for certain types of employers to qualify for PSLF. Here’s what a borrower needs to be eligible for the program:
• A qualifying job: Borrowers who work full-time (a minimum of 30 hours per week) in public service for an eligible nonprofit or government organization may qualify for PSLF. This typically includes such professionals as teachers, doctors, nurses, first responders, and members of the military, as well as full-time volunteers with AmeriCorps and the Peace Corps.
• A qualifying employer. Organizations that qualify for the PSLF program currently include federal, state, municipal, military, and tribal government agencies, and 501(c)(3) nonprofit organizations. Certain other nonprofits may qualify if they do most of their work in certain areas, such as civilian service to the military, law enforcement, public health, and public safety. (Under the upcoming changes on July 1, the organizations that qualify for PSLF may change.)
• Eligible loans. Only borrowers with federal Direct loans are eligible for PSLF. This includes Direct Subsidized and Unsubsidized Loans, Grad PLUS Loans (but not Parent PLUS loans), Direct Consolidation Loans, and Stafford Loans. Federal Family Education Loans (FFEL) and Perkins Loans must be consolidated into a Direct Consolidation Loan to qualify for PSLF.
• An income-driven repayment (IDR) plan. To qualify for PSLF, eligible borrowers must make 120 qualifying payments under a qualifying repayment plan like an IDR plan.
Private student loans are not eligible for PSLF. Borrowers who are looking to lower their private student loan payments may instead want to explore student loan refinancing. When you refinance student loans, you replace your current loans with a new private loan that ideally has a lower interest rate that could reduce your monthly payments. (Be aware that refinancing federal loans makes them ineligible for federal protections and programs like forgiveness and income-driven repayment.)
Some private lenders may even offer flexible refinancing options. For example, borrowers can combine refinancing and saving money through a program like SmartStart refinancing from SoFi. Under this program, borrowers pay only the interest on their student loans for the first nine months, and they can put their extra money into savings. Just be aware that the total repayment amount over the life of the loan may be slightly higher with this kind of program than it would be by making standard payments of loan principal plus interest.
What Did Trump’s Executive Order on PSLF Do?
Regarding Trump and PSLF, in March 2025, Trump signed an executive order (EO) to exclude certain organizations from being qualified employers under PSLF. The EO directed the Education Secretary to revise the program, and in October 2025, the Education Department released the final rule to exclude organizations that have a “substantial illegal purpose” from PSLF eligibility. The final rule will go into effect as of July 1, 2026.
It is not yet clear how the ED will determine whether an organization has an illegal purpose. Examples cited in the final rule include organizations that support terrorism and those that aid and abet illegal immigration. But by changing the definition of what a qualifying employer is, the Education Department may restrict PSLF eligibility for some borrowers.
Multiple lawsuits have been filed regarding Trump’s changes to PSLF and challenging the final rule.
Which Borrowers Does the Order Target?
By excluding organizations deemed to have a “substantial illegal purpose” from the PSLF program, President Trump’s executive order could restrict PSLF eligibility for public service employees of those organizations. This could affect both existing and aspiring borrowers of the PSLF program.
According to the final rule issued by the Education Department, “On or after July 1, 2026, no payment made by a borrower will be credited as a qualifying PSLF payment for any month that their employer was found to have engaged in illegal activity that rose to the level of substantial illegal purpose.”
Can the President Legally Change PSLF?
Because the PSLF program was established by law, technically, the president cannot fundamentally change the program on his own. Congress must vote on any significant changes to PSLF.
Plaintiffs in the lawsuits challenging the final rule issued by the ED say the Education Secretary does not have the authority to change who is eligible for PSLF. The ED says that under the Higher Education Act of 1965, it does have the authority to regulate the program.
Is PSLF Going Away?
The PSLF program is not ending. To eliminate the program would require an act of Congress. However, as discussed above, the program is undergoing regulatory changes as a result of President Trump’s executive order. Eligibility for the program may be restricted for borrowers whose employers are determined to have engaged in illegal activity on or after July 1, 2026.
How the End of the SAVE Plan Affects PSLF Borrowers
The SAVE (Saving on a Valuable Education) IDR plan has ended due to court rulings. Borrowers currently on SAVE will be notified on or after July 1, 2026 that they must switch to a new IDR plan within 90 days to continue qualifying for forgiveness. Options they can choose from include the Income-Based Repayment (IBR) plan or the soon-to-be-launched Repayment Assistance Plan.
Because the SAVE plan was essentially in limbo due to court actions, the Education Department placed all SAVE borrowers in administrative forbearance in July 2024. While time spent in forbearance does not count toward the 120 payments required for PSLF forgiveness, the PSLF Buyback program, which was created under the Biden administration, allows certain PSLF borrowers to “buy back” the months they spent forbearance to complete the 120 qualifying payments needed to achieve forgiveness.
The amount of a borrower’s buyback payment is based on what their loan payment amount would have been during the forbearance months that they’re buying back.
If you believe you are eligible for PSLF Buyback, you will need to submit a request through PSLF Reconsideration from the Office of Federal Student Aid.
What Other Student Loan Changes Are Coming in 2026?
In addition to the changes to the PSLF program, other student loan changes are scheduled to be implemented by the Education Department as of July 1, 2026 as a result of Trump’s One Big Beautiful Bill. Here’s what to know.
New Repayment Plans: Standard Plan and RAP
For borrowers who take out new student loans on or after July 1, 2026, there will be only two repayment plans: a revised Standard Plan and the new Repayment Assistance Plan.
On the new Standard Plan, borrowers pay fixed monthly payments over a repayment term of 10 to 25 years, depending on their total loan amount. The higher a borrower’s loan balance, the longer their repayment term.
On RAP, borrowers will pay 1% to 10% of their annual adjusted gross income (AGI) every month, with the percentage based on their earning level. Forgiveness can occur after 30 years of payments under RAP — or 10 years for those in PSLF. On RAP, any unpaid accrued interest is waived by the government if a borrower’s monthly payment doesn’t cover it, and at least $50 per monthly payment goes directly toward the loan principal.
New Borrowing Limits for Graduate Students
There are also big changes coming to federal student loans for graduate students. As of July 1, 2026, the Grad PLUS program that allowed graduate students to borrow up to the full cost of attendance each year will be eliminated. The amount that students in graduate degree programs will be able to borrow starting on July 1, 2026 will be capped at $20,500 per year, with a $100,000 lifetime borrowing limit.
Students in professional degree programs such as medicine and law can borrow up to $50,000 per year with a $200,000 lifetime limit.
What PSLF Borrowers Should Do Now
In light of all the changes, it’s important to manage your PSLF progress. Make sure to file all PSLF paperwork accurately and on time and certify your employment regularly. Keep hard copy documentation of all activity related to your student loans, including your payment dates, amounts and confirmation of receipt, as well as details about your loan and any correspondence with your loan servicer.
Log in to your account on StudentAid.gov regularly to make sure the balances and statuses of your loans are accurate and up to date. Also, make sure your contact information is accurate, check which repayment plan you are enrolled in, and switch to a new plan if necessary to make sure your payments count toward PSLF forgiveness.
Finally, watch out for any communication from the Education Department and/or your loan servicer and read it immediately. You can also set up news alerts for student loan forgiveness updates to stay in the know about changes to the program.
The Takeaway
The PSLF program is not ending, but there will be some changes coming to it starting on July 1, 2026. An executive order signed by President Trump directs certain restrictions to be put in place regarding the employers that qualify.
Federal student borrowers on the program can check for developments regarding PSLF at StudentAid.gov and sign up for news alerts about the program. It’s also wise to monitor your PSLF progress to make sure you are complying with all the eligibility rules.
For those borrowers with private student loans who are struggling with monthly payments, PSLF is not an option, but refinancing might be one path to consider, especially if you believe you might qualify for a lower interest rate that could save you money.
Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.
FAQ
Is PSLF still a thing in 2026?
Yes, PSLF is still a thing in 2026 — meaning the program is still up and running. PSLF is available to existing and new federal student loan borrowers who qualify. However, under an executive order signed by President Trump, regulatory rules for the program are changing as of July 1, 2026. PSLF eligibility for borrowers whose employers are determined by the Education Department to have engaged in “illegal activity” may be restricted.
What happens to PSLF borrowers who were on the SAVE plan?
PSLF borrowers who were on the SAVE plan will be notified by the Education Department on or after July 1, 2026 that they must switch from SAVE to a new income-driven repayment plan to continue qualifying for forgiveness. SAVE borrowers have been in administrative forbearance since July 2024 due to court actions. Although time in forbearance does not count toward PSLF forgiveness, through the PSLF Buyback program, certain borrowers can “buy back” the months they spent in forbearance to complete the 120 qualifying payments needed for PSLF forgiveness.
Can Trump end the PSLF program without Congress?
Technically, no, Trump cannot end the program without an act of Congress. However, the program is undergoing regulatory changes as a result of an executive order the President signed in 2025. Eligibility for the program may be restricted for certain borrowers starting on July 1, 2026.
Which employers could lose PSLF eligibility under the executive order?
Under Trump’s executive order, employers that are determined to have a “substantial illegal purpose” can be excluded from PSLF eligibility. This will go into effect as of July 1, 2026. It is not yet known how the Education Department will determine whether an organization has an illegal purpose, but examples cited by the department include those that support terrorism and organizations that aid and abet illegal immigration.
What is the PSLF Buyback program?
If a federal borrower has a period of deferment or forbearance on their student loan payments, they may be able to “buy back” those months to complete the 120 payments needed for PSLF forgiveness. The amount of a borrower’s buyback payment is based on what their loan payment amount would have been during the deferment or forbearance months that they are buying back.
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