Written By Melanie Lockert
Student loan borrowers working in the public service are rewarded by serving communities on the ground, but these professions also commonly earn a lower income. This can make managing student debt more difficult.
An advantage for those public sector workers who have federal student loans is being eligible for the Public Service Loan Forgiveness (PSLF) program. Employees who work at a qualifying employer for 10 years — while making loan payments under an income-driven repayment (IDR) plan — can get their remaining balance forgiven, tax-free.
Based on Student Loan Planner’s April 2022 forgiveness and refinancing survey, we discovered the top professions that are most likely to pursue student loan forgiveness through PSLF.
10. Pharmacist
Average salary: $128,570
Percent pursuing PSLF: 40%
Pharmacists play an important role in society by offering guidance on medications and potential interactions, administering vaccines, and making sure you get the medicine and treatment you need. The job can earn a good living, but often the pharmacy student loan debt can exceed its salary. COVID-19 has also exacerbated staffing issues resulting in long shifts and burnout within the profession.
In fact, the Bureau of Labor Statistics (BLS) states that between 2020 and 2030, the job outlook for pharmacists has actually declined by 2%. Due to the high-stress environment and high debt, it makes sense that 40% of pharmacists who took our survey are pursuing Public Service Loan Forgiveness.
9. Nurse
Average salary: $77,600
Percent pursuing PSLF: 46%
Nurses are an integral part of the medical field and assisting with patient care. Though the job is necessary, the salary might not command a six-figure salary as some other medical professionals do.
Nurses who work at a public or government hospital or medical facility might qualify for PSLF. This is a key reason why so many of our survey’s nurse participants (46%) are working toward PSLF. In addition to PSLF, there are many other local, state, and federal forgiveness programs designed for nursing professionals.
8. Therapist/counselor
Average salary: $48,520
Percent pursuing PSLF: 47%
In the past few years, there’s been a rise in demand for mental health services. Given everything that transpired in the world, it makes sense. This profession typically requires an advanced education such as a master’s degree. But that higher education might not pay off in a monetary sense as therapists/counselors earn around $50,000 per year.
This could potentially create a 2:1 debt-to-income ratio where debt levels are twice that of your annual salary.
For therapists working in the public sector, it makes sense to pursue PSLF. Our survey showed that 47% of respondents in this profession are pursuing student loan forgiveness through PSLF.
7. Psychologist
Average salary: $81,040
Percent pursuing PSLF: 52%
Psychologists share some similarities to therapists and counselors, but might work in different clinical environments and/or do research as part of their profession. Though their earning power is a bit higher coming in at around $81,000 per year, their student loan debt might be higher, especially with a Psy.D.
The American Psychological Association (APA) found that Psy.D degree holders typically have the most debt (compared to Ph.D. in psychology) and can exceed six-figures of debt. Given these circumstances, we found that this is one of the top PSLF jobs, with 52% of psychologist respondents pursuing PSLF.
6. Teacher
Average salary: $61,820
Percent pursuing PSLF: 63%
No one goes into teaching because of the annual salary. Though teachers’ salaries can vary based on the grade they teach and geographic location, teachers earn about $61,000 per year. This is an underappreciated and overworked PSLF job that has hit a fever pitch since the pandemic.
We found that 63% of teachers in our survey are planning to pursue PSLF. Given teachers’ low salaries and varying student debt balances, it makes sense that this profession would want any support available to reduce their student debt.
Fortunately, public school teachers may qualify for PSLF, which is even more attractive than Teacher Loan Forgiveness which offers a limited amount of forgiveness.
5. Physician
Average salary: $208,000+
Percent pursuing PSLF: 64%
Physicians earn a higher-than-average salary than many professions on this list. But on the other hand, they often have more student loan debt as well, sometimes in the multiple six figures.
Physicians who work at public hospitals might qualify for PSLF and get their student loan balances forgiven after serving on the front lines for a decade.
Our survey found that 64% of physicians who responded are pursuing PSLF, slightly above teachers and higher than therapists.
4. Nonprofit employee
Average salary: $58,000
Percent pursuing PSLF: 65%
When people think of the top PSLF jobs, they probably think of those who work at a nonprofit organization. As part of the eligibility requirements for PSLF, a qualifying employer must be a nonprofit or government agency. Any 501(c)(3) is generally considered an eligible employer.
Though nonprofit employee salaries range depending on the service provided, role, and geographic location, many stand to earn around $58,000 per year.
Some nonprofit employees may have a bachelor’s degree while others have a master’s degree. Though debt levels can vary, our survey found that 65% of respondents who are nonprofit employees are pursuing PSLF.
3. Social worker
Average salary: $50,390
Percent pursuing PSLF: 69%
Social workers provide a much-needed service, but their annual salary levels tend to be on the lower end at around $50,000. Many social worker roles might also require a master’s degree, making it likely that these professionals have higher student debt levels.
These high debt-to-income levels can make student loan forgiveness an attractive option. Our survey found that 69% of respondents employed as social workers are pursuing this route for loan cancellation. For social workers employed by a nonprofit or government agency, PSLF can help eliminate all federal loans after 10 years.
2. College faculty or staff
Average salary: $79,640
Percent pursuing PSLF: 70%
College faculty includes adjunct professors, tenure track professors or administrative staff. Though employees under this umbrella earn more than secondary school teachers, average earnings are close to $80,000. Since teaching at a college usually requires a master’s or doctorate degree, college faculty and staff salaries are tempered by higher student debt.
Our survey found that 70% of employees in this field who responded to the survey are pursuing PSLF. For college faculty and staff at a public university, PSLF can make student loan repayment easier by lowering student loan payments during repayment, and reducing borrowers’ overall debt balance.
1. Government employee
Average salary: $62,106
Percent pursuing PSLF: 76%
When it comes to PSLF jobs, the top contender is none other than government employees. Along with nonprofit employees, in general, this job category is perfectly designed for PSLF and the program’s eligibility requirements.
Government employees’ salaries vary by sector, state and government organization, but can still be on the lower end.
Our survey found that 76% of respondents employed by the government are pursuing PSLF. For borrowers navigating federal student loan debt and a career in public service, PSLF is a great way to get loans forgiven after ten years of service.
How to know if you’re eligible for PSLF
Public Service Loan Forgiveness is an option for federal loan borrowers (Direct Loans from the U.S. Department of Education). You must work at an eligible nonprofit or government employer on a full-time basis. If you work at more than one qualifying part-time job, you may meet this requirement if you work a combined average of at least 30 hours per week.
During your 10 years of service, you can fill out an Employer Certification Form to help you and your servicer track your 120 qualifying payments and employer eligibility. Once you’ve fulfilled the PSLF requirements, you can fill out a PSLF application and submit it to your student loan servicer.
Expanded PSLF rules can help you qualify faster
If you’ve written off PSLF and think that it’s too long of a commitment, there’s some good news. PSLF eligibility has been expanded for a short period to broaden the program’s requirements. Here’s what to know:
- Temporary Expanded Public Service Loan Forgiveness (TEPSLF). Federal Direct Loan borrowers who made non-qualifying payments might receive credit for those payments under TEPSLF. You’d still need to work for a qualifying employer, but if you made payments under a plan other than an income-driven repayment plan, you might be eligible for loan forgiveness. You can apply for TEPSLF through StudentAid.gov.
- Credit for COVID forbearance months. Your monthly payments that have been on hold due to COVID forbearance all still count toward both PSLF or TEPSLF.
- PSLF waiver. Through October 31, 2022, borrowers can get credit for times of repayment that generally wouldn’t meet the requirements for PSLF. For example, periods of forbearance, loans in deferment before 2013, and more, now might qualify under the PSLF waiver.
You can use the PSLF Help Tool for assistance and talk about your options with your loan servicer. If you end up leaving the nonprofit world, you can consider forgiveness under an income-driven repayment plan after 20 to 25 years or get a lower interest rate through student loan refinancing.
If you have questions or need assistance with PSLF or refinancing you can reach out to Student Loan Planner for help.
