Skip Navigation
  • Robocall Hotline:(844)-8-NO-ROBO
  • All Other Complaints:(877)-5-NO-SCAM
  • Outside NC:919-716-6000
  • En Español:919-716-0058

Public Service Loan Forgiveness

The Public Service Loan Forgiveness (PSLF) program forgives the remaining balance on federal direct student loans following 120 months of qualifying payments for certain public service employees – including those who work for governments, 501(c)(3) organizations, and other nonprofits providing certain public services, including military service, law enforcement, early childhood education, public health and many others.

Please visit Public Service Loan Forgiveness | Federal Student Aid to learn more.

Please note that the North Carolina Department of Revenue (DOR) has issued an Important Notice regarding the State Tax Treatment of Federal Student Loan Forgiveness, which is available here.

According to the Important Notice, while certain forms of federal student loan forgiveness are considered taxable income in North Carolina, student loan forgiveness under PSLF is not considered North Carolina taxable income.  Specifically, footnote 8 of the Important Notice notes that for student loan forgiveness excluded under certain provisions of the Internal Revenue Code – including Public Service Loan Forgiveness under Section 108(f)(1) – “individuals are not required to add back the amount of forgiveness excluded under these Code sections when determining North Carolina taxable income”.