Public Service Loan Forgiveness (or PSLF) is a program that allows certain individuals to get the remainder of their direct student loans discharged. Sounds great, right? Of course, there are a lot of restrictions.

In order to qualify, you must

  • Work full-time for a government agency or non-profit
  • Have direct loans
  • Repay your loans on an income-driven repayment plan
  • Make 120 qualifying payments

Most important for Clergy members is the first item- the borrower has to work for full-time for a government agency or for a nonprofit organization that is tax-exempt under Section 501(c)(3) of the Internal Revenue Code.

According to

  • “For PSLF, you are generally considered to work full-time if you meet your employer’s definition of full-time or work at least 30 hours per week, whichever is greater.”
  • “If you are employed in more than one qualifying part-time job at the same time, you may meet the full-time employment requirement if you work a combined average of at least 30 hours per week with your employers.”
  • “If you are employed by a not-for-profit organization, time spent on religious instruction, worship services, or any form of proselytizing may not be counted toward meeting the full-time employment requirement.”

For members of the Clergy, this means that they have to work 30 hours a week for a nonprofit organization, in addition to whatever work they are already doing for their church. If you work for your Church and also dedicate 30 hours a week to a non-church related non-profit, you can read more about the PSLF at

If you think you may qualify and would like a consultation with Clergy Financial to see if we could help with an application, visit our website at and schedule for a Pro-Advisor consultation today.


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Clergy Financial Resources serves as a resource for clients to help analyze the complexity of clergy tax law, church payroll & HR issues. Our professionals are committed to helping clients stay informed about tax news, developments and trends in various specialty areas.

This article is intended to provide readers with guidance in tax matters. The article does not constitute, and should not be treated as professional advice regarding the use of any particular tax technique. Every effort has been made to assure the accuracy of the information. Clergy Financial Resources and the author do not assume responsibility for any individual’s reliance upon the information provided in the article. Readers should independently verify all information before applying it to a particular fact situation, and should independently determine the impact of any particular tax planning technique. If you are seeking legal advice, you are encouraged to consult an attorney.

For more information or if you need additional assistance, please use the contact information below.

Clergy Financial Resources
11214 86th Avenue N.
Maple Grove, MN 55369

Tel: (888) 421-0101 
Fax: (888) 876-5101


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