Nonprofit student loan forgiveness is possible with the Public Service Loan Forgiveness (PSLF) Program. Qualified nonprofits include tax-exempt organizations under section 501(c)(3) of the Internal Revenue Code, according to the Internal Revenue Service IRS.
Meanwhile, organizations that primarily provide a qualifying public service also qualify for the PSLF program even if they are not tax-exempt under the IRS’s section 501(c)(3). Still, there are limitations in qualifying for PSLF. Be sure to confirm the tax status of the place of your employment to determine your eligibility for student loan forgiveness.
You may qualify for PSLF if your nonprofit employer offers specific public services but is not tax-exempt under section 501(c)(3) of the IRS. Confirm if your employer provides at least one of these public services:
Your primary employer can tell you about its tax status and if it is a nonprofit organization. Generally, eligible nonprofits include most private elementary and secondary schools, as well as private colleges and universities.
However, organizations that are labor unions or partisan political organizations are ineligible PSLF employers. In addition, you may have limits on your PSLF qualifications if your job nature involves religious activities.
Be sure to confirm your organization’s type and tax status to determine your PSLF eligibility. Or, you can use the Chipper's Nonprofit Organization Search tool to find information about your organization.
Qualifying nonprofits for PSLF are organizations that are tax-exempt under section 501(c)(3) of the Internal Revenue Code. Some organizations that are not tax-exempt may still qualify if their operations involve qualified public services.
You can confirm the tax status of the organization you work for with your employer. Or, you can search the IRS’s database to confirm this detail yourself.