What counts as a qualifying PSLF employer?

Which employers qualify

• Government — federal, state, local, or tribal (including public hospitals, the VA, and public universities).
• 501(c)(3) nonprofits — including most nonprofit hospitals and academic medical centers.
• A narrow set of other nonprofits providing a qualifying public service may also count.

For-profit employers do not qualify — including for-profit hospitals and physician groups, regardless of the work you do.

The W-2 requirement

PSLF credit follows W-2 employment by the qualifying organization, not the building where you work. If you’re a 1099 independent contractor, you’re generally not an employee of the hospital, so those months don’t count even if the hospital is a nonprofit.

The 1099 and locum trap

Locum tenens work is almost always 1099 through a staffing agency (a for-profit company), so it typically earns no PSLF credit. Contracting through your own LLC or S-corp doesn’t help either — your own entity isn’t a qualifying employer. One exception: a few states (such as California and Texas) bar nonprofits from employing physicians directly, and federal rules let physicians at qualifying facilities there count even though a medical group issues the W-2.

The full-time requirement

You must work full-time, defined as at least 30 hours per week (or your employer’s full-time threshold if higher). Hours across multiple qualifying employers can be combined to reach full-time.

How to verify your employer

Use the PSLF Help Tool at StudentAid.gov to confirm your employer qualifies, and file an Employment Certification Form every year. Annual certification surfaces problems early and keeps your qualifying-payment count accurate.

Frequently asked questions

What employers qualify for PSLF?

U.S. government organizations (federal, state, local, tribal) and 501(c)(3) nonprofits, including most nonprofit and government hospitals. You must be a W-2 employee of the qualifying organization. For-profit employers don't qualify.

Does a 1099 physician qualify for PSLF?

Generally no. PSLF requires W-2 employment by the qualifying employer. A 1099 independent contractor isn't an employee of the hospital, so those months don't count, even at a nonprofit site.

Does locum tenens count for PSLF?

Usually not. Locum work is typically 1099 through a for-profit staffing agency, which isn't a qualifying employer. To earn PSLF credit you generally need to be a W-2 employee of a qualifying nonprofit or government organization.

How many hours is full-time for PSLF?

At least 30 hours per week, or your employer's own full-time threshold if it's higher. You can combine hours across multiple qualifying employers to meet the requirement.