Is PSLF available in Alabama?
Short answer: Yes. Public Service Loan Forgiveness is a federal program available to borrowers in Alabama on the same terms as everywhere else: work full-time for a government organization or a 501(c)(3) nonprofit, have Direct Loans, make 120 qualifying payments on a qualifying plan (RAP, IBR/IDR, or 10-year Standard), and then the remaining balance may be forgiven. Eligibility is decided by the U.S. Department of Education, not by your state.
Last verified November 5, 2026 · PSLFCheck Editorial
Government employers in Alabama
Working full-time for a government organization in Alabama — a state agency, county, city, town, school district, public college or university, public hospital, or a federal or tribal employer located in Alabama — is a qualifying employer type for PSLF. Government employers are not listed in IRS nonprofit data, so confirm yours by EIN in the PSLF Help Tool.
501(c)(3) nonprofits in Alabama
501(c)(3) nonprofits are a qualifying employer type. Other nonprofits may qualify only if they provide certain public services. Contractors and for-profit companies generally do not qualify, even when they serve a government client.
Alabama employers in our index
Our PSLF employer index (an MVP subset of the IRS Exempt Organizations Business Master File: active organizations with revenue of $1M+ in education, health, human-services and similar categories) lists 969 organizations in Alabama. Of those, 692 are 501(c)(3) organizations, 169 are education-related and 577 are health-related. Cities with the most indexed organizations: Birmingham (165), Montgomery (109), Mobile (80). Government employers are not in this IRS file — they qualify by type.
Next steps
- Find your employer in the PSLF employer search (AL).
- Run the forgiveness checker.
- Estimate payments and months left with the RAP calculator.
- Certify employment with the PSLF form.
Teachers: see Teacher Loan Forgiveness in Alabama. All states: PSLF by state.
Check my forgiveness options →RAP calculatorPSLF employer search
FAQ
Is PSLF available in Alabama?
Yes. PSLF is a federal program, so it works the same in Alabama as in every state: full-time work for a qualifying government or 501(c)(3) employer, Direct Loans, a qualifying plan, and 120 qualifying payments.
Do Alabama state and local government jobs qualify for PSLF?
Government employers — Alabama state agencies, counties, cities, public schools, public universities, and other public bodies — are a qualifying employer type. Confirm your specific employer in the PSLF Help Tool.
How do I check if my Alabama nonprofit qualifies?
Search it by name or EIN in our PSLF employer search filtered to AL, then confirm in the official PSLF Help Tool on studentaid.gov.
Is PSLF forgiveness taxed by states?
PSLF forgiveness is not federal taxable income. State tax treatment can vary — check your state tax agency or a tax professional.
Sources
- Public Service Loan Forgiveness — studentaid.gov — accessed November 5, 2026
- PSLF Help Tool & form — studentaid.gov — accessed November 5, 2026
- 34 CFR 685.219 — PSLF (eCFR) — accessed November 5, 2026
- IRS Exempt Organizations Business Master File extract — accessed November 5, 2026
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