Eligibility: Employment
The applicant must be working in an organization meeting one of the following descriptions:
- A qualified nonprofit organization (such as an Internal Revenue code approved section 501(c)(3) or 501(c)(4) organization, or a foreign equivalent), which aims to better society through constructive means and is approved by the GSB.
- An approved local or national government.
The applicant must be working at an organization at least halftime (20 hours or more) and with the intention of being with the organization for at least 6 months.
If the applicant changes jobs, if their salary changes, or their marital status changes, they must notify our office immediately. They will be required to repay any funds that were given to them for which they have later become ineligible.
An applicant can work at a for-profit organization, as long as the applicant works at least halftime at a qualified organization. However, the applicant’s funding must be from an employer with a 501(c)(3) or 501(c)(4) status or will stay employed a such an organization at least half time.
The GSB considers volunteerism working without compensation; therefore we do not consider volunteered activities a qualified employment for the program.
An applicant working as a contractor or consultant for a qualified nonprofit organization or an approved local or national government (e.g. receives compensation reported on a 1099) typically does not qualify for the GSB Nonprofit/Public Service Loan Forgiveness Program. However the GSB FAO has the discretion upon appeal to consider the eligibility of a contractor if their employer is currently applying for a 501(c)(3) or 501(c)(4) status. This status may qualify as long as it is within 2-5 years from the organization’s date of application for the tax-exempt status.
