Estimate your PSLF and IDR forgiveness amounts, timelines, and tax impact.
PSLF Eligibility Check
Employer Type
Repayment Plan
PSLF Analysis
Projected Forgiveness
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—
Progress to PSLF0%
0 payments made120 needed
Payments Made
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Remaining Payments
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Proj. Forgiveness
—
Total You Pay
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Tax on Forgiveness
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Monthly Payment
—
PSLF=120 qualifying payments → tax-free forgiveness
IDR Forgiveness (Non-PSLF)
For borrowers not in public service. Based on your inputs from the PSLF tab.
SAVE Plan
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Forgiven
—
Timeline
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Total Paid
PAYE Plan
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Forgiven
—
Timeline
—
Total Paid
IBR Plan
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Forgiven
—
Timeline
—
Total Paid
⚠️ Tax Warning: Unlike PSLF, IDR forgiveness is currently federally taxable (through 2025 it's tax-free under American Rescue Plan, but this expires). Check current law and consult a tax advisor before making repayment decisions.
SAVE Forgiveness
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PAYE Forgiveness
—
IBR Forgiveness
—
Est. Tax (24%)
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SAVE Total Cost
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vs PSLF Savings
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Federal Student Loan Forgiveness Programs
Program
Eligibility
Amount
Timeline
Taxable?
PSLF Public Service Loan Forgiveness
Full-time employment at government or 501(c)(3) nonprofit; IDR plan; Direct Loans
Full remaining balance
10 years (120 payments)
Tax-Free
IDR Forgiveness SAVE / PAYE / IBR / ICR
Any borrower on qualifying IDR plan; consistent annual recertification
Full remaining balance
20–25 years
Currently Tax-Free*
Teacher Loan Forgiveness
Full-time teaching at low-income school for 5 consecutive years; eligible loan types
Up to $17,500 (math/science/special ed) or $5,000 (other subjects)
5 years
Tax-Free
Perkins Loan Cancellation
Teachers, nurses, law enforcement, military; Perkins loans only (discontinued program)
Up to 100% of loan balance
5 years service
Tax-Free
Total & Permanent Disability
Borrower with total permanent disability (SSA or VA documentation)
Full remaining balance
Immediate upon approval
Tax-Free
Closed School Discharge
School closed while enrolled or within 120 days of withdrawal
Full loan discharged
Varies
Tax-Free
Borrower Defense to Repayment
School committed fraud or misconduct affecting your loan
Partial or full discharge
Varies by claim
Tax-Free
Military Service
Active duty military; certain branches have Perkins cancellation
Up to 50% cancellation (Perkins); SCRA interest rate cap 6%
Service-based
Tax-Free
Income-Driven (SAVE undergrad)
Borrowers with exclusively undergraduate loans under SAVE
Full remaining balance
10 years ($12k) scaling up
TBD
*IDR forgiveness is federally tax-free through 2025 under the American Rescue Plan Act (§9675). This provision is set to expire — check current legislation. Some states may tax IDR forgiveness even when the federal government does not. Always consult a student loan advisor or tax professional before making major repayment decisions.
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How to Use This Calculator
1
Enter Loan Details
Input your loan balance, interest rate, income, and family size.
2
Select Forgiveness Program
Choose between PSLF, income-driven forgiveness, or other programs.
3
Review Projections
See your projected monthly payments, total paid, and forgiven amount.
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Formula & Methodology
PSLF Qualifying Payments
120 qualifying payments (10 years) under an income-driven plan while working full-time for a qualifying employer
After 120 payments, remaining balance is forgiven tax-free.
IDR Forgiveness
Remaining balance forgiven after 20-25 years of qualifying payments
Under SAVE plan, undergraduate loans forgiven after 20 years; graduate after 25 years.
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Key Terms Explained
PSLFPublic Service Loan Forgiveness — tax-free forgiveness after 120 qualifying payments while working for government or nonprofit employers.
Qualifying PaymentA payment made on time, under a qualifying repayment plan, while employed by a qualifying employer.
Discretionary IncomeIncome above 150-225% of the federal poverty level, used to calculate income-driven plan payments.
Tax BombIDR forgiveness (non-PSLF) may be treated as taxable income, creating a large tax bill in the forgiveness year.
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Real-World Examples
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Alex
PSLF for Teacher
Inputs: Balance: $60,000, Rate: 5%, Income: $50,000, Family: 2, SAVE plan
Result: Result: Monthly payment ~$250, Total paid ~$30,000, Forgiven ~$45,000 tax-free after 10 years.
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Sarah
IDR Forgiveness
Inputs: Balance: $80,000, Rate: 6%, Income: $45,000, Standard IDR
Result: Result: After 20 years of payments, approximately $35,000 forgiven (subject to income taxes).
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Understanding Student Loan Forgiveness Options
PSLF: The Gold Standard
Public Service Loan Forgiveness offers tax-free forgiveness after just 10 years for government and nonprofit employees. The key requirements are Direct federal loans, an income-driven plan, and 120 qualifying monthly payments.
Income-Driven Forgiveness
If you do not qualify for PSLF, income-driven plans forgive remaining balances after 20-25 years. The forgiven amount may be taxable, so plan ahead by saving for the potential tax bill.
Maximizing Your Benefit
If pursuing forgiveness, minimize payments by filing taxes separately (if married), using the lowest-payment IDR plan, and certifying employment annually for PSLF. Every dollar you overpay is a dollar that would have been forgiven.
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Frequently Asked Questions
How does Public Service Loan Forgiveness (PSLF) work?+
PSLF forgives the remaining balance on Direct Loans after you make 120 qualifying monthly payments while working full-time for an eligible employer such as government agencies or qualifying nonprofits. The forgiven amount is tax-free, making this one of the most valuable forgiveness programs available.
What counts as a qualifying payment for PSLF?+
A qualifying payment must be made on time (within 15 days of due date), for the full amount due, under an income-driven repayment plan or the Standard plan, on a Direct Loan, while you are employed full-time by an eligible employer. Payments during forbearance or deferment do not count.
Will my forgiven student loan balance be taxed?+
Under PSLF, forgiven amounts are not taxable. However, for income-driven repayment (IDR) forgiveness after 20-25 years, the forgiven amount is currently not taxed through 2025 under the American Rescue Plan, but may become taxable again after that unless legislation extends this provision.
Which income-driven repayment plan leads to the most forgiveness?+
The SAVE plan (formerly REPAYE) typically results in the most forgiveness because it calculates payments based on 5-10% of discretionary income and has a more generous income exemption. Lower monthly payments mean more of your balance remains to be forgiven after 20-25 years.
How do I know if I qualify for loan forgiveness programs?+
Eligibility depends on your loan type (must be Direct Loans for PSLF), employer type, repayment plan, and payment history. Use the PSLF Help Tool on StudentAid.gov to verify employer eligibility, and submit an Employment Certification Form annually to track your qualifying payments.