Home› Finance› Loans & Debt› Student Loan Forgiveness

Student Loan Forgiveness Calculator

Estimate your PSLF and IDR forgiveness amounts, timelines, and tax impact.

PSLF Eligibility Check
Employer Type
Repayment Plan
PSLF Analysis
Projected Forgiveness
—
—
Progress to PSLF 0%
0 payments made 120 needed
Payments Made
—
Remaining Payments
—
Proj. Forgiveness
—
Total You Pay
—
Tax on Forgiveness
—
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
—
Forgiven
—
Timeline
—
Total Paid
PAYE Plan
—
Forgiven
—
Timeline
—
Total Paid
IBR Plan
—
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
—
PAYE Forgiveness
—
IBR Forgiveness
—
Est. Tax (24%)
—
SAVE Total Cost
—
vs PSLF Savings
—
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.

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.

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.

About this calculation · Accuracy & Methodology

Key Terms

PSLF
Public Service Loan Forgiveness — tax-free forgiveness after 120 qualifying payments while working for government or nonprofit employers.
Qualifying Payment
A payment made on time, under a qualifying repayment plan, while employed by a qualifying employer.
Discretionary Income
Income above 150-225% of the federal poverty level, used to calculate income-driven plan payments.
Tax Bomb
IDR forgiveness (non-PSLF) may be treated as taxable income, creating a large tax bill in the forgiveness year.

Real-World Examples

Example 1

PSLF for Teacher

Balance: $60,000, Rate: 5%, Income: $50,000, Family: 2, SAVE plan

Result: Monthly payment ~$250, Total paid ~$30,000, Forgiven ~$45,000 tax-free after 10 years.

Example 2

IDR Forgiveness

Balance: $80,000, Rate: 6%, Income: $45,000, Standard IDR

Result: After 20 years of payments, approximately $35,000 forgiven (subject to income taxes).

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.