Student Loan Forgiveness Calculator

PSLF is a federal program that forgives the remaining balance on your Direct Loans after you make 120 qualifying monthly payments (10 years) while working full-time for a qualifying government or nonprofit employer. Payments must be made under an income-driven repayment plan or the standard 10-year plan. The forgiven amount under PSLF is tax-free.

Your family size includes yourself, your spouse, and any children (including unborn children due to be born in the current year) for whom you provide more than half of their financial support. It also includes other dependents you claim on your tax return. A larger family size lowers your discretionary income, which reduces your monthly IDR payment.

A qualifying payment is a payment made in full, on time (within 15 days of the due date), while working full-time for a qualifying employer, and while enrolled in an eligible repayment plan — typically an income-driven plan. Payments made during deferment or forbearance generally do not count, though some COVID-19 relief periods were granted qualifying payment credit.

No — you can also qualify by working full-time for a 501(c)(3) nonprofit organization, other nonprofit organizations that provide qualifying public services, or U.S. federal, state, local, or tribal government agencies. Private for-profit employers do not qualify, even if you perform public service work.

PSLF forgives your remaining balance after 10 years (120 payments) and is tax-free, but requires qualifying public service employment. IDR forgiveness occurs after 20 or 25 years of payments regardless of your employer, but the forgiven amount may be treated as taxable income (except through 2025 under current law). PSLF typically provides much larger forgiveness for public servants.

IDR payments are based on your discretionary income — the difference between your adjusted gross income (AGI) and a percentage of the federal poverty guideline for your family size and state. Under SAVE, payments are 5–10% of discretionary income; under PAYE and New IBR, 10%; under Old IBR, 15%. Larger family sizes and lower incomes produce lower monthly payments.

Yes — loans originated before July 1, 2014 may not be eligible for certain repayment plans like PAYE. Loans borrowed before October 1, 2007 face additional restrictions. However, consolidating older loans into a Direct Consolidation Loan can make them PSLF-eligible, though consolidation may reset your qualifying payment count.

Under current law, PSLF forgiveness is always tax-free. IDR forgiveness was also made temporarily tax-free through the end of 2025 under the American Rescue Plan. After 2025, forgiven IDR balances could be treated as taxable income unless Congress extends the exemption. Always check current IRS guidance or consult a tax professional when planning for forgiveness.