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Student Loan Forgiveness Calculator

Estimate your monthly payment, time to forgiveness, and forgiven balance under PSLF or income-driven repayment. Nothing here is saved or sent anywhere.

Use the average rate across all your federal loans (shown in studentaid.gov).

Estimated Forgiveness

Monthly IDR Payment Enter your details above
Months to Forgiveness —
Estimated Forgiven Balance —
Discretionary Income —
Total Paid Before Forgiveness —
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How this calculator works

  1. Discretionary income = max(0, AGI − 225% × FPL for your family size). The 2025 FPL baseline is $15,060 for a household of 1, plus $5,380 per additional person.
  2. Monthly IDR payment = (discretionary income × plan rate) ÷ 12. SAVE for undergrad = 5%; SAVE for grad, IBR new, PAYE = 10%; IBR old = 15%; ICR = 20%.
  3. Forgiveness timeline: PSLF = 120 payments (10 years); SAVE undergrad/IBR new/PAYE = 20 years; SAVE grad/IBR old/ICR = 25 years. PSLF uses the remaining qualifying payments after deducting those already made.
  4. Forgiven balance: the calculator simulates monthly amortization — balance × (1 + monthly rate) − payment — for the forgiveness period and shows the remaining balance at the end.

If your IDR payment exceeds the standard 10-year payment, you pay no more than the standard amount. If your payment is $0 (very low income), interest may still accrue — under SAVE, unpaid interest on subsidized loans is waived; on unsubsidized loans it accrues but does not capitalize.

Worked example

$45,000 balance at 5.5% interest, AGI $55,000, family of 1, on SAVE (undergraduate, 20-year forgiveness):

  • Discretionary income: $55,000 − (225% × $15,060) = $55,000 − $33,885 = $21,115/year
  • Annual payment: $21,115 × 5% = $1,055.75 → monthly: $87.98
  • After 240 months at 5.5%, remaining balance ≈ $87,600 (loan grows because payment < interest accruing at ~$206/month)
  • PSLF (120 payments): balance after 120 months ≈ $62,500 forgiven, tax-free
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Frequently asked questions

What is PSLF (Public Service Loan Forgiveness)?
PSLF cancels the remaining balance on federal Direct Loans after 120 qualifying monthly payments made while working full-time for an eligible public service employer — a government agency, 501(c)(3) nonprofit, or other qualifying organization. Payments must be made under an income-driven repayment (IDR) plan. After 10 years (120 payments) the forgiven amount is not subject to federal income tax.
What are the main income-driven repayment plans?
SAVE (Saving on a Valuable Education, replacing REPAYE) caps payments at 5% of discretionary income for undergraduate loans and 10% for graduate loans, with forgiveness at 20–25 years. IBR (new borrowers after July 1, 2014) caps payments at 10% with forgiveness at 20 years; IBR for older borrowers caps at 15% with forgiveness at 25 years. PAYE caps at 10% with forgiveness at 20 years. ICR caps at 20% with forgiveness at 25 years. Discretionary income under most plans = AGI minus 225% of the federal poverty guideline; SAVE uses 225% for undergrad and 225% for grad.
Will the forgiven amount be taxed?
PSLF forgiveness is never taxed federally. IDR forgiveness was federally tax-free through December 31, 2025 under the American Rescue Plan Act. After 2025, IDR forgiveness may be taxable as ordinary income unless Congress extends the exemption — a significant risk for borrowers with large forgiven balances. State tax treatment varies. Confirm the tax status with a tax advisor before relying on forgiveness.
What counts as a qualifying payment for PSLF?
A qualifying PSLF payment is made: (1) on a federal Direct Loan, (2) under an IDR plan or the standard 10-year plan, (3) for the full amount due, (4) no later than 15 days after the due date, (5) while working full-time for an eligible employer. Payments made during forbearance, deferment, or grace periods generally do not count, with some exceptions under temporary PSLF waivers.
How accurate is this calculator?
This calculator provides a rough estimate using published IDR plan formulas and the current federal poverty guidelines. Actual payments depend on your loan servicer's calculation of your certified family size, whether you have graduate vs. undergraduate loans, annual recertification of income, capitalized interest, and the current legal status of SAVE (which is under litigation as of 2025–2026). Use this as a starting point and verify with your loan servicer or studentaid.gov.

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