Student Loan Forgiveness Estimator

Estimate your forgiveness timeline, monthly payment, and remaining balance forgiven under your chosen federal student loan forgiveness program.

Monthly IDR payment

$165

Years until forgiveness

10 yr

Estimated balance forgiven

$58,279

Detailed results
Total amount paid over the period	$19,788
Estimated tax on forgiveness	$0.00

What this result means

You will pay $164.90/month and your estimated remaining balance of $58,279 will be forgiven after 10 years.

Repayment Schedule by Year

Year-by-year breakdown of loan balance, annual payments, and cumulative paid amount. Shows first 5 years, then final year at forgiveness.

Repayment Schedule by Year. 7 rows, first 7 shown.
Year	Loan Balance	Annual Payment	Cumulative Paid
0	$45,975	$1,979	$1,979
1	$47,015	$1,979	$3,958
2	$48,125	$1,979	$5,936
3	$49,309	$1,979	$7,915
4	$50,573	$1,979	$9,894
5	$51,921	$1,979	$11,873
10	$51,921	$0.00	$11,873

How this is calculated

Monthly payment = (AGI − FPL × multiplier%) × plan% ÷ 12, capped at 10-year standard payment. Forgiveness balance projected via amortization over remaining qualifying payment months. Standard payment = P × r(1+r)^n / ((1+r)^n − 1) where n=120.

Student loan forgiveness programs offer a path to eliminate remaining loan balances after a set repayment period, particularly valuable if you have high debt-to-income ratios or plan to work in public service.

Public Service Loan Forgiveness (PSLF) forgives your remaining balance after 120 qualifying payments (10 years) if you work full-time for a qualifying employer (federal, state, local government; nonprofit; or other PSLF-eligible organization) and make payments while employed. Forgiveness is always tax-free. PSLF is the most powerful program for public sector workers because it combines low monthly payments with 10-year forgiveness and permanent tax-free treatment.

SAVE (Saving on a Valuable Education) is the newest income-driven plan (launched 2023) and offers the lowest payment floor for low-income borrowers. It calculates payments at 5% of discretionary income (10% for grad loans) and forgives unpaid interest on undergraduate loans. Forgiveness occurs after 20 years for undergrad-only loans (25 years if graduate loans are included). Current law treats SAVE forgiveness as tax-free through 2025.

IBR (Income-Based Repayment) comes in two versions. New borrowers (loans disbursed after July 1, 2014) pay 10% of discretionary income; prior borrowers pay 15%. Both forgive after 20–25 years depending on borrower status. Forgiveness is tax-free through extended ARPA legislation but may become taxable after 2025.

ICR (Income-Contingent Repayment) calculates payments as the lesser of 20% of discretionary income or a hypothetical 12-year fixed payment. It is the least favorable option for most borrowers and is rarely recommended except in specialized situations.

Discretionary income is defined differently across programs: - SAVE: AGI minus 225% of the Federal Poverty Line - IBR and PAYE: AGI minus 150% of FPL - ICR: AGI minus 100% of FPL

Federal Poverty Line 2025 is $15,650 for a single person (48 contiguous states) and increases by $5,530 per additional household member.

Monthly payments are calculated as (Discretionary Income × Plan Percentage) ÷ 12, but capped at the standard 10-year payment so you never pay more under IDR than under a fixed plan.

Qualifying payments under PSLF are monthly payments made while working for a qualifying employer; they do not need to be made under an IDR plan (any plan qualifies), but your servicer must track them correctly. Under other programs, qualifying payments are those made under the IDR plan itself; payments made before enrollment or under other plans do not count.

Tax treatment of forgiveness has changed. PSLF forgiveness is permanently tax-free. Other programs' forgiveness is tax-free through 2025 under the American Rescue Plan Act (ARPA Section 9675); Congress may extend this or allow it to expire, making forgiveness taxable starting in 2026. Always verify current law before relying on forgiveness.

Income certification is required annually for IDR plans. Your payment recalculates based on your current AGI and family size each certification period.

Assumptions

Federal Poverty Line 2025: $15,650 base + $5,530 per additional household member (HHS guidelines).
Income assumed constant throughout the repayment period; actual IDR recertification occurs annually.
Monthly payment capped at the 10-year standard amortizing payment to prevent IDR from exceeding standard plan costs.
Forgiveness is tax-free through 2025 per ARPA Section 9675 for non-PSLF programs; PSLF forgiveness is permanently tax-free.
PSLF assumes 120 qualifying payments while employed by a PSLF-eligible employer; no employment gaps.
SAVE program conservatively assumes 10% rate (blend of undergrad and grad); undergrad-only loans would use 5%.
Interest accrual and capitalization modeled monthly; unpaid interest capitalization on SAVE not separately tracked.
No modeling of income growth, changes in family size, or plan switches during repayment.
Tax on forgiveness estimated at 22% marginal federal rate; actual rate depends on filing status and income in forgiveness year.

Frequently asked questions

›Is PSLF worth it compared to just paying off my loans?

PSLF is powerful if you will work in the public sector for 10 years anyway. The combination of low monthly payments, 10-year forgiveness, and permanent tax-free treatment often saves $50,000+ in total interest and payments. If you would leave public service within a decade or have a high income that makes IDR payments nearly standard, the math may not work. Use this calculator and the income-driven repayment comparison tool to run scenarios.

›What jobs and employers qualify for PSLF?

PSLF-qualifying employers include federal, state, and local government agencies; 501(c)(3) nonprofits; certain other 501(c) nonprofits (labor unions, advocacy groups, religious institutions); military; and AmeriCorps/Peace Corps. Your employer must certify their PSLF eligibility through the PSLF Help Tool. For-profit employers and self-employment do not qualify. Verify your employer before assuming you are eligible.

›Will forgiven loan amounts be taxed?

PSLF forgiveness is permanently tax-free. Other programs (SAVE, IBR, ICR) are tax-free through 2025 under ARPA. Starting 2026, non-PSLF forgiveness may become taxable at your marginal federal rate unless Congress extends the tax exemption. Plan conservatively: if $50,000 is forgiven after 2025, you might owe 22–37% in federal tax, depending on income. Monitor legislation and speak with a tax advisor as your forgiveness date approaches.

›Can I switch forgiveness programs or move to PSLF if I change jobs?

Yes, you can switch IDR plans at any time through your servicer. If you move into or out of public service, you can adjust strategies. However, payments made under one plan do not count toward another plan's forgiveness (except that many prior REPAYE payments have been retroactively counted toward PSLF through recent policy changes). Consult your servicer before switching to understand any consequences.

›What happens if my income changes?

Your monthly IDR payment recalculates annually during income certification. If income falls, your payment may decrease significantly, lowering cash flow burden but extending the repayment term slightly. If income rises, your payment increases, potentially approaching the standard payment. The calculator assumes constant income; expect your actual path to vary. Some plans offer hardship waivers if you face unemployment.