Loan Forgiveness Calculator
Estimate your Public Service Loan Forgiveness (PSLF) timeline, remaining payments, and the amount that will be forgiven.
Results
Visualization
How It Works
The loan forgiveness calculator estimates your timeline for Public Service Loan Forgiveness (PSLF), which forgives remaining federal student loan balances after 120 qualifying monthly payments (10 years) while working full-time for a qualifying public service employer. The forgiven amount under PSLF is not taxable.
The Formula
Variables
- Loan Balance — Current outstanding federal student loan balance
- Monthly Payment — Your current monthly payment (typically under an IDR plan)
- Qualifying Payments — Number of on-time qualifying payments already made
- Annual Income — Used to estimate income-driven repayment amounts
Worked Example
With a $50,000 balance, $350/month payment, and 24 qualifying payments made: 96 payments remain (8 years). At 5.5% interest, the projected balance at payment 120 is about $27,500. That amount would be forgiven tax-free under PSLF.
Practical Tips
- Only federal Direct Loans qualify for PSLF — FFEL and Perkins loans must be consolidated into a Direct Consolidation Loan first.
- You must be on an income-driven repayment plan for payments to count toward PSLF — standard 10-year plans pay off the loan before forgiveness kicks in.
- Submit the PSLF Employment Certification Form annually to track your progress and catch issues early.
- Qualifying employers include government (all levels), 501(c)(3) nonprofits, and some other nonprofit organizations.
- PSLF forgiveness is tax-free, unlike IDR forgiveness after 20-25 years which is currently taxable income.
Frequently Asked Questions
What counts as a qualifying payment for PSLF?
A qualifying payment must be: (1) made after October 1, 2007, (2) made under an IDR or standard 10-year plan, (3) for the full amount due, (4) no later than 15 days after the due date, and (5) while working full-time for a qualifying employer.
Is PSLF forgiveness taxable?
No. Unlike income-driven repayment forgiveness, PSLF forgiveness is completely tax-free under current law.
What employers qualify for PSLF?
Any federal, state, local, or tribal government agency; any 501(c)(3) nonprofit; and some other nonprofits that provide qualifying public services (emergency management, public health, education, etc.).
Can I make extra payments to pay off my loan faster and still get PSLF?
Making extra payments is counterproductive for PSLF. You want to pay the minimum under an IDR plan so the maximum amount is forgiven. Extra payments reduce your forgiveness amount.
What happens if I leave public service before 120 payments?
Your qualifying payment count pauses. If you return to qualifying employment, the count resumes where you left off. You do not lose credit for past qualifying payments.