Student Loan Forgiveness Calculator

Estimate your potential forgiveness under the PSLF and SAVE (IDR) plans.

Total Student Loan Balance

Enter the total current principal balance of all your federal student loans.

Average Interest Rate

Enter the weighted average interest rate for your loans. You can find this on your loan servicer's website.

Your Adjusted Gross Income (AGI)

Your AGI from your most recent federal tax return. This is the primary factor in calculating your monthly payment on an IDR plan.

Expected Annual Income Growth

Estimate how much you expect your income to increase each year. A typical estimate is 2-4%.

Family Size

The number of people in your household, including yourself, your spouse, and your children or other dependents.

people

Your State of Residence

Select your state of residence. This is used to estimate potential state taxes on the forgiven loan amount (IDR forgiveness is not always tax-free at the state level).

Do you work for a qualifying public service employer?

Check this box if you are employed full-time by a government organization or a not-for-profit organization.

Do you work for a qualifying public service employer?

Qualifying payments already made

Enter the number of qualifying payments you have already made towards either PSLF (max 120) or IDR forgiveness (max 300).

payments

Simulation Results

Estimated Monthly Payment (SAVE Plan)

...

Total Forgiven with PSLF

...

Estimated PSLF Forgiveness Date

...

Total Forgiven with IDR (SAVE Plan)

...

Estimated IDR Forgiveness Date

...

Potential 'Tax Bomb' on IDR Forgiveness

...

Total Paid vs. Total Forgiven

Actions

Disclaimer: This is an informational tool, not financial advice. The calculations are estimates based on current program rules, which are subject to change. Always consult the official U.S. Department of Education resources for definitive information.

Understanding Forgiveness

A Comprehensive Guide to Understanding and Calculating Student Loan Forgiveness

Navigating the world of student loan forgiveness can be complex. Programs like Public Service Loan Forgiveness (PSLF) and Income-Driven Repayment (IDR) plan forgiveness offer pathways to debt relief, but eligibility and potential outcomes vary significantly. This calculator is designed to provide a clear, data-driven estimate to help you understand your options.

Our goal is to provide a tool that is more than just a calculator; it's an educational resource. We aim to empower you with the information needed to make strategic decisions about your financial future. Remember, this tool provides estimates for informational purposes only and is not a substitute for financial advice or the official tools provided by the U.S. Department of Education.

Part 1: How the Calculator Works & Key Inputs Explained

This calculator simulates your loan repayment journey on the SAVE (Saving on a Valuable Education) plan, the newest and most generous IDR plan, to estimate your potential forgiveness under two major programs: PSLF and standard IDR forgiveness.

Total Student Loan Balance: The starting point of your debt.
Average Interest Rate: This determines how quickly your loan balance grows. The SAVE plan includes a crucial interest subsidy, which this calculator models.
Adjusted Gross Income (AGI): This is the key figure used to calculate your monthly payment. It's your gross income minus specific deductions.
Family Size: Your family size determines the poverty line guideline used in your payment calculation. A larger family size leads to a lower monthly payment.
Public Service Employer: This is the central requirement for PSLF. If you work for a government or eligible non-profit entity, you could have your loans forgiven after 10 years of payments.
Qualifying Payments Made: If you've already been making payments on an eligible plan, entering them here will shorten your estimated time to forgiveness.

Part 2: Understanding Your Forgiveness Results

Public Service Loan Forgiveness (PSLF)

PSLF is a powerful program for those in public service careers. The core requirements are:

1. Qualifying Employer: Full-time employment with a U.S. federal, state, local, or tribal government or a not-for-profit organization. 2. Qualifying Loans: Only Direct Loans are eligible. 3. Qualifying Repayment Plan: You must be on an Income-Driven Repayment plan (like SAVE). 4. 120 Qualifying Payments: You must make 120 on-time monthly payments.

After 120 qualifying payments, the remaining balance on your loan is forgiven. Crucially, forgiveness under PSLF is not considered taxable income by the federal government.

Income-Driven Repayment (IDR) Forgiveness

If you are not eligible for PSLF, you can still receive forgiveness through an IDR plan like SAVE. After making payments for a set period—typically 20 years for undergraduate loans and 25 years for graduate loans—any remaining balance is forgiven.

The SAVE Plan Advantage: The SAVE plan prevents your loan balance from growing due to unpaid interest. If your monthly payment doesn't cover the accrued interest, the government subsidizes (waives) the rest. This calculator incorporates that benefit.

The 'Tax Bomb': A Critical Consideration for IDR Forgiveness

The most significant difference between PSLF and IDR forgiveness is taxation. While PSLF forgiveness is tax-free, the amount forgiven under an IDR plan is generally treated as taxable income.

Under the American Rescue Plan Act, this federal tax has been waived through the end of 2025. However, it is set to return unless Congress extends it. Furthermore, some states may still consider the forgiven amount as taxable income. Our calculator provides a rough estimate of this potential tax liability to ensure you are aware of this future cost.

Part 3: Strategic Considerations & Next Steps

Certify Your Employment: If you believe you are eligible for PSLF, you should use the official PSLF Help Tool on StudentAid.gov to certify your employment annually.
Choose the Right Plan: The SAVE plan is often the best choice, but using the official Loan Simulator at StudentAid.gov is the best way to compare all your options.
Plan for the Future: If you are on a path to IDR forgiveness, start planning for the potential tax bomb. Setting money aside in a savings or investment account can mitigate the financial shock when the time comes.

This calculator is your first step. Use the results to ask informed questions and take decisive action toward managing and ultimately eliminating your student debt.