Student Loan Forgiveness Calculator
Calculate student loan forgiveness benefits with PSLF, teacher forgiveness programs, and income-driven repayment plans. Discover if you qualify and estimate your savings.
Calculate Forgiveness Benefits
Enter your loan and employment details to estimate potential forgiveness benefits from PSLF, teacher programs, and income-driven repayment plans.
Student Loan Forgiveness Calculator
Calculate PSLF and other forgiveness program benefits
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Student Loan Forgiveness Programs
Public Service Loan Forgiveness (PSLF)
Eligibility Requirements:
- Work full-time for qualifying employer
- Federal Direct Loans only
- Income-driven repayment plan
- 120 qualifying monthly payments
Qualifying Organizations:
- Federal, state, local government
- 501(c)(3) nonprofit organizations
- AmeriCorps and Peace Corps
Advantages
- Complete loan forgiveness after 10 years
- No tax liability on forgiven amount
- No limit on forgiveness amount
Considerations
- Strict employment requirements
- Only Direct Loans qualify
- Must stay in qualifying employment
Teacher Loan Forgiveness
Eligibility Requirements:
- Teach in low-income school/district
- Highly qualified teacher status
- Direct or Stafford Loans
- 5 consecutive years of service
Qualifying Organizations:
- Low-income elementary schools
- Low-income secondary schools
- Educational service agencies
Advantages
- Up to $17,500 forgiveness for math/science/special ed
- Up to $5,000 for other subjects
- Shorter time requirement than PSLF
Considerations
- Limited forgiveness amount
- Must teach in low-income schools
- Cannot combine with PSLF
Income-Driven Repayment (IDR) Forgiveness
Eligibility Requirements:
- Federal loans only
- Income-driven repayment plan
- 20-25 years of payments
- Demonstrate financial need
Qualifying Organizations:
- Any employer (no restrictions)
- Self-employed individuals
- Unemployed periods count
Advantages
- Available to all federal borrowers
- No employment restrictions
- Lower monthly payments
Considerations
- Long repayment period (20-25 years)
- Forgiven amount may be taxable
- Higher total payments over time
State-Specific Loan Forgiveness
Eligibility Requirements:
- Work in specified professions
- Serve underserved communities
- State residency requirements
- Maintain good standing
Qualifying Organizations:
- State government agencies
- Rural healthcare facilities
- Underserved legal aid organizations
Advantages
- Targeted professional assistance
- Often faster than federal programs
- May combine with federal programs
Considerations
- Limited to specific states/professions
- Smaller forgiveness amounts
- Varying program availability
Real-World PSLF Forgiveness Scenarios
Government Social Worker: $65,000 loans, $45,000 income
Borrower Profile
IDR Payment Plan
PSLF Benefits
Analysis: Excellent PSLF candidate
- Government employment qualifies
- IDR payments much lower than standard
- Significant forgiveness after 10 years
- No tax liability on forgiven amount
Public School Teacher: $35,000 loans, $40,000 income
Borrower Profile
IDR Payment Plan
PSLF Benefits
Teacher Loan Forgiveness Strategy:
Analysis: Use Teacher Forgiveness first, then PSLF
- Qualify for both programs
- Teacher forgiveness after 5 years
- Continue PSLF for remaining balance
- Maximize total forgiveness benefits
Nonprofit Healthcare Worker: $95,000 loans, $65,000 income
Borrower Profile
IDR Payment Plan
PSLF Benefits
Analysis: Strong PSLF candidate despite interest growth
- Nonprofit hospital employment qualifies
- Significant monthly payment savings
- Large forgiveness amount after 10 years
- Better than standard repayment long-term
Income-Driven Repayment Plans Comparison
Income-Based Repayment (IBR)
Eligibility Requirements:
- Partial financial hardship required
- All federal loan types eligible
- New borrowers get 10%, others 15%
Advantages:
- Lower payments for high debt-to-income
- Interest subsidy for first 3 years on subsidized loans
- Forgiveness after 20-25 years
Limitations:
- Must demonstrate financial hardship
- Longer repayment period
- Interest may capitalize
Best For:
Borrowers with high debt relative to income
Pay As You Earn (PAYE)
Eligibility Requirements:
- New borrower on or after Oct 1, 2007
- Received disbursement on or after Oct 1, 2011
- Partial financial hardship required
Advantages:
- Lowest payment calculation
- Interest subsidy for first 3 years
- Forgiveness after 20 years
- Payment cap at standard plan amount
Limitations:
- Strict new borrower requirements
- Limited loan type eligibility
- Must recertify income annually
Best For:
Recent borrowers with lower incomes
Revised Pay As You Earn (REPAYE)
Eligibility Requirements:
- Direct Loans only
- No financial hardship requirement
- No borrowing date restrictions
Advantages:
- Available to all Direct Loan borrowers
- Interest subsidy on unpaid interest
- No payment cap
- Forgiveness after 20-25 years
Limitations:
- Considers spouse income even if filing separately
- Graduate loans get 25-year forgiveness
- No payment cap (can exceed standard)
Best For:
Borrowers seeking interest subsidies and flexibility
Income-Contingent Repayment (ICR)
Eligibility Requirements:
- Direct Loans only
- No income requirements
- Parent PLUS loans eligible after consolidation
Advantages:
- No income requirements
- Parent PLUS eligible after consolidation
- Available since 1994
- Forgiveness after 25 years
Limitations:
- Highest payment calculation
- Longest forgiveness timeframe
- Less favorable than other IDR plans
Best For:
Parent PLUS borrowers and those who don't qualify for other plans
PSLF Qualifying Employers
Federal Government
Examples:
- Department of Veterans Affairs
- Department of Education
- Department of Health and Human Services
- Department of Justice
- Military (active duty and civilian)
- Postal Service
Qualification Rule:
All federal agencies and departments automatically qualify
Additional Info:
Military service members and federal civilian employees all qualify
State and Local Government
Examples:
- State departments and agencies
- County and city governments
- Public schools and universities
- Public hospitals and health departments
- Fire and police departments
- Public libraries
Qualification Rule:
Must be government organization, not contractor
Additional Info:
Part-time positions may qualify if considered full-time by employer
501(c)(3) Nonprofit Organizations
Examples:
- Charitable organizations
- Religious organizations
- Educational institutions
- Hospitals and healthcare nonprofits
- Environmental organizations
- Social service agencies
Qualification Rule:
Must be tax-exempt under Section 501(c)(3)
Additional Info:
Other 501(c) organizations typically do not qualify
AmeriCorps and Peace Corps
Examples:
- AmeriCorps VISTA
- AmeriCorps NCCC
- AmeriCorps State and National
- Peace Corps volunteers
- Other national service programs
Qualification Rule:
Full-time service positions qualify
Additional Info:
Service periods count toward 120 payment requirement
Common PSLF Mistakes to Avoid
Wrong Loan Type
The Problem:
FFEL or Perkins loans don't qualify for PSLF
The Solution:
Consolidate non-Direct loans into Direct Consolidation Loan
Prevention:
Submit Employment Certification Form annually to verify loan eligibility
Wrong Repayment Plan
The Problem:
Graduated, extended, or standard plans don't always qualify
The Solution:
Switch to income-driven repayment plan immediately
Prevention:
Use only IBR, PAYE, REPAYE, or ICR plans for PSLF
Employment Gaps or Changes
The Problem:
Changing jobs or employment gaps reset payment counting
The Solution:
Maintain continuous qualifying employment or document gaps
Prevention:
Submit Employment Certification when changing jobs
Late or Missed Payments
The Problem:
Late payments don't count toward 120 requirement
The Solution:
Set up autopay and make up missed qualifying payments
Prevention:
Enroll in autopay and monitor payment processing
Employer Doesn't Qualify
The Problem:
For-profit companies and some nonprofits don't qualify
The Solution:
Verify employer qualification before starting PSLF track
Prevention:
Submit Employment Certification Form to confirm eligibility
Student Loan Forgiveness FAQ
How does Public Service Loan Forgiveness (PSLF) work?
PSLF forgives remaining federal Direct Loan balances after 120 qualifying monthly payments while working full-time for qualifying employers (government or 501(c)(3) nonprofits) on income-driven repayment plans. The forgiven amount is not taxable income.
What jobs qualify for PSLF?
Qualifying employers include federal, state, and local government; 501(c)(3) nonprofit organizations; AmeriCorps and Peace Corps. Must work full-time (typically 30+ hours/week as defined by employer). For-profit companies, most other 501(c) organizations, and labor unions typically do not qualify.
How much can be forgiven through student loan forgiveness programs?
PSLF forgives 100% of remaining Direct Loan balance after 10 years with no limit. Teacher Loan Forgiveness offers up to $17,500 after 5 years. IDR forgiveness cancels remaining balance after 20-25 years. Average PSLF forgiveness is around $75,000.
Are there taxes on student loan forgiveness?
PSLF and Teacher Loan Forgiveness are not taxable income. IDR forgiveness may be taxable income unless you qualify for insolvency exclusion. State forgiveness programs vary. The American Rescue Plan Act temporarily made forgiveness tax-free through 2025.
Can I combine Teacher Loan Forgiveness with PSLF?
You cannot use the same teaching service for both programs, but you can use Teacher Loan Forgiveness first (up to $17,500 after 5 years) then continue with PSLF for remaining balance (5 more years). This strategy maximizes forgiveness for teachers in qualifying schools.
What loans qualify for PSLF?
Only federal Direct Loans qualify for PSLF. FFEL, Perkins, and private loans do not qualify, but can be consolidated into Direct Consolidation Loans. However, consolidation resets your payment count to zero, so consolidate early in your career for maximum benefit.
Additional Student Loan Resources
Start Your Path to Loan Forgiveness
Calculate your potential forgiveness benefits, verify your employer qualification, and take the first steps toward loan forgiveness today.