Student Loan Forgiveness Calculator — PSLF & IDR Forgiveness
Estimate how much of your federal student loan balance would be forgiven under PSLF (after 120 qualifying payments) or under an income-driven repayment (IDR) plan after 20 or 25 years. Enter your balance, income, and family size to see your monthly IDR payment, total paid, and the projected forgiven amount.
%
Forgiveness programme
% of discretionary income
PSLF forgiveness is currently tax-free (2025). Requires 120 qualifying payments while working for a public-service employer.
- 1
Federal poverty line (2024)
15,060 + (1 − 1) × 5,380 = 15,0602024 US federal poverty guidelines for the 48 contiguous states and DC. - 2
Discretionary income
max(0, 55,000 − 1.5 × 15,060) = 32,410The portion of income above 150% of the federal poverty line. - 3
Monthly IDR payment
32,410 × 10% ÷ 12 = 270Your annual discretionary income share, converted to a monthly amount.
How does this calculator work?
Monthly IDR payment = max(0, AGI − 1.5 × FPL) × rate% ÷ 12. PSLF forgives the remaining balance after 120 qualifying payments (10 years, tax-free). IDR forgiveness clears the balance after 20 years (undergrad) or 25 years (grad). Figures use 2024 US federal poverty guidelines and assume constant income — recertify annually in practice.
Formula
How this is calculated
Under income-driven repayment (IDR), monthly payments are capped at a percentage of discretionary income — typically 10–15% of the amount by which your adjusted gross income (AGI) exceeds 150% of the federal poverty line for your family size. If that payment does not cover the interest that accrues each month, the balance can grow (negative amortization) despite making on-time payments.
Public Service Loan Forgiveness (PSLF) cancels the remaining balance after exactly 120 qualifying monthly payments — 10 years — while working full-time for a government agency, 501(c)(3) nonprofit, or other qualifying public-service employer. As of 2025, PSLF forgiveness is tax-free at the federal level. IDR forgiveness (after 20 years for undergrad borrowers, 25 years for graduate or mixed) may be counted as taxable income unless covered by temporary provisions.
This calculator uses 2024 US Federal Poverty Guidelines (continental 48 states + DC): $15,060 for a family of 1, +$5,380 per additional member. Income and family size should reflect your annual tax-year figures. The SAVE plan was blocked by federal courts in 2025; consult studentaid.gov for the current status of available IDR plans. All values are estimates based on a constant income and payment — your actual amounts will vary as you recertify income annually.
Frequently asked questions
You must be employed full-time by a US federal, state, local, or tribal government agency, a 501(c)(3) tax-exempt nonprofit, or certain other qualifying public-service organisations. You must have Direct Loans on an income-driven repayment plan and make 120 on-time qualifying monthly payments. Payments made under standard repayment do count toward PSLF but typically pay off the loan before 120 payments are reached.
PSLF forgiveness is tax-free under federal law. IDR forgiveness was made tax-free through 2025 by the American Rescue Plan Act. After 2025, unless Congress acts, IDR forgiveness reverts to being treated as ordinary income in the year it is granted — which could create a large one-year tax bill. Some states already tax forgiven amounts. Consult a tax professional before relying on IDR forgiveness as a financial strategy.
If your payment does not cover all the monthly interest, the deficit is added to your balance — called negative amortization. Under the SAVE plan (currently blocked by courts), unpaid interest was waived for subsidised loans and capped for unsubsidised loans, preventing balance growth. Under IBR and PAYE, interest continues to accrue and capitalise at certain points. Even so, you still receive forgiveness after the qualifying period regardless of how much the balance has grown.
TG we-Calculate Editorial Team. (2026). Student Loan Forgiveness Calculator — PSLF & IDR Forgiveness [Online calculator]. TG we-Calculate. https://we-calculate.com/calculator/student-loan-forgiveness-calculator
TG we-Calculate Editorial Team. "Student Loan Forgiveness Calculator — PSLF & IDR Forgiveness." TG we-Calculate. 2026. https://we-calculate.com/calculator/student-loan-forgiveness-calculator.
TG we-Calculate Editorial Team, "Student Loan Forgiveness Calculator — PSLF & IDR Forgiveness," TG we-Calculate, 2026. [Online]. Available: https://we-calculate.com/calculator/student-loan-forgiveness-calculator
@misc{wecalculate_student_loan_forgiveness_calculator, title = {Student Loan Forgiveness Calculator — PSLF & IDR Forgiveness}, author = {{TG we-Calculate Editorial Team}}, howpublished = {\url{https://we-calculate.com/calculator/student-loan-forgiveness-calculator}}, year = {2026}, note = {TG we-Calculate} }
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