How does Public Service Loan Forgiveness (PSLF) work?

PSLF forgives your remaining federal Direct Loan balance tax-free after you make 120 qualifying monthly payments (about 10 years) while working full-time for a qualifying employer — a U.S. federal, state, local, or tribal government, or a 501(c)(3) nonprofit. You must be on a qualifying repayment plan (usually an IDR plan) and certify your employment annually. Use the estimator above for your personal timeline.

What counts as a qualifying PSLF payment?

A qualifying payment is a full, on-time monthly payment made while you are employed full-time by a qualifying employer, on an eligible (Direct) loan, under a qualifying repayment plan. All of those conditions must be true in the same month. Track your official count in your StudentAid.gov dashboard — it is the only count that matters.

Is forgiven student loan debt taxable in 2026?

It depends on the program. PSLF, Teacher Loan Forgiveness, and death/disability discharges remain permanently tax-free. But balances forgiven at the end of an income-driven plan (PAYE, IBR, ICR, RAP) are generally treated as taxable income if the forgiveness happens on or after January 1, 2026 — the American Rescue Plan's temporary tax-free window (2021–2025) expired on December 31, 2025. Expect a Form 1099-C.

What is the 'tax bomb'?

The tax bomb is the income-tax bill on a forgiven IDR balance. Example: $50,000 forgiven in 2026 at a 22% marginal federal rate = an $11,000 federal tax bill, due the April after forgiveness. Some states tax it too. The calculator above estimates yours — PSLF borrowers can ignore it, because PSLF forgiveness is tax-free.

Which IDR plan forgives the fastest?

Of the current plans: PAYE and IBR (new borrowers): 20 years. IBR (old) and ICR: 25 years. RAP: 30 years. PSLF beats them all at ~10 years — but only if you work full-time for a qualifying employer. The comparator table above runs all five plans on your numbers.

What happened to the SAVE plan?

SAVE was wound down after federal court decisions blocked its forgiveness provisions, and the 2025 reconciliation law (OBBBA, signed July 2025) reshaped the IDR landscape. Its replacement for new borrowers is RAP (loans first disbursed after July 1, 2026). Borrowers who were on SAVE should check studentaid.gov for where their loans stand now.

Do payments under old plans (PAYE, SAVE, REPAYE, ICR) still count toward forgiveness?

Generally yes for time-based credit: payments made under ICR, PAYE, REPAYE, and SAVE can count toward forgiveness under IBR and RAP, per Department of Education guidance. But program rules are in flux — confirm your specific payment history counts in your StudentAid.gov dashboard before relying on it.

Does PSLF require an income-driven plan?

Payments must be on a qualifying repayment plan. The 10-year Standard plan technically qualifies, but after 120 standard payments there is usually nothing left to forgive — which is why borrowers chasing PSLF almost always use an IDR plan: lower payments now, larger balance forgiven later.

I have FFEL or Perkins loans. Can I get PSLF?

Only Direct Loans qualify for PSLF, but FFEL and Perkins loans can be made eligible by consolidating them into a Direct Consolidation Loan. Note that consolidating resets some payment counters in certain situations — check current studentaid.gov guidance before consolidating. Private loans can never qualify.

Can I get PSLF working part-time or for a for-profit company?

No. PSLF is about who employs you, not what you do: you must work full-time for a qualifying employer (government at any level or a 501(c)(3) nonprofit). Part-time work and for-profit employers do not qualify, no matter how public-spirited the job.

How does income growth change my forgiveness amount?

Higher income means higher IDR payments (plans recalculate yearly from your AGI), which means you pay more and less is left to forgive. Fast income growth can even pay the loan off before forgiveness kicks in — the comparator shows this as $0 forgiven. Try 0% vs 6% growth above to see the swing.

Should I certify my PSLF employment every year?

Yes. Submit the PSLF employment certification (ECF) annually or whenever you change employers via the PSLF Help Tool on studentaid.gov. Annual certification catches problems early — wrong loan type, ineligible employer, missed payments — while there is still time to fix them.

What is the RAP plan?

RAP (Repayment Assistance Plan) is the income-driven plan created by the 2025 reconciliation law for new borrowers (loans first disbursed after July 1, 2026). The monthly payment is a tiered percentage of AGI: $10/month flat at AGI up to $10,000, then 1% of AGI for $10,001–$20,000, rising one percentage point per $10,000 of AGI up to 10% above $100,000 — minus $50/month per dependent child, never below $10/month. Forgiveness after 30 years of payments, and forgiven RAP balances are taxable from 2026 like other IDR forgiveness. Simplified model: this tool approximates "dependents" as family size minus one, and does not simulate RAP's unpaid-interest waiver or the $50/month principal match.

Is this calculator financial advice?

No. This page gives educational estimates from a simplified model — one interest rate, yearly IDR recertification from projected income, no deferment or forbearance. Real servicer math is more complex, and federal rules change often (parameters here reflect 2025/2026 rules). Verify with the studentaid.gov loan simulator and a tax professional before acting.

Forgiveness estimator · vintage: rules as of 2025–2026

Student Loan Forgiveness Calculator

How much of your federal student loans could actually be forgiven — and what it will cost you along the way. Estimate your PSLF timeline (120 qualifying payments, tax-free), compare income-driven plans (PAYE, IBR, ICR, RAP) side by side, and model the 2026 "tax bomb" on IDR forgiveness before the IRS does it for you.

⚠️ Educational estimates — not financial advice. Federal rules change often (the big ones below are labeled with their vintage: 2025/2026). Always verify your situation at studentaid.gov and talk to a tax professional before making forgiveness decisions.

Your numbers

Current federal loan balance ($)

Direct Loans only for PSLF. Private loans are never eligible.

Weighted interest rate (% APR)

Adjusted gross income — AGI ($/year)

IDR payments are recalculated yearly from your AGI.

Family size

Expected annual income growth (%)

Rising income raises IDR payments and shrinks the forgiven amount.

Qualifying PSLF payments already made

Check your count in your StudentAid.gov dashboard.

Employer type (PSLF eligibility)

IDR plan used for payment amounts

Marginal federal tax rate at forgiveness (%)

For the IDR "tax bomb" estimate. PSLF is always tax-free.

State income tax rate (%)

Some states tax forgiven debt too — check your state.

⚖️ IDR plan comparator — who forgives what

Same borrower, same income, five plans. Payments are re-estimated every year from your projected income.

Plan	1st payment	Total paid	Forgiven	Tax bomb*	Forgiveness in

* Tax bomb = forgiven balance × your marginal federal + state rate, at today's rates. PSLF row is always $0 — PSLF forgiveness is permanently tax-free.

📊 Federal IDR & forgiveness plans vintage: rules as of 2025/2026

Plan	Payment	Forgiveness after	Status / notes
PSLF	Usually an IDR payment	120 qualifying payments (~10 yrs), tax-free	Direct Loans only; full-time qualifying employer (government / 501(c)(3)). Certify employment annually.
PAYE	10% of discretionary income	20 years	Forgiven balance generally taxable from 2026.
IBR — new borrowers (loans after Jul 1, 2014)	10% of discretionary income	20 years	Forgiven balance generally taxable from 2026.
IBR — old	15% of discretionary income	25 years	Forgiven balance generally taxable from 2026.
ICR	20% of discretionary income (simplified)	25 years	Simplified model; actual formula uses the lesser of 20% discretionary or a 12-year fixed amount × income factor.
RAP (Repayment Assistance Plan)	$10 minimum, tiered 1–10% of AGI (−$50/dependent)	30 years	Created 2025 (OBBBA); for loans first disbursed after Jul 1, 2026. Forgiven balance taxable from 2026.
SAVE	—	—	Legacy plan being wound down after court decisions; new enrollments ended. Shown for reference only.

Discretionary incomeAll percentage plans above use discretionary income = AGI − 150% of the HHS poverty guideline for your family size (2026 contiguous-US: $15,960 for a family of 1, +$5,680 per extra person — Fed. Reg. 2026-00755).

🧮 Worked examples computed by this page's own engine

Example 1 — Teacher chasing PSLF

$45,000 at 6.5% APR · AGI $48,000, family of 1, 3% annual raises · PAYE · 0 qualifying payments yet. Over the next 120 months she pays $31,086.62 (first payment $200.50), and $43,629.28 is forgiven tax-free — because her IDR payment doesn't cover the interest, the balance grows while she pays the minimum.

Example 2 — Nurse on IBR, 20-year forgiveness

$75,000 at 6.8% APR · AGI $70,000, family of 1, 3% raises · IBR (new borrower). Over 240 months she pays $140,212.62 and $19,337.32 is forgiven — but that forgiveness is taxable income in the year it's granted.

Example 3 — The 2026 tax bomb, in dollars

$50,000 forgiven under an IDR plan in 2026 at a 22% marginal federal rate = $11,000 federal tax bill (Form 1099-C). In a state with a 5% income tax, add $2,500 → $13,500 total. Same $50,000 under PSLF = $0.

Example 4 — Social worker halfway to PSLF

$30,000 at 6.8% APR · AGI $42,000, family of 2, 3% raises · PAYE · 60 qualifying payments already made. She has 60 payments left (first: $79.50), will pay $6,068.37 more, and $35,010.27 is forgiven tax-free.

🔬 Methodology

discretionary = AGI − 1.5 × poverty(family size) · monthly = discretionary × pct ÷ 12
RAP uses a tiered % of AGI instead: $10/mo flat at AGI ≤ $10k; 1% of AGI at $10–20k, rising 1pp per $10k of AGI to 10% above $100k; minus $50/mo per dependent, $10 floor
month: interest = balance × APR/12 · payment = min(plan payment, balance+interest)
balance += interest − payment · income grows yearly by growth%

This is a simplified educational model: it assumes one weighted interest rate, one consolidation-equivalent balance, yearly IDR recertification from projected AGI, and no deferment/forbearance. Under RAP, "dependents" for the −$50/month reduction is approximated as family size minus one. RAP's unpaid-interest waiver and $50/month principal match are not simulated here. Real servicer math includes capitalized interest events, the PAYE payment cap, and the exact ICR formula — so treat outputs as directionally correct estimates, then confirm with your servicer and the studentaid.gov loan simulator.

❓ Frequently asked questions

🔗 Keep going

Student Loan Calculator

Standard payment math, payoff date with extra payments, federal vs private comparison.

Debt Payoff Calculator

Skipping forgiveness? Plan a snowball/avalanche payoff across all your debts.

Tax Bracket Calculator

Find your marginal federal rate to size the IDR tax bomb accurately.

Free tool by NRTechStudio

Student Loan Forgiveness Calculator

Your numbers

🕊️ Your PSLF timeline vintage 2025/2026

⚖️ IDR plan comparator — who forgives what

📋 Employment certification tracker

📊 Federal IDR & forgiveness plans vintage: rules as of 2025/2026

🧮 Worked examples computed by this page's own engine

Example 1 — Teacher chasing PSLF

Example 2 — Nurse on IBR, 20-year forgiveness

Example 3 — The 2026 tax bomb, in dollars

Example 4 — Social worker halfway to PSLF

🔬 Methodology

❓ Frequently asked questions

🔗 Keep going

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