Student Loan Forgiveness Calculator
Estimate how much of your federal student loan balance could be forgiven under IBR or the new Repayment Assistance Plan (RAP), after 10 years with PSLF or 20 to 30 years otherwise, using a month-by-month projection that includes interest.
Last updated: September 2026
Formula below · 2 sources (CFPB, studentaid.gov) · Updated Sep 2026
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About this calculator
This calculator projects your loan month by month at a constant income. The IBR payment is 10% (loans since July 2014) or 15% (earlier loans) of income above 150% of the 2026 HHS poverty guideline ($15,960 plus $5,680 per additional family member), capped at the 10-year standard payment; interest the payment does not cover keeps accruing (without being added to principal). The RAP payment is 1% to 10% of total AGI (by $10,000 tier, 10% above $100,000) minus $50 a month per dependent (family size minus one here), with a $10 minimum; under RAP unpaid interest is waived and the government matches principal so it falls by at least $50 a month (or the whole payment if smaller). Whatever principal and interest remain after 120 payments (PSLF), 240 (IBR for newer loans), 300 (IBR for older loans) or 360 (RAP) is the forgiven amount. Real payments rise with income at each annual recertification, so treat the result as an estimate. PSLF forgiveness is federally tax-free; other IDR forgiveness is taxable federal income again from 2026 because the American Rescue Plan exclusion expired at the end of 2025.
How to use
Assume a $50,000 balance at 6.5%, $45,000 income, family size 1, IBR for newer loans and PSLF. Step 1 — Poverty guideline: $15,960; 150% of it is $23,940. Step 2 — Payment: (45,000 − 23,940) × 10% / 12 = $175.50, below the $567.74 10-year standard payment, so the cap does not apply. Step 3 — Monthly interest is 50,000 × 6.5% / 12 = $270.83, so $95.33 of interest goes unpaid each month and accrues. Step 4 — After 120 payments you still owe the $50,000 principal plus $11,440 of unpaid interest, and the $61,440 is forgiven tax-free under PSLF. With the default inputs ($65,000, $55,000 income, family of 2, no PSLF) about $104,420 is forgiven after 20 years under IBR, or $47,000 after 30 years under RAP.
Frequently asked questions
How does family size affect student loan forgiveness amounts?
Family size raises the poverty-guideline exclusion used by IBR. In 2026 the guideline is $15,960 for one person plus $5,680 for each additional member, and IBR excludes 150% of it, so each extra member lowers a 10% IBR payment by about $71 a month (5,680 × 1.5 × 10% / 12). Under RAP each dependent cuts the payment by $50 a month. A lower payment means more of the balance, and of the accrued interest, is left to forgive.
What is the difference between PSLF forgiveness and income-driven repayment forgiveness?
PSLF forgives the remaining federal loan balance after 120 qualifying monthly payments while working full-time for a government or eligible nonprofit employer, and the forgiven amount is federally tax-free. Income-driven forgiveness comes after 240 or 300 payments under IBR (20 or 25 years) or 360 under RAP (30 years) regardless of employer, and from 2026 that forgiven balance is again taxable federal income because the American Rescue Plan Act exclusion expired at the end of 2025. PSLF is far more valuable due to the shorter timeline and tax-free treatment.
Which income-driven repayment plan offers the most forgiveness?
SAVE is no longer a real choice: it is blocked by court order and is being wound down under the One Big Beautiful Bill Act, which also closes PAYE and ICR and requires remaining borrowers to move to IBR or RAP by July 1, 2028. Loans made from July 1, 2026 can use only a standard plan or RAP. IBR for newer loans (10% of income above 150% of the poverty line, 20 years) often forgives more on a large balance, while RAP's interest waiver and $50 principal match stop the balance from growing. PSLF beats both when you qualify. Run each plan here with your own figures.