Student Loan Forgiveness Calculator
Estimate how much of your federal student loan balance could be forgiven under income-driven repayment plans. Shows projected forgiveness after 10 years (PSLF) or 20–25 years of qualifying payments.
About this calculator
Income-driven repayment (IDR) plans cap monthly payments at a percentage of your discretionary income, defined as income above 150% of the federal poverty guideline for your family size (approximately $12,880 per person). The monthly payment = max(0, (Annual Income − Family Size × $12,880) × Plan Rate% / 12). After 120 qualifying payments under Public Service Loan Forgiveness (PSLF) or 240 under standard IDR, any remaining balance is forgiven. The estimated forgiven amount = Loan Balance − (Monthly Payment × Number of Payments), floored at zero. Note: PSLF forgiveness is currently tax-free, while IDR forgiveness after 20–25 years may be taxable income depending on future legislation.
How to use
Assume a $50,000 loan balance, $45,000 annual income, family size of 1, SAVE plan at 10%, and PSLF eligibility (120 payments). Step 1 — Discretionary income: $45,000 − (1 × $12,880) = $32,120. Step 2 — Annual payment: $32,120 × 10% = $3,212. Step 3 — Monthly payment: $3,212 / 12 ≈ $267.67. Step 4 — Total paid over 120 months: $267.67 × 120 = $32,120. Step 5 — Estimated forgiveness: $50,000 − $32,120 = $17,880. This is a simplified estimate; actual forgiveness may vary based on income changes.
Frequently asked questions
How does family size affect student loan forgiveness amounts?
Family size directly reduces your discretionary income calculation because the poverty guideline exclusion ($12,880) is multiplied by each family member. A larger family lowers your calculated discretionary income, which lowers your monthly payment, which means you pay less over the repayment period and more of your balance is forgiven. For example, adding a dependent could reduce your monthly payment by $100 or more, meaningfully increasing the forgiven amount over 10–25 years.
What is the difference between PSLF forgiveness and income-driven repayment forgiveness?
PSLF forgives the remaining federal loan balance after exactly 120 qualifying monthly payments while working full-time for a government or nonprofit employer, and the forgiven amount is currently tax-free. Standard IDR forgiveness occurs after 240 or 300 payments (20 or 25 years) regardless of employer, but the forgiven balance has historically been treated as taxable income, though legislation and the SAVE plan have challenged this. PSLF is far more valuable due to the shorter timeline and tax-free treatment.
Which income-driven repayment plan offers the most forgiveness?
The SAVE plan (Saving on a Valuable Education) generally offers the most forgiveness potential because it uses the lowest discretionary income percentage — 5% for undergraduate loans — and prevents interest accrual when payments cover the monthly interest. PAYE and IBR use 10%, resulting in higher payments and less forgiveness. SAVE also offers forgiveness as early as 10 years for borrowers with balances under $12,000. Your optimal plan depends on your income, family size, loan type, and whether you qualify for PSLF.