Who qualifies for PSLF?

You must work full-time for a qualifying employer (government, non-profit), have Direct Loans, be on an IDR plan, and make 120 qualifying payments.

Is forgiven amount taxed?

Under PSLF, the forgiven amount is NOT taxable. Under other IDR forgiveness (after 20-25 years), it may be taxable depending on current law.

Keep making qualifying payments. You can track progress through the PSLF Help Tool on studentaid.gov.

Estimate the amount of student loan forgiveness under Public Service Loan Forgiveness (PSLF) after 120 qualifying payments.

Original Loan Balance ($)

Annual Interest Rate (%)

Monthly IDR Payment ($)

Income-driven repayment amount

Qualifying Payments Made

Estimated Amount Forgiven

$51,806

Total Amount Paid$42,000

Qualifying Payments Remaining0

Estimated Amount Forgiven vs Monthly IDR Payment ($)

PSLF forgives remaining balance after 120 qualifying payments (10 years) while working for a qualifying employer.

Balance after N payments = Original x (1+r)^N - Payment x ((1+r)^N - 1) / r

The remaining balance after 120 payments is the amount forgiven. Under IDR plans, payments are based on income rather than loan amount.

A $60,000 loan at 6% with $350/month IDR payments for 120 months.