PSLF Forgiveness Estimator
Example: Current loan balance: 85000 $ · Interest rate (APR): 6.5 % · Monthly payment (income-driven): 350 $ · Qualifying payments already made: 24 payments
| Estimated amount forgiven | $98,855 |
| Total you will pay before forgiveness | $33,600 |
| Payments remaining | 96 |
| Years remaining | 8 |
Worked example
Imagine an $85,000 balance at 6.5%, a $350 income-driven payment, and 24 qualifying payments already made — 96 to go, eight more years. Because $350 a month does not cover the roughly $460 of monthly interest at first, the balance actually grows over time, and at payment 120 about $109,000 could remain to be forgiven, tax-free, after paying $33,600 more.
Frequently asked questions
Who qualifies for PSLF?
You need Direct Loans, a qualifying repayment plan (usually income-driven), full-time employment with a government or eligible 501(c)(3) nonprofit employer, and 120 qualifying payments. Certify your employment regularly with the PSLF form so your payment count is tracked correctly.
Why does my balance grow in the estimate?
On income-driven plans, a low payment may be less than the monthly interest, so the unpaid interest is added and the balance climbs. That is not a mistake — it is exactly why PSLF can forgive more than you originally borrowed after ten years of payments.
Is forgiven PSLF debt taxed?
No. Unlike some other forgiveness, the balance forgiven under Public Service Loan Forgiveness is not treated as taxable income by the federal government. That is a major advantage over programs where forgiveness can trigger a large tax bill.
How accurate is this estimate?
It is an approximation. Your real payment changes every year as your income and family size are recertified, which shifts the remaining balance. Use this to gauge the scale of forgiveness, and rely on studentaid.gov and your servicer for your official payment count.