Student Loan Forgiveness Calculator

Determine your eligibility for various student loan forgiveness programs including PSLF, Teacher Loan Forgiveness, Income-Driven Repayment forgiveness, and more. Calculate how much of your student debt could be forgiven.

Your Information

$
$

Forgiveness Results

You May Be Eligible
Maximum Potential Forgiveness $20,000
Remaining Balance After Forgiveness $25,000
Percentage Forgiven 44.4%
Best Program for You PSLF
Payments Remaining for PSLF 84
$45,000
Original Balance
$20,000
Amount Forgiven
$25,000
Amount to Repay

Available Forgiveness Programs

Public Service Loan Forgiveness (PSLF)

Available to federal employees, government workers, and 501(c)(3) non-profit employees. Requires 120 qualifying payments under an IDR plan while working full-time for a qualifying employer.

Full Balance Forgiven

Teacher Loan Forgiveness

Available to teachers who work full-time for 5 consecutive years in a low-income school or educational service agency. STEM and special education teachers may qualify for up to $17,500.

Up to $17,500

Income-Driven Repayment Forgiveness

After 20-25 years of qualifying payments under an IDR plan (SAVE, PAYE, IBR, or ICR), any remaining balance is forgiven. The SAVE plan offers forgiveness after just 10 years for balances under $12,000.

Full Balance After 20-25 Years

One-Time Debt Relief (Historical)

The 2022 Biden student debt cancellation provided up to $10,000 for non-Pell Grant recipients and up to $20,000 for Pell Grant recipients (income limits applied: $125,000 single / $250,000 married).

$10,000 - $20,000

Loan Balance Breakdown

Program Comparison

Program Comparison

Program Eligibility Time Required Maximum Forgiveness Your Status

Complete Guide to Student Loan Forgiveness Programs

Table of Contents

Overview of Student Loan Forgiveness

Student loan forgiveness programs provide relief to borrowers by canceling all or part of their federal student loan debt. These programs are designed to encourage public service, support educators, and provide relief to borrowers facing financial hardship.

Unlike loan repayment, forgiveness means you no longer have to pay back some or all of your loan. However, qualifying for forgiveness typically requires meeting specific criteria such as working in certain professions, making a set number of payments, or participating in income-driven repayment plans.

Important Note

Only federal student loans are eligible for federal forgiveness programs. Private student loans from banks, credit unions, or other private lenders are not eligible for these programs.

Public Service Loan Forgiveness (PSLF)

PSLF is one of the most comprehensive forgiveness programs available. It forgives the remaining balance on your Direct Loans after you have made 120 qualifying monthly payments (10 years) while working full-time for a qualifying employer.

Qualifying Employers Include:

  • Government organizations at any level (federal, state, local, or tribal)
  • Not-for-profit organizations that are tax-exempt under Section 501(c)(3)
  • Other types of not-for-profit organizations providing qualifying public services
  • AmeriCorps or Peace Corps

Requirements for PSLF:

  1. Work full-time (at least 30 hours per week) for a qualifying employer
  2. Have Direct Loans (or consolidate into Direct Loans)
  3. Repay loans under an income-driven repayment plan
  4. Make 120 qualifying monthly payments (not necessarily consecutive)

PSLF Advantage

Unlike IDR forgiveness, PSLF forgiveness is not taxable. Your forgiven balance will not be considered income for federal tax purposes.

Teacher Loan Forgiveness

The Teacher Loan Forgiveness Program provides up to $17,500 in forgiveness for highly qualified teachers who work for five complete and consecutive academic years in a low-income school or educational service agency.

Forgiveness Amounts:

  • Up to $17,500: For highly qualified secondary mathematics or science teachers, or highly qualified special education teachers
  • Up to $5,000: For other highly qualified teachers in eligible schools

Eligibility Requirements:

  • Teach full-time for five complete and consecutive academic years
  • Work in a school that qualifies as low-income
  • Be a highly qualified teacher
  • Have Direct Loans or FFEL Program loans (not Perkins Loans)
  • Not have had an outstanding loan balance as of October 1, 1998

Income-Driven Repayment Forgiveness

All income-driven repayment plans offer forgiveness of any remaining loan balance after a set period of qualifying payments:

  • SAVE (Saving on a Valuable Education): 20 years for undergraduate loans, 25 years for graduate loans, or 10 years for balances under $12,000
  • PAYE (Pay As You Earn): 20 years of qualifying payments
  • IBR (Income-Based Repayment): 20 years for new borrowers after July 1, 2014; 25 years for older borrowers
  • ICR (Income-Contingent Repayment): 25 years of qualifying payments

SAVE Plan Forgiveness

The SAVE plan (which replaced REPAYE) offers the most generous income-driven repayment terms currently available:

  • Payments capped at 5% of discretionary income for undergraduate loans
  • 10% of discretionary income for graduate loans
  • $0 payments don't cause interest capitalization
  • Faster forgiveness for smaller loan balances (10 years for balances under $12,000)
  • Higher income protection threshold (225% of the poverty line)

Biden's Student Debt Relief

In August 2022, President Biden announced a one-time student debt cancellation plan that would have provided:

  • $10,000 in forgiveness for non-Pell Grant recipients with income under $125,000 (single) or $250,000 (married filing jointly)
  • $20,000 in forgiveness for Pell Grant recipients with income under $125,000 (single) or $250,000 (married filing jointly)

Legal Status

This program was blocked by the Supreme Court in June 2023. While this specific program is no longer available, the Biden administration has pursued other avenues for debt relief, including expanded PSLF, IDR account adjustments, and targeted relief for borrowers defrauded by their schools.

What is a Pell Grant?

A Pell Grant is a form of federal financial aid for undergraduate students with exceptional financial need. Unlike loans, Pell Grants do not need to be repaid. Key characteristics include:

  • Based on financial need as determined by the FAFSA
  • Available only to undergraduate students who haven't earned a bachelor's degree
  • Maximum award varies by year (approximately $7,395 for 2023-24)
  • Can be used at any participating school
  • Lifetime eligibility limited to 12 semesters or equivalent

If you received a Pell Grant, you can verify this through your Federal Student Aid account at StudentAid.gov.

How to Apply for Forgiveness

For PSLF:

  1. Complete the PSLF Help Tool at StudentAid.gov
  2. Submit the PSLF form annually or when you change employers
  3. Continue making qualifying payments while employed
  4. Apply for forgiveness after 120 qualifying payments

For Teacher Loan Forgiveness:

  1. Complete 5 consecutive years of qualifying teaching
  2. Complete the Teacher Loan Forgiveness Application
  3. Have your school's chief administrative officer certify your service
  4. Submit to your loan servicer

For IDR Forgiveness:

  1. Enroll in an income-driven repayment plan
  2. Recertify your income annually
  3. Continue making payments for the required period
  4. Your servicer will track your progress and notify you when eligible

Tax Implications

Tax treatment of forgiven student loan debt varies by program:

  • PSLF: Forgiven amounts are NOT taxable
  • Teacher Loan Forgiveness: Forgiven amounts are NOT taxable
  • IDR Forgiveness: Through 2025, forgiven amounts are NOT taxable under the American Rescue Plan. After 2025, forgiveness may be taxable unless Congress extends the exclusion.
  • Discharge due to disability: Not taxable
  • Borrower defense to repayment: Not taxable

Frequently Asked Questions

Can I qualify for multiple forgiveness programs?

You can only use each loan toward one forgiveness program. However, if you have multiple loans, different loans could qualify for different programs. Also, Teacher Loan Forgiveness and PSLF use different time periods, so some borrowers may benefit from both.

Do I need to apply for forgiveness, or is it automatic?

You must apply for PSLF, Teacher Loan Forgiveness, and most other programs. IDR forgiveness should be automatic after meeting the requirements, but you should monitor your account and follow up with your servicer.

What happens to my loans while I wait for forgiveness?

You must continue making qualifying payments unless you're in deferment, forbearance, or your payment amount is $0 under an IDR plan. Missing payments or going into default will delay your forgiveness timeline.

What if I'm denied forgiveness?

If denied, you'll receive a letter explaining why. Common reasons include incomplete applications, non-qualifying employers, or payment discrepancies. You can request reconsideration and provide additional documentation.

Do private loans qualify for forgiveness?

No. Federal forgiveness programs only apply to federal student loans (Direct Loans, FFEL loans, and sometimes Perkins loans). Private student loans have no government forgiveness options, though some states and employers offer repayment assistance programs.

All Finance Calculators