Transparent method
The formula
Worked example
Example inputs
How to interpret the result
Public Service Loan Forgiveness counts only qualifying payments made under specific conditions, an eligible loan type, an eligible repayment plan, and qualifying employment, so a borrower can make 120 payments in total and still not reach forgiveness if a meaningful share of those payments don't actually meet every qualifying condition.
Before you rely on it
What to check
Verify loan type, repayment plan and employer eligibility directly with Federal Student Aid periodically, rather than assuming payments are automatically qualifying just because they're being made on time.
The common error
Where people go wrong with PSLF calculator
Assuming every on-time payment automatically counts as a qualifying PSLF payment. Loan type, repayment plan and employer certification requirements all have to be met simultaneously, and a payment that misses any one of them doesn't count toward the 120 needed.
Sensitivity evidence
How average annual loan rate changes the estimated balance at forgiveness point
| Average annual loan rate | Estimated balance at forgiveness point | Remaining qualifying payments | Remaining out-of-pocket payments |
|---|---|---|---|
| 4.0% | $73,755 | 72 | $36,000 |
| 5.0% | $79,529 | 72 | $36,000 |
| 6.0%worked example | $85,680 | 72 | $36,000 |
| 7.0% | $92,229 | 72 | $36,000 |
| 8.0% | $99,203 | 72 | $36,000 |
Every input, tested
Which input moves the estimated balance at forgiveness point most
| Input | Tested from | To | Estimated balance at forgiveness point at each end | Swing |
|---|---|---|---|---|
| Current eligible federal balance | $81,000 | $99,000 | $72,791 to $98,568 | $25,777 (30%) |
| Average annual loan rate | 5.0% | 7.0% | $79,529 to $92,229 | $12,700 (15%) |
| Monthly qualifying payment | $450 | $550 | $90,000 to $81,359 | $8,641 (10%) |
| Required qualifying payments | 108 | 132 | $86,511 to $84,796 | $1,715 (2.0%) |
| Qualifying payments already made | 43 | 53 | $85,318 to $86,032 | $714 (0.8%) |
Two variables at once
Estimated balance at forgiveness point by average annual loan rate and current eligible federal balance
| Average annual loan rate \ Current eligible federal balance | $72,000 | $90,000 | $108,000 |
|---|---|---|---|
| 4.0% | $50,882 | $73,755 | $96,629 |
| 5.0% | $55,247 | $79,529 | $103,812 |
| 6.0% | $59,903 | $85,680 | $111,456 |
| 7.0% | $64,867 | $92,229 | $119,591 |
| 8.0% | $70,159 | $99,203 | $128,246 |
Step by step
The worked example, input by input
| Input | Value used |
|---|---|
| Current eligible federal balance | $90,000 |
| Monthly qualifying payment | $500 |
| Qualifying payments already made | 48 |
| Required qualifying payments | 120 |
| Average annual loan rate | 6.0% |
| Estimated balance at forgiveness point | $85,680 |
| Remaining qualifying payments | 72 |
| Remaining out-of-pocket payments | $36,000 |
Where the inputs come from
Current eligible federal balance is your Direct Loan balance, monthly qualifying payment is the amount you pay under a qualifying plan such as an income-driven plan, qualifying payments already made is the count on your PSLF tracker, and required qualifying payments is 120. The average loan rate is used to project the balance. You must work full time for a qualifying government or nonprofit employer and have Direct Loans. Use the PSLF Help Tool at the Federal Student Aid website to certify employment.
Using the estimated balance at forgiveness point in a real decision
Track certification of employment every year.
When the result stops applying
PSLF requires qualifying loans, plans, payments made on time and full-time work for an eligible employer, and errors in any of them delay forgiveness. Payments do not have to be consecutive. The program's rules have changed with legislation and regulation, so confirm the current requirements. Refinancing to a private loan ends eligibility.
What to compare it with
See the payment on the income-driven repayment calculator, and the standard schedule on the student loan payment page. The student loan refinance page explains what you lose by refinancing federal loans. Certify your employer annually and keep records of every payment.
People also ask
Frequently asked questions
Who qualifies for PSLF?
Borrowers with Direct Loans who work full time for a government or qualifying nonprofit employer and make 120 qualifying payments under an eligible repayment plan.
Are PSLF payments required to be consecutive?
No. The 120 payments do not have to be consecutive and can be made over any period, including breaks between qualifying jobs.
Is PSLF forgiveness taxable?
Not at the federal level. Forgiveness under PSLF is excluded from taxable income, though state treatment can vary.