Student Loan Forgiveness Calculator (2026)
See how much could be forgiven under PSLF, IBR, PAYE, SAVE and RAP based on your income, family size, and career path — instantly.
✦ 2026 Poverty Guidelines
✦ PSLF & IDR Programs
✦ Tax Implication Analysis
✦ Free & Confidential
Your Loan & Income Details
2026 Direct Loan: ~6.54%
Qualifying years completed so far
PSLF requires government or 501(c)(3) employer
Used to project future IDR payments over time
2026 Program Overview
★ PSLF — Public Service Loan Forgiveness
✓ 120 qualifying payments (10 years)
✓ Government or 501(c)(3) employer required
✓ Forgiveness is 100% TAX-FREE
★ IBR — Income-Based Repayment
✓ 10% disc. income (post-2014) / 15% (pre-2014)
✓ Forgiveness after 20 or 25 years
! Forgiveness generally taxable
★ SAVE / PAYE / RAP
✓ SAVE: 5-10% disc. income, 225% poverty line
✓ PAYE: 10% disc. income, 20-yr forgiveness
! SAVE under litigation — check studentaid.gov
2026 Poverty Guidelines (48 States):
1 person: $15,650 • 2: $21,150 • 3: $26,650 • 4: $32,150
+$5,580 per additional member
1 person: $15,650 • 2: $21,150 • 3: $26,650 • 4: $32,150
+$5,580 per additional member
Your Student Loan Forgiveness Analysis — 2026
—Best Monthly Payment
—Est. Forgiveness Amount
—Years Until Forgiveness
—Total Amount Repaid
—Est. Tax on Forgiveness
—Net Lifetime Savings
| Plan | Monthly Payment | Yrs to Forgiveness | Total Repaid | Forgiven Amount | Tax Note |
|---|
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Frequently Asked Questions
What is PSLF and who qualifies?
PSLF forgives remaining Direct Loan balances after 120 qualifying monthly payments (10 years) while working full-time for a qualifying employer — government agencies, 501(c)(3) non-profits, military, AmeriCorps, and Peace Corps. PSLF forgiveness is completely tax-free. You must be on an income-driven plan (IBR, PAYE, SAVE, ICR) or the Standard 10-year plan to make qualifying payments.
How is my IBR monthly payment calculated?
IBR payment = 10% (new borrowers, post-July 1 2014) or 15% (pre-2014 borrowers) of your discretionary income, divided by 12. Discretionary income = AGI minus 150% of the federal poverty guideline for your state and family size. Example: Income $40,000, single, 48 states. 150% poverty = $23,475. Discretionary = $16,525. Monthly payment = 10% of $16,525 / 12 = $137.71/month. Forgiveness after 20 years (new) or 25 years (old).
Is forgiven student loan debt taxable?
PSLF forgiveness is NOT taxable under any circumstances. IDR forgiveness (IBR, PAYE, SAVE, ICR) is generally taxable as ordinary income in the year forgiveness occurs — the “tax bomb.” The American Rescue Plan temporarily excluded IDR forgiveness from income through 2025; for 2026 onward this depends on Congressional action. Plan ahead with a tax advisor to manage this potential liability.
What are the 2026 federal poverty guidelines used in calculations?
For 2026: Contiguous 48 states/DC: $15,650 (1 person), $21,150 (2), $26,650 (3), $32,150 (4), +$5,580 each additional. Alaska: $19,550 base, +$6,970. Hawaii: $17,990 base, +$6,430. All IDR plans use a percentage of the poverty line to determine your discretionary income threshold.
What happened to the SAVE plan?
SAVE replaced REPAYE in 2023, offering the lowest payments of any IDR plan (5% of discretionary income for undergrad, 225% poverty guideline). However, federal courts blocked many SAVE provisions in 2024-2025. As of 2026, enrolled borrowers were placed in administrative interest-free forbearance during litigation. Check studentaid.gov for the latest status before making decisions based on SAVE.
What is RAP (Repayment Assistance Plan)?
RAP is a proposed new IDR plan to potentially replace SAVE. Under the proposed rules, payments would be 10% of discretionary income (150% poverty line), capped at the standard 10-year payment, with forgiveness after 20-25 years. As of mid-2026, final rules were still being developed. This calculator models RAP based on the proposed framework — verify at studentaid.gov before relying on RAP projections.