Navigating federal student loan forgiveness can be complex. Our Student Loan Forgiveness Calculator helps you understand your potential eligibility and estimate savings under key programs like Public Service Loan Forgiveness (PSLF) or Income-Driven Repayment (IDR) plans, including the new SAVE plan. Make informed decisions about your student debt burden today.
Formula:
Student loan forgiveness is not based on a single mathematical formula but rather on eligibility criteria and repayment duration under specific federal programs. Our calculator estimates your potential based on:
- Public Service Loan Forgiveness (PSLF): Requires Direct Loans, 120 qualifying payments (10 years) while working full-time for an eligible government or non-profit organization. Forgives the remaining balance.
- Income-Driven Repayment (IDR) Forgiveness (e.g., SAVE, PAYE, IBR, ICR): Requires Direct Loans (or consolidated federal loans), 20 or 25 years of qualifying payments. Forgives the remaining balance.
Estimated Monthly Payment (SAVE Plan):
Monthly Payment = (Discretionary Income * 0.10) / 12
Where:
Discretionary Income = Annual Gross Income - (225% of Federal Poverty Line for your family size)Federal Poverty Linevaries by family size and is adjusted annually.0.10represents 10% of discretionary income (for undergraduate loans, varies for graduate).
The calculator estimates potential forgiveness by considering the total payments made under an IDR plan over the forgiveness term versus your original loan balance.