1. What is Public Student Loan Forgiveness?

The Public Service Loan Forgiveness (PSLF) program forgives the remaining balance on your Direct Loans after you have made 120 qualifying monthly payments under a qualifying repayment plan while working full-time for a qualifying employer.

2. How Does PSLF Work?

The program requires:

• 120 qualifying payments (10 years)
• Payments made under an income-driven repayment (IDR) plan
• Full-time employment with a qualifying employer (government or non-profit)
• Direct Loans (or consolidated into Direct Loans)

3. Understanding the Calculation

The calculator uses the formula:

Where:

• \( Initial\ Balance \) — Original loan amount (USD)
• \( PMT \) — Monthly payment under IDR plan (USD)
• 120 — Number of qualifying payments (10 years)

Note: This calculates potential forgiveness after completing all requirements. Actual forgiveness may vary based on payment amounts over time.

4. Using the Calculator

Instructions: Enter your original loan balance and estimated monthly payment under an income-driven repayment plan. The calculator will estimate your potential forgiven amount after 120 payments.

5. Frequently Asked Questions (FAQ)

Q1: What loans qualify for PSLF?
A: Only Direct Loans qualify. FFEL and Perkins Loans must be consolidated into Direct Loans.

Q2: What counts as a qualifying payment?
A: Full, on-time payments made under an IDR plan while working full-time for a qualifying employer.

Q3: Can payments made before consolidation count?
A: No, only payments made after consolidation into Direct Loans count toward PSLF.

Q4: What if my loan is paid off before 120 payments?
A: You would not receive forgiveness as the balance would be zero.

Q5: Is forgiven amount taxable?
A: No, PSLF forgiveness is tax-free under current federal law.