PSLF Tax-Free Forgiveness Tracker Calculator 2026
Track your Public Service Loan Forgiveness progress, project your remaining payments, estimate your tax-free forgiveness amount, and see your 10-year payment schedule.
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Projected Forgiveness Amount
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Federal Tax Saved (Tax-Free!)
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Qualifying Payments Remaining
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Total You Will Pay (120 payments)
PSLF Calculation Summary
How PSLF Works
After 120 qualifying payments (10 years) while working full-time for a qualifying employer and enrolled in an income-driven repayment plan, your remaining federal student loan balance is forgiven completely tax-free under IRC Section 108(f)(4).
The Formula
Payments Remaining = 120 - Payments Made
Balance at Forgiveness = Current Balance x (1 + r/12)^remaining months - Payment x [((1+r/12)^remaining - 1) / (r/12)]
Tax-Free Savings = Forgiven Amount x Marginal Rate
Net Benefit = Tax-Free Forgiven Amount + (Standard 10-yr Payment - IDR Payment) x remaining months
Balance at Forgiveness = Current Balance x (1 + r/12)^remaining months - Payment x [((1+r/12)^remaining - 1) / (r/12)]
Tax-Free Savings = Forgiven Amount x Marginal Rate
Net Benefit = Tax-Free Forgiven Amount + (Standard 10-yr Payment - IDR Payment) x remaining months
Example
48 of 120 qualifying payments made. Balance: $85,000 at 6.5%. IDR payment: $350/month:
Remaining payments: 72 months
Projected forgiveness at month 120: ~$91,000 (interest accrual)
Tax-free savings at 22%: ~$20,020
Total paid: $42,000 vs $120,000 standard repayment β savings over $78,000
Remaining payments: 72 months
Projected forgiveness at month 120: ~$91,000 (interest accrual)
Tax-free savings at 22%: ~$20,020
Total paid: $42,000 vs $120,000 standard repayment β savings over $78,000
Sources and References (click to expand)
- IRC Section 108(f)(4) β Tax-Free PSLF Forgiveness
- 34 CFR 685.219 β Public Service Loan Forgiveness Regulations
- Federal Student Aid β PSLF Help Tool and Official Information
- IRS Publication 970 β Tax Benefits for Education (Loan Forgiveness)
- Federal Student Aid β Income-Driven Repayment Plans (IDR)
Extended
PSLF 10-Year Schedule Tracker
Year-by-year payment schedule, balance projection with interest, and SVG balance chart
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Year-by-Year PSLF Schedule
| Year | Payments Made | Total Paid | Balance | Interest Accrued | PSLF Count |
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Loan Balance Over 10 Years (with IDR payments)
Frequently Asked Questions
Is PSLF forgiveness taxable income?
No. Public Service Loan Forgiveness (PSLF) is specifically excluded from gross income under IRC Section 108(f)(4). The forgiven amount is entirely tax-free for federal income tax purposes. This is a major advantage over income-driven repayment (IDR) forgiveness after 20-25 years, where the forgiven balance is typically taxable as ordinary income (the ARPA exclusion for IDR forgiveness expired December 31, 2025).
What qualifies as a PSLF-eligible employer?
Qualifying employers include: (1) U.S. federal, state, local, or tribal government agencies, (2) 501(c)(3) nonprofit organizations (regardless of the type of work performed), (3) other nonprofits that provide specific qualifying public services such as public health, public education, law enforcement, public interest law, early childhood education, and similar services. Private for-profit companies never qualify, even if they do government contract work. You must work full-time (at least 30 hours per week or your employer's definition of full-time, whichever is greater).
What counts as a qualifying payment for PSLF?
A qualifying payment must be: (1) made under an income-driven repayment plan (IBR, PAYE, SAVE/REPAYE, or ICR) or the standard 10-year plan, (2) paid on time (within 15 days of the due date), (3) paid in full as billed (not a partial payment), (4) made while employed full-time by a qualifying employer. Each qualifying month counts as one payment. Payments do not need to be consecutive β you can pause, take deferment, and resume. PSLF requires exactly 120 qualifying payments.
How do I verify my employer and track progress toward PSLF?
Use the PSLF Help Tool at studentaid.gov to submit an Employment Certification Form (ECF) annually or when you change employers. Loan servicers are required to maintain your PSLF payment count. You will receive a notice showing your qualifying payment count. The ED recommends submitting ECFs annually to catch any issues early. After 120 qualifying payments, submit the PSLF Application for Forgiveness.
What happens to my loans during the PSLF waiting period?
Your loans continue to accrue interest during the repayment period. Under income-driven repayment plans, your monthly payment may be less than the interest accruing, causing the balance to grow (negative amortization). Under SAVE (the successor to REPAYE), unpaid interest on subsidized loans is forgiven by the government monthly, limiting balance growth. All balance β principal, accrued interest, and any capitalized amounts β is forgiven tax-free after 120 qualifying payments under PSLF.