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Debt & Forgiveness•PSLF & Federal IDR Math

Student Loan Forgiveness Calculator (2026 Rules)

Compare Public Service Loan Forgiveness (PSLF) and Income-Driven Repayment (IDR) options under updated student loan forgiveness 2026 guidelines. Estimate your monthly payment and total forgiven debt with our free student loan forgiveness calculator.

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Target Forgiveness Program

2026 Federal Policy Notice (RAP Enacted & SAVE Terminated)

The SAVE plan has been officially terminated. Effective July 1, 2026, the Repayment Assistance Plan (RAP) is the federal standard IDR plan (1%–10% AGI bracket rate, $50/dependent credit, $10/mo min payment, 30-year forgiveness, and no negative amortization). PSLF (120 payments / 10 years) remains fully active and 100% tax-free by federal statute.

PSLF Forgiveness Winner

PSLF forgives $61,200 100% Tax-Free!

By making 120 qualifying payments while working for a non-profit or government employer, you pay just $26,450 total vs $88,570 on standard repayment, saving $62,120 total.

Year 1 Monthly Payment$229 / mo
Standard Payment: $738 / mo
Total Forgiven Balance$61,200
Tax Status: 100% Tax-Free (PSLF)
Net Financial SavingsSave $55,800
Total Paid: $32,770

Program Repayment & Forgiveness Breakdown

Side-by-side comparison of initial monthly payment, projected income growth, total out-of-pocket amount paid, and forgiven balance.

Repayment MetricStandard 10-YearSelected Forgiveness PlanDifference
Year 1 Monthly Payment$738 / mo$229 / moSave $509/mo
Year 5 Monthly Payment (3% Wage Growth)$738 / mo$258 / moSave $480/mo
Year 10 Monthly Payment$738 / mo$299 / moSave $439/mo
Total Out-of-Pocket Amount Paid$88,570$32,770Save $55,800
Forgiveness Timeline10 Years (Paid Off)10 Years (120 Payments)120 Qualifying Pmts
Total Principal & Interest Forgiven$0$61,200100% Tax-Free
Deep-Dive Guide

PSLF vs. RAP: Understanding Your Student Loan Forgiveness Options in 2026

Compare PSLF 120-payment rules against RAP income brackets, 100% interest subsidies, and current 2026 federal tax laws.

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Frequently Asked Questions

Fact-checked guidance grounded in statutory 34 CFR § 685.219 rules and 2026 RAP framework.

What is PSLF and who qualifies for Public Service Loan Forgiveness?▾
Public Service Loan Forgiveness (PSLF) is a statutory federal program (34 CFR § 685.219) that forgives the remaining balance on Direct Federal Loans after making 120 qualifying monthly payments under an accepted income-driven repayment plan. To qualify, you must work full-time (at least 30 hours per week) for a qualifying government organization (federal, state, local, or tribal) or a tax-exempt 501(c)(3) non-profit organization.
What is the Repayment Assistance Plan (RAP) introduced for 2026?▾
Effective July 1, 2026, the Repayment Assistance Plan (RAP) sets monthly student loan payments at 1% to 10% of your Adjusted Gross Income (AGI), scaling up 1% per $10,000 of AGI. RAP provides a $50/month payment credit per dependent, a $10/month minimum payment, 100% interest subsidies to prevent negative amortization, a $50/month principal reduction subsidy, and complete loan balance forgiveness after 30 years (360 qualifying payments).
Is student loan forgiveness taxable as income?▾
Under Public Service Loan Forgiveness (PSLF), forgiven balances are 100% permanently tax-free at both federal and state levels under Internal Revenue Code Section 108(f). However, for general Income-Driven Repayment (IDR) and Repayment Assistance Plan (RAP) forgiveness, the federal tax exemption enacted under the American Rescue Plan Act expired on December 31, 2025. Forgiveness under IDR or RAP is now federally taxable as ordinary cancellation-of-debt income unless Congress passes new tax legislation. Additionally, several states tax forgiven student loan balances regardless of federal rules, making state-level tax verification critical for borrowers expecting large forgiven balances.
How many payments do I need for student loan forgiveness?▾
Under PSLF, you need exactly 120 qualifying monthly payments (10 years) while working for a qualifying public service employer. Under federal Income-Driven Repayment (IDR/RAP) plans, loan balance forgiveness occurs after 240 monthly payments (20 years for undergraduate loans under legacy plans) or 360 monthly payments (30 years under the 2026 RAP framework).
Do pre-tax 401(k) or HSA contributions lower my student loan payments?▾
Yes. Because Income-Driven Repayment (IDR and RAP) plans calculate your monthly payment based on your Adjusted Gross Income (AGI) from your federal tax return, pre-tax contributions to a 401(k), 403(b), traditional IRA, or Health Savings Account (HSA) reduce your AGI dollar-for-dollar, directly lowering your required monthly student loan payment.

Federal Policy Notice & Statutory Program Verification:

  • PSLF Statutory Protection: Public Service Loan Forgiveness (120 qualifying monthly payments while employed full-time by a qualifying 501(c)(3) non-profit or government agency) is established under federal statute (34 CFR § 685.219). PSLF forgiveness is 100% tax-free under federal law.
  • RAP Structure (Effective July 1, 2026): The Repayment Assistance Plan (RAP) sets monthly payments as 1%–10% of AGI (scaling 1% per $10k of AGI, max 10%), less a $50/month credit per dependent, with a $10/month minimum payment. Includes full interest subsidies (no negative amortization), $50/mo principal reduction subsidy, and a 30-year (360 payment) forgiveness timeline.
  • Legacy IDR Plans: Legacy plans (IBR, PAYE) maintain 20-year (undergrad) and 25-year (grad) timelines for grandfathered borrowers.
  • Verify Direct at StudentAid.gov: Always confirm your official repayment plan eligibility and qualifying payment counts directly at StudentAid.gov.