PSLF Loan Forgiveness Calculator

How to Use PSLF Loan Forgiveness Calculator ?

The dashboard of PSLF Loan Forgiveness Calculator is very clean and clear.(If you want to calculate your monthly PSLF payment, you can use our “PSLF monthly payment calculator“). You just need to fill in your loan details correctly like loan amount, interest rate, total number of payments you have made and number of family members etc. Let me explain step-by-step.

Step 1: Enter Loan Amount
You must enter your total loan amount, for example, $1,000.

Step 2: Enter Average Interest Rate
What interest rate did you get the loan at, for example, 12%.

Step 3: Enter Current Repayment Plan
You must choose how to repay your loan, such as the 10-Year Standard Plan, IBR, PAYE, REPAYE, and ICR.

Step 4: Enter Family Annual Income
You must enter your family’s annual income, for example, $10,000.
Note – If you are responsible for repaying the loan yourself, enter your annual income.

Step 5: Enter Family Size
Enter the total number of family members, such as 5.
Note – If only you will repay the loan, select only 1.

Step 6: Enter Qualifying Payments Made
How many loan repayments you have made so far, such as 5.

Note: You will find all this information on the loan agreement, such as the interest rate and loan amount.

What is PSLF ?

By implementing this loan scheme, the government aims to encourage people to work in government and non-profit sectors. This scheme is started by the United States Government and administered by the US Department of Education.

Best of all: You don’t have to pay income tax on the forgiven amount (which is normally charged on loan forgiveness).

PSLF – The 4 Key Requirements

This will be the most important part of this article. Understand each point separately and in a clear way.

Point #1: Loan Type
Only direct loans are eligible under this scheme. Other loan types, such as FFL and Perkins, are not eligible. If you still want to see if your loans qualify, you’ll need to check the federal student aid website.

Point #2: Repayment Plan
Only icon-driven repayment plans, such as IBR, PAYE, REPAY, and ICR, qualify under the PSLF scheme. 10-year standard repayment plans and graduated plans do not qualify.

Point 3: Employer Eligibility
Only government employees, such as central, state, and local governments, and not-for-profit organizations with 501(c)(3) tax status, qualify under the PSLF scheme. For-profit companies, labor unions, political parties, and religious organizations do not qualify.

Point 4: 120 Qualifying Payments
You must have paid at least 120 installments, and these installments must meet all qualifying requirements. These 120 installments are equivalent to 10 years, and these installments do not need to be paid continuously. You can change jobs in between. You just need to have the correct annual account and qualify for the requirements.

PSLF- Step-by-Step Action Plan

Step 1: Confirm your loan and employer (by logging into the FSA portal).

Step 2: Fill out the Employment Certification Form (ECF).
This is a form your employer completes to attest to the number of days and duration you worked at that organization. This lets you know how much progress you’ve made.

Tip: Submit the ECF every year, or whenever you change jobs.

Step 3: Final Forgiveness Application
When you’ve completed 120 payments, file your final application.

Common Mistakes & How to Avoid Them

Mistake #1: Thinking every loan and repayment plan qualifies.
Prevention: Check first.

Mistake #2: Never submitting an ECF.
Prevention: Submit an ECF regularly to keep your count updated.

Mistake #3: Assuming your employer qualifies without checking.
Prevention: Use the FSA’s “Employer Search Tool” or ask your employer directly.

Mistake #4: Paying installments late or missing them.
Prevention: Pay installments regularly.

Does this tool also calculate PSLF monthly payments?

PSLF Loan Forgiveness Calculator, does not calculate monthly payment. There is a separate process for calculating monthly payment.

Frequently Asked Questions