Public Service Loan Forgiveness (PSLF) Calculator
PSLF Estimator
Use AGI from your last tax return.
Public Service Loan Forgiveness
Tax-Free100% Tax-Free
*Estimates based on 2026 RAP (Repayment Assistance Plan) sliding scale logic. Assumes income, dependents, and payments remain exactly the same for the duration of the loan. Minimum payment is $10.
What Your Number Means
Forgiveness > Loan Balance: If your projected tax-free forgiveness is higher than your current loan balance, you are a prime candidate for PSLF. Ensure you are enrolled in the new 2026 Repayment Assistance Plan (RAP) and submit your Employment Certification Form (ECF) annually.
Zero Forgiveness Projected: If the calculator projects $0 in forgiveness, your income is likely too high relative to your debt (meaning you will pay it off before the 120-month mark under the RAP sliding scale). In this scenario, aggressive private refinancing is usually the mathematically optimal move.
Physician Case Studies
Dr. Smith (PGY-3 Pediatrician)
The Profile: $250,000 in federal debt. Current resident AGI: $65,000. Expected attending AGI: $220,000. Zero dependents.
The Outcome: Under the RAP sliding scale (6%), her payment is $325/mo during residency. As an attending (10% scale), her payments jump to $1,833/mo. Over 10 years, she pays approximately $150,000 total and receives over $150,000 in tax-free forgiveness. PSLF is still a massive win.
Dr. Jones (Attending Orthopedic Surgeon)
The Profile: $300,000 in federal debt. Attending AGI: $650,000. Files taxes Married Filing Jointly.
The Outcome: Due to his high income, he hits the 10% RAP bracket, resulting in a monthly payment over $5,400. He will completely pay off his $300,000 loan balance in roughly 5.5 years—long before reaching the 10-year PSLF finish line. Projected forgiveness is $0. He should refinance privately for a lower rate.
* Note: The physician case studies presented above are illustrative composites created for educational purposes. They do not represent actual clients or guarantee similar results.
Want to dive deeper?
Read our comprehensive guide to understand all the nuances and strategies.
Clinical Context & Calculation Details
How to Use This Calculator
Enter your Federal student loan balance, your Adjusted Gross Income (AGI) from your last tax return, family size, and how many years of qualifying payments you have already made.
The estimator projects your monthly payment under an Income-Driven Repayment plan (like SAVE) and calculates the estimated tax-free forgiveness after 120 payments.
Why Doctors Need This
Public Service Loan Forgiveness (PSLF) is the single most valuable financial tool available to young physicians. If you work for a 501(c)(3) non-profit hospital (which most academic and many community hospitals are), the government will forgive your entire Federal loan balance tax-free after 10 years.
For a doctor with $400,000 in debt, achieving PSLF is mathematical equivalent to earning an extra $1,000,000 pre-tax.
The Math Behind It
Discretionary Income: AGI - (2.25 × Federal Poverty Line).
Monthly Payment: Typically 10% of discretionary income divided by 12. Notice that the loan balance does NOT determine the monthly payment—only your income does. This is why residents have very low payments despite massive debt.
Pearls & Pitfalls
- Pearl: Always file your taxes as soon as possible during your MS4 year (reporting $0 income) so your intern year PSLF payments are calculated as $0/month.
- Pitfall: Refinancing Federal loans with a private bank (e.g., SoFi, Laurel Road) permanently disqualifies you from PSLF. Never do this until you are 100% certain you are taking a private practice job that does not qualify for PSLF.
- Pearl: If you are married to another high-earner, filing taxes as "Married Filing Separately" (MFS) can exclude your spouse's income from the payment calculation, potentially saving thousands.
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Editorial Credibility
Joshua Dunigan, DO | Family Medicine Physician & Founder
I founded MedMoneyGuide to provide physicians with unbiased, specialty-specific financial guidance. My goal is to add transparency and credibility to your financial journey.
Frequently Asked Questions
Do residency years count toward PSLF?
Yes, as long as you are making IDR payments (even $0 payments) while working full-time for a qualifying 501(c)(3) hospital during residency.
Is PSLF tax-free?
Yes, Public Service Loan Forgiveness is entirely tax-free at the federal level. Mississippi is currently the only state that taxes PSLF forgiveness.