These Free Calculators Will Do Your Student Loan Forgiveness Math for You

June 12, 2020 Loans & Finance

Although it can take a long time to qualify for a student loan forgiveness program, getting your student debt canceled could be well worth the wait. To keep yourself motivated, try estimating your projected loan forgiveness with free online calculators.

Seeing how much you’ll save might not speed up your loan forgiveness timeline, but it will help you stay on track until that day finally comes. We’ll cover…

How to estimate your projected loan forgiveness
Why your projected loan forgiveness matters

How to estimate your projected loan forgiveness

For some borrowers, calculating your projected loan forgiveness is easy and doesn’t require much math. Certain student loan forgiveness programs forgive flat amounts or a percentage of student loans.

For example, Perkins Loan cancellation is awarded on a percentage basis. You could have a maximum of between 50% and 100% of your Perkins Loans wiped away in five years or less, depending on your profession and circumstances.

For the more complicated types of loan forgiveness, though — like Public Service Loan Forgiveness (PSLF) and relief tied to income-driven repayment plans — a calculator might come in handy.

Whether you qualify for PSLF is dependent on your field of work, your loans and whether you make timely payments. You can confirm your eligibility by submitting an Employment Certification Form (ECF) to the Department of Education. As of March 31, 2020, more than 2.87 million ECFs were approved.

If you’re on an income-driven plan, you can still have your loans forgiven. Unfortunately, it will take 20 or 25 years of payments to have your loans canceled.

Let’s review free online calculators that determine your projected loan forgiveness. Each can help you see how much you’ll pay in interest, when you can expect your debt to be wiped away and how much you might owe in taxes on your forgiven loans.

1. StudentLoans.gov loan simulator
2. Student Loan Hero PSLF calculator
3. Student Loan Hero repayment plan calculators
4. Federal income tax calculators

1. StudentLoans.gov loan simulator

This nifty tool from the government was designed to help you choose a repayment plan for your federal loans. It pumps out your projected loan forgiveness if you’re pursuing PSLF, too.

To start, you can log in to your account with your Federal Student Aid ID or enter your information manually.

As you go through the tool, you’ll need to indicate information such as your income, loan balance and state of residence.

The estimator takes this information and shows your payment details for eight different repayment plans, from standard and graduated plans to income-driven plans.

For each plan that is eligible for loan forgiveness, you’ll be able to see your payoff date and how much relief you can receive.

Let’s say, for example, you’re a Michigan resident earning $50,000 per year and expect a 2% raise annually. You owe $34,722 at a 4.53% rate and are pursuing PSLF.

If you indicate that your main goal is to lower payments, the loan simulator tool will suggest the Revised Pay As You Earn (REPAYE) plan.

StudentAid.gov

In this example, the loan simulator shows that you’ll pay $33,326 toward your loan and receive $12,784 after 10 years.

Note that any changes in your life, such as growing your family or your salary significantly, could blow up these assumptions and affect how much relief you receive down the road.

Who is the loan simulator best for?

The Department of Education’s loan simulator is best suited for borrowers just entering repayment. If you’re already months into paying down your debt, the repayment figures might be less accurate, as will your projected loan forgiveness.

A borrower who has paid off $5,000 of a $20,000 loan under standard repayment, for example, might see inaccuracies for their loans under income-driven repayment plans. The total amount paid — and the total that can be forgiven — might be off.

Like all calculators, this one is designed to be used by many borrowers — that’s why it makes assumptions. For the most accurate telling of your loan situation, check in with your loan servicer.

2. Student Loan Hero PSLF calculator

Our calculators make the same assumptions with one significant exception: You can plug in your own rate of salary growth. We suggest 3.5%, which is based on historical data, as opposed to the Education Department’s 5% figure.

You might find yourself entering in a smaller or larger annual increase based on your career prospects. A teacher with guaranteed, incremental raises, for example, should be able to more accurately guess their future salary.

Our PSLF calculator is below. Use it to see how PSLF can help erase your debt.

Public Service Loan Forgiveness CalculatorPersonal infoAdjusted gross incomeFamily size1 1234567899+State of residenceContinental U.S… Continental U.S.AlaskaHawaiiAnnual income growthAre you married?Yes YesNoLoan infoTotal federal student loan balanceAvg. weighted interest rateFirst monthFinal paymentBalance paidForgivenessTerm

StandardIBRICRPAYEREPAYE
First month
Final payment
Balance paid
Forgiveness
Term

Depending on the payment plan selected, your forgiveness with PSLF would be up to $0.Do You Qualify For PSLF?The Complete List Of Student Loan Forgiveness Options8 Jobs That Offer Student Loan Forgiveness

Student loan refinancing rates as low as % APR. Check your rate in 2 minutes.

First monthFinal PaymentBalance PaidForgivenessSTANDARD

$0

STANDARDIBR

$0

IBRICR

$0

ICRPAYE

$0

PAYEREPAYE

$0

REPAYE$0
3. Student Loan Hero repayment plan calculators

But even if you’re ineligible for PSLF, we still make it easy to project your loan forgiveness. There are calculators for estimating relief associated with these income-driven repayment plans:

Income-Based Repayment (IBR) calculator
Income-Contingent Repayment calculator
Pay As You Earn (PAYE) calculator
Revised Pay As You Earn (REPAYE) calculator

Under these repayment plans, your projected loan forgiveness would arrive after 20 or 25 years of making payments.

If you owe $35,000, for example, switching from a standard repayment plan to an IBR plan would cost more over a longer period. You’d pay more in interest over time in exchange for smaller monthly payments.

Use the calculator below to see how IBR will affect your monthly payments and how much you can have forgiven.

INCOME BASED REPAYMENT (IBR) CALCULATORPersonal infoAdjusted gross incomeFamily size1 1234567899+State of residenceContinental U.S… Continental U.S.AlaskaHawaiiAnnual income growthLoan infoWere any of your federal student loans disbursed before July, 2014?Yes YesNoTotal federal student loan balanceCurrent monthly paymentAvg. weighted interest rateFirst monthLast monthBalance paidTotal forgivenessRepayment term

OriginalIBRSavings
First month
Last month
Balance paid
Total forgiveness
Repayment term

Your monthly payment on IBR would be —, a difference of — from what you are currently paying. If your income increases over time, your payments may increase. Assuming annual income growth of 3.5%, your final monthly payment would be —. After making payments for — years, you will have paid a total of — and would receive — in forgiveness, compared to your current plan where you will pay — over the next — years.The Complete Guide to Income-Driven Repayment PlansHow to Apply For An Income-Driven Repayment PlanHow to Recertify Your Income-Driven Plan Each Year

Student loan refinancing rates as low as % APR. Check your rate in 2 minutes.

TotalTotalCURRENT

$0

CURRENTIBR

$0

IBR$0
4. Federal income tax calculators

Thankfully, there won’t be a tax hit for your projected loan forgiveness through PSLF or student loan forgiveness for teachers — but Uncle Sam might come calling if you take advantage of other forgiveness programs.

There aren’t online tools for estimating how much you’ll pay in taxes for loan forgiveness, but you can do some simple math to understand how your loan forgiveness will be taxed. If you earn $30,000 in a year and have a $30,000 student loan debt canceled in the same year, the IRS will tax you as if you earned $60,000.

Once you have your new income, as unfair as it might seem, you can plug it into any number of free online income tax calculators. There are lots of free income tax calculators out there, including those available on the websites of the IRS and various tax preparers.

The tax on your forgiven loan balance isn’t ideal. But it only dampens your situation if you don’t plan for it, so be prepared.

Why your projected loan forgiveness matters

Student loan borrowers are usually trying to get out in front of something bad, such as a late payment or a defaulted loan. But looking ahead to student loan forgiveness can make you feel better about your debt. Although forgiveness could be years away, seeing the number itself might inspire you to work toward it.

So get moving. Give these tools a spin to see what your future holds — it might be rosier than you imagined.

For additional loan forgiveness options, check out our complete list of student loan forgiveness programs.

Rebecca Safier contributed to this article.

Interested in refinancing student loans?
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1 Important Disclosures for Laurel Road.
Laurel Road Disclosures

Laurel Road is a brand of KeyBank National Association offering online lending products in all 50 U.S. states, Washington, D.C., and Puerto Rico. Mortgage lending is not offered in Puerto Rico. All loans are provided by KeyBank National Association.
As used throughout these Terms & Conditions, the term “Lender” refers to KeyBank National Association and its affiliates, agents, guaranty insurers, investors, assigns, and successors in interest.

ANNUAL PERCENTAGE RATE (“APR”)
This term represents the actual cost of financing to the borrower over the life of the loan expressed as a yearly rate.

FEE INFORMATION

There are no origination fees or prepayment penalties associated with the loan. Lender may assess a late fee if any part of a payment is not received within 15 days of the payment due date. Any late fee assessed shall not exceed 5% of the late payment or $28, whichever is less. A borrower may be charged $20 for any payment (including a check or an electronic payment) that is returned unpaid due to non-sufficient funds (NSF) or a closed account.

LOAN AMOUNT

For bachelor’s degrees and higher, up to 100% of outstanding private and federal student loans (minimum $5,000) are eligible for refinancing. If you are refinancing greater than $300,000 in student loan debt, Lender may refinance the loans into 2 or more new loans.
For eligible Associates degrees in the healthcare field (see Eligibility & Eligible Loans section below), Lender will refinance up to $50,000 in loans for non-ParentPlus refinance loans. Note, parents who are refinancing loans taken out on behalf of a child who has obtained an associates degrees in an eligible healthcare field are not subject to the $50,000 loan maximum, refer to https://www.laurelroad.com/refinance-student-loans/refinance-parent-plus-loans/ for more information about refinancing ParentPlus loans.

ELIGIBILITY & ELIGIBLE LOANS

Borrower, and Co-signer if applicable, must be a U.S. Citizen or Permanent Resident with a valid I-551 card (which must show a minimum of 10 years between “Resident Since” date and “Card Expires” date or has no expiration date); state that they are of at least borrowing age in the state of residence at the time of application; and meet Lender underwriting criteria (including, for example, employment, debt-to-income, disposable income, and credit history requirements).

Graduates may refinance any unsubsidized or subsidized Federal or private student loan that was used exclusively for qualified higher education expenses (as defined in 26 USC Section 221) at an accredited U.S. undergraduate or graduate school. Any federal loans refinanced with Lender are private loans and do not have the same repayment options that federal loan program offers such as Income Based Repayment or Income Contingent Repayment.

All loans must be in grace or repayment status and cannot be in default. Borrower must have graduated or be enrolled in good standing in the final term preceding graduation from an accredited Title IV U.S. school and must be employed, or have an eligible offer of employment. Parents looking to refinance loans taken out on behalf of a child should refer to https://www.laurelroad.com/refinance-student-loans/refinance-parent-plus-loans/ for applicable terms and conditions.

For Associates Degrees: Only associates degrees earned in one of the following are eligible for refinancing: Cardiovascular Technologist (CVT); Dental Hygiene; Diagnostic Medical Sonography; EMT/Paramedics; Nuclear Technician; Nursing; Occupational Therapy Assistant; Pharmacy Technician; Physical Therapy Assistant; Radiation Therapy; Radiologic/MRI Technologist; Respiratory Therapy; or Surgical Technologist. To refinance an Associates degree, a borrower must also either be currently enrolled and in the final term of an associate degree program at a Title IV eligible school with an offer of employment in the same field in which they will receive an eligible associate degree OR have graduated from a school that is Title IV eligible with an eligible associate and have been employed, for a minimum of 12 months, in the same field of study of the associate degree earned.

INTEREST RATES

The interest rate you are offered will depend on your credit profile, income, and total debt payments as well as your choice of fixed or variable and choice of term. For applicants who are currently medical or dental residents, your rate offer may also vary depending on whether you have secured employment for after residency.

DISBURSEMENT OPTIONS

The repayment of any refinanced student loan will commence (1) immediately after disbursement by us, or (2) after any grace or in-school deferment period, existing prior to refinancing and/or consolidation with us, has expired.

POSTPONING OR REDUCING PAYMENTS

After loan disbursement, if a borrower documents a qualifying economic hardship, we may agree in our discretion to allow for full or partial forbearance of payments for one or more 3-month time periods (not to exceed 12 months in the aggregate during the term of your loan), provided that we receive acceptable documentation (including updating documentation) of the nature and expected duration of the borrower’s economic hardship.

We may agree under certain circumstances to allow a borrower to make $100/month payments for a period of time immediately after loan disbursement if the borrower is employed full-time as an intern, resident, or similar postgraduate trainee at the time of loan disbursement. These payments may not be enough to cover all of the interest that accrues on the loan. Unpaid accrued interest will be added to your loan and monthly payments of principal and interest will begin when the post-graduate training program ends.

We may agree under certain circumstances to allow postponement (deferral) of monthly payments of principal and interest for a period of time immediately following loan disbursement (not to exceed 6 months after the borrower’s graduation with an eligible degree), if the borrower is an eligible student in the borrower’s final term at the time of loan disbursement or graduated less than 6 months before loan disbursement, and has accepted an offer of (or has already begun) full-time employment.

If Lender agrees (in its sole discretion) to postpone or reduce any monthly payment(s) for a period of time, interest on the loan will continue to accrue for each day principal is owed. Although the borrower might not be required to make payments during such a period, the borrower may continue to make payments during such a period. Making payments, or paying some of the interest, will reduce the total amount that will be required to be paid over the life of the loan. Interest not paid during any period when Lender has agreed to postpone or reduce any monthly payment will be added to the principal balance through capitalization (compounding) at the end of such a period, one month before the borrower is required to resume making regular monthly payments.

KEYBANK NATIONAL ASSOCIATION RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE.

This information is current as of March 4, 2020 and is subject to change.

2 Important Disclosures for SoFi.
SoFi Disclosures
Student loan Refinance: Fixed rates from 3.20% APR to 6.44% APR (with AutoPay). Variable rates from 2.99% APR to 6.44% APR (with AutoPay). Interest rates on variable rate loans are capped at either 8.95% or 9.95% depending on term of loan. See APR examples and terms. Lowest variable rate of 3.21% APR assumes current 1 month LIBOR rate of 0.18% plus 2.82% margin minus 0.25% ACH discount. Not all borrowers receive the lowest rate. If approved for a loan, the fixed or variable interest rate offered will depend on your creditworthiness, and the term of the loan and other factors, and will be within the ranges of rates listed above. For the SoFi variable rate loan, the 1-month LIBOR index will adjust monthly and the loan payment will be re-amortized and may change monthly. APRs for variable rate loans may increase after origination if the LIBOR index increases. See eligibility details. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. *To check the rates and terms you qualify for, SoFi conducts a soft credit inquiry. Unlike hard credit inquiries, soft credit inquiries (or soft credit pulls) do not impact your credit score. Soft credit inquiries allow SoFi to show you what rates and terms SoFi can offer you up front. After seeing your rates, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit inquiry. Hard credit inquiries (or hard credit pulls) are required for SoFi to be able to issue you a loan. In addition to requiring your explicit permission, these credit pulls may impact your credit score. Terms and Conditions Apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. 

3 Important Disclosures for Splash Financial.
Splash Financial Disclosures

Splash Financial loans are available through arrangements with lending partners. Your loan application will be submitted to the lending partner and be evaluated at their sole discretion. For loans where a credit union is the lender, or a purchaser of the loan, in order to refinance your loans, you will need to become a credit union member.

The Splash Student Loan Refinance Program is not offered or endorsed by any college or university. Neither Splash Financial nor the lending partner are affiliated with or endorse any college or university listed on this website.

You should review the benefits of your federal student loan; it may offer specific benefits that a private refinance/consolidation loan may not offer. If you work in the public sector, are in the military or taking advantage of a federal department of relief program, such as income based repayment or public service forgiveness, you may not want to refinance, as these benefits do not transfer to private refinance/consolidation loans.

Splash Financial and our lending partners reserve the right to modify or discontinue products and benefits at any time without notice. To qualify, a borrower must be a U.S. citizen and meet our lending partner’s underwriting requirements. Lowest rates are reserved for the highest qualified borrowers. This information is current as of May 1, 2020.

Fixed APR: Annual Percentage Rate [APR] is the cost of credit calculating the interest rate, loan amount, repayment term and the timing of payments. Fixed Rate options range from 2.88% (without autopay) to 7.27% (without autopay) and will vary based on application terms, level of degree and presence of a co-signer. Rates are subject to change without notice. Fixed rate options without an autopay discount consist of a range from 2.88% per year to 6.21% per year for a 5-year term, 3.40% per year to 6.25% per year for a 7-year term, 3.45% to 5.08% for a 8-year term, 3.89% per year to 6.65% per year for a 10-year term, 4.18% per year to 5.11% per year for a 12-year term, 4.20% per year to 7.05% per year for a 15-year term, or 4.51% per year to 7.27% per year for a 20-year term, with no origination fees. The fixed interest rate will apply until the loan is paid in full (whether before or after default, and whether before or after the scheduled maturity date of the loan).
The Rate will not change during the term. Repayment examples are for illustrative purposes only. The following Fixed Rate examples are based on a $10,000 loan amount using the lowest APR for each application term listed above. All student loan rates used in calculating the examples are shown without the autopay discount (.25%). There are no application or origination fees, and no prepayment penalties. The monthly payment for a sample $10,000 loan with an APR of 2.88% per year for a 5-year term would be $179.15. The monthly payment for a sample $10,000 loan with an APR of 3.40% for a 7-year term would be $134.17. The monthly payment for a sample $10,000 loan with an APR of 3.45% for a 8-year term would be $119.35. The monthly payment for a sample $10,000 with an APR of 3.89% for a 10-year term would be $100.72. The monthly payment for a sample $10,000 with an APR of 4.18% for a 12-year term would be $88.43. The monthly payment for a sample $10,000 loan with an APR of 4.20% for a 15-year term would be $74.98. The monthly payment for a sample $10,000 loan with an APR of 4.51% for a 20-year term would be from $63.32.

Variable APR: Annual Percentage Rate [APR] is the cost of credit calculating the interest rate, loan amount, repayment term and the timing of payments. Variable rate options range from 1.99% (with autopay) to 7.10% (without autopay) and will vary based on application terms, level of degree and presence of a co-signer. Our lowest rate option is shown with a 0.25% autopay discount. Our highest rate option does not include an autopay discount. The variable rates are based on the Variable rate index, is based on the one-month London Interbank Offered Rate (“LIBOR”) published in The Wall Street Journal on the twenty-fifth day, or the next business day, of the preceding calendar month. As of April 27, 2020, the one-month LIBOR rate is 0.43763%. The interest rate on a variable rate loan is comprised of an index and margin added together. The margin is a fixed amount (disclosed at the time of your loan application) added each month to the index to determine the next month’s variable rate. Variable rate options without an autopay discount consist of a range from 2.01% per year to 6.30% per year for a 5-year term, 4.00% per year to 6.35% per year for a 7-year term, 2.09% per year to 3.92% per year for a 8-year term, 4.25% per year to 6.40% per year for a 10-year term, 2.67% per year to 4.56% per year for a 12-year term, 3.44% per year to 6.65% per year for a 15-year term, 4.75% per year to 6.93% per year for a 20-year term, or 5.14% per year to 7.10% for a 25-year term, with no origination fees. APR is subject to increase after consummation. Variable interest rates will fluctuate over the term of the borrower’s loan with changes in the LIBOR rate, and will vary based on applicable terms, level of degree earned and presence of a co-signer. The maximum variable rate may be between 9.00% and 16.00%, depending on loan term. The floor rate may be between 0.54% and 4.21%, depending on loan term. These rates are subject to additional terms and conditions, and rates are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change.
Variable APRs and amounts subject to increase or decrease. Variable rates are indexed to the one-month LIBOR rate. The following Variable Rate examples are based on a $10,000 loan amount. Repayment examples are for illustrative purposes only. All student loan rates below are shown without the autopay discount (.25%). There are no application or origination fees, and no prepayment penalties. The monthly payment for a sample $10,000 loan with an APR of 2.01% per year for a 5-year term would be $175.32. The monthly payment for a sample $10,000 loan with an APR of 4.00% for a 7-year term would be $136.69. The monthly payment for a sample $10,000 loan with an APR of 2.09% for a 8-year term would be $113.21. The monthly payment for a sample $10,000 with an APR of 4.25% for a 10-year term would be $102.44. The monthly payment for a sample $10,000 with an APR of 2.67% for a 12-year term would be $81.24. The monthly payment for a sample $10,000 loan with an APR of 3.44% for a 15-year term would be $71.19. The monthly payment for a sample $10,000 loan with an APR of 4.75% for a 20-year term would be from $64.62. The monthly payment for a sample $10,000 loan with an APR of 5.14% for a 25-year term would be from $59.28.

 

4 Important Disclosures for Earnest.
Earnest Disclosures

To qualify, you must be a U.S. citizen or possess a 10-year (non-conditional) Permanent Resident Card, reside in a state Earnest lends in, and satisfy our minimum eligibility criteria. You may find more information on loan eligibility here: https://www.earnest.com/eligibility. Not all applicants will be approved for a loan, and not all applicants will qualify for the lowest rate. Approval and interest rate depend on the review of a complete application.

Earnest fixed rate loan rates range from 3.20% APR (with Auto Pay) to 6.43% APR (with Auto Pay). Variable rate loan rates range from 2.39% APR (with Auto Pay) to 6.43% APR (with Auto Pay). For variable rate loans, although the interest rate will vary after you are approved, the interest rate will never exceed 8.95% for loan terms 10 years or less. For loan terms of 10 years to 15 years, the interest rate will never exceed 9.95%. For loan terms over 15 years, the interest rate will never exceed 11.95% (the maximum rates for these loans). Earnest variable interest rate loans are based on a publicly available index, the one month London Interbank Offered Rate (LIBOR). Your rate will be calculated each month by adding a margin between 1.82% and 5.50% to the one month LIBOR. The rate will not increase more than once per month. Earnest rate ranges are current as of June 3, 2020, and are subject to change based on market conditions and borrower eligibility.

Auto Pay discount: If you make monthly principal and interest payments by an automatic, monthly deduction from a savings or checking account, your rate will be reduced by one quarter of one percent (0.25%) for so long as you continue to make automatic, electronic monthly payments. This benefit is suspended during periods of deferment and forbearance.

The information provided on this page is updated as of 6/03/2020. Earnest reserves the right to change, pause, or terminate product offerings at any time without notice. Earnest loans are originated by Earnest Operations LLC. California Finance Lender License 6054788. NMLS # 1204917. Earnest Operations LLC is located at 302 2nd Street, Suite 401N, San Francisco, CA 94107. Terms and Conditions apply. Visit https://www.earnest.com/terms-of-service, email us at hello@earnest.com, or call 888-601-2801 for more information on our student loan refinance product.

© 2020 Earnest LLC. All rights reserved. Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by or agencies of the United States of America.

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Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality. We sometimes earn a sales commission or advertising fee when recommending various products and services to you. Similar to when you are being sold any product or service, be sure to read the fine print to help you understand what you are buying. Be sure to consult with a licensed professional if you have any concerns. Student Loan Hero is not a lender or investment advisor. We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions. The rates and terms listed on our website are estimates and are subject to change at any time.

The post These Free Calculators Will Do Your Student Loan Forgiveness Math for You appeared first on Student Loan Hero.