Any borrower considering a student loan forgiveness program needs to know what a public service loan forgiveness calculator is.

It is one of the most useful tools that you have at your disposal to help solve your student loan debt problems.

In 2019, Forbes reported that the student debt crisis in the U.S had reached an all-time high of $1.5 trillion.

Of the nearly 45 million borrowers, according to a report from the Federal Reserve, the average debtor owes $32,731.

If this is you, use one of the following calculators to find out how much of your student loan could be forgiven.

How the Public Service Loan Forgiveness Calculator Works

The Public Service Loan Forgiveness (PSLF) is a type of student loan forgiveness program that annuls any existing loan debt you have if you meet specific requirements. The Public Service Loan Forgiveness calculator will help you understand just how much debt you can get forgiven.

A public service loan forgiveness calculator will ask you to enter some information in order for it to generate results.

Ensure that you have this information with you before using it. 

This includes:

  • Federal Student Loan Balance (your Federal Direct Loan)
  • Interest Rate (Annual)
  • Adjusted Gross Income
  • Expected Annual Income Growth (if applicable)
  • Number of persons in your household (family size)
  • Date loan was taken out (before/after July 2014)

Most calculators will issue results that tell you how much you’ll be paying within the term of the loan:

  1. First Payment
  2. Last Payment
  3. Total amount to be paid
  4. Amount forgiven

Granted, you do not need to input truthful data in order to generate results from the calculator.

However, we advise that you use realistic figures.

That way, even if you are using hypothetical data, you will get a sense of how public service loan forgiveness works in real life.

3 Best Public Service Loan Forgiveness Calculators

1.      FutureFuel.io

FutureFuel.io’s Reassess tool empowers student loan borrowers to discover, select and enroll in the right Federal repayment plan.

It customizes calculations to a borrower’s unique circumstance, based on their marital status, income and state of residence.

Reassess demystifies the eligibility requirements for all government-sponsored repayment plans, including PSLF. In a matter of minutes, you can discover if you are eligible for PSLF and see how much you could save with personalized insights. The average borrower saves between $260 – $326 per month using FutureFuel.io’s Reassess tool.

2.      Student Loan Hero

Student Loan Hero’s Public Service Loan Forgiveness Calculator helps you calculate how much of your loan can be forgiven with your public service.

You need to enter your adjusted gross income, family size, state of residence, annual income growth percentage, and whether you’re married. You’ll also have to enter your total federal student loan balance and the average interest rate on it.

It’ll then show you how much forgiveness you’re eligible for on each kind of income-based repayment plan.

3.      MagnifyMoney

MagnifyMoney’s Public Service Loan Forgiveness (PSLF) Calculator provides details on how much forgiveness you could get with your public service.

After putting in your personal and loan info, it’ll calculate and provide details on your first and final payments, total balance paid, and the total forgiveness you can get.

Qualifying for Public Service Loan Forgiveness

In order to qualify for this loan forgiveness program, you need to meet several requirements.

To start with, only loans that are part of the federal Direct Loan Program are eligible for PSLF. Private student loans aren’t eligible.

Here is a breakdown of some of the other requirements:

  • Employment at a Government Agency or Specific Non-Profit Organization

It’s important to note that your employer is the one who is evaluated and not the job that you do for them.

For example, you could be working as an outreach officer whose role is to establish linkages with charity organizations.

However, if your employer does not fit into the threshold set by the State, you don’t qualify.

These are the types of organizations that meet the government’s criteria:

  • Government organizations (federal, state, etc.)
  • Non-profit organizations that do not pay tax as per Section 501(c)(3) of the International Revenue Code or those which have specific qualifying public services

Make sure you double check if you’re working at a non-profit organization.

  • Full-Time Employment

Full-time employment counts as either one of the following two scenarios listed below:

  • Working 30 hours a week
  • You meeting your employer’s definition of full time

Along with the application, you’ll need to submit an employment certification form for your current employer and each employer you had while making the 120 payments.

If you are working more than one qualifying job and the total number of hours adds up to 30 or more, you also meet the requirement.

That said, if you are working for a non-profit organization, the following does not count as hours of employment:

  • Religious instruction
  • Worship services
  • Any other time devoted to religion

Always make sure you can provide a detailed account of your employment.

  • Qualifying Payments

You must have made at least 120 monthly payments to qualify for the program.

Also, you must:

  • Be working for a qualifying employer at the time you submit the application for forgiveness
  • Still be with a qualifying employer at the time the remaining balance on your direct loans or federal loans are forgiven

Keep in mind that payments don’t count if they’re made while you’re in school, in deferment or forbearance, during a grace period, or if your loans are delinquent or in default.

For more information, please see the list of eligibility requirements by the Federal Student Aid. You can also contact your servicer to verify details about your loan terms.

If you don’t qualify for this student loan repayment option, you should look into income-driven programs, such as, the Income-Based Repayment program (IBR), Income-contingent repayment (ICR), or the Revised Pay as You Earn program (REPAYE).

These programs might adjust your repayment term and even the loan amount.

Try the Public Service Loan Forgiveness Calculator

A public service loan forgiveness calculator is an essential tool.

Not only does it calculate your loan payment schedule under a federal forgiveness program, it lets you plan ahead.

If you combine its use with a personalized financial health platform like FutureFuel.io, you could double your efforts and clear your debt faster.