Who qualifies for Public Service Loan Forgiveness?

Borrowers with federal Direct Loans who make 120 qualifying monthly payments while working full-time for a qualifying employer (501(c)(3) nonprofits, government agencies, or other public service organizations). Physicians at academic medical centers, VA hospitals, and nonprofit health systems often qualify.

Which IDR plan is best for PSLF?

The SAVE plan typically offers the lowest payments for most physicians because it uses 225% of the Federal Poverty Level as its discretionary income threshold (vs 150% for other plans) and only requires 10% of discretionary income. This means lower monthly payments and more forgiven at the end.

Do residency years count toward PSLF?

Yes. If your residency program is at a qualifying nonprofit hospital or academic medical center and you make qualifying payments on an IDR plan during training, those payments count toward the 120 required. Starting PSLF during residency can mean forgiveness arrives within a few years of becoming an attending.

What happens to the forgiven amount under PSLF?

Unlike other loan forgiveness programs, PSLF-forgiven amounts are not treated as taxable income under current law. This is a significant advantage over 20-25 year IDR forgiveness, where the forgiven balance is taxed as ordinary income.

Can I refinance and still qualify for PSLF?

No. Refinancing federal student loans converts them to private loans, which are permanently ineligible for PSLF. If you are pursuing or considering PSLF, do not refinance your federal loans.

PSLF Eligibility & Payoff Calculator

Check if you qualify for Public Service Loan Forgiveness and compare how much you'd pay under PSLF vs. standard 10-year repayment.

Loan Details

Current Loan Balance

Interest Rate (%)

Qualifying Payments Made

0–120 payments

Your Income

Adjusted Gross Income (AGI)

Use resident/fellow salary for current IDR estimate

Family Size

IDR Plan

Employer

✅

You Likely Qualify for PSLF

501(c)(3) employers qualify for PSLF.

Your Monthly IDR Payment (SAVE)

$259/month

Based on $31,115 discretionary income

Compare All IDR Plans

SAVE

$259

PAYE

$353

IBR

$530

ICR

$707

PSLF vs. Standard 10-Year Repayment

Under PSLF

Months left120

Remaining payments$31,080

Forgiven$349,680

Standard 10-Year

Monthly$2,302

Total paid$276,193

Total interest$76,193

PSLF saves you $245,113 compared to standard repayment

Already Exploring Refi Options?

If your income increases and PSLF no longer makes sense, refinancing can lock in a lower rate and save on interest.

Compare Refi Rates →

Paid partner link. SalaryDr may earn a commission at no cost to you.

How PSLF Works for Physicians

Public Service Loan Forgiveness forgives remaining federal student loan debt after 120 qualifying monthly payments (10 years) while working full-time for a qualifying employer. Physicians at academic medical centers, VA hospitals, and nonprofit health systems often qualify.

IDR Plans Explained

SAVE: 10% of discretionary income. Subsidizes unpaid interest. Best option for most residents.
PAYE: 10% of discretionary income. Capped at standard 10-year payment. Good if income will increase significantly.
IBR: 15% (10% for new borrowers) of discretionary income. Slightly higher payments than SAVE/PAYE.
ICR: 20% of discretionary income or 12-year fixed payment. Usually the highest-payment option.

This calculator provides estimates based on current IDR formulas and 2024 Federal Poverty Level guidelines. Actual payments depend on your servicer, tax filing, and program updates. Consult a student loan advisor for personalized guidance.

Related Calculators

Student Loan Refi Breakeven

Compare refinancing vs. your current plan

Take-Home Pay by State

Compare net income across all 50 states