Answered on September 29,2023
The benefits of the SAVE Plan are particularly critical for low- and middle-income borrowers, community college students, and borrowers who work in public service. However, the SAVE Plan may not be the best option for everyone, depending on their current situation. For some borrowers, the SAVE Plan may not provide a reduced monthly payment amount compared to their current plan. There are other SAVE Plan benefits (such as the government interest subsidy and IDR loan forgiveness) to consider.
Use the Loan Simulator to see which repayment plan works best for you: Student Loan Simulator
Note: Beginning July 2024, there will be additional benefits available to SAVE Plan borrowers related to monthly payments and IDR loan forgiveness. More: Save Plan
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Ultimate Guide on SAVE Plan - Payment Calculation, Interest, ForgivenessUnder the Saving on a Valuable Education (SAVE) plan, a single borrower who makes less than $15 an hour will not have to make any payments. Borrowers earning above that amount would save mor..
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- I applied for SAVE and MOHELA put me in something called IBR-PFH. Anyone have any idea about this plan and what it means for the payment count adjustment coming in the next year or so?
- I make ~96K pre tax (‘23), based on my ‘22 taxes my ibr/idr payments are about $151/mo (made about 60k in ‘22). I get a standard ~5% raise every year and currently plan on utilizing PSLF. Should I switch to SAVE or stick with my current PAYE (IBR/IDR) plan?
- When I filled out this year's application, it clearly stated I can only apply for IBR. Now, I have read that for starting balances of less than 12k with 120 payments; the balance of loan will be forgiven. To accomplish forgiveness, I will have to consolidate and apply for repaye/save before 12/31/23? Loans are FFEL at the moment and I have been on an IBR for years
- Should I consider consolidating my federal student loans, which have varying interest rates ranging from 2.5% to 5.05%, now that the grace period is ending and interest rates are starting up again? I've also heard about different repayment plans on FAFSA, like the SAVE plan, but I'm not sure how they work. What would be the best approach for paying off my total student loan debt of $60,000, with $30,000 each from Federal and Private, considering my private loan interest rate is 5.64%?
- Should I continue with the $0 monthly payments under the SAVE plan until my next recertification in September 2024, even though my income has increased significantly since the pandemic, or should I switch to the standard repayment plan before recertification to avoid potentially higher payments?
- Was automatically moved from REPAYE to SAVE.Should I recertify for the SAVE plan before June 2024, even though my current monthly payments are $0 due to unemployment, but my employment situation will change in the next month?
- Does the SAVE plan include loan forgiveness after a certain number of payments, similar to the IBR plan, or is it different in this regard? I'm trying to decide which plan to choose.
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