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Why did my payments go up under the new SAVE program with Mohela? My income has not substantially changed, so it should have gone down, not up, right?
Why did my payments go up under the new SAVE program with Mohela? My income has not substantially changed, so it should have gone down, not up, right?
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Abbey Johnson, Helping with Student Loan DocumentationAnswered 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, Forgiveness
Under 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..Click here to get a detailed guide
Related Questions
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Abbey Johnson
Helping with Student Loan Documentation .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?
There are 4 IDR (income driven repayment) plans. ICR, PAYE, SAVE, and IBR. Income-Driven Repayment Plans IBR and PAYE require a ...
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Abbey Johnson
Helping with Student Loan Documentation .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?
The decision between PAYE and SAVE when one is doing PSLF comes down to overall cost for you. PSLF forgiveness ...
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Abbey Johnson
Helping with Student Loan Documentation .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
FFEL loans don't qualify for SAVE, the only income-driven repayment plan they can go on is IBR If they are ...
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Abbey Johnson
Helping with Student Loan Documentation .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%?
FAFSA is the Free Application for Federal Student Aid and it is the thing you fill out to get ...
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Abbey Johnson
Helping with Student Loan Documentation .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?
Generally if you have $0 payments they also tell you what you will be paying in September 2024 if ...
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Abbey Johnson
Helping with Student Loan Documentation .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?
No. The pause was a pause so you resume paying what you were paying before until you need to ...
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Abbey Johnson
Helping with Student Loan Documentation .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.
IBR has forgiveness after 20 or 25 years worth of repayment, depending on if you're on IBR for old ...
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Abbey Johnson
Helping with Student Loan Documentation .Do I currently have $0 payments on my PAYE plan until my IDR Plan Renewal Date on July 24, based on the information provided on the Mohela website? Should I proceed with applying for the SAVE plan, or is it better to wait until after that date?
Your PAYE payment would be based off your income from the last time you recertified pre-covid. If your income ...
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Abbey Johnson
Helping with Student Loan Documentation .Do I qualify for the SAVE plan if I earn over 60k a year, and there's only information available for incomes up to 60k on the FAQs section of the SAVE plan website? Also, I have 23k left on loans.
SAVE is best for people with a couple of kids and a modest family AGI. With 2 kids and ...
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Abbey Johnson
Helping with Student Loan Documentation .Why does the loan consolidation for my $98,000 in graduate loans under SAVE result in a total payment of $198,000 over 25 years, doubling the loan amount, despite my understanding that interest would be waived? Is there something I'm overlooking compared to PAYE and IBR plans, which calculate a total payment of $167,000?
98000 at an example 6% interest, accrues approximately $490 a month in interest. If you pay $436, they waive ...
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Abbey Johnson
Helping with Student Loan Documentation .Why did my payments go up in SAVE plan?
The benefits of the SAVE Plan are particularly critical for low- and middle-income borrowers, community college students, and borrowers ...
1
0
0
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Abbey Johnson
Helping with Student Loan Documentation .You could pay $0/month with the old repayment plan (if your income was low enough). But you still got hit with growing interest.Is that the case with the SAVE plan? Does interest still acrue even if paying $0?
Under the SAVE Plan, if you qualify for a $0 payment, interest is still being charged. However, there is ...
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Abbey Johnson
Helping with Student Loan Documentation .Why does SAVE plan raise my repayment amount $400 a month compared to an income based repayment plan?
The SAVE Plan is one of four income-driven repayment plans we offer. We also have traditional repayment plans, such ...
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Trending Questions
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Abbey Johnson
Helping with Student Loan Documentation . Answered on September 25,2023My servicer calculated my IDR amount incorrectly. What should I do?
First, be sure it IS incorrect by using the loan simulator tool at Federal Student Aid website. If it's close, it's ...
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Abhijith Vijay
Health Insurance Expert (Seniors & Special Cases) . Answered on September 25,2023I was on an IDR when covid started, haven't consolidated, and my payment has suddenly changed to a standard plan. What to do?
The ED is aware of this phenomenon and is working on it. If your income hasn't increased you could ...
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Abbey Johnson
Helping with Student Loan Documentation . Answered on September 25,2023I was approved for a $0 IDR repayment plan for 12 months plan. Will interest continue to accrue as usual under this plan while my monthly payment is $0?
Yes. Interest accumulates as usual. Interest accrues on student loans from the day they are disbursed to you. Subsidies mean ...
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Abbey Johnson
Helping with Student Loan Documentation . Answered on September 25,2023I 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?
There are 4 IDR (income driven repayment) plans. ICR, PAYE, SAVE, and IBR. Income-Driven Repayment Plans IBR and PAYE require a ...
1
0
8
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Abbey Johnson
Helping with Student Loan Documentation . Answered on September 25,2023Why my credit score went down when I pay off my education loan?
It’s temporary and it happens with everything because of the whole age of accounts and the way they calculate ...
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Abbey Johnson
Helping with Student Loan Documentation . Answered on September 25,2023Is there a way for me (mohela) and my wife (nelnet) to combine our loans into one account on mohela?
No. Spousal consolidation loans are no longer a thing you can do (and likely never should have been a ...
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Abbey Johnson
Helping with Student Loan Documentation . Answered on September 25,2023Would my student loans go down if I pay extra above the SAVE payment amount? Would the extra money in payment go directly to the principal?
Yes, the extra payments would go toward principal.
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Abbey Johnson
Helping with Student Loan Documentation . Answered on September 29,2023When the planned maintenance of FAFSA form will be completed and full access will resume on the website?
The FAFSA form will be unavailable due to scheduled maintenance every Sunday from 3–11 a.m. Eastern time.
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Abbey Johnson
Helping with Student Loan Documentation . Answered on September 25,2023Do the 3 years of the COVID student loan pause count towards the loan forgiveness for the standard loan payments plan?
There are 2 kinds of repayment plans—the kind that are designed to pay your loans off after x number ...
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Abbey Johnson
Helping with Student Loan Documentation . Answered on September 25,2023I 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?
The decision between PAYE and SAVE when one is doing PSLF comes down to overall cost for you. PSLF forgiveness ...
1
0
2
Related Questions
- 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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