Are there any tricks with the SAVE plan to optimize repayment of Student loan?
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Abbey Johnson, Helping with Student Loan DocumentationAnswered on October 02,2023
There’s a trick utilizing money market accounts and high yield savings accounts when you’re receiving an interest to optimize repayment if you’re planning on paying your loans off in full (“PLOIF”).
The other "trick" is to minimize your adjusted gross income by maxing your retirement accounts and HSA. This typically is the more beneficial trick, but isn't really a trick as it's intentional that this is the case since the government uses adjusted gross income rather than gross income.
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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
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