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Can I still qualify for $0 monthly payments on the SAVE Plan as a married stay-at-home mom if we filed taxes jointly?
Can I still qualify for $0 monthly payments on the SAVE Plan as a married stay-at-home mom if we filed taxes jointly?
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Abbey Johnson, Helping with Student Loan DocumentationAnswered on October 07,2023
When you apply for an IDR plan they need your discretionary income. Discretionary income is defined in this case as a AGI minus a certain percentage of the federal poverty level for your family size. Filing jointly means you are telling the government (specifically IRS) that you are one financial unit and should be taxed and receive benefits (credits) accordingly. So when the government (in this case the Dept of Ed) looks for your AGI they are looking at your joint one—because you have said you are one unit. (You, spouse, baby—family of 3)
If you want the gov (Department of Ed) to treat you separately so that only the money you make is used in the calculation for paying your student loans then you would have to tell the gov (IRS) next year that you are not one unit and potentially pay more in taxes. (The discretionary income calculation for IDR would exclude the spouse from your family size so then a family size of 2).
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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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