Home |Student Loan | 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?

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?

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Abbey Johnson, Helping with Student Loan Documentation
Answered on September 28,2023

Your PAYE payment would be based off your income from the last time you recertified pre-covid. If your income is still the same or less, then your SAVE payment would be $0. If your income has gone up, it might not be the same.

SAVE and PAYE have different discretionary income calculations and handle interest differently.

For most people when weighing PAYE vs SAVE with grad/professional loans, they need to check if PAYE's 20 years' worth of repayment is cheaper overall than SAVE's 25 years with the nicer discretionary income calculation and unpaid interest waiver.

The "cap" that PAYE has (never more than the 10-year Standard plan amount at the time you signed up for PAYE) vs the unpaid monthly interest waiver that SAVE has is a big part of what you need to weigh

They're also going to be sunsetting PAYE, so if you're not enrolled in it as of July 1, 2024 you will never be able to enroll in it again

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Guide

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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