Home |Student Loan | How can I make sure my student loan repayment years count towards forgiveness with an undergrad FFELP consolidation loan and multiple grad school loans? I'm close to the 25-year requirement, but my income may be too high for IDR plans. Should I consider the SAVE plan for higher payments?

How can I make sure my student loan repayment years count towards forgiveness with an undergrad FFELP consolidation loan and multiple grad school loans? I'm close to the 25-year requirement, but my income may be too high for IDR plans. Should I consider the SAVE plan for higher payments?

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Abbey Johnson, Helping with Student Loan Documentation
Answered on October 07,2023

 Take the federal poverty level for your family size and multiply it by 2.25. Take whatever number you get and subtract that from your AGI (AGI-225%FPL) and that is your discretionary income.

SAVE is currently 10% of that number so multiply that number by .1 and then divide by 12 for a monthly payment. That will tell you your payment on SAVE. (After July next year it should be slightly less than 10% for you).

You would need to be on an IDR plan going forward; PAYE and IBR require partial financial hardship, SAVE and ICR do not. So you could run your own numbers to see if it feels worthwhile.

HHS Poverty Guidelines for 2023

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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..
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