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How is my SAVE payment calculated? Why is it more than my payment on the standard 10-year plan, ICR plan or extended graduated plan?

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Abbey Johnson, Helping with Student Loan Documentation
Answered on October 02,2023

In 2023, the SAVE plan is calculated on the formula (adjusted gross income-225% of the federal poverty line)*10%/12.

If this calculation is above the amortized 10-year payment on the standard plan, 12-year amortized payment on the ICR plan, and a 25-year amortized payment on the extended graduated plan, then it will be more monthly.

You make too much money for this payment to be lower than these plans.

After July 2024, undergrad-only SAVE monthly payments, will be calculated as (adjusted gross income-225% of the federal poverty line)*5%/12

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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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