How to calculate SAVE Plan payment for Student Loan?


For anyone having trouble calculating their estimated SAVE plan payment.

Monthly SAVE plan payment equals:

(AGI - (2.25*PL)) X (0.1/12)

If you are unsure how to use this equation see end of post for more clarity

AGI = adjusted gross income off your 2022 tax return

PL = the federal poverty level for your household size

Poverty line for 2023:

$14,580 for 1 person

$19,720 for 2 person

$24,860 for 3 person

$30,000 for 4 person

$35,140 for 5 person

Everyone is at 10% regardless of undergrad or grad loans. The lower 5% for undergrad loans does not start until middle of 2024

If you get a negative number, it means your AGI is less than 2.25 times the poverty level. And your payment is zero.

For more clarity:

Step 1- multiply 2.25 times your poverty level number

Step 2- Subtract the answer from step 1 from your AGI

Step 3- multiply by 0.1

Step 4- divide by 12

If both spouses have federal student loans and file taxes jointly then the payment is prorated:

Spouse 1 payment= (Spouse 1 Loans / Total Loans) X (SAVE payment calculated above)

Spouse 2 payment= (Spouse 2 Loans / Total Loans) X (SAVE payment calculated above)

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Here are the 225% poverty line offsets [i.e. PL x 2.25] for residents of the lower 48 states.

1-Person [PL = $14,580]: $32,805

2-Person [PL = $19,720]: $44,370

3-Person [PL = $24,860]: $55,935

4-Person [PL = $30,000]: $67,500

5-Person [PL = $35,140]: $79,065

For each additional person, the 2023 poverty line increases $5,140. The offset amount increases by $11,565.

In Alaska, the rates are slightly higher but the poverty line math remains the same.

In AK, the 1-person poverty line level is $16,090 and increases $5680 per person. The 1-person, 225% offset is $36,202 and increases $12,780 for each additional person.

In HI, the 1-person poverty line level is $16,770 and increases $5910 per person. The 1-person, 225% offset is $37,732 and increases $13,297 for each additional person


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