If my student loan repayment is $0 a month on the SAVE plan, am I still gonna get charged interest even if I’m following the “rules” of my plan and not paying anything?


Interest resumed effective Sept. 1, 2023. Under the SAVE Plan, if you qualify for a $0 payment, interest is still being charged. However, there is a government interest subsidy to prevent your loan balance from growing due to unpaid interest.

If you’re eligible for a $0 payment, the government will cover your remaining unpaid interest for that month.

Since your $0 monthly payment in addition to the government interest subsidy was only enough to cover the interest that accrued for that month, your principal balance does not decrease.


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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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