In SAVE Plan, how many years before my student loans are forgiven?
Share
Abbey Johnson, Helping with Student Loan DocumentationAnswered on October 02,2023
20 years for solely undergrad loans with initial balances above $22,000. 25 years for grad only loans or grad undergrad mix with an initial balance above $27,000. 10 years plus 1 year for every $1000 above $12,000 initial loan balance. For example, if your initial loan balance is $18,000, your loans would be forgiven after 16 years of repayment.
1 views
Guide
Click here to get a detailed 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
Related Questions
-
Abbey Johnson
Helping with Student Loan Documentation .Do the 3 years of the COVID student loan pause count towards the loan forgiveness for the standard loan payments plan?
There are 2 kinds of repayment plans—the kind that are designed to pay your loans off after x number ...
1
0
7
-
Abbey Johnson
Helping with Student Loan Documentation .Should I consider consolidating my federal student loans, which have varying interest rates ranging from 2.5% to 5.05%, now that the grace period is ending and interest rates are starting up again? I've also heard about different repayment plans on FAFSA, like the SAVE plan, but I'm not sure how they work. What would be the best approach for paying off my total student loan debt of $60,000, with $30,000 each from Federal and Private, considering my private loan interest rate is 5.64%?
FAFSA is the Free Application for Federal Student Aid and it is the thing you fill out to get ...
1
0
1
-
Abbey Johnson
Helping with Student Loan Documentation .If my initial loan balance was above $27,000 and now it’s $12,000, will my forgiveness period be 10 years now for SAVE Plan of Student loan?
No, your repayment period is only based on your initial balance.
1
0
1
-
Abbey Johnson
Helping with Student Loan Documentation .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?
Take the federal poverty level for your family size and multiply it by 2.25. Take whatever number you get ...
1
0
6
-
Robert James
20+ years of experience in IRS matters .Getting married and concerned about tax implications due to my back taxes and student loans.Should we file jointly or separately? How can I find an itemized account of past IRS tax refunds? Is student loan forgiveness a possibility?Will my wife's return be withheld if I owe back taxes?
It's really hard to say what would be the best scenario without knowing what state they are in and ...
1
0
3
-
Abbey Johnson
Helping with Student Loan Documentation .Why does the loan consolidation for my $98,000 in graduate loans under SAVE result in a total payment of $198,000 over 25 years, doubling the loan amount, despite my understanding that interest would be waived? Is there something I'm overlooking compared to PAYE and IBR plans, which calculate a total payment of $167,000?
98000 at an example 6% interest, accrues approximately $490 a month in interest. If you pay $436, they waive ...
1
0
5
-
Abbey Johnson
Helping with Student Loan Documentation .I’m confused how the SAVE plan of Student loan works. I thought there was no interest that accrues. Can anyone share their knowledge?
Interest still accrues on the SAVE plan, but if the amount of interest that accrues is greater than your ...
1
0
2
-
Abbey Johnson
Helping with Student Loan Documentation .Why is my spouse’s income taken into consideration for SAVE Plan of Student loan? These are my loans, not hers.
The government considers you one entity for tax purposes and you get the benefits of such from a tax ...
1
0
0
-
Abbey Johnson
Helping with Student Loan Documentation .What if my spouse and I both have loans, would we pay 20% of our discretionary income instead of 10% for SAVE Plan of Student loan?
No, the calculation should be the same (student loan servicer's may make errors here so check their math). However, the ...
1
0
1
-
Abbey Johnson
Helping with Student Loan Documentation .When I filled out this year's application, it clearly stated I can only apply for IBR. Now, I have read that for starting balances of less than 12k with 120 payments; the balance of loan will be forgiven. To accomplish forgiveness, I will have to consolidate and apply for repaye/save before 12/31/23? Loans are FFEL at the moment and I have been on an IBR for years
FFEL loans don't qualify for SAVE, the only income-driven repayment plan they can go on is IBR If they are ...
1
0
0
-
Abbey Johnson
Helping with Student Loan Documentation .Would my student loans go down if I pay extra above the SAVE payment amount? Would the extra money in payment go directly to the principal?
Yes, the extra payments would go toward principal.
1
0
0
-
Abbey Johnson
Helping with Student Loan Documentation .Are my private student loans eligible for the SAVE plan?
No, only federal loans.
1
0
0
-
Abbey Johnson
Helping with Student Loan Documentation .Why does it say my student loans will be paid off in 2043 when I graduated in 2009? Shouldn't I be eligible for forgiveness sooner?
Old IBR (not a new borrower after July 1, 2014) requires 300 payments. (New IBR is 240). ICR requires 300 ...
1
0
2