Home |Student Loan | Should I continue with the $0 monthly payments under the SAVE plan until my next recertification in September 2024, even though my income has increased significantly since the pandemic, or should I switch to the standard repayment plan before recertification to avoid potentially higher payments?

Should I continue with the $0 monthly payments under the SAVE plan until my next recertification in September 2024, even though my income has increased significantly since the pandemic, or should I switch to the standard repayment plan before recertification to avoid potentially higher payments?

Abbey Johnson, Helping with Student Loan Documentation
Answered on September 27,2023

Generally if you have $0 payments they also tell you what you will be paying in September 2024 if you fail to recertify.

So wait until it is time to recertify (a lot can happen between now and then) and then asses if recertification will drive your payment up higher than you like.

If it will, you can simply not recertify and would then pay that amount they list. (In truth it should still be a % of your discretionary income, possible less because the 5% for undergraduate loans kicks in, and since you would then be planning to pay your loan off, you could decide to just recertify and pay it).

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..
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