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Why does SAVE plan raise my repayment amount $400 a month compared to an income based repayment plan?
Why does SAVE plan raise my repayment amount $400 a month compared to an income based repayment plan?
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Abbey Johnson, Helping with Student Loan DocumentationAnswered on September 29,2023
The SAVE Plan is one of four income-driven repayment plans we offer. We also have traditional repayment plans, such as the Standard Repayment Plan, which offers fixed payments.
To compare all plans and to find out if the SAVE Plan is a good fit for you, use Loan Simulator: Student Loan Simulator
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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..Click here to get a detailed guide
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Helping with Student Loan Documentation .I make ~96K pre tax (‘23), based on my ‘22 taxes my ibr/idr payments are about $151/mo (made about 60k in ‘22). I get a standard ~5% raise every year and currently plan on utilizing PSLF. Should I switch to SAVE or stick with my current PAYE (IBR/IDR) plan?
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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%?
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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.
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Helping with Student Loan Documentation .How to calculate SAVE Plan payment for Student Loan?
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Helping with Student Loan Documentation .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?
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Helping with Student Loan Documentation .Does the SAVE plan include loan forgiveness after a certain number of payments, similar to the IBR plan, or is it different in this regard? I'm trying to decide which plan to choose.
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