Why is my payback amount so much more in SAVE Plan than the IBR or PAYE plan on the studentaid.gov calculator?


The repayment period is longer for grad loans (10 v 20 v 25 years). Most people only consider nominal interest, but you should also look into how future payments are discounted in general finance, due to inflation and opportunity cost.

The student loan repayment calculator assumes an insane 5% year over year increase in salary. By years 21, 22, 23, 24 and 25, your income is most likely overvalued, increasing the nominal amounts you repay during those years.


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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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