Saving on Valuable Education (SAVE) Plan

Description:

The Saving on a Valuable Education (SAVE) Plan is the newest income-driven repayment (IDR) plan. Like other IDR plans, the SAVE Plan calculates your monthly payment amount based on your income and family size. In addition, the SAVE Plan has unique benefits that will lower payments for many borrowers.

The SAVE Plan replaced the Revised Pay As You Earn (REPAYE) Plan. Borrowers on the REPAYE Plan automatically get the benefits of the new SAVE Plan.

If your loans are in default, you may qualify for the Fresh Start initiative (https://studentaid.gov/announcements-events/default-fresh-start) to easily get your loans back in good standing. It!€™s free and takes 10 minutes or less to sign up and enroll in an affordable repayment plan, such as the SAVE Plan, with payments as low as $0 a month.
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Some other features of the SAVE Plan:

-The SAVE Plan lowers payments for almost all people compared to other IDR plans because your payments are based on a smaller portion of your adjusted gross income (AGI).

-The SAVE Plan has an interest benefit: If you make your full monthly payment, but it is not enough to cover the accrued monthly interest, the government covers the rest of the interest that accrued that month. This means that the SAVE Plan prevents your balance from growing due to unpaid interest.

-More elements of SAVE will go into effect in summer 2024 and will lower payments even more for borrowers with undergraduate loans.

-The SAVE Plan excludes spousal income for borrowers who are married and file taxes separately.

Intake Process:

Please use the IDR application (https://studentaid.gov/idr).

Can also call to request that an application be mailed to you.

Program Fees:

None

Languages:

English and Spanish

Eligibility:

Eligible Loans
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*Direct Subsidized Loans
*Direct Unsubsidized Loans
*Direct PLUS Loans made to graduate or professional students
*Direct Consolidation Loans that did not repay any PLUS loans made to parents
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Eligible if Consolidated into a Direct Consolidation Loan
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*Subsidized Federal Stafford Loans (from the FFEL Program)
*Unsubsidized Federal Stafford Loans (from the FFEL Program)
*FFEL PLUS Loans made to graduate or professional students
*FFEL Consolidation Loans
*Federal Perkins Loans
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Ineligible
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*Direct PLUS Loans made to parents
*Direct Consolidation Loans that repaid PLUS loans made to parents
*FFEL Program Loans (some types can become eligible if consolidated)
*Federal Perkins Loans (can become eligible if consolidated)
*Any loan that is currently in default---Still, If your loans are in default, you may qualify for the Fresh Start initiative (https://studentaid.gov/announcements-events/default-fresh-start) to easily get your loans back in good standing. It!€™s free and takes 10 minutes or less to sign up and enroll in an affordable repayment plan, such as the SAVE Plan, with payments as low as $0 a month.

Is Shelter?

No

Date of Official Change:

October 30, 2023

Geographies Served

• Serves All Areas

Phone Numbers

Legal Status:

Federal