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Critical Review: SAVE Repayment Plan 

The Saving on a Valuable Education (SAVE) Plan replaces the existing Revised Pay As You Earn (REPAYE) Plan. Borrowers on the REPAYE Plan will automatically get the benefits of the new SAVE Plan.

 The SAVE Plan, like other income-driven repayment (IDR) plans, calculates your monthly payment amount based on your income and family size. 

 The plan eliminates 100% of remaining interest for both subsidized and unsubsidized loans after a scheduled payment is made under the SAVE Plan. If you make your monthly payment, your loan balance won't grow due to unpaid interest.

 Here are some of the benefits the SAVE plan provides in July 2024:

• Payments on undergraduate loans will be cut in half (reduced from 10% to 5% of income above 225% of the poverty line). Borrowers who have undergraduate and graduate loans will pay a weighted average of between 5% and 10% of their income based upon the original principal balances of their loans.
• Borrowers who consolidate will not lose progress toward forgiveness. They will receive credit for a weighted average of payments that count toward forgiveness based upon the principal balance of the loans being consolidated.
• Borrowers will automatically receive credit toward forgiveness for certain periods of deferment and forbearance.
• Borrowers will automatically receive credit toward forgiveness for certain periods of deferment and forbearance.

If you are already enrolled in the REPAYE Plan or if you sign up for the REPAYE Plan today, you will automatically be put on the SAVE Plan once it becomes available. The application for the new SAVE Plan will be available this summer.

NOW is the Time! Schedule HERE!