SAVE Repayment Plan Offers Lower Monthly Loan Payments
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.
Apply for SAVE
- The SAVE Plan is an IDR plan, so it bases your monthly payment on your income and family size.
- 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.
What You Need to Know
The SAVE Plan includes multiple new benefits for borrowers. The changes below went into effect summer 2023. Additional benefits go into effect in July 2024. Expand the sections below to learn more about the current SAVE Plan.
For more information https://studentaid.gov/announcements-events/save-plan