SAVE Repayment Plan: Who Qualifies and What You Get
Learn how the SAVE Repayment Plan can lower your monthly federal student loan payments based on your current income.
The SAVE Repayment Plan is an income-driven repayment option designed for individuals with federal student loans. This plan works by adjusting your monthly obligations to better align with your actual earnings.
Who it's for
This scheme is available to federal student loan borrowers. If your loans are federal, you may be eligible to apply for this specific repayment structure to help manage your debt.
What you get
The primary benefit of this plan is the ability to access lower monthly payments. Instead of a fixed amount that stays the same regardless of your financial situation, your payments are recalculated based on your current income. This provides more flexibility for your monthly budget.
What it costs you
While there is no upfront cost to enroll, the plan requires ongoing maintenance. You must complete an annual income recertification. This means that once every year, you are required to provide updated documentation of your income to the Department of Education to ensure your monthly payment amount remains correct and current.
The catch to know
One important detail regarding how interest works is that your interest does not grow if you make the required monthly payment. This feature is designed to help prevent your total balance from increasing due to unpaid interest.
How to apply
- Go to the official student aid portal.
- Sign in to your existing account.
- Navigate to the section for managing your repayment plans.
- Complete the application by providing your current income details.