SAVE Plan (Income-Driven Repayment): Who Qualifies and What You Get
Learn how the SAVE Plan can lower your monthly federal student loan payments based on your income rather than your total balance.
The SAVE Plan is an income-driven repayment option designed to make federal student loan payments more manageable.
Who it's for
This plan is available to borrowers of federal student loans.
What you get
Your monthly payments are calculated based on how much you earn rather than the total amount you owe. This can result in lower monthly costs for many borrowers.
What it costs you
There is no direct fee to enroll, but you must complete an income recertification every year. This means you must provide updated information about your earnings to keep your payments accurate.
The catch to know
If your calculated monthly payment is less than the interest that accumulates each month, the remaining interest will not be added to your balance. This prevents your debt from growing even when your payments are low.
How to apply
- Visit the official student aid website.
- Log in to your account.
- Follow the prompts to select your repayment plan.
- Provide your current income details.