SAVE Plan: Who Qualifies and What You Get
Learn how the SAVE Plan can lower your monthly federal student loan payments based on your income and family size.
The SAVE Plan is an income-driven repayment option designed to make federal student loan payments more affordable by linking your monthly obligations to your actual earnings.
Who it's for
This plan is specifically intended for borrowers who hold federal student loans. If your debt is through the federal government, you may be eligible to use this income-driven repayment method to manage your debt more effectively.
What you get
The primary benefit of this plan is that it calculates your monthly payment amounts based on your specific income and the size of your family. This ensures that your required payment remains manageable relative to what you earn and the number of people you support. Additionally, the plan includes an interest subsidy. This subsidy is designed to help manage the way interest accumulates on your loans, assisting you in maintaining a more stable balance over time.
What it costs you
While the plan is designed to reduce your monthly burden, it does require an ongoing commitment of your time. You will be required to complete an annual income recertification. This is the process of providing updated financial information to the government to ensure your monthly payment amount remains accurate and reflects your current economic situation.
The catch to know
The main complication to keep in mind is that you may need to actively switch from an older income-driven repayment plan to move onto this one. This means that if you are already enrolled in a different version of an income-driven plan, you must take the necessary steps to transition your account to the SAVE Plan to receive these specific benefits.
How to apply
- Visit the official student aid website to begin your application.
- Log in to your existing account to review your current loan details and eligibility.
- Follow the on-screen instructions to select the SAVE Plan and request a change to your repayment terms.
- Complete the required steps to submit your income information for verification.