Saving on a Valuable Education (SAVE) Plan - The New Income-Driven Repayment Plan

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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.

00:00 - Intro
00:46 - Lower payments with the SAVE Plan
01:29 - How are loan payments applied?
01:41 - Interest subsidy for repayment
02:20 - Interest subsidy for a $0 monthly payment
02:38 - Interest subsidy example
03:04 - Benefits coming in 2024

Use our Loan Simulator to find out if the SAVE Plan is right for you:

[oreoskter]

NOT A SCAM! If confused ask for help but some people don't know how so they miss out!

If you make under 40k a year as a single person your monthly payment is Zero a month. Which counts towards an on time payment towards forgiveness. So if you make under 40k for the next 10 years Your payment will be forgiven on the 10th year of your final zero dollar payment regardless of the left over balance. So we'll probably have to apply each year. So currently its good for the next 12 months according to a letter from my provider. If the next year you make more than 40k you'll have the smallest monthly payment.etc.

[tyler]

I have a $0 payment, and on the SAVE plan, but they still keep adding interest to my account. I'm so confused.

[therealanonymousartist]

Greedy college administrators are the problem. I remember having to pay a massive "technology" fee in my tuition every semester just for a bare bones computer lab that was frankly useless for my degree. My only choice was to use my own computer, and there was no way for me to waive that technology fee if I didn't want to use the computer lab. Rather than forgive debt, we need to focus on making tuition costs reasonable - especially for public universities where they're SUPPOSED to be affordable.

[sammytheseaslugg]

All of a sudden everyone is a certified accountant. Commenters here have no idea how the program works and so they think it's stupid. Just because you don't understand how it works, doesn't mean it doesn't work. It's okay to be confused by it. Loans are complicated. Finance is complicated; it's why accountants get paid so much. Have some patience with yourself, and do more reading. If you still don't understand, reach out to them and ask for clarification, even if it takes them time to get back to you.

[RyneO-pm]

Does anyone know if you have the recertify your income under the SAVE plan? I had to before when I was in an IDR plan. But I need to know if I need to be doing it under the SAVE plan.

[rnnumi]

So, all people do is make part of the interest payment. The government pays for the remaining monthly interest. However, the principal amount will never go down. Since nothing is being applied. At the end of 12, 20 or 25 years, the loanee is give a discharged hefty bill from the IRS to pay taxes on? Is this my understanding?

[madspunky]

I hope this works out for everyone seeing this!!

[chriserony]

I think we need to stop schools from charging insanely high costs that don't have return. If you're paying for education, your school should at least help place you in a job after graduation if you can't find one yourself. Otherwise, what was the worth of the education?

[MisterMonsieur]

*OH WOW!* Pay less interest? Big help! Why don't you forgive the interest and just help us pay off the principle? 🙄

[pecabella]

I called the number and theyes a recorded message but after it is played the phone hangs up. How im supposed to get help with some questions?

[kylesweeney]

The best option to me is 1. Enroll in Save 2. Pay $0 or a lower amount and the gov't covers your interest payment monthly. 3. Then make your regular payment to go towards the principal.

[jcbabb]

Does this program do anything to help stop giving out NEW student loans? Genuine question.

[Cht]

It is better to pay higher monthly at shorter length of time. They really need to get rid of the interest rates all together. It is horrible interest continually putting on the left over balances as people pay them. Let's say you have $45, 000 balance and you just paid $300...and you have $44, 700 left but then they add 5.75% interest which is $2, 570.75 which is added to the $44, 700 totaling $47, 270.25...so that $300 didn't even make a dent...balance owe is still increasing. That is how people are unable to pay it off. Yes college administrators are making big money and making people suffering financially. I recommend to all young people not going to University where you need to take a loan. Don't do it. Find a trade or University that you can pay off within less than a year...like $1000-$3000.

[respectfullytruthful]

So basically if you keep paying the same amount as if you're not on the save plan, more money will go towards the principal, I think 😮🙆🏽‍♀️🤷🏽‍♀️

[rode]

Why not pay the principle first, interest second? Loan will end earlier. Also, allow students to renegotiate the terms of their loans.

[JM-evij]

What I’m trying to figure out is the interest I think we will all be paying for the rest of our lives the interest I might just pay this off in full. I’m kind of pissed about that because interest continue to accrue through all of these deferments and crisis.

[uthmanolowa]

HOW DO I PAY MY PRINCIPAL DOWN. You all are making it so hard for us. We just want to pay back what we BORROWED.

[lexa_power]

Basically this is for all of us unemployed folks that can’t make payments 😂

[journeijenkins]

I still have no clue wtf this is but I’m enrolled

[erikprestonTV]

I don't understand any of this. I have three kids and a wife and our household income is under $60k and they're still overcharging us.