The Department of Education’s Federal Student Aid office has publicly announced that the Saving on a Valuable Education (SAVE) Plan is going to substitute the currently running Revised Pay As You Earn (REPAYE) Plan, which offers the lowest cost per month of any income-driven repayment (IDR) plan accessible.
Save for the Future!
The SAVE initiative intends to reduce monthly payments for borrowers and eradicate them altogether for those who comply with the minimum income requirements. As long as payments are made on time, it will also prevent the buildup of unpaid interest.
After a scheduled payment is made, the SAVE plan eliminates 100% of the remaining interest on both subsidized and unsubsidized loans. If you are married and file separately, SAVE also removes marital income, so your spouse will not have to cosign your IDR application.
Based on a published post by GoBanking rates, if you are already registered in the REPAYE Plan or recently applied, the FSA will automatically enroll you in the SAVE Plan.
How to be qualified in the SAVE Program?
If you are presently on an IDR plan other than REPAYE, you may transition to REPAYE to be promptly enrolled in SAVE when it is readily accessible. You can also wait until the SAVE application rolls accessible later this summer.
If you don’t already have an IDR, you can register for one and enroll in the SAVE plan by selecting REPAYE.
This summer, the Saving on a Valuable Education Program will be offered. You may submit an application by contacting your loan servicer directly or submitting a request through your FSA account.