The SAVE Plan replaces REPAYE Plan, offering borrowers lower monthly payments and an end to interest growth. It offers borrowers the lowest monthly payments of any IDR plan.
SAVE plan will reduce payments on loans by half, guarantee that borrowers' balances will never increase as long as they make their minimum payments, and protect more of a borrower's income.
Any Direct Loan borrower who has a loan type that qualifies may select SAVE plan. It is possible for students with federal student loans to apply for an IDR plan.
Direct Unsubsidized and Subsidized Loans, Direct PLUS Loans (made to graduate or professional students), Direct Consolidation Loans (that did not repay any PLUS loans made to parents)
Your monthly cost for SAVE Plan is determined by your income and family size. Monthly payment will be zero starting this summer if your yearly income is $32,800 or less, or about $15 per hour.
You will be automatically enrolled in the SAVE Plan if you have recently applied or are currently a member of the REPAYE Plan. No new applications or requests for plan changes are required.
In SAVE plan, monthly payments are capped at 5% to 10% of discretionary income and loan balances are forgive after 20 or 25 years. Spousal income for borrowers who are married but file separately is excluded from Plan.