What You Need to Know
The SAVE Plan includes multiple new benefits for borrowers. The changes below will go into effect this summer. Additional benefits go into effect in July 2024.
| Changes Under SAVE | What This Means |
| The SAVE Plan significantly decreases monthly payments by increasing the income exemption from 150% to 225% of the poverty line. | The new plan can significantly decrease your monthly payment amount compared to all other income-driven repayment plans. Your monthly payment amount is based on your discretionary income—the difference between your adjusted gross income (AGI) and 225% of the U.S. Department of Health and Human Services Poverty Guideline amount for your family size. See table below for examples. That means you will not owe loan payments if you are a single borrower earning $32,800 or less or a family of four earning $67,500 or less (amounts are higher in Alaska and Hawaii). Borrowers earning more than these amounts will save at least $1,000 per year compared to the current income-driven repayment plans. |
| The plan eliminates 100% of remaining interest for both subsidized and unsubsidized loans after a scheduled payment is made. | If you make your monthly payment, your loan balance won’t grow due to unpaid interest. For example: If $50 in interest accumulates each month and you have a $30 payment, the remaining $20 would not be charged. |
| The SAVE Plan excludes spousal income for borrowers who are married and file separately. | This change removes the need for your spouse to cosign your IDR application. |
The #SAVEOnStudentDebt Plan will:
➡️ Allow many borrowers to make $0 monthly payments
➡️ Save all other borrowers at least $1K per year
➡️(Ensure borrowers don’t see their balances grow from unpaid interest. 🔗http://StudentAid.gov/SAVE