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Empowering education: Spreading the awareness of the SAVE Plan

The Saving on A Valuable Education (SAVE) Plan introduced in August by the U.S. Department of Education is a new income-driven repayment (IDR) plan designed to alleviate the financial strain of student loans. Engineered to offer the lowest monthly payments among IDR plans, SAVE customizes payments based on income and family size.

Notably, it expands the income exemption to 225% of the federal poverty line and grants an interest subsidy for borrowers making timely payments, preventing balance escalation. By recalibrating payments to a smaller portion of one’s income, SAVE substantially reduces monthly payments for most borrowers.

This plan is especially advantageous for low- and middle-income earners, public service workers, community college graduates and those who initially borrowed $12,000 or less in student loans. Starting in July, borrowers with only undergraduate loans will see their monthly payments halved, offering substantial relief.

How to apply

Use the IDR application to apply for the SAVE Plan.

If you were on the REPAYE Plan, you’ve been automatically enrolled in the SAVE Plan. There is no need to reapply or request to change your plan.

Learn how to check which plan you’re on.

If your loans are in default, you may qualify for the Fresh Start initiative to easily get your loans back in good standing. It’s free and takes 10 minutes or less to sign up and enroll in an affordable repayment plan, such as the SAVE Plan, with payments as low as $0 a month.

How much will I pay each month?

The SAVE Plan calculates your monthly payment based on your income and family size. If you’re making $32,800 per year or less (roughly $15 dollars per hour), your monthly payment will be $0, and if you make more than that you’ll still save at least $1,000 per year compared to what you would have paid under the REPAYE Plan.

For more information on SAVE:

The Saving on a Valuable Education (SAVE) Plan Offers Lower Monthly Loan Payments | Federal Student Aid

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