No co-sign required for married borrowersīorrowers will be able to apply for the SAVE plan without having their spouse co-sign. You're responsible for half the excess interest charges on unsubsidized loans at all times. Under the current plan, the government covers any interest charges in excess of your monthly payment for subsidized loans for up to three consecutive years, and half of the interest after that. For example, if a borrower's loans accrue $50 in interest in a month, but their monthly payment is set at $30, the remaining $20 would not be charged, according to ED. Cap on interest paymentsĪdditionally, it will be easier for borrowers to actually make progress on their loan repayment on the SAVE plan because it eliminates interest that exceeds your monthly payment. So any borrower earning that salary - which is about $15 an hour for a full-time worker - or less could qualify for a $0 monthly payment on the SAVE plan. Under the current system, your discretionary income is defined as the difference between your adjusted gross income and 150% of the federal poverty guideline, or about $21,870 for an individual in 2023.īeginning this summer, that discretionary income threshold will go up to 225% of the poverty line, or about $32,800 for individuals. Similar to the REPAYE plan, the SAVE plan caps monthly payments at a percentage of your discretionary income, currently 10%.
The SAVE plan should be available for borrowers beginning this summer with the following changes: 1.
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