Saving on a Valuable Education (SAVE) Plan - The New Income-Driven Repayment Plan
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- Опубликовано: 19 июл 2024
- Update: On July 18, 2024, a Federal Court issued a stay preventing the Department of Education from operating the Saving on a Valuable Education (SAVE) Plan. We are assessing the ruling and will be in touch directly with borrowers about how this will affect them.
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The Saving on a Valuable Education (SAVE) Plan is the newest income-driven repayment (IDR) plan. Like other IDR plans, the SAVE Plan calculates your monthly payment amount based on your income and family size. In addition, the SAVE Plan has unique benefits that will lower payments for many borrowers.
00:00 - Intro
00:46 - Lower payments with the SAVE Plan
01:29 - How are loan payments applied?
01:41 - Interest subsidy for repayment
02:20 - Interest subsidy for a $0 monthly payment
02:38 - Interest subsidy example
03:04 - Benefits coming in 2024
Watch the full playlist: • Student Loan Repayment
Learn more about the SAVE Plan at StudentAid.gov/save
Use our Loan Simulator to find out if the SAVE Plan is right for you:
StudentAid.gov/loan-simulator
To apply for the SAVE Plan, complete an income-driven repayment (IDR) plan application at StudentAid.gov/idr
Greedy college administrators are the problem. I remember having to pay a massive "technology" fee in my tuition every semester just for a bare bones computer lab that was frankly useless for my degree. My only choice was to use my own computer, and there was no way for me to waive that technology fee if I didn't want to use the computer lab. Rather than forgive debt, we need to focus on making tuition costs reasonable - especially for public universities where they're SUPPOSED to be affordable.
NOT A SCAM! If confused ask for help but some people don't know how so they miss out!
If you make under 40k a year as a single person your monthly payment is Zero a month. Which counts towards an on time payment towards forgiveness. So if you make under 40k for the next 10 years Your payment will be forgiven on the 10th year of your final zero dollar payment regardless of the left over balance. So we'll probably have to apply each year. So currently its good for the next 12 months according to a letter from my provider. If the next year you make more than 40k you'll have the smallest monthly payment.etc.
I make less than $40, 000 and my payments are $34 for 7yrs.
10 years if you work in public service. It's 20 or 25 years (graduate and undergraduate) if you don't.
The thing is Joe Biden made this so if Donald Trump becomes president, then this program isn't guaranteed to exist still within 10 years. Furthermore like you said you'd have to re-new. Not gonna mention the weirdness displayed on your credit score. The good thing is it pauses the payments and interest. The bad thing is the loan still exist.
All of a sudden everyone is a certified accountant. Commenters here have no idea how the program works and so they think it's stupid. Just because you don't understand how it works, doesn't mean it doesn't work. It's okay to be confused by it. Loans are complicated. Finance is complicated; it's why accountants get paid so much. Have some patience with yourself, and do more reading. If you still don't understand, reach out to them and ask for clarification, even if it takes them time to get back to you.
50 = total
30 is normal amount and if paid the rest goes away right?
The 20 is just interest paid off for you. Correct? Or am I missing something?
@@nothings5524 yes this is correct. And say you're principal is $1,000. You still owe this amount. If you can't afford payments, they're basically saying we'll help you cover the interest payments on your loan and keep your credit score in-tact for a year.
All I did was call my lender and asked a service rep to break it down and it was simple to understand.
*OH WOW!* Pay less interest? Big help! Why don't you forgive the interest and just help us pay off the principle? 🙄
The best option to me is 1. Enroll in Save 2. Pay $0 or a lower amount and the gov't covers your interest payment monthly. 3. Then make your regular payment to go towards the principal.
Why make regular payments too??
If you pay the SAVE amount after the 10 yrs or less they forgive what ever your balance is including the interest.
I hope this works out for everyone seeing this!!
just because someone makes x amount doesnt mean they are rich and not broke. this plan does nothing for a boat load of variables
I have a $0 payment, and on the SAVE plan, but they still keep adding interest to my account. I'm so confused.
Right? And there are no news articles or videos addressing it
Thanks for the information.
There's always a scam with this kind of thing. When something is too good to be true, there's shit somewhere.
If you aren’t paying down principle, interest will still incur. It’s not doing you any favors
@@user-vv7mn2hw7bthis video says the govt is paying the accrued interest monthly though.....
HOW DO I PAY MY PRINCIPAL DOWN. You all are making it so hard for us. We just want to pay back what we BORROWED.
Did you not understand what interest was when taking out a loan? Genuine question.
@@radiant2052 Yes I understood what interest was, but it's ridiculous that interest gets paid first when repaying your loan. That is a scam. If I make a payment to my loan at least 70% should go towards the principal - not the interest. The current system is backwards and is a scam. That is where my complaint lies.
It is better to pay higher monthly at shorter length of time. They really need to get rid of the interest rates all together. It is horrible interest continually putting on the left over balances as people pay them. Let's say you have $45,000 balance and you just paid $300...and you have $44,700 left but then they add 5.75% interest which is $2,570.75 which is added to the $44,700 totaling $47,270.25...so that $300 didn't even make a dent...balance owe is still increasing. That is how people are unable to pay it off. Yes college administrators are making big money and making people suffering financially. I recommend to all young people not going to University where you need to take a loan. Don't do it. Find a trade or University that you can pay off within less than a year...like $1000-$3000.
Interest is an Annual Percentage Rate (APR), so your math is wrong.
Divide your $2,570.75 by 12 and you’ll be closer.
E.g., 5.75% APR on a $45k loan would accrue $2,587.50 / 12 = $215.63 of interest for a month. So if you make a $300 payment, $84.37 would go towards principal. Yes, this still sucks. But you need to correctly calculate how much it sucks. 😄
@@user-zd8zs3rl6d If you have federal student loans, go to your Aidvantage estimated calculator...because that is where I got the information and I also used the smart asset calculator for student loans pay downs. If I am wrong, then you do the math and provide all the information here please...otherwise shut up.
You clearly didnt go to college
So basically if you keep paying the same amount as if you're not on the save plan, more money will go towards the principal, I think 😮🙆🏽♀️🤷🏽♀️
They did the same thing with the Medicare program and a lot of Seniors got royally screwed as it pays less and denies coverages after the fact.
I still have no clue wtf this is but I’m enrolled
lol
Government: aye bruh we gonna let you slide on dat lil money u owe us just make sure when this deal over you come at us “correct”
@@slimeyjthompson6302 i actually understand this lol . Thx man
Same lol
Basically this is for all of us unemployed folks that can’t make payments 😂
That but also for students like me who have to take a unwanted gap year
Stop judging, grow up
Yes they have been charging me intrest as well.
I called the number and theyes a recorded message but after it is played the phone hangs up. How im supposed to get help with some questions?
ok 👍
So, all people do is make part of the interest payment. The government pays for the remaining monthly interest. However, the principal amount will never go down. Since nothing is being applied. At the end of 12, 20 or 25 years, the loanee is give a discharged hefty bill from the IRS to pay taxes on? Is this my understanding?
I think the minimum required payment covers interest only. My understanding is that you are expected to pay more than the minimum if you want to see your overall principal amount to decrease. So if your minimum balance is $60, the government will take care of the rest of that months interest and whatever you add to that $60 will be subtracted from the principal. I guess the purpose of the plan is to make interest rates are "less" of a burden.
Your payments $30, but the interest is $50. The gov't covers your $20. Your interest obligation is $0 and your paid up for month. But your principal is the same.
The years will be 10yrs or less. If you've been paying it should be reduced drastically. Just pay the amount they give and what ever year they give you., the remaining balance will be FORGIVEN
Does anyone know if you have the recertify your income under the SAVE plan? I had to before when I was in an IDR plan. But I need to know if I need to be doing it under the SAVE plan.
Yes, recertify every year. It’s automatic if you file your annual tax return or you can do manually on the website
I do file my taxes. So I don’t need to do anything? They just lowered my monthly payment today actually. So I’m assuming it’s good.
@@ryneobrien1That’s great! Recommend keeping an eye on your accounts. I’ve heard some people had issues with their loan providers not updating their student loan records or the federal gov taking a while to pay back the interest.
I check my student loans about once a month to make sure there aren’t any default payments or issues.
One more question if you know. I have been teaching since 2013. I am in the PSFL program. When I did my masters program took loans for 2 terms. Then I paid those two masters loans off and paid the rest in cash. So now it shows me short of 120 payments. Is there a way to buy back those months so I can be at the 120? I read there is a program. Just don’t know if that really works. I’d love to just pay those months I’m missing at once and be done now with the PSFL program.
Also, either 20 or 25 years of payment may be forgivable debt- Or 10 years if you have a total loan under $12k
Yeah that one didn't pass the Supreme Court. There was millions that was approved, as I was one of those.
Why not pay the principle first, interest second? Loan will end earlier. Also, allow students to renegotiate the terms of their loans.
Exactly! Because the loan owners want to make a lot of money off of these loans that can't be discharged in Bankruptcies and where people have no choice but have the loans for long time so it's alot of $ for the loan owners.
@@ellynicole6655 Yes the government wants the benefits of providing money for people to get an education. Through people having higher taxable incomes, and through interest.
@@ellynicole6655 modern sharecroppers.
Does this program do anything to help stop giving out NEW student loans? Genuine question.
No, it doesn't get rid of your loan either. It just stops payments and interest for up to a year. Then you have to re-new every year. If you have no job at the time you apply then you more than likely pay nothing per month. If you have a job then they base what amount you have to pay based on that income. However your loan still exist either way for the next 20 years or until paid off in full. The only way to get your Student debt canceled is with PSLF which ironically requires employment.
I’m just confused as to why they do this program but don’t fix the source of the problem which is the student loans.
@@jcbabb2 They "fix" you not having to pay every month for your loan if you can't afford to pay for your loan without it going into deferment, or default thus affecting your credit score. They also "fix" the interest that accrues during this "payment pause". They can't get rid of the loans because opposing political parties not allowing for it. They feel if you opened up a loan then you're obligated to pay it. This is essentially the best they can legally do. You technically speaking don't have to do anything, but the loan will exist for 10+ years. However if you want it gone completely you can always pay it down gradually as intended, pay for it in full, or ask for loan forgiveness.
Yes colleges/ education is expensive & its a choice. I took student loans & used credit cards to pay for school/ other expenses. In the mean time i realized i should work so i don't get stuck with the loan for rest of my life. I think everyone has to find that balance on how much to take out. Don't just go out there and take bunch of money to pay for your tuition and other life expenses, alcohol, parties, expensive shopping, vacation etc. When you do that, that's on you & own up to it & pay back. Complain is not going to take you anywhere. No matter how much we complain & play the blaming game it will always fall back on you my friends. Life is not easy, but enjoy the ride regardless of what life gives you & make better choices bcuz every choices matter. Accountability!! Peace & Love!!
I didn't want to go to college at the time my husband forced me into, so as a good wife I did, he then cheated on me and got divorced. I want to pay back believe me but when I first enrolled I wasn't ready mentally I wasn't mature enough to understand or even know about the cost until it hit me in the face as a single women paying something back that I didn't even want in the first place.
I need a repayment plan
I don't understand any of this. I have three kids and a wife and our household income is under $60k and they're still overcharging us.
I make under 60000 and they are charging 700 on the save plan, if in the video is correct that means I won't qualify for 0 a month which I get but definitely not 700. It's just me no dependents so yeah I feel ya something not right here
Bidenomics 😂
Did you apply for the SAVE PLAN or you assumed they put you in that program?
Ok, hold on .... there is a payment plan based on my annual income.
I thought college was supposed provide me a high income career/ job.
If so, then what's the benefit of this ?
The system we have is a joke
Work for yourself and forget a degree
I agree. You get the degree but you don't get the job because you don't have the experience. If you have experience they don't want you because you don't have a degree. Yes, they have had an income based repayment plan for quite a while. It is called an IBR. You have to renew every year and it collects interest. Which kind of means that you'll never actually pay it down.
I wasn't paying anyways
Oh how I love this comment
@@mbenitez6722 I owe $174,000 in student loans. So I moved to Korea to teach English the past 3 years and do the IDR plan for student loans. My salary is more than enough for me to live comfortably here but in the usa it's considered poverty. So I do the IDR and my monthly payment is $0. lol I'm never moving back. Women in korea are gorgeous. And I will NEVER pay a penny in student loans.
@@welfareleech1525 Here's your W you dropped 👏
Same lol
Hahaha I’m an accountant you guys have to understand it’s a step by step complicated process. So you need to understand every complicated step in the process. The government is confusing you on purpose so you give up
They're not trying to confuse you so you give up. Go yell at some clouds or learn how the federal government works.
So you'll have the principal debt following you and giving the government guaranteed money money. Got it
youll pay back the money you borrowed ;)
These plans continue to leave people out. Total failure for the millions who have paid their loan for a substantial amount of time and are now just paying interest.
This is a scam. Before SAVE my payment was $130 (and that was the lowest amount of ALL the plans). Now it's $300. I make $160 a WEEK. And none of my payment will go towards the principle balance, just the interest. It's only if I can't afford to pay ALL the $300 that the gov will be "generous" and pay the rest of the INTEREST, but not the principle. And that's not mentioning how CONFUSING they still make it all sound to the point where people have to go to social media to get answers from people who DONT work for the government or even the student aid facilities! It's the blind leading the blind out here while the american gov just dicks us around!
thanks im in idr and was going to switch but i wont for now
That doesn't check out. When I was making 50k a year mine got dropped from 124 a month total to 88 a month with the newest plan. I make 65% more now and mine still doesn't exceed 300 a month. You need to call your loan issuer.
Obvious lie and anyone can verify this by checking out the SAVE estimate calculator. They also tell you again what your new payments will be prior to enrolling. Are you that disgruntled you spend time trying to harm other people who could benefit from this program? Pretty pathetic.
Just apply again and say you want the lowest payment amount. Making a low income your payment should be $0 monthly
I pay $34 and my income is less than $37000.
Only thing I was confused on FASA didn't mention the 10yrs. I thought theyl was taken the reduction off the top, leaving us with a lower a balance.
What a plan. So if we enroll we will never repay the loan... yet another brilliant government idea, what a joke.
"If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered." Thomas Jefferson
Great government ❤️
BS. They aren’t addressing the real issue which is the cost itself. They are allowing all their cronies to rake in millions including our corrupt resident who was supposedly a “professor at U Penn but never taught a class for several 100k per year. Crooks.
all i ask is for additional time without all this bs
Finally, financial assistance for student debt. Large corporations like the auto industry and hotels get bailouts often. Thank God for this administration. All who have student loans should apply for President Biden's SAVE PROGRAM. Think of it this way: you only have student debt to lose. It's a win-win! Apply NOW!
Nothing is corrupt about the cost of getting an education. As much as I don't like student loans, we have a choice to make for our future. We can choose a future living in poverty or become middle-income with student debt? The lesson learned is how much debt should you take on before enrolling in the university of your choice? Before you consider a Masters's degree, think about going overseas for your education. Everything is cheaper and in some cases, your fees are nowhere near prices at UCLA or Penn State. It would be great to study in Euope, Spain, Thailand or Kenya. Get out and see the world while keeping your expenses and debt low. Get out there!
It is corrupt. If your parents tell you to go to school and fill out your paperwork and you're left with debt you didn't know about when you leave school then who's fault is it? Doesn't matter because you would bare the burden. Not everyone chooses to take out a loan nor does everyone choose to be unemployed.
Voted for Biden to help me with student loans instead we helping everyone else. I'm moving on
Are you a moron or just a troll? This program looks amazing. Thanks Biden!
Definitely not from Biden...😂
@@shawnnahopper7466 I'm just glad I can pay for Ukraine to get Billions of dollars. Zolensky just got a 75million dollar yacht too. We are all blessed here
The GOP blocked student loan forgiveness 😳
@@aureliocam6308 ok, I guess it's both
First
that migrant and ukraine $ shoulda went to all of us who owe, then those who already paid get a tax credit....
Its funny that people are mad about this. You "BORROWED" the money and I am sure most people took and spent the stipend that was left over to buy stuff. Don't borrow and you won't owe. Borrow "ONLY" what you need. Find out what you can pay back and be faithful doing it and you will be fine.
I understand your point. But going to school is expensive and things add up quickly and most people have to work and go to school just to get by so I don’t think it’s the point of borrowing what you need if you don’t have it you just dont.
I never saw a dime as all went to the institution directly.
@@jasminenicole34 Exactly! Yes school is expensive but it is still a choice. I obtained my masters and a doctorate with having a full-time job. It was hard but I paced myself, borrowed what needed and paid it back over time. Not everyone can say that but there are more people who can help themselves verses those who used it as income or decided not to work out a plan after they graduated. They will allow as low as $5 per month. The problem is, people wait to late, never investigate or read the terms, then complain when it piles up. Thanks for your comment.
@@MC-cw5ph Thanks for your comment.
@sounddoctrine6159 the point is society benefits from having educated citizens that in turn have higher wages , pay higher taxes and less of a burden on it's social structure. Why make it nearly impossible for the majority to receive a higher education without being in outrageous debt that takes decades to pay back?
This has scam written all over it
You post has dumb written all over it. Zing
@@TJ-kw3ou Mr Saturn? Zoom?
It's not. Had my payment go to zero and still counts towards an on time payment towards forgiveness.
@@oreosk8ter My payment quadrupled on SAVE and after years of affordable payments in REPAYE. I had to switch to another IDR plan to get my payments affordable. SAVE only works for unemployed or totally broke with huge balances. If you are making an honest living and owe less than 20K SAVE plan actually makes things much worse.
More BS