Newest & Best Plan

SAVE Plan Benefits Guide

The SAVE Plan (Saving on A Valuable Education) is the newest and most generous income-driven repayment option. With the lowest monthly payments, best interest protection, and enhanced forgiveness benefits, it's designed to provide maximum relief for student loan borrowers.

5%

Minimum Payment Rate

100%

Interest Coverage

10

Years to Forgiveness

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SAVE Plan Key Benefits

The SAVE Plan offers the most generous terms and protections of any income-driven repayment plan, designed to provide maximum relief and ensure borrowers aren't overwhelmed by their student loan payments.

Lowest Monthly Payments

5% of discretionary income for undergraduate loans

The SAVE Plan calculates payments based on just 5% of your discretionary income for undergraduate loans (10% for graduate loans), making it the most affordable income-driven repayment option available. Many borrowers qualify for $0 monthly payments.

Undergraduate Loans: 5%

Lowest rate of any income-driven plan

Graduate Loans: 10%

Competitive rate for advanced degrees

Mixed Loans: Weighted Average

Proportional calculation between 5% and 10%

Payment Calculation Example

Annual Income:

$40,000

Poverty Guideline (225%):

$32,805

Discretionary Income:

$7,195

Monthly Payment (5%):

$30

Compare to other plans: IBR would be $60/month, PAYE would be $60/month

Interest Protection Benefits

  • 100% Coverage

    Government covers all unpaid interest

  • No Negative Amortization

    Loan balance never grows due to unpaid interest

  • All Loan Types

    Coverage applies to both subsidized and unsubsidized loans

Unique Benefit: No other IDR plan offers this level of interest protection

Complete Interest Coverage

Government pays any unpaid interest

The most revolutionary feature of the SAVE Plan is complete interest coverage. If your monthly payment doesn't cover the full interest that accrues, the government pays the difference. This means your loan balance will never grow due to unpaid interest.

Balance Protection

Your loan balance can only stay the same or decrease

$0 Payment Protection

Even with $0 payments, interest won't capitalize

Immediate Relief

Protection begins as soon as you enroll

Accelerated Forgiveness

As fast as 10 years for small loans

Unlike other IDR plans that require 20-25 years, the SAVE Plan offers forgiveness in as little as 10 years for borrowers with small original loan balances ($12,000 or less), with one additional year of payments for each additional $1,000 borrowed.

$12,000 or less: 10 years

$13,000-$20,999: 11-20 years

$21,000+: 21-25 years

Example: $15,000 loan = 13 years to forgiveness

No Interest Capitalization

Permanent protection from growing balances

The SAVE Plan eliminates interest capitalization in most situations, meaning unpaid interest never gets added to your principal balance. This keeps your overall loan balance manageable and prevents runaway debt growth.

No capitalization on plan entry

No annual recertification penalties

Protection during forbearance

Benefit: Prevents debt spiral common in other IDR plans

Enhanced Income Protection

The SAVE Plan uses an improved poverty guideline calculation that protects more of your income from loan payments

225% Poverty Guideline

  • Higher than other IDR plans
  • More income protection
  • Lower calculated payments

Family Size Benefits

  • Includes spouse if married
  • Includes dependent children
  • Larger families = lower payments

AGI-Based Calculation

  • Uses tax return data
  • Accounts for pre-tax deductions
  • More accurate assessment

Ready to Start Saving with the SAVE Plan?

Don't miss out on the most generous income-driven repayment plan ever created. Our SAVE Plan specialists will guide you through every step of the application process and ensure you receive maximum benefits.

$28M+
Total SAVE Plan Savings
4,200+
SAVE Plan Enrollments
91%
Get Lower Payments
$185
Average Monthly Savings

Our Expert SAVE Plan Application Process

Benefit Analysis

Compare SAVE Plan benefits to your current repayment plan and calculate potential savings

Application Prep

Gather required documentation and prepare your federal application for optimal processing

Submission

Expert submission through Federal Student Aid to ensure fastest processing times

Optimization

Ongoing monitoring and annual recertification to maintain optimal payment amounts

Why Choose Our SAVE Plan Service

SAVE Plan Specialization

Deep expertise in the newest IDR plan with complex benefit calculations and requirements

Maximum Savings Guarantee

Strategic approach to ensure you get the lowest possible payments and best interest protection

Transition Expertise

Seamless transition from REPAYE or other IDR plans to maximize SAVE Plan benefits

Forgiveness Tracking

Comprehensive monitoring of your progress toward accelerated forgiveness timelines

SAVE Plan Success Story

"I was paying $450/month on the old REPAYE plan with my $75,000 in loans. After switching to SAVE, my payment dropped to just $87/month, and I now have complete interest protection. The team made the transition seamless and explained exactly how the new benefits work. I'm saving over $4,300 annually!"

Ashley T., Marketing Professional

Denver, Colorado

SAVE Plan Eligibility Requirements

Loan Types

  • • Direct Subsidized Loans
  • • Direct Unsubsidized Loans
  • • Direct PLUS Loans (Graduate)
  • • Direct Consolidation Loans

Borrower Status

  • • No specific eligibility requirements
  • • Available to all Direct Loan borrowers
  • • No partial financial hardship needed
  • • New and existing borrowers welcome

Documentation

  • • Current tax return or pay stubs
  • • Federal Student Aid PIN
  • • Family size information
  • • Spouse income (if married filing jointly)

Get Your Free SAVE Plan Analysis Today

Discover exactly how much you'll save with personalized calculations from our IDR specialists

Get Free SAVE Analysis Call SAVE Specialist

Free analysis • No obligation • Expert IDR guidance • Same-day response

Time Sensitive: SAVE Plan benefits increase over time. Apply now to maximize your interest coverage and payment savings