New SAVE Student Loan Payment plan EXPLAINED

Does anyone know if your on the new save plan, and monthly payment doesn’t cover interest that government will cover. If I make additional payments will the additional payment go to principle of loans? Or will additional payment just cover the interest (essentially negating government perk of them paying the interest on save plan)? Any help would be greatly appreciated

The SAVE plan is almost like refinancing a car loan, but worse. Your monthly payments will decrease but you'll end up paying more on the back end with additional interest. Also, when you go to apply, you won't be able to choose if you want to do it for 10 or 20 years, it automatically sets you up for 25 years. This plan is insulting and let's face it, the government isn't doing a damn thing to help us.

As I am preparing to sign up for save plan on student aid website, under " view details", there is a list of advantages and disadvantages of the plan. One of the disadvantages states "You may have to pay income tax on any amount that is forgiven, unless the amount is forgiven under the Public Service Loan Forgiveness Plan program (which isn't taxed)."
What do they mean by "you may have"? How do you find out if you do or don't? Also, what monies considered forgiven? Do you know if that would that include "forgiven" interest? Would I be responsible for additional income tax each year for forgiven interest? Or are they talking about forgiven loan balance if not paid off in 20 years? Would I be responsible for income tax on possible 30k balance forgiven in 20 yrs. if I only made minimum payments? If I made monthly payments higher than minimum would it go toward principal balance?
Thank you for helping me understand :)

I’m at a loss on how to apply for this. According to Nelnet, if you were already on IDR, you’re automatically enrolled in SAVE. Nothing on my account indicates I’ve been enrolled in this. FSA’s website also offers no link to apply for it. They sent you to the IDR plan…which I’m already on, with a lender Direct Loans farmed my account out to. You also say that linking your tax documentation to the IDR plan is the fastest way to do this. I’ve already done this…and still, it doesn’t show me enrolled in the SAVE plan. I’m baffled.

If I am qualified for the $0 monthly payment under the SAVE plan, does it mean they won't accrue any intrest right? Just exactly the same as the covid intrest rate pause period right? Would they secretly accrue intrest that you won;t find out in years? That's what I am worried about joing the SAVE plan. Please help!

Love the channel! Thank you for the info!

Please help me I'm having a mental breakdown. ugh My school told me I was applying for a zero-interest loan and they lied. I trying to apply for the IDR repayment program because I'm currently not working (the school promised I'd have a job after graduation). While on the website I have seen a SAVE program I tried reading about it but I'm having a tough time understanding what it is. The repayment plan states that my monthly payments are Zero and my total to be paid is zero, also that my forgiveness amount is the amount of the loan. I guess my question Is should I apply for this? and does that mean I don't have to pay anything?

what is confusing many people is the SVE plan DOES NOT forgive your loan. It will only make your monthly payment lower if you can not afford the minimum. If you borrowed like 50K, you will still paying that 50K back, but just that the monthly payment for that could be half or be 0 TEMPORARILY...

SAVE EQUALS KICKING THE CAN DOWN THE ROAD TO FREE ENTITLEMENT GENERATION OUT THEIR ! 20 YEARS ,EQUALS NO PAY ! CAN YOU SAY DEADBEATS ? THEY THINK TAXPAYERS SHOULD PAY FOR THEIR BS USELESS DEGREES AND BS SPENDING ON STARBUCKS ETC ! BRIBEN TRYING TO BUY VOTES 2024 ! Last no one told you deadbeats to sign loan documents and agree to pay ! Great for the people that paid their loans back with responsibility as a adult!

I just want to be able to own a home

This is really cool. I think it is great how we have all of these options. But I think I know what I will do.

If someone borrowed money and said they were going to pay it back, why don't they just repay it?

Hiii, i have a question, but i'm a first-gen second year in my undergraduate right now. When do I need to repay my loans, and when should i apply for this re-payment plan?

lady looks insane no glass in glasses.

I switched to SAVE today. The final agreement page said that the entire current amount of my student loan amount would be forgiven after 20 years and I would have to pay income tax on the entire amount. How in the world is that possibly going to work??? Today I was on hold for 2.5 to discuss this with my loan servicer but of course they were completely clueless.

Hi ML, between my spouse and I, we have $420k debt but $300k AGI. We work in a field of healthcare that does not have many PSLF options, but we want to pay off quickly without losing money via interest. I haven’t yet looked into the monthly payment for us via SAVE but I was wondering if you had insight on the “rules” of early/specifically allocated payments.

My loans are split into 9 groups with varying balances/interest rates. If we are in SAVE and the minimum is let’s say $900 total, could we pay $2000 into a single loan and not accrue monthly interest in the other 8 groups; since we are satisfying the “monthly payment?” I’m not sure if what I’m asking makes sense, but I would love to know what you think!

Appreciate your time so much, thank you!

Does anyone know how long it takes for the SAVE application to be processed/approved?

It’s sick to me that they are even doing this to people. The interest rate is almost 7% on these things. The company is a for-profit corporation that’s probably going to make trillions off of people struggling to pay rent. How are they helping people exactly?

Is there any way to factor in your private loan payments to reduce your federal payments under SAVE? In my case, the SAVE payment is 10% of my AGI (grad loans) and my current private loan payments are about 15% of my AGI, meaning my total loan payments would be 25% of AGI.

Thank you for the video and all the helpful information! Being that I'm in my 3rd year of college and have both Subsidized & Unsubsidized loans and will obtain a few more before I'm done, should I apply for the SAVE program now while I'm still in school?

If your payment is scheduled $0 will that count towards your 120 payment/ 10 year forgiveness?

When I do the calculations the Save plan is way more than all the other plans, makes me feel like I’m doing something wrong. My wife and I both make about $50k each and I owe $20k. In 8 years I can try to get PSLF since I’m a postal worker. I’m confused on which path to follow. I don’t see how any of the plans are getting anything forgiven besides the PSLF being 8 more years before applying. Who knows what the situation will be in eight years. So my main options were like the conventional one at $230 a month, or a ICR that’s slightly less but my wife might get a decent raise soon. The SAVE plan was between $500-$600 a month?!?

Would the SAVE program still qualify for Teacher loan Forgiveness after 5 years teaching in a loan income school also if loans are around 40k would PSLF be the better option?
Thanks Tony

no one can support a family on 40k

Liberals are hilarious!!! What about the next presidents decision.

Hi Kate, thank you for your video! Do you happen to know if interest will acrue for graduate loans? I qualify for SAVE under $0/month.

I stumbled upon your channel today, because apparently I’ve been living under a rock and didn’t realize student loan payments are now due again, and had to rush to do some research… I’m SO grateful to have found your channnel!!! I am working towards PSLF, and took your advice to consider the SAVE plan and essentially lowered my monthly payment from $1,240 to $92… 😳🤯🤯🤯 My SAVE plan application is still pending, but if these numbers prove to be true, your videos will have changed my life in a HUGE way! Thank you so much for doing the lords work by simplifying such a complicated process!!! I will definitely keep you posted!!!!

Hello I have a question that hopefully you can help me answer I signed up for the save plan and it says my monthly payment is zero I'm guessing because I'm single and make under 32k a year but my question is if my payment is zero and I'm not making monthly payments is my interest still accruing each month?

This was a huge help. I appreciate the content. The studentaid website has good information, but does not compare to this. I needed someone to help me fully understand what I was about to sign up for. Thank you.

my daughter has $67,000 in loans, she graduated during the pause so she just had to make her first payment in October. We signed her up for the SAVE plan , entered her income and her first payment was just $49. We made that payment and since then her payment has been $34 per month. I see it only shows that it goes to interest. I know she has to re register each year with her income and I think it's a 25 year plan. Not sure what to think really but it's not like she has enough money floating around to pay much more, now anyway. Any thoughts?

Is this for federal student loans only? I have Sallie Mae and they won't work with me at all.

Hello dear,

Thanks for the video! If I have not paid any of my perkins loan ( which is at 5% interest) the principal was 11,000 now it's at 15,000 almost. Would the SAVE plan benefit me in terms of lowering the total owed amount?

thanks to the covid - 19 student loans on pause I've paid off 33k (including interest). from 51K and now I owe 21K. Happy!

Great video, but we are stuck in these stupid FFEL spousal consolidation loans we can't get out of😥

God thank you so much for this!! Subscribed!❤❤❤

If my monthly payments are $0 on the SAVE but i wish to pay $200/mo, will interest accrue?

So, the 10 years of payments is only for payments under the save plan, and the 10 years of payments from before the save plan do not count to be forgiven? That sucks, was hoping us who have been 100% on our payments would also fall under the save plan with those years counted towards the forgiveness 10 year mark.

I am currently on the SAVE plan. I have low income right now but if my income increases significantly with a new job, do I need to contact my loan provider and update them? And would that mean I no longer qualify for SAVE and change me to a different repayment plan? Thank you!

I'm on the save plan. Currently my payment is $60, which all goes to interest, so my balance never goes down.

Do you have any information on making extra payments toward the principal without having to pay additional interest? (I could do that before on repaye, but would have to send a check with a letter requesting to apply it to principal and not toward future payments, such a hassle).

Need help, and a question well a few, is there a direct contact

How to figure out payments for someone that has 4 IBR loans and 4 SAVE loans all undergraduate loans.

For some reason your website would not let me download the cheat sheet. When I put the verification code in, it kept saying it was wrong.

Mine says since one of more of my loan servicers don’t participate in the online IDR application process, I must do a few more things. How can I ensure i accurately do this?

Does this still work with the public service loan forgiveness program?

I am currently finishing my last year of medical school. I have both direct unsubsidized and grad plus loans. In order for the interest subsidy under SAVE to be in effect do I have to be graduated/out of school and in repayment?

My daughter graduates in August as a Physician Assistant. Will have both undergrad and grad fed loans. Best way for her to start in order to get on Save Plan on her way to PSLF. Thank You

Thank you for all the great into, just started watching!
I had 101K in student loans (grad and undergrad over 7 years) and thankfully consolidated them at 1.9% in 2005. I did consolidate again 18 months ago to a Direct Loan (from FFELP from Navient) just in case forgiveness went through.
With my grad loans I know I won’t be eligible anyway for any forgiveness for 6 more years, but I’m thankful they should be finally paid off in a few years.🙏🏻

Don't Forget to Mention Who is going to pay for ALL OF THIS!!?? THE U.S. TAX PAYERS!

Do you know if there are plans to extend the federal income tax moratorium on forgiven loans beyond 2025. As it stands if your loans are forgiven in 2026 you could owe thousands in federal income tax but if the loans were forgiven in 2025 the federal tax burden would be zero. Hardly seems equitable.

I'm a 69 yr old widow living on only SS (no other retirement, pension, stocks, savings, etc). I "had" 4 Direct Subsidized student loans, totalling less than $9 K. I joined Fresh Start, paid as required, then either the government or MOHELA made me consolidate the loans to join the SAVES program -- which included adding over $16 K in interest. This brought my balance to about $24-5 K. Next; the government made me switch from MOHELA to AidVantage to get on the SAVES program. My SS check is so small that AidVantage said my monthly payments were $0. But for the last couple of mos, they've been adding interest to my balance & reporting this to Experian. Due to the increases in my balance & because AidVantage is reporting my loans as less than 1 yr old (instead of over 40 yrs, based on when I actually got the loans) Experian lowered my credit rating from good to fair. This caused State Farm to raise my homeowners premium & now my mortgage company is raising my monthly payment. Last mo, I called AidVantage about what I'm sure is their mistake about charging me interest & all the girl said was your loan is not delinquent, so this "shouldn't" be affecting your credit. But it is! I need help. I have COPD & talking on the phone is too strenuous for me. I've been calling a HUD agent for a free credit advisor & they don't return my calls. Ihope someone will post some advice. I live near Cleveland Ohio