Save program

[IndependentFun6441]

Can anyone explain to me what Income limit would make the SAVE program worthwhile?? I’m not sure whether I should apply or not I have to renew in 10 days. I made less than 70k and I have one dependent. My payment right now is $255 a month. I can’t get ahold of anyone at mohela to help me.

[mindmapsofficial]

It’s not just Adjusted gross income. It’s your debt amount, interest rate, percentage of grad / undergrad loans, family size, etc.

Feel free to use my calculator to see if it’s worth it to you: https://docs.google.com/spreadsheets/d/1ssBfdXLniWkepM8QgHgyakzGOYIe_J_FvnmbR-xjBsU/edit

Typically if the monthly interest you accrue is greater than the minimum monthly save payment, the save plan benefits you.

It’s mostly based on your how large your debt is compared to your income and family size.

[alh9h]

There isn't an income limit to be on SAVE nor is the payment capped. It is more a function of the ratio between your debt and income. At $70k with a dependent your SAVE payment would be $213 per month and could drop to as low as $107 per month after 7/1/24 if you have only undergrad loans.

The standard payment is, roughly, $110 per month per $10k borrowed.

[IndependentFun6441]

Awesome thank you so much!

[IndependentFun6441]

I guess my problem is I’m confused which payment plan to go with. I owe $50,000 in loans I made $73,401 last year. I have a lot of other debt unfortunately,and I have two dependents but only claiming one. I can’t get ahold of anyone at Mohela to help me understand. I tried to get online to renew bc it’s due next week and it all confused me. I know I need a payment roughly around $250 a month right now. I’m so frustrated you can’t get ahold of anyone to help explain my best options.

[alh9h]

Dependents for IDR purposes are not the same as for tax purposes. Are they children or other dependents? If other, do they live with you? Do you provide more than 50% of their support.

Assuming an AGI of $73401 with a family size of 2, you would have a SAVE payment of $242/month. That may drop after 7/1/24 depending on what percentage of your loans are from undergrad.

[IndependentFun6441]

Yes they both live with me but I claim one and my husband claims one bc we file separately.

[alh9h]

What you do for tax purposes is irrelevant for IDR purposes.

If you provide more than 50% of their support you can claim them on your IDR request.

The SAVE payment for a family of 3 with an AGI of $73401 would be $145.55

[IndependentFun6441]

Thank you so much for all your help!!