If you have been following the news lately, you might be just a little confused about the SAVE program – is it the right plan for me? Is it available? What if I’m already in the SAVE program? Well, we, at SDS, take pride in staying on top of the latest changes and making sure you are informed and making sure the SDS application is up to date with the most recent options.
Here’s an update on the status of the repayment plan and what it means for you.
The SAVE plan (formerly REPAYE plan) has been very popular. As of the end of Jan 2024, over 7M borrowers had enrolled in the SAVE program and almost 60% of these borrowers had a SAVE plan with $0 monthly payments.
In June, 2024, a series of federal court cases have put the SAVE plan on hold. As a result, the SAVE program was put on hold by the Dept of Education and any current borrowers in the SAVE plan were put into mandatory forbearance. So, if you are already in a SAVE program, your payment plan is in forbearance, you have no payments BUT you are not getting any credit toward your PSLF months if you are eligible for PSLF.
Unfortunately, if you are trying to become a homeowner, your SAVE plan being in forbearance could have negative impact on your Debt to Income (DTI) determination. If you are in this situation, it would be good to consult your counselor or loan officer.
In the SDS application, we are not displaying the SAVE plan as a recommended option because the forms can be completed but it is not clear when the borrower’s application will be evaluated, if ever. Instead, we display the SAVE program in a new category called “Suspended Plans” so that you know the plan exists but the SDS program will now recommend the best alternative. Log in to see your options.