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Important Announcement

Notice for Borrowers on the SAVE plan:  Based upon the timeline for implementation of July 1, 2024 SAVE plan benefits, and the start of annual auto-recertification of IDR plans, some SAVE plan borrowers will likely receive more than one notice from Edfinancial Services about updates to their monthly payment amount and terms of their SAVE plan. For the most up-to-date information regarding your SAVE plan, please log into your Edfinancial account where you can find your correct monthly payment amount and the terms of your plan.

The courts have allowed Federal Student Aid to continue implementing the majority of the provisions of SAVE. Borrowers can continue to enroll in SAVE, other IDR plans, and/or consolidate loans. Check StudentAid.gov for any updates.

Frequently Asked Questions

How do I submit my request for SAVE?

The quickest and easiest way to submit your request for SAVE is to complete the Income-Driven Repayment Request at StudentAid.gov. If you are unable to complete the online request, you can get a copy of the paper request form on our Forms page.

Will my remaining balance be forgiven after 20 or 25 years?

Under SAVE, your remaining balance will be forgiven after 20 or 25 years (you may qualify for forgiveness after 20 years if the loans being repaid under the SAVE plan include only loans you received to pay for undergraduate study, whereas you may qualify for forgiveness after 25 years if the loans being repaid under the SAVE plan include a loan you received to pay for graduate or professional study).

You can view your loan history and details at StudentAid.gov.

Note: The Department of Education (ED) is conducting a one-time adjustment of payment counts toward Income-Driven Repayment and Public Service Loan Forgiveness programs. For more information, visit StudentAid.gov/idradjustment.

Will I have to pay taxes on the amount forgiven under the SAVE plan?

Due to the American Rescue Plan Act of 2021, the balance of your loans that are forgiven under the SAVE plan or any other Income-Driven Repayment (IDR) plan is not considered taxable income for federal income tax purposes. Since state and local tax implications will vary, we recommend you contact your tax advisor for more information.

What is the interest subsidy benefit?

If your monthly payment amount under SAVE is not sufficient to pay the amount of interest that accrues on a monthly basis, the federal government will subsidize 100% of the remaining interest that is due for both subsidized and unsubsidized loans.

This means if you make your monthly payment, your loan balance won’t grow due to unpaid interest.

For example, if $50 in interest accumulates each month, and you have a $30 SAVE payment, then the remaining $20 would not be charged.

I am married but filed my recent tax return separately from my spouse. Do I still have to include my spouse’s income?

No, the SAVE plan excludes spousal income for borrowers who are married and file separately.

I filed my recent tax return with my spouse but now we are separated. Do I still have to include my spouse’s income?

If you are separated from your spouse, you can indicate this during the application process and provide documentation of only your taxable income. Acceptable forms of income documentation can be found in Section 5 of the request form.

I filed my recent tax return with my spouse but I am not able to obtain income information from my spouse or have them sign the request form. What should I do?

If you are unable to access information about your spouse’s income and are not able to have them sign the Income-Driven Repayment request form, you can indicate this during the application process and provide documentation of only your taxable income. Acceptable forms of income documentation can be found in Section 5 of the request form.

What can I use as proof of income for SAVE?

You can provide the first page of your 1040, 1040A, 1040EZ or a tax return transcript. By completing the Income-Driven Repayment Request at StudentAid.gov, you can provide consent for the Department of Education (ED) to obtain your federal tax information directly from the IRS; this will enable ED to automatically recertify your plan annually. To do so, visit StudentAid.gov/idr to opt-in.

If you or your spouse (if applicable) have had a significant change in your income since you filed your last federal income tax return, you may provide one piece of documentation from each source of taxable income for you (and your spouse) dated within the last 90 days. Acceptable proof of alternative documentation of income can be found in Section 5 of the request form.

If you or your spouse (if applicable) do not receive any taxable income, make sure to indicate this within your request as this will serve as your proof of income.

I’m self-employed and my recent tax return doesn’t reflect what I’m currently making. How can I provide proof of my income? (or spouse’s income, if applicable)

You can provide a signed statement explaining that you are self-employed and include your projected gross monthly income from all sources. Please make sure to also include the name and address of your business in your statement.

Should I switch from my current income-driven repayment plan to SAVE?

There are several benefits to repaying your loan(s) under SAVE. In most cases, it offers a lower monthly payment, interest subsidy, and possibly an earlier forgiveness depending on whether your loans were for undergraduate or graduate study.

Use the Loan Simulator on StudentAid.gov. The estimator will display other monthly payment amounts for all repayment plans so you can select the plan that is right for you.

If you are already enrolled in REPAYE, you will automatically be placed on the SAVE plan once it becomes available in Summer 2023.

I’ve been repaying my loans under the Income-Based Repayment plan but want to switch to SAVE. What do I need to do in order to switch to SAVE?

In order to switch from IBR to any other repayment plan, you must first be placed on the Standard Repayment plan. Once you have made one payment on either the Standard Repayment plan or on a reduced-payment forbearance, you can then be placed on the SAVE plan or another repayment plan.

Will the payments I’ve made under my other income-driven plan count as qualifying payments for SAVE forgiveness?

Yes, payments made under other income-driven repayment plans will count as qualifying payments for SAVE forgiveness.

Is SAVE considered a qualifying repayment plan for Public Service Loan Forgiveness (PSLF)?

Yes, payments made under the SAVE plan are considered qualifying payments for PSLF.

If I switch to SAVE, will the payments I’ve made under my other income-driven repayment plan count as qualifying payments for Public Service Loan Forgiveness (PSLF)?

Yes, payments made under other income-driven repayment plans do count as qualifying payments for PSLF.

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