The Saving on a Valuable Education Plan, or SAVE Plan will replace the Revised Pay As You Earn (REPAYE). The borrowers of the SAVE Plan will pay monthly based on their income and family size.
Benefits of Saving on a Valuable Education Plan to the Student Loan Debt
The Saving on a Valuable Education Plan or SAVE Plan is a new student loan. It is a new form of income-driven repayment plan introduced by the United States Department of Education. The SAVE Plan was set to replace the old Revised Pay As You Earn or REPAYE. The borrowers that are already in the REPAYE will automatically get the benefits of the new SAVE Plan.
Some of the benefits of the SAVE Plan are the payments of undergraduate loans will be cut in half compared to other IDR Plans. They ensure that their borrowers never see their balance grow as long they pay their required payments. According to Cory Turner and Emily Olson, the single borrower who earns less than 32,805 dollars a year will not have to make any payments. Borrowers earning above that amount can save more than 1,000 dollars on their payments compared to other IDR plans.
The Save Plan provides the most affordable loan for students. The Saving on a Valuable Pan allows the borrowers to earn more and pay less toward their loans.