• Electricdoggo@lemmy.world
    link
    fedilink
    English
    arrow-up
    17
    arrow-down
    1
    ·
    edit-2
    1 year ago

    It’s a new payment plan, so applies to new student debt as well.

    If I’m reading the StudentAid.gov correctly, the SAVE plan has the following:

    • Increase in income exemption to 225% of poverty line (~$66k/yr)
    • Undergraduate Loans now are 5% of AGI above exemption limit
    • No interest accrued if you make your monthly payment
    • After 10 yrs of payment, if principle loan was $12k or less, loan is forgiven. Payment period increases by 1 yr for every $1k over that amount (e.g. for $20k loan, forgiveness after 18 yrs)