| Payment Amount |
Generally, 10% of discretionary income. |
| Cap on Payment Amount |
None. Your payment may exceed what you would have paid under the standard repayment plan with a 10-year repayment period. |
| Married Borrowers |
You must provide income documentation for yourself and your spouse regardless of whether you file a joint or separate Federal
income tax return unless you and your spouse (1) are separated or (2) you are unable to reasonably
access your spouse's income information. |
| Borrower Responsibility for Interest if Payment Does Not Cover All Interest That Accrues |
- On subsidized loans, you do not have to pay the difference between your monthly payment amount and the remaining interest that
accrues for your first 3 consecutive years of repayment under the plan.
- On subsidized loans after the first consecutive 3 years and on unsubsidized loans during all periods, you are only responsible
for paying half of the difference between your monthly payment amount and the remaining interest that accrues.
|
| Forgiveness Period |
- If you only have eligible Direct Loans that you received for undergraduate study, any remaining balance is forgiven after
20 years of qualifying repayment on all of your loans.
- If you have any eligible Direct Loans that you received for graduate or professional study, any remaining balance is forgiven after
25 years of qualifying repayment on all of your loans.
Forgiveness may be taxable.
Any months when you received an economic hardship deferment are considered the equivalent of qualifying payments, but not any months
you received any other type of deferment or months you received any type of forbearance.
|
| Income Requirement to Enter Plan |
None. |
| Borrower Eligibility Requirement |
You must be a Direct Loan borrower with eligible loans. |
| Requirement to Re-certify Income and Family Size |
Annually. Failure to submit documentation by the deadline will result in being placed on the alternative repayment
plan with a payment that will ensure that your loan is paid in full over a period that is the lesser of 10 years or the
remainder of 20 or 25 years. |
| Leaving the Plan |
At any time, you may change to any other repayment plan for which you are eligible. |
| Interest Capitalization |
Interest is no longer capitalized when you are removed from the plan for failing to re-certify your income by the deadline
or when you voluntarily leave the plan. Otherwise, interest capitalizes at the expiration of a deferment. |
| Re-Entering the Plan |
You must provide income documentation for the period when you were not on the SAVE (formerly REPAYE) plan. Your loan holder will calculate the amount
you would have been required to pay under the SAVE plan during that period and compare that to the amount you were required to pay
under a different plan over the same period. If the amount you would have been required to pay under the SAVE plan is more than what
you actually paid during this period, your new payment amount under the SAVE plan will be increased. The increased amount is equal
to the difference between what you were required to pay while not on the SAVE plan and what you would have been required to pay if
you had been on the SAVE plan, divided by the number of months remaining in your 20- or 25-year forgiveness period. |