Understanding SAVE Plan Alternatives

2024-06-01

# Understanding SAVE Plan Alternatives

With the SAVE plan blocked by court orders as of 2024, many borrowers are wondering what their options are. This guide explains the alternative income-driven repayment (IDR) plans available.

What Happened to SAVE?

The SAVE (Saving on a Valuable Education) plan was introduced as the most generous IDR plan, offering:

  • 5% of discretionary income for undergraduate loans - 10% for graduate loans - 100% unpaid interest subsidy - Forgiveness after 10-20 years

    • However, legal challenges have blocked its implementation, leaving borrowers in need of alternatives.

    Your IDR Options

    ### PAYE (Pay As You Earn)

    Best for newer borrowers with loans after October 2007 and October 2011. Offers 10% of discretionary income payments with a payment cap.

    ### IBR (Income-Based Repayment)

    Available to all borrowers regardless of loan date. Good option for those with older loans who don't qualify for PAYE.

    ### ICR (Income-Contingent Repayment)

    The only option for Parent PLUS loan borrowers after consolidation into Direct Loans. Has the highest payment percentage (20%).

    What Should You Do?

    1. **Check your eligibility**: Each plan has different requirements 2. **Compare payments**: Use our IDR calculator to see estimates 3. **Consider your timeline**: How long until forgiveness? 4. **Apply**: Submit your IDR application through StudentAid.gov

    The right plan depends on your loan type, income, and forgiveness timeline.

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