Hi guys,
I was accepted into the SAVE Plan, and my new monthly payment is $0. I’m confused about what this means. Does it mean I don’t have to make payments, but I can if I want to? Will interest still accrue if I don’t make any payments? I know the balance can be forgiven after 10 years if you make the payments, but since my payment is $0, do I still need to do anything? I’ve searched everywhere, but I can’t find a clear answer. I appreciate any help, and I feel a bit silly for needing to ask.
A $0 payment on the SAVE Plan means you don’t have to make any payments right now, but interest may still accrue. Your balance might be forgiven after 10 years, but it’s important to stay informed about any changes to your loan and keep an eye on how interest is applied. If you have any doubts, contacting your loan servicer for clarification is a good idea.
According to my interpretation—which might be incorrect, but someone will undoubtedly correct me—you are forgiven for any interest you fail to pay during that particular month. That $25 will be waived if your payment is $50 and your interest is $75. If I’m wrong, I apologize sincerely.
It will be ten years if you’re on a PSLLF. 20 to 25 years if not. It is imperative that you complete your recertification every year.
Once your financial situation has been reviewed, you reach the minimum need to get $0 per month. They take your income into account.