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I was reading up on the new SAVE plan and this appears to be newquote:Under the SAVE plan, borrowers whose original principal balances were $12,000 or less will receive forgiveness after 120 payments (the equivalent of 10 years in repayment). For each additional $1,000 borrowed above that level, the plan adds an additional 12 payments (equivalent of 1 year of payments) for up to a maximum of 20 or 25 years. Per the press conference https://www.whitehouse.gov/briefing...-new-save-plan/ "For undergrads, it’s 20 years. For graduate students, it’s 25 years." I believe PAYE/REPAYE was max of 20 years. IBR was 25. I 'think' that for moderately high earners, the new SAVE plan could be worse (trading somewhat lower payments for 5 more years of them) than the PAYE plan and it will be interesting to see how switching between programs is handled. Presumably you wouldn't be able to go to SAVE for 20 years then switch back to PAYE. I'm also interested in how the interest is handled, will it be placed into a suspense account? Forgiving it will have tax consequences once the current law expires in 2026. Edit: Reading further regarding interest, this could help my cousin-in-law depending on how the interest works out. Using fake numbers, let's say she was paying $500/mo on PAYE before, but only $250 of that was principal and $250 was towards interest. Assuming her monthly repayment drops significantly; with the interest changes, if she kept paying $500/mo, would she just wipe out the principal pretty fast, and the interest be forgiven in another decade or two after a few dozen months of paying $0? trevorreznik fucked around with this message at 15:42 on Aug 29, 2023 |
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Aug 25, 2023 17:34
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| # ¿ May 15, 2024 11:37 |
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