Is there any news on if/when we’ll be forced off of SAVE?
I’ve made 24 qualifying payments towards PSLF. I’d rather ride out SAVE forbearance as long as possible until we’re kicked off. I want to make sure I have as much money saved up before it’s time to start paying again.
Is this a smart idea? Or would you recommend switching to PAYE as soon as possible?
Stay on SAVE until forced off, or switch to PAYE?
byu/GottiHype inStudentLoans
Posted by GottiHype
5 Comments
The SAVE forbearance does not count towards forgiveness, but PSLF borrowers can submit a buyback request for their months on forbearance once they reach 120 months of qualifying employment if buying back those months in forbearance would result in forgiveness under PSLF. [https://studentaid.gov/manage-loans/forgiveness-cancellation/public-service/public-service-loan-forgiveness-buyback](https://studentaid.gov/manage-loans/forgiveness-cancellation/public-service/public-service-loan-forgiveness-buyback)
It looks like they’ve been using the REPAYE formula, not SAVE, to calculate buybacks for the months on the SAVE forbearance so far. That is 10% discretionary income, the same as it would be if you were on PAYE or New IBR now. So it’s basically a wash if those are current repayment plan options for you. Your buyback calculation would be based on what your income was for the months you’re buying back. You can switch now and make payments monthly and earn time towards forgiveness directly, and/or you can count on buyback later on and pay a lump sum after you reach 120 months of qualifying employment.
There is no set end to the forbearance yet, but expect it “soon” while we wait on the court settlement. If you are eligible for PAYE then that is the lowest plan you are going to get. Also PAYE will be gone by July 2028. You would only have IBR or RAP by then.
I am not eligible for PSLF so I am riding out SAVE until they kick me off. Then I’ll go back to the graduated plan if available.
I made a $5k payment in November and when I went to review the estimated pay off date it had increased by 10 years and decreased my percentage paid by 10. Makes no sense.
If your income is bound to go up in the near future I’d leave it.
Right now your payments are based on the trailing 12 months (you recertify in 2025 with your 2024 income it lasts until 2026)
If you buyback, 2025 would use your 2025 income, which is guaranteed to be at least a little higher due to inflation but for most people with degrees, could be substantially higher due to raises and promotions.
I re entered repayment specifically for this. With proper tax planning it could easily save 10k a year for me.
>I’ve made 24 qualifying payments towards PSLF.
I’m in the same boat as you are and I’m staying on the SAVE train until they pry it from my fingers. Especially with buyback.
I switched to PAYE to maximize the number of the smallest qualifying payments I’ll likely ever be able to make. I should be about 30 payments closer to forgiveness by the time I have to switch to a plan with higher payments.