LogFAQs > #974637836

emblem-man posted...

I'm curious if the person have to be under the SAVE plan for the whole 20 years. As in, if they ever make more than that 67k, are they essentially kicked off the program? I hope it's not a cliff style dropoff.

If it works like the previous REPAYE plan, it's 20 years in any IDR plan, so if you've already built some years in REPAYE, those should count towards the 20 year forgiveness plan. That's just an assumption, though, we'll have to get more guidance when this goes into effect.

[LFAQs-redacted-quote]

This will replace the existing REPAYE IDR plan. If you are already on a REPAYE plan, you will automatically get transferred over to it. If you are on any other plan, you will have to apply. The application will come out later this summer and you should be notified by your loan provider.

[LFAQs-redacted-quote]

No, as mentioned earlier, any interest you didn't pay gets "forgiven" on a month-to-month basis as long as you make your minimum monthly payment. Then, after 20 years, whatever you have leftover is forgiven for good.

The only question I have about this is, if you have a $0 monthly payment because you are under the exemption guidelines, do you get 100% of your loans forgiven after 20 years?

My initial guess is yes, because that's how PSLF works, where paying $0 for 10 years still qualifies you for the forgiveness at the end, as long as you continue to qualify for the $0 payments.

So this would be a big win for the lower class, who essentially get their loans forgiven (albeit after 20 years). But this is also a win for the middle class, who will get their monthly payments lowered with basically no downside.