Introduction
Hello readers! If you’re like most students, you’re probably worried about how you’re going to pay for college. Student loans can be a huge financial burden, but there are a number of ways to save money on them. In this article, we’ll discuss seven different ways to save money on student loans.
Section 1: Income-Driven Repayment Plans
IDR plans are designed to make your student loan payments more affordable by basing them on your income and family size. There are four different IDR plans available:
Pay As You Earn (PAYE) Plan
The PAYE Plan caps your monthly payments at 10% of your discretionary income. Discretionary income is the amount of money you have left over after paying for essential expenses like housing, food, and transportation.
Revised Pay As You Earn (REPAYE) Plan
The REPAYE Plan is similar to the PAYE Plan, but it has no income limit. This means that even if you have a high income, you may still be eligible for a lower monthly payment.
Income-Based Repayment (IBR) Plan
The IBR Plan caps your monthly payments at 15% of your discretionary income. This plan is available to both undergraduate and graduate students.
Income-Contingent Repayment (ICR) Plan
The ICR Plan caps your monthly payments at 20% of your discretionary income. This plan is only available to undergraduate students.
Section 2: Student Loan Forgiveness Programs
There are a number of student loan forgiveness programs available, including:
Public Service Loan Forgiveness (PSLF) Program
The PSLF Program forgives the remaining balance of your federal student loans after you have made 120 qualifying payments while working full-time for a public service organization.
Teacher Loan Forgiveness Program
The Teacher Loan Forgiveness Program forgives up to $17,500 of your federal student loans if you teach full-time for five consecutive years at a low-income school.
Perkins Loan Cancellation Program
The Perkins Loan Cancellation Program cancels your Perkins Loan if you work in certain public service jobs, such as teaching, nursing, or social work.
Section 3: Other Ways to Save Money on Student Loans
In addition to the IDR plans and loan forgiveness programs described above, there are a number of other ways to save money on student loans, including:
Making extra payments
Even if you can only make small extra payments each month, it can add up over time and save you money on interest.
Refinancing your loans
If you have good credit, you may be able to refinance your student loans at a lower interest rate. This can save you money on your monthly payments and the total amount of interest you pay over the life of your loan.
Consolidating your loans
If you have multiple student loans, you may be able to consolidate them into a single loan with a lower interest rate. This can simplify your repayment process and save you money on interest.
Section 4: Table: Comparison of Student Loan Repayment Options
| Repayment Option | Monthly Payment Cap | Income Eligibility | Loan Forgiveness |
|---|---|---|---|
| PAYE Plan | 10% of discretionary income | No income limit | Yes, after 20 years of payments |
| REPAYE Plan | 10% of discretionary income | No income limit | Yes, after 20 years of payments |
| IBR Plan | 15% of discretionary income | Available to undergraduate and graduate students | Yes, after 25 years of payments |
| ICR Plan | 20% of discretionary income | Available to undergraduate students only | Yes, after 25 years of payments |
Conclusion
There are a number of ways to save money on student loans. By exploring the options discussed in this article, you can find a plan that works for you and helps you achieve your financial goals.
If you’d like to learn more about saving money on student loans, please check out the following articles:
FAQ about Save Program Student Loans
What is the Save Program?
The Save Program, also known as the Student Aid Volunteer Education (SAVE) Program, is a federal program that provides loan cancellation to certain individuals who volunteer in the public interest.
Who is eligible for the Save Program?
To be eligible for the Save Program, you must:
- Be a U.S. citizen or national
- Have a federal student loan
- Not be in default on your student loans
- Meet one of the volunteer service requirements
What volunteer service requirements are there?
There are three volunteer service requirements for the Save Program:
- AmeriCorps service
- Peace Corps service
- Teach for America service
How much is the loan cancellation?
The amount of loan cancellation you receive depends on the type of service you performed and the length of your service.
- AmeriCorps: You can receive up to $1,500 in loan cancellation for each year of service (up to a maximum of $4,500).
- Peace Corps: You can receive up to $6,000 in loan cancellation after two years of service, and up to $8,000 after three years of service.
- Teach for America: You can receive up to $17,500 in loan cancellation after four years of service.
How do I apply for the Save Program?
To apply for the Save Program, you must complete a SAVE Certification Application. You can obtain the application from the National Student Loan Data System website.
When is the application deadline?
The application deadline for the SAVE Program is November 15th of each year.
How long does it take to process my application?
Processing time for SAVE Program applications varies. However, the National Student Loan Data System website states that applications typically take 8-12 weeks to process.
What happens if my application is approved?
If your SAVE Program application is approved, the loan servicer for your federal student loans will cancel the eligible portion of your debt.
What happens if my application is denied?
If your SAVE Program application is denied, you can appeal the decision. The appeal process is detailed on the National Student Loan Data System website.
Where can I get more information about the Save Program?
You can get more information about the Save Program by visiting the National Student Loan Data System website or contacting the Federal Student Aid Information Center at 1-800-4-FED-AID.