Which Repayment Plan is best for me? – Savi Help Center

Everyone’s financial goals are different, and there are other factors which might affect which repayment plans you are eligible for.

Every plan displayed in the Savi tool - with the exception of Standard - is an income-driven plan. Any Income-Driven plan (IDR) would be eligible for PSLF. However, they are calculated differently. If your goal is the lowest monthly payment, select the lowest available plan to you. If your goal is to pay off your loans as quickly as possible (this might mean a higher payment), select the plan that is most aligned with that goal.

Think carefully about your financial goals for your student loans, and which plan best aligns with those goals. Also note, for Income Driven Repayment plans, you need to recertify your income every twelve months. The plan you select will only reflect the payment amount until you recertify your income again the following year. This means that if your income increases, your payments will also increase. Same if your income decreases significantly.

*Quick Access:

Here is a general overview of each Income Driven Repayment Plan:

PAYE (Pay As You Earn) is an income-driven repayment plan (IDR) which calculates your monthly payment accordingly:

Generally it's 10% of your discretionary income (cannot be more than your initial Standard Repayment plan amount)
Eligible Loan Types include: Direct Subsidized, Direct Unsubsidized, Direct PLUS loans (graduate or professional students), Direct Consolidation Loans which do not contain any Parent PLUS Loans
These Loan Types are NOT eligible: Direct PLUS Loans, Direct Consolidation Loans which contain Parent PLUS Loans
Repayment period - 20 years

A few other things to consider about PAYE:

To qualify for the PAYE Plan you must be a new borrower. This means that you must have had no outstanding balance on a Direct Loan or FFEL Program loan when you received a Direct Loan or FFEL Program loan on or after Oct. 1, 2007, and you must have received a disbursement of a Direct Loan on or after Oct. 1, 2011.
If you’re married and you and your spouse file separate federal income tax returns, only your income will be used to calculate your monthly payment amount. If you’re married and you and your spouse file a joint federal income tax return, your joint income will be used to calculate your monthly payment amount.
Any outstanding balance on your loan will be forgiven if you haven't repaid your loan in full after 20 years.
This plan will be retired starting July 1, 2024 for new borrowers. If you are already enrolled in this plan, you will be able to remain in this plan as long as you recertify on time each year.

SAVE (Saving on A Valuable Education) is a new income-driven repayment plan (IDR) that has replaced the REPAYE plan, which calculates your monthly payment accordingly:

10% of discretionary income, with no cap. Payments could be higher than they’d be on the standard plan. In July 2024, final improvements will take effect:

Require borrowers to pay no more than 5% of their discretionary income monthly on undergraduate loans. This is down from the 10% available under the most recent income-driven repayment plan. Borrowers with undergraduate and graduate loans will have a monthly payment between 5-10%, based on the weighted average of their loan balances.

Eligible Loan Types include: Direct Subsidized, Direct Unsubsidized, Direct PLUS loans (graduate or professional students), Direct Consolidation Loans which do not contain any Parent PLUS Loans
These Loan Types are NOT eligible: Direct PLUS Loans, Direct Consolidation Loans which contain Parent PLUS Loans

Repayment period
- 10 years for borrowers with original starting principal loan balances of $12,000 or less.
- For each additional $1,000 borrowed over $12,000 one year will be added to the forgiveness timeline.
- 20 years if you only have undergraduate loans
- 25 years if you have graduate loans

A few other things to consider about SAVE:

This plan will raise the amount of income that is considered non-discretionary income and therefore is protected from repayment, guaranteeing that no borrower earning under 225% of the federal poverty level—about the annual equivalent of a $15 minimum wage for a single borrower—will have to make a monthly payment.
Covers the borrower's unpaid monthly interest, so that unlike other existing income-driven repayment plans, no borrower's loan balance will grow as long as they make their monthly payments—even when that monthly payment is $0 because their income is low.
Calculates your monthly payment using just your income, even if you are married filing separately. This will remove the previous requirement that included spousal income even when filing separately, helping keep your monthly payment low.
Forgive loan balances after 10 years of payments, instead of 20 years, for borrowers with original starting principal loan balances of $12,000 or less.
For each additional $1,000 borrowed over $12,000 one year will be added to the forgiveness timeline.
- The maximum time to loan forgiveness will be 20 years for undergraduate loans and 25 for graduate loans.

IBR (Income Based Repayment) is an income-driven repayment plan (IDR) which calculates your monthly payment accordingly:

Generally it's 10% of your discretionary income (if you're a new borrower on or after July 1, 2014) - not to exceed your Standard Repayment plan amount.
Generally 15% of your discretionary income (if you're NOT a new borrower on or after July 1, 2014) - not to exceed your Standard Repayment plan amount.
Eligible Loan Types include: Direct Subsidized, Direct Unsubsidized, Direct PLUS loans (graduate or professional students), Direct Consolidation Loans which do not contain any Parent PLUS Loans
These Loan Types are NOT eligible: Direct PLUS Loans, Direct Consolidation Loans which contain Parent PLUS Loans
Repayment period
- 20 years (if you are a new borrower on or after July 1, 2014)
- 25 years (if you are a NOT new borrower on or after July 1, 2014)

A few other things to consider about IBR:

If you're married, your spouse's income or loan debt will be considered only if you file a joint tax return.
Any outstanding balance on your loan will be forgiven if you haven't repaid your loan in full after 20 years or 25 years, depending on when you received your first loans.

ICR (Income Contingent Repayment) is an income-driven repayment plan (IDR) which calculates your monthly payment accordingly:

The lesser of the following:
- 20% of your discretionary income - OR
- The amount you would pay on a fixed repayment plan over the course of 12 years; adjusted according to your income
Eligible Loan Types include: Direct Subsidized, Direct Unsubsidized, Direct PLUS loans (graduate or professional students), Direct Consolidation Loans which do not contain any Parent PLUS Loans
These Loan Types are NOT eligible: Direct PLUS Loans, Direct Consolidation Loans which contain Parent PLUS Loans.
- **Direct Parent PLUS Loans would be eligible for ICR if consolidated
Repayment period - 25 years

A few other things to consider about ICR:

If you're married, your spouse's income or loan debt will be considered only if you file a joint tax return or you choose to repay your Direct Loans jointly with your spouse.
Any outstanding balance will be forgiven if you haven't repaid your loan in full after 25 years.
This plan will be retired starting July 1, 2024 for new borrowers (with the exception for borrowers with a Direct Unsubsidized Consolidation loan that includes Parent PLUS loans). If you are already enrolled in this plan, you will be able to remain in this plan as long as you recertify on time each year.

The following repayment plans are not income-driven, but are listed to provide clarity to borrowers.

Standard Repayment Plan

Basic information about this plan:

This is the default plan offered by the US Department of Education.
If you do not qualify for loan forgiveness, you may pay less on this plan than you would under an income driven repayment plan.

Additional information about this plan:

Borrowers enrolled in this plan who have not consolidated their student loans are technically eligible for PSLF, but will receive little to no forgiveness if they never switch into an income-driven repayment plan.
Payments are a fixed amount that ensures your loans are paid off within 10 years (within 10 to 30 years for Consolidation Loans).

Graduated Repayment Plan

Basic information about this plan:

This is a plan offered by the US Department of Education that sets a schedule for payments that start lower at first and then increase over time. This schedule is not tied to your income and increases every two years.
All borrowers are eligible for this plan.
You’ll pay more over time than under the 10-year Standard Plan.

Additional information about this plan:

Not a qualifying repayment plan for PSLF.
Payments are lower at first and then increase, usually every two years, and are for an amount that will ensure your loans are paid off within 10 years (within 10 to 30 years for Consolidation Loans).

Extended Repayment Plan

Basic information about this plan:

If you're a Direct Loan borrower, you must have more than $30,000 in outstanding Direct Loans.
All loan types are eligible.
Repayment period of 25 years.

Additional information about this plan:

A borrower can chose to have payments be fixed or graduated
Your monthly payments will be lower than under the 10-year Standard Plan or the Graduated Repayment Plan.
You’ll pay more over time than under the 10-year Standard Plan.
Not a qualifying repayment plan for PSLF.

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