After a two-month hiatus, the online program for IDR plans is back, but options remain limited.
For most SAVE borrowers,it’s wise to wait for a resolutionrather than make a change.
What’s going on with the SAVE student loan plan?
Earlier this year, two separate groups of Republican-led states sued to block the SAVE plan.
One case successfully obtained an injunction from a federal court, which put SAVE on hold.
“This means that they do not lose any money by being in the plan.
The only thing they lose is time, since months in forbearance do not count toward forgiveness.”
Read more:Student Loan Forgiveness on Hold Again.
For one, changing plans could increase your borrowing costs.
Currently, your options for other income-driven repayment plans are also limited.
Even though the online tool is available again, most borrowers can only jump into the Income-Based Repayment plan.
“The court cases will eventually be resolved,” said Kantrowitz.
But that doesn’t mean you should jump ship just yet.
“A court ruling on the SAVE repayment plan final rule is imminent,” said Kantrowitz.
“That is likely to be appealed to the US Supreme Court.
Just see to it you meet the requirements.
Typically, IDRs require 20 to 25 years of on-time payments to qualify for debt cancellation.
“They may prefer to stay in a repayment plan that avoids such possibly extensive delays.”
The tool should take 10 minutes or less.
You’ll need your FSA ID, personal details and financial information.
Pro tip:Due to processing delays, switching to a new plan could take time.
It might also result in higher monthly payments and increased interest charges.
Weigh the pros and cons before making any moves.
Ultimately, the decision on whether to leave the SAVE repayment plan depends on your priorities and repayment situation.
