The Office of Federal Student Aid (FSA) this weekend quietly launched the beta application for student loan borrowers to enroll in its new income-driven repayment plan (IDR), dubbed the “Saving on A Valuable Education (SAVE)” plan.
Portions of the repayment plan, for which final regulations were unveiled shortly after the United States Supreme Court struck down the Biden administration’s sweeping loan cancellation plan, are being implemented early this summer. Those provisions include increasing the income exemption from 150% to 225% of the federal poverty line, preventing monthly interest not covered under the plan from being charged, and removing the need for a spouse’s income to be required for a payment calculation if married borrowers file their taxes separately.
The refreshed application also comes with several data-sharing changes as outlined in the Fostering Undergraduate Talent by Unlocking Resources for Education (FUTURE) Act. Now, when borrowers enroll in or recertify their income-driven repayment plans, they may give their approval to securely disclose tax information automatically from the IRS, rather than manually entering the information. Once borrowers agree to that disclosure, they will no longer need to recertify their enrollment in an IDR plan — the Department of Education will automatically recertify their enrollment and adjust their monthly payment.
The application for SAVE will only be available periodically during the beta launch. FSA encourages borrowers to test the website. If a borrower is able to complete their application they will not be required to resubmit it once the site goes live. Applicants will also receive an email confirmation once they have successfully applied.
Borrowers can learn more about how the SAVE plan compares to their current repayment plan on FSA’s resource page.
Publication Date: 7/30/2023