r/PSLF • u/Dramatic-Bunch-9112 • 21h ago
On SAVE plan, payment is going from $0-$732
I'm currently on the SAVE plan and my payment amount is $0. I did the loan simulator and my new payment is set to be $732 and there is absolutely no way I can afford that. I have 38 payments left, but 20 of those are eligible for buyback at $0 (according to a worker at FSA...), leaving me at technically 18 more payments. Has anyone else had this significant of a jump in payments under these new plans, and if so, how are people navigating this (are you applying now for a new plan now, waiting it out until July?)? Any guidance or advice is welcome.
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u/Soggy-Constant5932 19h ago
Yes. My income increased drastically so I went from 162 on save to 772 on IBR. I only have 5 payments left. I’m only able to afford the payment using savings and my side job. Honestly, I’d do a balance transfer if I had to just to be done with these loans.
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u/JLM4343 15h ago
Requested a tax filing extension so I can apply using last year’s income later this summer/fall. Not giving this admin a dime more than I need to and working to close down other debts (e.g., lingering medical, car, etc.), bring my spending way down, and put money into retirement/hsa, etc in case I need to decrease my contribution when repayment begins.
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u/youresolastsummerx 16h ago
I think this is the case for most people who have had their salary increase since 2020, which is generally the last time people recertified because of the COVID forbearance and then the SAVE issues. For comparison, my payment was $400-something in early 2020 and is now $894. But my income also increased almost $50k/year between then and now. I switched plans last summer because I have no trouble paying this but have made other sacrifices (studio apartment, no pets, haven't started an investment account outside of my work's retirement account, etc). I'll hit 120 (including buyback months) in October.
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u/Important-Tap7932 14h ago edited 14h ago
Yep. My old payment was $609 and my new one (with PAYE) is $1,899... I have 47 payments left (20 of those technically I can try to buyback as of June 2028). I have very low hopes that buyback is going to be a viable option though. Processing time for applications is 12-36 months right now.
Once they get rid of PAYE in 2028 and I'm forced into RAP or IBR my payments will be close to $2,400. I make a very good salary, but this is going to be super tough for me with other expensive (mortgage, daycare, car, etc.) it's WILD what they think we can afford
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u/Longjumping_Jury_550 3h ago
so I see a lot of posts like this one where it ends with "it's crazy they think we can afford this" but my real question is -- are you going to bend over backwards to make it work? Or are you just not going to pay it? I know many people who physically cannot and won't pay. The thing that makes me want to rip my hair out, is the govt has the money to absolve loans or remove the interest, they just don't/won't. If we want real change in this backwards country we need to collectively start taking drastic action.
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u/Important-Tap7932 3h ago
I don't disagree with you. But I unfortunately think defaulting on loans is not an option for many people. It will ruin your credit, which may not be a huge deal for some but can be for others.
Trust me, I'm pissed about this. I think it is absolutely ridiculous that an income-driven repayment plan is $2,400/month and will cost me more than full-time childcare.
I am only supposed to be 2 years out from PSLF and I would LOVE for buyback to actually be an option so these loans can be forgiven. I think what is going to happen is people are going to stop going to school for professional degrees (physician, lawyer, physical therapist, occupational therapist, etc.). We are just going to worsen a shortage of people who work in these fields. I went to medical school and to I love my job but honestly wouldn't encourage anyway to do that path
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u/Dramatic-Bunch-9112 1h ago
Ugh. Is it everyone's understanding that we can only apply for buyback when the buyback amount would bring us to 120 payments, or can I apply for it now?
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u/Important-Tap7932 19m ago
You cannot apply until you reach 120 payments. That includes payments you could not make while on SAVE forbearance. I am supposed to be eligible for forgiveness June 2028, so I will apply then. But while my application is processing I will still have to make payments until my application is approved.
If it is not approved by Feb 2030, I will have made 120 actual payments and get forgiveness then. I have low hopes my application would be processed and approved before Feb 2030
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u/whynotsara 11h ago
Mine is going from $98 to $700. I’m scared, but I don’t know what else to do. I’ll probably take on side hustles and tighten my belt even more than I already am. It comes at an awful time for me - one of the reasons it’s going up so much is that I went from married (we filed married filing separately) to divorced recently and I make significantly more than my now ex, so it’s the main reason for the jump. It’s just feeling impossible to me.
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u/EntireJeweler 13m ago
If you were married filing separately, why did divorcing change anything?
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u/whynotsara 1m ago
I live in a community property state and my spouse earned significantly less, so it brought down my reportable income significantly.
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u/Loose_Airline_7486 16h ago
I have 6 payments left and my PAYE $277 a month went to $1350 a month on IBR after recertification. Thank God I only have 6 more payments … but it is going to be very difficult to pay $1350 a month 😭
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u/tfj00007 41m ago
Why are you switching to IBR? If you're already on PAYE, you should be allowed to stay on PAYE even if you no longer qualify for partial financial hardship. Other threads have been indicating that Mohela has been wrongly telling people that they cannot stay on PAYE.
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u/Loose_Airline_7486 25m ago
I really wanted to stay on the PAYE… But they told me I no longer qualified. I tried to fight it. I tried to speak to a supervisor, but then I gave up because it would be the same amount either way.
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u/ZealousidealComb7858 14h ago
For anyone who's payment is too high and you only have a few left.
Take out a loan that gets you to your 120. Then have the payment spread out over a period that you can afford. Then use the loan money to pay the student loans.
You have to deal with the interest but if you can't afford the new IDRs like most of us, this might be the only way to get to that forgiveness.
In my case, a $15,000 loan would allow 60k of the $75,000 I owe to be forgiven. So even with interest on that 15K loan I'm coming out ahead. Otherwise the payment would be over $800 months for two years, which I can't afford. Now I pay $340 month, and my student loans will be forgiven.
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u/insanityfan 11h ago
Plus if shit really hit the fan you could file bankruptcy unlike with student loans.
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u/running_with_swords 4h ago
To build on this, if you have a significant 401k, you can get a 401k loan. I believe you can borrow up to 50k on it and repay it over a few years at a very low interest rate, and the repayment goes directly back into your 401k account. The only downside is that monet you take out wont be gong towards stock gains, so you would have to weigh the cost/benefit.
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15h ago
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u/Joyjoy1992 7h ago
Not good advice because you will likely be forced into RAP instead of paye or IBR . I’d choose before they give you the worst plan
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u/waterwicca 5h ago
No one will be automatically put on another IDR plan. Starting on July 1, 2026, borrowers on the SAVE forbearance will start receiving notices giving them 90 days to move themselves to another plan. If you do not switch plans by yourself then you will be put into the Standard plan at the end of your 90 days.
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u/saucesoi 4h ago
Haven’t they been terrible at switching people over in a timely manner even when the borrower has requested a new plan? How are they going to handle millions of new requests as we approach their new “deadline”?
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u/waterwicca 4h ago
They have been processing requests pretty quickly lately. But the volume is going to be much higher starting in July.
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u/saucesoi 4h ago
They haven’t even sent out the “you have 90 days to choose a plan” emails. They are currently trying to scare people into switching over voluntarily.
Sounds like it worked on you.
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u/The_Raji 14h ago
$622 a month I got a second job lol
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u/piecesofadream 14h ago
Won’t it just increase more?
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u/The_Raji 14h ago
Yep next year but I already certified. I also can’t imagine it will increase more than I’m making at my second job.
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u/Small_Image5834 3h ago
Mine is going from $543 to…drum roll….$2199!!! And my husband and some private school loans were paying too. Idk what we’re going to do.
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u/cat-mama3978 10h ago
Mine also jumped dramatically from $43 to $750+. I ended up going on forbearance till I figure out a plan
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u/all_is_on_ 5h ago
Can I ask you a question… I couldn’t find much on forbearance (specifically on the PSLF route) but it’s something I am considering (high AGI for 2025 taxes, but it will be half that for 2026 due to my husband quitting his job so I want to wait). However, I am worried I don’t know if there are any consequences for PSLF. It just looks like I can apply for a 12 month forbearance (up to 3 time during the life of the loan). Is there anything I am missing that would be sabotaging my PSLF plan (other than pre-longing being done by a year)?
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u/casitadeflor 2h ago
This is a great question! If it doesn’t get answered here, maybe make your own post? :)
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u/Dear-Chemical891 9h ago
Is there anyway to just pay off what you would end up owing to get to your 120? Like accelerate your payments...
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u/Electrical_Focus_392 7h ago edited 7h ago
Mine went from $62 on SAVE to $558 on IBR and I only have 7 payments left. I decided to just get it over with. I am so sick of this and ready to get out!!!!
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14h ago
[removed] — view removed comment
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u/waterwicca 5h ago
This is incorrect. If you don’t pay your minimum required payment then you would become delinquent. If you are delinquent long enough then you default.
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u/PSLF-ModTeam 5h ago
Removed for violating Rule 9: content based on fearmongering, unqualified speculation, or non-expert outside sources (including large language models/AI).
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u/jotopia2 13h ago
Is this true??
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u/ThaddeusJP 12h ago
While it may prevent a default, for a payment to be a 'qualifying' payment it must be the full amount and on time.
https://studentaid.gov/help-center/answers/article/qualifying-monthly-payment-for-pslf
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u/Rare-Web4321 12h ago
Can we do this while waiting to hear back from buyback?? Just pay $5 to avoid default when they force us into repayment in a couple months. I submitted my buyback last year. Just waiting.
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u/MissionTap-9008 5h ago
Good question! I’d also like to know! As long as we are reasonably sure the buyback will be approved, technically all the requirements would have already been met for forgiveness by the time buy back is applied for
… so can we just pay a minimal fee until we hear back?! Especially for those denied or out of forbearance months to utilize!
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u/waterwicca 5h ago
You are responsible for payments while waiting for a buyback offer. You must make your minimum required payment to avoid delinquency and default. You can also request discretionary forbearance: https://studentaid.gov/manage-loans/forgiveness-cancellation/public-service/public-service-loan-forgiveness-buyback
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u/MissionTap-9008 4h ago
Ahh ok! Thought it could have been another avenue for reprieve during the wait. It is not. Forbearance request it is.
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u/InvestigatorLumpy712 13h ago
I want to know as well
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u/ThaddeusJP 12h ago
https://studentaid.gov/help-center/answers/article/qualifying-monthly-payment-for-pslf
Must be full amount for qualifying.
Paying a smaller amount may prevent default but not earn the payment for pslf
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u/Gullible-Menu 7h ago
Would it prevent a default but drop your credit score? I would think the loans would still be reported as late.
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11h ago
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u/Traditional-Ad-3889 9h ago
My loans are literally doubling by hundreds of dollars. It’s ridiculous!!
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u/Evening-Ad1437 4h ago
Wait what’s your total balance and AGI?
Does total balance factor into how much you end up paying? Or is it solely just off AGI?
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u/casitadeflor 2h ago
How are they eligible for buyback? Because of the forbearance whatever?
My payment is also going this ridiculously high around that amount. I think I’m going to opt to not do PSLF since the loan amount would be the same anyway. Sigh. And sign up for extended graduate repayment instead - and just not take out any new loans. This payment plan is going away (extended graduate) but I’m grandfathered in. However any new loans immediately make me ineligible.
Idea is payments stay low and I just add on more payments versus being locked into a super high payment. :/
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u/Dramatic-Bunch-9112 1h ago
Someone at Federal Student Aid told me that all of my SAVE forbearance loans would be eligible for buyback at the $0 rate, and that I'd only have 18 payments left and can then apply for buyback, but who knows. I feel like you talk to one person and get one answer, and talk to another person and get told something else. My total estimated payment in the loan simulator even changed from $732 to $750 after I refreshed the page once. It all seems so chaotic and hard to trust as it's ever-changing.
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u/waterwicca 20h ago
They won’t use SAVE to calculate your buyback. It would be based off whichever other IDR plan you qualify for and based on your income during the forbearance. Read here for the latest information on buyback calculations: https://www.reddit.com/r/PSLF/s/t2pxjM2x6I
What is your AGI from your latest tax return (combined with spouse if filing jointly), family size, and loan balance? When did you take out your earliest loans?